Purchasing a property, especially if you’re doing so for the first time, can be challenging since it involves a complex and cumbersome set of laws. As a homebuyer, it makes sense to do some leg work and get to know some basic rules before buying property. Here are five real estate rules all homebuyers should be aware of.
Type of Property Being Purchased
According to the Real Estate (Regulation and Development) Act of 2016, the rules for the purchase of a property that is under construction and a property that is ready-made are different. How? Well, if you have any grievances against the property builder, you will have to address the state Real Estate Regulatory Authority (RERA) in case of a property that is under construction and the district consumer dispute redressal tribunals in case of a property that is ready to move in.
Additional Read: Planning To Buy A Home For The First Time? Make Sure To Follow This Home Buying Guide
Without proper registration, an individual cannot become the legal owner of a property. As per the Indian Stamps Act of 1899, any individual purchasing a property is required to pay 1% of the property amount as registration fee as well as 4-10% as stamp duty. Only after registration can one become the lawful owner of a property.
Renting the Property
The Draft Model Tenancy Act of 2015 was introduced to change the way the real estate sector functioned. According to this Act, a landlord or landlady, though rightful owners of the premises, cannot enter therein without giving the tenant a written notice 24 hours prior to their arrival under any circumstances (be it for inspection or renovation or any other reason).
When you plan on putting your property out for sale, do keep in mind that as per the Income Tax laws, you will have to pay capital gains tax on the profit that you make. If you wish to save on taxes, you can opt for either of the two options – seek the help of government schemes or invest in some other fixed property.
Additional Read: How To Calculate Resale Value of Your Property?
Transfer of Property
The laws that govern the transfer of property have been laid down under the Transfer of Property Act of 1882. As defined by the Act, any kind of property can is transferable by an individual “competent to contract and entitled to transferable property, or authorized to dispose of transferable property not his own”. Though property transfer is permissible as a gift, sale, or handover; an individual is not allowed to gift any property that they plan on owning in the future.
Purchasing the home of your dreams is now possible with plenty of finance option such as a home loan options. Tata Capital Housing Finance Institution grants home loans ranging from Rs. 2,00,000 to Rs. 5,00,00,000 depending upon your home loan eligibility, with home loan interest rates starting at just 9.25%. Rs. 2,00,000 to Rs. 5,00,00,000 depending upon your eligibility, with home loan interest rates starting at just 6.9%.