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Legal Documentations In The Purchase Of A Property Are

Stamp Duty: Stamp duty is the transaction tax charged by the revenue department that is levied on the buyer of the property. It is compulsory to pay the stamp duty in totality for owning a property.

Stamp duty is calculated as Rs. 7600 up to Rs. 5 lacs and at the rate of 5% over and above Rs. 5 lacs for the agreement amount or the market value whichever is higher (Mumbai and Mira Bhayander).

For instance
Let, Market value of a property = Rs.40 lacs
Agreement value = Rs.50 lacs
Stamp duty = 5% of 50 lacs = 2,50,000

In the above case stamp duty was calculated on the agreement value as it was greater than the market value.

Registration: The transaction document on which stamp duty is carried out has to be registered from the sub registrar for complete ownership of the property.

Registration amount is calculated as 1% of the agreement value or market value whichever is higher. If this value exceeds Rs.30000 the registration amount is Rs.30000.

Note: There may be variance in these charges based on the location under consideration.

RBI Guidelines

Following is the list of documents needed while applying for a bank loan:

Document Self Employed Salaried
Pass book or statement of bank account for 6 months Y Y
Xerox of ration card/passport/voter id Y Y
Profile of business Y NA
P/L account, B/S, computation of income and income tax returns for 3 years Y NA
Latest salary certificate or original salary slip NA Y
Certificate of other allowances not reflected in salary slip NA Y
Xerox copy of form 16A from employer NA Y
Residential proof Y Y

A maximum of 80% loan gets approved depending on the profile of an individual. Co applying with your spouse if the partner is earning strengthens your profile and a chance of getting a better loan.

Legal Aspects Of A Property

As a buyer of a property you can always confirm if the developer has got certain documents cleared. These would include:

  • A NOC by ULC in certain cases
  • IOD
  • CC
  • MOEF clearance in certain cases