Buyer’s Guide

EMI Calculator

Frequently Asked Questions

The Real Estate (Regulation and Development) Act, 2016 (the Act, from hereon) is an initiative by Indian Government to enhance transparency in the real estate related transactions by creating a systematic and a uniform regulatory environment, thereby protecting consumers’ interest and making real estate developers liable for timely completion of projects.

As per the RERA rules, the consumer is entitled to receive information about the sanctioned plan, approved layout plan, stage wise progress of the project, carpet area and facilitation of basic amenities & services such as drinking water, electricity, sanitation etc.

a. The consumers can claim possession of the unit and the association of consumers can collectively claim possession of the common areas as declared by the real estate developer.

b. In case the real estate developer fails to meet the timeline or does not deliver what was promised then the consumer has the right to claim refund of amount paid with prescribed interest and compensation for the same

a. It is mandatory for the consumers to make payments on time to the real estate developer as per the agreement. He/she is also liable to pay the share of registration charges, municipal taxes, maintenance charges, ground rent, electricity charges, water supply charges etc.

b. Once the real estate developer issue the occupancy certificate, the consumer is required to take possession within two months

c. The consumer is liable to pay prescribed interest if he/she fails to make timely payments for his purchase

d. It is mandatory for a consumer to actively participate in the formation of an association, a consumer federal or any cooperative society

e. A consumer must participate towards the registration of the conveyance deed of the unit

The buyer is liable to pay stamp duty

TDS- 1% on immovable properties (except agricultural land) exceeding Rs 50 lakhs.

Stamp Duty – Depending upon  state and municipal laws

Service Tax- It is a central tax paid for the services offered by the developer to you.  From April 1, 2015 onwards, if the apartment is worth less than Rs 1 crore, or has a floor area less than 2000 sq ft, the service charge levied is 14% on car parking and preferential location charges (PLC) and 3.50% on the basic sale price.  If the apartment is worth over Rs 1 crore, or has a floor area greater than 2000 sq ft, the service tax levied is 14% on car parking and preferential location charges (PLC) and 4.2% on the basic sale price of the flat.

Clear and marketable Title, Sale Deed, Encumbrance Certificate, latest tax receipts, Occupancy Certificate, Building Plan Approvals and Possession Certificate.

Sale Deed, No Objection Certificate (NOC) from builder, NOC from banks, Building Plan approvals, Completion Certificate, PAN Card and Photographs.

Property valuation is done by multiplying the built up area of the property with the cost of construction per square feet. This is the usual method followed by most banks.

Home insurance policies cover the house structure as well as its contents or possessions. Many insurance policies also combine various personal insurance features too.

It is generally advantageous to go for a home loan as it helps you in availing tax benefits. However, please consult your CA or tax advisor to discuss the advantages and disadvantages in your case.

You have to submit the following documents:

  • Proof of Identity: PAN, Driving license, Voter ID, Aadhar Card
  • Proof of Income:
  1. Salaried Applicants: Latest 3 Months salary slip showing all deductions and Form 16 for the last three years.
  2. Self Employed Applicants: IT returns for the past 2 years and computation of income for the last 2 years as certified by a CA
  • Bank Statement: Past 6 months
  • Guarantor Form (Optional)

Under the Pre-EMI option, the borrower is required to pay only the interest on the loan amount that will be disbursed as per the progress on construction of the project. The actual EMI payment starts after the possession of the house.

EMI or Equated Monthly Installment is a fixed amount paid by you to the bank on a specific date every month. The EMIs are fixed when you borrow money from the bank as a loan. EMI’s are used to pay both interest and principal amount of a loan in a way that over a specific number of years, the loan amount is repaid to the bank with interest.