Some facts and figures for buying property in a metro like Mumbai where the pool has become dirty with many different types of fishes. Jotting down some of my personal experience. There was no one to guide me :(. So i thot y not put it here so that some other naive person may find it useful.
# Brokers : The most dirtiest fish in the pond. I couldnt even find a single genuine estate agent in two years. Now-a-days every bunty bubbly wants to become an estate agent. They know how to sell a property of 5lacs to 10lacs. They will show you all possible gud things about the property, half of the features of the property they are showing are not even known by the property owner.... Yeah a bluff!! They wont hide the demerits of any property but they will present the merits in such a manner that u will completely forget the down points. These guys now-a-days own a license of estate agentship.
>> check the genuinness of that person.
>> findout the marketvalue of that property. if you find it lower than what the broker has told u then All the best! u have found a greedy broker. Ideally, the brokers increase the value from 5% to 10%.
>> ask him whether he knows everything about the property registration tasks and formalities to complete.. @ the Registrar office.
>> For paper work, never ever go to an advocate where the property agent suggests u. Instead find some gud advocate, ask ur frnz, relatives, etc.
>> The market value of any property can be found out from any advocate. There are many clauses, and the value depends on the area, location, the building premise, whether the apartment has a lift, a playground.
>> make things clear about the brokerage charges (%) before he opens his cards in front of u.
# Banks and Finance Companies :
>> look for a good agent who can complete the bank formalities for u.
>> In case of public sector banks like SBI and Maha bank, you will get pissed off by the regular visits and insufficient details provided by the loan managers and Service managers. Everytime you visit the bank with ur file you will be asked to bring some new document.
>> In private sector banks, the loan related work is given to the agents who work on commission basis + %age from the customer. The agent is the one who does all the dirty work for u and all settlement related advices if any of ur documents are pending/ missing.
>> Rate Of Interest(ROI) depends on the PLR of each bank. There are various interest types as well.
$$ Fixed :- The ROI will remain constant throughout your loan period. It is slightly maybe 2% to 3% higher than current ROI according to the PLR
$$ Flexi-Fixed :- The ROI will be fixed for a specific period of time and then will change after intervals. Say for ex : Fixed for 3 yrs and then again change according to the PLR and fix for next 3yrs and so on..
$$ Floating/Flexible : The ROI will change according the PLR.
# Documents normally required for a house loan :
>>Personal
$$ Last 3 months salary slips.
$$ Income Tax Form-16 for last 2/3 years.
$$ Last 6 months bank account statement (primarily the one with ur salary account)
$$ PAN No. (Permanent Account Number)
$$ Company Identification Number (In case of pvt sector companies)
$$ Appointment Letter
$$ Employment Certificate on your company letter head.
$$ Residential Address Proof :- Electricity bill, telephone bill, bank pass book zerox, etc
$$ if in case u stay in a rented house most of the banks provide an affidavit which you have to get stamped from any bank which provides franking facility and then get it notarized from any advocate.
>> Related to property
$$ Sale Agreement duly registered from Registrar Office.
$$ If its a re-sale property, then prevailing agreements right from the builder to the current owner of the property. (Chain Agreements)
$$ If the society/apartment is registered then Society NOC certificate.
$$ Tax -Receipts and Maintenance receipts.
$$ Property Card which can be occupied from the Society.
$$ Occupancy certificate of the property, this can be occupied from the Society. Its the duty of the construction company to obtain the occupancy certificate from the Municipal office.
$$ Share certificates (for all owners of that property till date.) Apart from this, there are few other documents which can prove your trustworthiness and eligibility to the bank
$$ Qualification certificate : If you are post graduate or Ph.D. then you can even bargain with the loan manager on the basis of your degree.
$$ Tangible Assets like Gold, Vehicles, Real estate, etc.
$$ Intangible Assets like Insurance policies, Mutual funds or any other investments.
# Every bank charges processing fee for your loan application. It depends on slab. I mean for
every 10lacs the processing fee vary.
$$ Upto 10 lacs => Rs.5060/=
$$ Upto 20 lacs => Rs.6742/= and so on..
# Advocates/Lawyers :
>> Find a good lawyer who can complete all the registration related work for you.
>> Before buying any property you can even go to your lawyer and ask him to evaluate the cost of the property.
Will keep on updating this post as and when things progresses... and as i find more information.. :)
# Brokers : The most dirtiest fish in the pond. I couldnt even find a single genuine estate agent in two years. Now-a-days every bunty bubbly wants to become an estate agent. They know how to sell a property of 5lacs to 10lacs. They will show you all possible gud things about the property, half of the features of the property they are showing are not even known by the property owner.... Yeah a bluff!! They wont hide the demerits of any property but they will present the merits in such a manner that u will completely forget the down points. These guys now-a-days own a license of estate agentship.
>> check the genuinness of that person.
>> findout the marketvalue of that property. if you find it lower than what the broker has told u then All the best! u have found a greedy broker. Ideally, the brokers increase the value from 5% to 10%.
>> ask him whether he knows everything about the property registration tasks and formalities to complete.. @ the Registrar office.
>> For paper work, never ever go to an advocate where the property agent suggests u. Instead find some gud advocate, ask ur frnz, relatives, etc.
>> The market value of any property can be found out from any advocate. There are many clauses, and the value depends on the area, location, the building premise, whether the apartment has a lift, a playground.
>> make things clear about the brokerage charges (%) before he opens his cards in front of u.
# Banks and Finance Companies :
>> look for a good agent who can complete the bank formalities for u.
>> In case of public sector banks like SBI and Maha bank, you will get pissed off by the regular visits and insufficient details provided by the loan managers and Service managers. Everytime you visit the bank with ur file you will be asked to bring some new document.
>> In private sector banks, the loan related work is given to the agents who work on commission basis + %age from the customer. The agent is the one who does all the dirty work for u and all settlement related advices if any of ur documents are pending/ missing.
>> Rate Of Interest(ROI) depends on the PLR of each bank. There are various interest types as well.
$$ Fixed :- The ROI will remain constant throughout your loan period. It is slightly maybe 2% to 3% higher than current ROI according to the PLR
$$ Flexi-Fixed :- The ROI will be fixed for a specific period of time and then will change after intervals. Say for ex : Fixed for 3 yrs and then again change according to the PLR and fix for next 3yrs and so on..
$$ Floating/Flexible : The ROI will change according the PLR.
# Documents normally required for a house loan :
>>Personal
$$ Last 3 months salary slips.
$$ Income Tax Form-16 for last 2/3 years.
$$ Last 6 months bank account statement (primarily the one with ur salary account)
$$ PAN No. (Permanent Account Number)
$$ Company Identification Number (In case of pvt sector companies)
$$ Appointment Letter
$$ Employment Certificate on your company letter head.
$$ Residential Address Proof :- Electricity bill, telephone bill, bank pass book zerox, etc
$$ if in case u stay in a rented house most of the banks provide an affidavit which you have to get stamped from any bank which provides franking facility and then get it notarized from any advocate.
>> Related to property
$$ Sale Agreement duly registered from Registrar Office.
$$ If its a re-sale property, then prevailing agreements right from the builder to the current owner of the property. (Chain Agreements)
$$ If the society/apartment is registered then Society NOC certificate.
$$ Tax -Receipts and Maintenance receipts.
$$ Property Card which can be occupied from the Society.
$$ Occupancy certificate of the property, this can be occupied from the Society. Its the duty of the construction company to obtain the occupancy certificate from the Municipal office.
$$ Share certificates (for all owners of that property till date.) Apart from this, there are few other documents which can prove your trustworthiness and eligibility to the bank
$$ Qualification certificate : If you are post graduate or Ph.D. then you can even bargain with the loan manager on the basis of your degree.
$$ Tangible Assets like Gold, Vehicles, Real estate, etc.
$$ Intangible Assets like Insurance policies, Mutual funds or any other investments.
# Every bank charges processing fee for your loan application. It depends on slab. I mean for
every 10lacs the processing fee vary.
$$ Upto 10 lacs => Rs.5060/=
$$ Upto 20 lacs => Rs.6742/= and so on..
# Advocates/Lawyers :
>> Find a good lawyer who can complete all the registration related work for you.
>> Before buying any property you can even go to your lawyer and ask him to evaluate the cost of the property.
# Some terms used about property :
>> Builtup Area : Total area before the construction is done. It includes the total area which the flat has occupied.
>> Super Builtup Area : Builtup Area + corridor and lobby
>> Carpet Area : Actual area available for use once the flat is ready for possession.
>> Builtup Area : Total area before the construction is done. It includes the total area which the flat has occupied.
>> Super Builtup Area : Builtup Area + corridor and lobby
>> Carpet Area : Actual area available for use once the flat is ready for possession.
Will keep on updating this post as and when things progresses... and as i find more information.. :)
