The register of real estate under construction is sanitized in relation to the revention. The timing of real estate registration is also crucial. This will have a significant impact on the capital gain of the property. As I shared, I will discuss the impact of real estate records on capital gain in my subsequent article. Let`s look at the 5 most common types of real estate registries under construction. Suresh Krishn, president-elect of the Confederation of Real Estate Developers` Association of India (Credai), said Moneycontrol said it was just a clarification. Tamil Nadu follows a dual convention system, since both land and buildings are registered separately from the concession agreement. So far, a new home buyer only registers the title for the undivided share of the area, for which you have to pay 8% registration fee. (stamp duty – registration fee) Who has to bear stamp duty and registration fees when they are opposed to the construction contract? Is it the buyer or the builder 3. The property value is smaller than the circle rate: I discussed this point in detail in my article that if the district rate is more than market value. You can go through the article for more details.
The only word of caution is that the difference between the circular rate and the value of the real estate is imposed on the buyer as „income from other sources.“ For example, if I bought a property for 40L and the circle rate is 60L. In this case, I can register a property at 40L. I will pay stamp duty and registration fees at the county rate, which is 60L. So far, so well, but the biggest problem is that the difference, that is, 20L, is taxed as income from other sources. It is taxed according to my income tax base. The move follows in the wake of a few under-registration points that require the registration of the built-up area with the country`s UDS, which causes great distress, psychological torment, in addition to the fact that the Allottees entail huge and unnecessary costs for the registration of built land that is not authorized by law. Registration fees are 2% (1%, stamp duty 1%) construction costs. As a general rule, buyers are confused by the way the agreement is executed if the bank insists on registration.
Any real estate transaction is very risky, especially if you are buying real estate under construction. I highlighted critical points in my speech, Under Construction Property – 7 Imp Points. In one case, a buyer registered the property that is in the pre-launch phase. This means that not all project launch permissions are available, but the registration is complete. In this case, both the owner and the bank have preserved their financial interests and all the risk is on the buyer`s shoulder. If I objected to such an agreement, then the buyer replied that the bank approved the home loan. I mention this point in almost all my articles that Home Loan is like any other personal credit. A property is mortgaged as a bank/insurance guarantee against a loan. Approval of the home loan does not mean that the project is WITHOUT RISK. We check the process of registering construction sub-properties. Before that, I want to make it clear that there is no standard procedure for this. I simply share what I see as the right way to protect a buyer`s interests.
„Sign up under building land to get a home loan,“ a bank employee told one of my clients. My client was confused. It was under the idea that property under construction could only be registered at the time of possession. Too late, banks insist that borrowers register before owning real estate when you use a home loan. Although it is mandatory to register construction real estate under subsidy schemes, it is at the discretion of the bank. From the buyer`s point of view, it is a mixed bag. Depending on the case-to-case basis, it may be advantageous to register under construction real estate. We will discuss this in a later part