Home and Lifestyle Tips

1. Deed of Sale Document

A Sale Deed is the most important legal document that acts as proof of sale and records the transfer of ownership of the property from the seller to the buyer. This document needs to be compulsorily registered at the sub registrar’s office under whose jurisdiction the property falls in. It is imperative that before the Sale Deed is executed one should implement the sale agreement and check for conformance of various terms and conditions as laid in the sale deed.

2. Khata Certificate

Khata certificate or extract is an important legal document for the registration of a property and is known by different names in different places. It is essential if you want to transfer the property to someone else at a later stage.
This document is proof that the property is entered in the records of the local municipality and the construction was carried out according to a plan. This paper is essential if you are applying for a home loan.

3. Power of Attorney

This piece of paper is required as a proof of whether the sale or purchase is done by an authorised person in the interest of the owner of property. This legal document needs to be produced in original if you are intending to apply for a home loan.

4.Copy of Building Plan

A copy of the building plan must be acquired by the buyer approved by the statutory body to establish that the construction of the property has been carried out following all the rules and regulations.

5. No Objection Certificate

There are as many as about 20 NOCs that needs to be obtained by a developer from different authorities before starting to build a housing project. Ask the developer for copies of these NOCs and file them for your record.

6.Building Plan Document

A copy of the approved building plan must be acquired by the buyer to establish that the construction has been carried as per the laws.

7. Sale Agreement

This legal document records all the information about the property – the terms and conditions, possession date, payment plan, specifications, facilities etc.
The agreement is one of the most important legal documents that holds the developer accountable for the construction of the property. This document needs to be produced in original for property purchase and while applying for home loan.

8. Allotment Letter

An allotment letter is one of the most important certificate that needs to be produced in a bank before applying for a home loan. It is issued by a developer or the housing authority, listing the description of the property and an account of the amount paid by the buyer. An allotment letter is issued on the letterhead of the housing authority while a sale agreement is a document made on stamp paper.
An allotment letter is issued only to the first owner and other owners can ask for a copy of the original papers.

9. Possession Letter

This legal document is provided by the developer to the buyer and sets a date on which the former will grant the latter the possession of the property. The original copy of this document needs to be shown while applying for a home loan.

10. Payment Receipts

The original payment receipts need to be provided by the developer to the buyer if you are buying a property. If you are buying a resale property, ask for a copy of all the receipts so that it can be produced in the bank.

11. Property Tax Receipts

Property owners need to pay taxes.Make sure that the previous occupier/owner had paid property taxes and no pending dues are left. It also establishes the legal status of the property.

12. Encumbrance Certificate

An Encumbrance certificate establishes that the property does not have mortgages or legal dues pending for payment. This is one of the most important legal documents that need to be provided to the bank before applying for a loan. In India, Form 15 is issued if the property has encumbrances against it; else Form 16 will be given to the owner clearing the owner of all encumbrances.

13. Completion Certificate

This legal document is essential for obtaining a home loan. This certificate reiterates the fact that the building has been constructed according to an approved plan.

14.Certificate of Occupancy

An occupancy certificate is issued to the developer by the local authority to establish that the building is ready for occupancy and the construction has been done as per as established plan.

Adinath Buildwell focused on satisfying customer’s requirements rather than commercial gains, someone whose offerings are unbiased and tailor-made for the buyer’s satisfaction is key to efficiency and profitability. We strongly urge you to get in touch with us all your needs, doubts and queries and let us help you find your dream home

1. Apartments

Apartments are multi-storeyed buildings comprising numerous individual housing units. When compared to villas and plots, apartments are the most sought after and sold properties in India. Contemporary looks, Modern Amenities, and Better Security are some of the reasons why they are preferred. Unless the buyer has an intent to design his own property Apartments for sale have been the top choice consistently. It is advised to homebuyers that after analysing various aspects like budget, location, and other preferences, make a decision from the plenty of options available in ready to move in flats.

• Scope of Return on Investment

Some homes are purchased from an investor’s perspective. From an investor’s standpoint, factors like Rental Yield and Capital Appreciation are key. These properties are generally rented out. What’s left to be considered is external factors like Location, Accessibility, and Demand for the Properties for sale in a specific locale which impact the overall financial prospect of the property. Apartments are known to have high resale value and a wider buyer base. As the demand for flats is generally higher, it is understood that finding a buyer for a flat is easier.

One aspect where apartments lag behind their counterparts is Appreciation. Primarily, appreciation is realized on the value of the land. So, when it comes to apartments, the wear and tear of the building increase the rate of depreciation.

• Impact on Tax

A person can avail some tax benefits when he or she buys an apartment. In case of the self-possession of the property, a taxpayer is eligible to avail tax rebate of up to Rs 2 lakh on the interest paid per financial year. Additionally, they can avail Rs 1 Lakh on the principal amount paid.

In the case of renting the property out, the rent collected is taxable as it is considered income.

2. Plots

Plots are the basic units of land with no built-up space. They are ideally bought by people looking to build their own home as per their taste and need or an investor seeking to reap heavy profits on their investment.
In any scenario, building a house is a meticulous task. If one’s thinking of building a home, considering the extent of financial backing as the owner land, construction, architects, designers and labour cost. Let’s not forget it is extremely challenging and time-consuming to buy plots for sale and build a home. Financially speaking, banks to give loans for purchasing plots but they are relatively stern and different when compared to the loan for an apartment. If we were to take an example, the loan limit for a land purchase loan is lower than the loan limit for a constructed structure. What this means is that one has to shell a larger down payment for plot when compared to a flat.

• Scope of Return on Investment

It’s a known fact that plots can’t be rented out without any built structure. But interestingly, when compared to apartments plots have higher rates of capital appreciation which is seen when the sale is done in a lucrative market scenario. One more factor is the proportionality of demand and supply. The ideal time is when the demand is higher than supply.

• Impact on Tax

In the case of loan for a plot purchase, one is not eligible for tax exemptions. If a structure is being built on the plot then one can avail tax exemptions for the loan amount sanctioned for the construction. This can be done only after the construction is completed. Another important fact is that if a plot more than 500 square metres in the area is vacant then it is liable for a wealth tax.

3. Houses/Villas

People who prefer privacy choose to buy independent houses and villas for sale. The disadvantages that come with the purchase of an individual house or villa are lack of security and power and water backup. However, what’s interesting is that in gated communities, property developers offer security and power back up with a wide range of options and shared amenities. These are features that societies give.

• Scope of Return on Investment

Coming to the financial aspects of individual houses for sale and villas, capital appreciation is low compared to apartments and plots which is due to the higher capital initially and lacklustre demand later. 

The rental yield is higher when compared to apartments but when this is calculated with respect to initial capital invested. But let’s not forget that its relatively difficult to find tenants for villas when compared to apartments.

• Impact on Tax

In case of the self-possession of the property, a taxpayer is eligible to avail tax rebate of up to Rs 2 lakh on the interest paid per financial year. Additionally, they can avail Rs 1 Lakh on the principal amount paid.

In the case of renting the property out, the rent collected is taxable as it is considered income.

We at Adinath Buildwell have always been of the belief that apartments are a better option when compared to plots and villas looking at the advantages that it has. But what we educate our customers is that they should be perfectly apt for their personal taste and needs.
Hence, we suggest our homebuyers to take a decision that suits them right and enjoy the comforts of their future dream home.