What do we need to check before Flat Registration?

POSTED BY niljag ON June 12, 2012 3:31 pm COMMENTS (12)

Hi Friends,
I have booked 2 BHK flat in Pune and I have few queries regarding the Registration.
Following is the detail information and cost from the builder:
Carpet Area : 851 sq.ft.
Terrace Area : 53 sq.ft.
Saleable Area : 1175 sq.ft.
Rate : INR 3525 per sq.ft.
Basic Price : INR 41,41,875
MSEB + Infra Charges : INR 1,50,000
Other Charges: INR 2,00,000
Club House Membership: INR 60,000
Legal Charges : INR 10,000

Agreement Value (AV) : INR 45,61,875

Stamp Duty 2.5 % on AV : INR 1,14,046
(Actually Stamp duty is revised from 2% to 5% from 25th April 2012 and builder had communicated the same accordingly. Now builder is saying that they have taken special concession of 2.5% on stamp duty from Sub Registrar if we do the Flat Registration on or before 30th June 2012 only. And he asked to submit the DD of 2.5% amount only and not 5%)

Registration 1% on AV / Max. 30,000 : INR 30,000
VAT 1% on AV : 45,700
Service Tax 3.09% on AV : 1,40,962

Out of own contribution of 20%, I have paid 15% amount i.e. INR 6,84,281 and 5% i.e. INR 2,28,094 amount yet to be paid.
For remaining 80%, I am taking SBI MaxGain home loan.

Questions:

1. What do I need to check/cross check before doing the Registration?
2. Is there any specific clauses, rules, conditions from Builder I need to verify?
3. As the builder communicated, for Registration I need to submit DD of Stamp Duty and Registration charges, is there any other charges ,fees, hidden costs need to pay on the day of registration?
4. I have paid 15% amount and 5% is yet to be paid to the builder, would that create any issues in the Registration process? Or can I do Registration by paying Stamp duty and Registration charges and pay the remaining amount to the builder later?
5. Can we get or ask to the builder for the Registration Agreement before actual registration date so that we can read it completely and understand the clauses?

Following questions are not related to Flat Registration but would be great if you answer those too:

1. Is it necessary to pay 20% amount before applying for the Home Loan? As I paid 15% amount, would it create any issues?
2. Does the bank check how we have raised the 20% fund? Because I have taken 2-3 lac from my friends. 50 K from each. Would that create any issues for sanctioning/approving home loan?
3. How can I specify the bank about the amount I have taken from friends? Is there any provision for the same?

Thank you in advance!

12 replies on this article “What do we need to check before Flat Registration?”

  1. niljag says:

    Hi Ashal,

    Thank you so much for your reply and sorry for replying late.

    1. Does it neccessary/must to pay VAT and Service Tax (whole amount 3.09% on AV. In my case it is INR 1,40,000 ) on or before the registration of the flat? Bcos builder told me that we can not do registration if we do not pay VAT and Service Tax.
    My logic is, service tax (ST) should be applicable to whatever amount I am giving to the builder. i.e. I payed 20% amount then ST should be only on that amount.
    Please chalrify.

    Thanks!!

    1. Dear Niljag, You have to pay that much (1.4L Rs.) amount up front to register your flat in your name.

      Thanks

      Ashal

  2. Dear Niljag, here are answers –

    1. What do I need to check/cross check before doing the Registration?
    Please check the the title clearance & search report of the property in question as well as the NEC – Nill Encumberence Certificate.
    2. Is there any specific clauses, rules, conditions from Builder I need to verify?
    Please make sure that agreement is not one sided that builder can frame your but you can’t frame your builder for any deficiency of service, delivery from him.
    3. As the builder communicated, for Registration I need to submit DD of Stamp Duty and Registration charges, is there any other charges ,fees, hidden costs need to pay on the day of registration?
    No
    4. I have paid 15% amount and 5% is yet to be paid to the builder, would that create any issues in the Registration process? Or can I do Registration by paying Stamp duty and Registration charges and pay the remaining amount to the builder later?
    You can pay remaining amount later on.
    5. Can we get or ask to the builder for the Registration Agreement before actual registration date so that we can read it completely and understand the clauses?
    Yes
    Following questions are not related to Flat Registration but would be great if you answer those too:
    1. Is it necessary to pay 20% amount before applying for the Home Loan? As I paid 15% amount, would it create any issues?
    Even after paying just 5-10% as down payment, you can apply for home loan. in your case as you have already paid 15% & also paying for registration + stamp duty, please move your loan application now.
    2. Does the bank check how we have raised the 20% fund? Because I have taken 2-3 lac from my friends. 50 K from each. Would that create any issues for sanctioning/approving home loan?
    No, bank ‘ll not check for the source of funding for that 20% down payment amount.
    3. How can I specify the bank about the amount I have taken from friends? Is there any provision for the same?
    Where is the need to specify to your bank for that 20% amount or any other amount.

    Thanks

    Ashal

  3. vishal says:

    trying to answer as
    1.do check about title of property from registrar office on ur own or from a lawyer.as u r taking sbi home loan as per my knowledge,they will also check the same.
    2.same above
    3.no any hidden cost
    4.no issues as builder is satisfied with u.
    5.u can get a copy,ask ur builder.

  4. niljag says:

    Hi Guys,

    I am waiting for your answers. Can someone provide the answers to these questions?

    @Ashal: I am expecting your reply!

    Thanks!

  5. niljag says:

    Hi Friends,

    Would really appreciaate if someone give answers to my questions.

    I am waiting for your reply..!!

    Thanks!

  6. niljag says:

    Hi Friends,

    Could you please provide the answers to my questions? It would be really helpful if you reply ASAP.

    Thanks!

  7. Sylvestor says:

    Just FYI
    SBI will provide home loan up to 80% of “Agreement Value” only. So total contribution from your side would be around 30% of “final” amount.

  8. niljag says:

    Hi Ashal,

    I was not aware of this condition. I shall discuss this with builder. I am waiting for your answers.

    Thanks!

  9. Dear niljag, is the house in question ready possession or under construction one? If it’s under construction, when the possession ‘ll happen?

    Thanks

    Ashal

    1. niljag says:

      Hi Ashal,

      The Flat is under construction and the possession would be after 2.5 to 3 years from now.

      1. Dear niljag, I’ll answer all your queries but are you aware that in case builder fails to give you the possession in the 3Y period from the date of disbursal of your home loan (in case it’s part disbursal from the first disbursal), the income tax benefit on home loan ‘ll not be available to you?

        Please keep a close eye on this aspect.

        Thanks

        Ashal

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