Thursday, 31 December 2015
Buying a house is a big step. It is a source of anxiety, frustration and a huge sense of accomplishment. With the zooming property rates, it is difficult a buy a house through our savings entirely. Almost all of us have a to avail a house loan. Usually, a housing loan is one of the biggest liabilities. Considering the huge amount and the long tenure involved, however your house loan also offers you some benefits. The below write-up highlights the advantages of taking a housing loan.
Sense of accomplishment
Buying a house is one of the biggest financial investments you may make in your lifetime and that's not just because of the sentimental value. The sum that most of us sink into our house does make it the largest component of our investment portfolio.
For each one of us who has seen property prices boom over the last five years, the prospect of mouth watering capital appreciation is the biggest argument for buying a house. Construction costs alone, which account for more than 70 per cent of the flat's cost, have risen at 15 per cent annually in the past decade. Rents too seem to keep up with inflation making a house one of the few investments can shield you from inflation for the long term.
Low interest rate
Buying a house is a long-term decision of over a 10-year period the interest rates may go through several up and down cycles. Therefore, you can be sure that you will benefit from falling rates at some point in the cycle.There could also be situations in which the interest rates fall, allowing you to prepay your loan and own your house. For instance, those who bought property in 1995, at an interest rate of 18 per cent, not only saw interest rates fall dramatically over the next decade, to bottom out at about 7.5 per cent, property prices too appreciated steeply. This works as a double boost to wealth.The best way to manage borrowing costs is by actively managing your housing loans.That’s not as difficult as it is sounds. Banks and housing loan lenders often give new borrowers much better rates than existing borrowers. During the uptick of the interest rate cycle, if your cost of borrowing increases by more than 2 percentage points, pay 0.5 per cent of the loan outstanding as processing fee (conversion charge) to your lender to avail the rates offered to the new borrowers.
Tax Benefit: Interest paid
As per Section 24(b) of the Income Tax Act, 1961 a deduction up to Rs. 1.5 lakhs towards the total interest payable on the house loan towards purchase / construction of house property can be claimed while computing the income from house property. (The deduction stands reduced to Rs. 30,000 in case of loans taken prior to March 01, 1999).The interest payable for the pre-acquisition or pre-construction period would be deductible in five equal annual installments commencing from the year in which the house has been acquired or constructed.
Tax Benefit: Principal Repayment
As per the newly introduced Sections 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to Rs. 1 lakh on your house loan will be allowed as a deduction from the gross total income subject to fulfilment of prescribed conditions.
Wednesday, 30 December 2015
Finance score plays one of the most important roles in the banks decision to approve or reject your finance card or loan application. Below are the top 5 factors that impact your finance score and how you can manage them to ensure you have a healthy finance history.
Repayment history of existing loans
How regularly you have been paying the due amounts and EMI on your existing loans and finance cards has the maximum bearing on your finance score. A clean payment track record is a sign that you are managing your debt well and will help move your score higher up. On the other hand, any default or miss of payment dues can severely damage your score.
Utilization of existing finance limits
Finance utilization is calculated as the ratio of the amount you owe on your finance cards against the total finance limit that has been sanctioned to you. A high finance utilization rate often indicates that the person is under financial stress and has to lean heavily on his finance lines to meet his requirements. Its is advisable to keep the utilization ratio under 40%. Which is to say on a finance limit of 1 lakh, try and keep the outstanding lower than 40,000.
Enquiries made for loans or finance cards
The no. of new products that you have applied for in the recent past also has a bearing on your finance score. Every time a bank makes a CIBIL enquiry, it is taken as a sign of the customer applying for a new product. Too many such enquries indicate that the customer is under financial stress. This brings down your finance score and hence the chance of getting a loan on further enquries.
Length of finance history
The time duration since you first started using finance also has a bearing on your finance score. The longer the duration with a clean track record the higher your score is likely to be.
Type of finance
The type of loans taken also impacts the score. It is best to have a healthy mix of unsecured loans like finance card and personal loan and secured loan like home loan, auto loan etc.
Tuesday, 29 December 2015
When you take a loan, the home loan company will not put up the entire amount. It will only put up around 80% to 90% of the cost of your home. You will have to put in the balance 20% or 10%. Even if they go up to 95%, you will still have to put in the balance 5%. This amount is called the down payment or the margin.
This is the term used when you are buying a home from someone who already owns it and is selling it. Hence it is referred to as a resale. It indicates you are not buying a brand new home straight from the builder or buying one currently under construction.
3) Credit appraisal
The home loan company will take a look at a number of parameters before a loan is sanctioned. Your savings, income, age, qualifications, nature of work and work experience are some of them. They will also look into how many loans you are currently servicing. Taking all these issues into account, they will determine whether or not you are eligible for a loan and what the sanctioned amount should be. This process is known as a credit appraisal.
4) Pre-approved property
Many builders get their properties pre-approved by home finance companies. Generally, if a builder gets pre-approved by a number of players, it speaks well of the builder. The home finance company will examine all the legal documentation and approvals. If everything is in order, the builder will get a stamp of approval. Also, the home loan player will view the builder's ability and track record to complete the construction in time. However, this does not mean the home finance company is going to take any action or waive any charges if the construction is delayed. All it means is that the property falls within the legal purview and the builder has a good track record.
5) Equated Monthly Installments
An EMI is the amount of money you will have to pay every month in order to repay your loan. An EMI is an unequal combination of your loan amount (principal) and the rate of interest. The EMI remains constant throughout the repayment period. Let's say you have a five-year loan with an EMI of Rs 4,400. You will have to pay this amount for the next 60 months to the home loan company. To arrive at the EMI, the home loan financier will look at The principal (the actual loan amount). The repayment period (the number of years you will take to repay the loan). The rate of interest. How the rate of interest is computed (monthly reducing, quarterly reducing or annual reducing basis).
A full disbursement is when the entire cost is paid at one go; the home loan company hands over the entire payment to the seller. The cheque is disbursed (it is never in cash) only when you have submitted all the documents required and have made the downpayment. If this is a resale, then the cheque is made out in the seller's name. If you are purchasing your home from a builder, then it is in the builder's name.
A partial disbursement is made in stages (not at one go as in the case of full disbursement). When purchasing an apartment from a builder and it is under construction, the home loan company will not release all the payment at one go. The money will be released in stages. For instance, after the completion of the first floor, 20% of the payment will be made. After the completion of the last floor, 40% and so on and so forth. Hence payment is construction linked and disbursed accordingly.
7) Advance Disbursement Facility
If the house is still under construction, then a partial disbursement is made. However, in some cases, the home loan company may be willing to make the entire payment even if the construction is not complete. This is known as an advance disbursement and will occur only in both these instances: i. If the buyer requests the home loan company to do so. ii. If the home loan company is fairly convinced the builder will complete the construction on time.
When you buy a home that is under construction, the home loan company will not pay the entire amount to the builder. Payment will be made in stages. As construction is completed, payment is released. This is known as partial disbursement. You start paying your EMIs only after the final disbursement. Till then you pay the home loan company a rate of interest on the amount partially disbursed. This interest is called pre-EMI. If your home loan is going to cost you 8%, you will be charged 8% simple interest on payments made till date. This will go on till the final payment (disbursement) is made and your EMIs start. So the longer your builder takes to complete construction, the more you end up paying.
9) Offer Letter
Once the loan is sanctioned, you will get an offer letter stating a number of details. Loan amount ,Rate of interest ,Fixed/ flexible rate of interest ,Tenure of the loan ,EMI amount ,If offered under a special scheme, details of the scheme ,Any other conditions of the loan ,This letter does not mean the loan is yours. It only means the home loan company has agreed to consider you as one of its customers. It will then look into the various property and legal documents as well as value the property you are buying. The loan will only be disbursed once these formalities are complete.
Post-dated cheques are dated ahead of time and cannot be processed till the date indicated. Generally, the home loan company will ask for a year's supply of cheques or maybe even two or three years. At the end, you will have to replenish the supply for the following years. These cheques will be addressed to the home loan company, signed by you and will state the exact EMI to be paid.
Monday, 28 December 2015
Getting a home equity loan may be a long procedure. but straightforward it would look within the bank's promotion, the actual fact remains that there area unit lots of hiccups within the entire method. Here area unit the seven most typical issues visaged by home equity loan borrowers in Asian country. every drawback is mentioned thoroughly and acceptable remedies area unit mentioned along side it. the target of this text is to confirm that your home equity loan
Rejection at the primary stage
Strange however true, several of the house loan applications don't pass even the primary take a look at. they're out justly rejected because of incompatibility between the borrower's qualifications and lenders necessities. It might be the age criteria, financial gain criteria, correct documents not being submitted, the bank not having the ability to verify your details properly, not passing the sphere investigations conducted by the bank and lots of a lot of. the most effective thanks to avoid being rejected during this means is to examine the eligibility necessities of disposal banks rigorously and apply solely thereto bank that matches your profile. Keeping correct documents prepared and providing correct, verifiable details to the banks can make sure that you pass the preliminary verification method.
process fee not refunded
With each form for home loans, banks need concerning zero.25% to a quarter of the loan quantity to be submitted because the process fees. This process fees is usually NOT REFUNDABLE. In straightforward words this implies that for no matter reasons, if the bank finds that you simply do not be the house loan, this fees will not be came. this is often the price of applying for home loans. If in any case, the bank you've got applied to states that it'll refund the process fees just in case the bank does not sanction you the house loan, it's higher to induce any such declaration in writing and certify that the clause is enforceable. A verbal statement by bank authorities will not be of any use unless it's properly and wrongfully documented. altogether alternative cases there's very little remedy for process fees being not refunded.
Desired loan not sanctioned
The loan quantity sanctioned is predicated totally on compensation capability of the recipient. several things get image, once the bank decides what proportion home equity loan someone will get. The monthly financial gain, money history, alternative unpaid loans with the recipient, past compensation record, mastercard usage history if any, bounced checks, average balance with the banks, continuity in gift employment, total years employed, nature of employment etc. These factors all clubbed along facilitate the bank to make your mind up whether or not it'll be able to recover its cash satisfactorily or not. If you get rejected because of any such criteria, you'll increase your eligibility by symptom along your spouse's, father's, son's, relative's financial gain and create them a co-borrower. additionally thereto, if you've got sufficient funds in NSC's, provident funds, LIC policies etc. you'll keep them as collateral and raise the bank to finance your home equity loan.
The rate perplexity
Whether to travel for a set rate or floating rate interest for home equity loans may be a perplexity which nearly each home loan recipient faces. Even once choosing a specific loan regime, the house loan terms and condition fine prints will produce disturbance along with your interest rates. as an example although a recipient has opted for mounted rate home equity loan and therefore the bank has secure him a rate that he feels is nice, the catch is within the fine prints that authorizes the bank to vary this mounted rate each two years, things will go worse for the mounted rate recipient. equally if the bank does not pass you the good thing about down rates in floating interest rate regime, it'll be of to a small degree worth. Avoiding such a state of affairs primarily implies that you study the terms and conditions of home equity loan rigorously and clearly raise the bank concerning such things. just in case of floating interest rates the facts will be verified by checking however the interest rates on home equity loan born throughout low interest periods. raise your bank for a few historic floating rate changes.
Distinction in property valuation
The bank has its own consultants for legal, technical and money appraisal of the property in question. It evaluates the property on its own established parameters and assigns a worth thereto. This worth will be considerably not up to the value you quoted for the property. so the bank can solely lend you up to the quantity it valued. this may cause a major gap between what you wish and what the bank is willing to lend. To avoid this case the recipient will get the property valued before applying for home equity loan from a bank approved appraiser.
Banks need the recipient to fund a minimum of 100 percent to twenty (varying from bank to bank) of the complete loan quantity because the payment for the house loan. This quantity must be deposited before the disbursal of the house loan. within the absence of such payment the bank can refuse home equity loan to the recipient. For a home equity loan of ten lacs this might mean something between one to two lacs. This quantity should be promptly offered with the recipient. in a very state of affairs wherever the valuation of the property by bank is significantly not up to the value of the property, the balance also will need to be paid by the recipient. This effectively will increase the payment. the plain remedy to the current difficult state of affairs is to induce the property valued beforehand and have the payment prepared. Some banks additionally permit NSC's, provident funds, LIC policies etc for payment. it's usually an honest procedure to examine the payment demand of assorted banks and opt for the one which needs rock bottom quantity to be deposited at the start or fits your budget well.
Title deeds and secret agent Documentation issues
The title deeds and secret agent documents need to be stocked within the bank's format. Borrowers United Nations agency do not offer such documents in correct format, can ruin the complete exercise and will not get any home equity loan. To avoid falling into such uncomfortable state of affairs, enquire concerning all the documents needed by banks beforehand and take necessary steps to induce them prepared inside the stipulated timeframe.
shopping for a house is one in all the foremost selections someone must take throughout his life. it's rare to search out somebody United Nations agency pays the complete price of home at one go. A home equity loan is an important a part of any home shopping for endeavor. Taking a home equity loan may be a long journey, that involves several stages. The key to obtaining your home equity loan in a very swish means is being at home with the complete home equity loan method.
Beginning the house loan method in India
The process of obtaining a home equity loan starts with a proper application for the loan. the applying kind needs bound basic info concerning you. this may embrace your personal, residential, income, employment, academic details, details concerning the property, calculable prices and current means that of finance the property. although the wants might vary from bank to bank however there bound issue which each and every bank can raise.
The application kind should be supported with valid documents to substantiate the facts. usually the banks can raise you to submit following documents.
- Income proof
- Age proof
- Identity proof
- Address proof
- Employment details
- Proof of academic qualifications
- Details concerning the property if finalized
- Bank statements
The purpose of the complete exercise is to determine the suitableness of a someone for a home equity loan. The financial gain documents and bank statements offer important clues to the bank concerning your money health.
Processing fees for home loans in Asian country
An important issue to notice concerning home loans is that the process fee. Banks charge a process fee for each home equity loan application. This fees is non refundable. The process fees varies from bank to bank and is usually between zero.25% to 0.50% of the loan quantity. This fees is employed by the bank to begin and maintain the house loan method as well as finishing the assorted formalities throughout the complete amount.
The higher than mentioned issues area unit quite common, however will be simply avoided if the recipient follows correct procedure, prepares adequately before applying and takes care of correct documentation.
Thursday, 24 December 2015
After choosing the bank for home loan, prepare your payment as banks offer only 80% of the total cost. Also check your loan eligibility and keep all the necessary home loan related documents ready.
1. Home loan Application
You can avail the application form from any bank office or download it from online. Duly fill the form and attach copies of the loan related documents such as ID proof, Address proof, Age proof, Income proof, proof of educational details and employment, bank balance statement etc., if you apply online, you can get instant provisional approval within 24 hours.Send the form and the non refundable processing fee to the bank for loan approval process. The processing fee differs from one bank to another from 0.25% to 0.50% which is usually non refundable in case if the loan is denied. This is used for the loan processing procedure and maintenance of your loan.
2. Discussion with the Bank
After submission of application form, the applicant will be called by the bank for a face to face discussion to evaluate the papers and decide on the payment capacity and to decide on the loan amount etc. This discussion meet happen in 2 or 3 days after the submission of application form. At this point, the applicant can also bring the original documents of all the proofs submitted earlier.
3. Bank Investigation
A field investigation will be conducted to check all the information stated in the application form and qualified bank employee or a verification agent will investigate and verify all the details. The representatives will visit the office and residence of the applicant to verify the details. In the process, the references mentioned by the applicant will also be checked and cross verified.After this, the bank will verify the applicant’s repayment capacity and if it is not satisfactory, the loan will be rejected. It will check the ability of the borrower to repay the loan amount with interest on time along with the previous loan transactions track record. If the bank finds that the applicant can repay, then the loan will be sanctioned.
4. Offer Letter for the loan sanction
Once the loan is sanctioned, the bank will send an offer letter to the applicant with details regarding the home loan such as loan amount sanctioned, interest rate for the loan, type of interest selected: fixed or floating interest rates, loan tenure, mode of loan repayment, special scheme or offer if applicable and the general terms and conditions of the home loan approved.If you are satisfied with all the norms, then you can provide an acceptance letter with your signature to the bank to acknowledge the sanction.
5. Submission of legal documents
These days, the bank requires all the legal documents related to the property for availing the loan. The bank will perform legal check and these documents will be detained by the bank till the applicant repays the loan amount.
6. Technical Valuation of property
Along with the legal check, the bank will also perform a technical valuation of the property. For under construction projects, the bank will check the quality and progress of the construction work along with the locality valuation to evaluate the value of the property. The bank has qualified valuators to assess the property value under established parameters. This is performed to ensure a clear title and if the property is viable and meets the valuation standards.
7. Registration and Signing
After all the financial and technical valuations, the home loan registration process begins. The legal loan documents will be prepared on stamp papers by the bank lawyer. The loan agreement must be signed and submitted back to the bank along with post dated cheques.
8. Loan Disbursal
After registration, the bank will disburse the loan amount based on the agreed terms of disbursal either as a full payment or partial payment mode in stages. Usually for ready possession of the property, the amount will be disbursed in full.
The above mentioned home loan process is applicable in most banks though there might be changes according to individual bank policies. This long home loan process is now simplified with the instant home loan process available online. You can try ay one based on your convenience and requirements.
WE ARE PROVIDING HOMELOAN FOR B KHATA PROPERTY IN BANGALORE(EAST,NORTH,SOUNTH,WEST)
Wednesday, 23 December 2015
DOCUMENT REQUIRED FOR CONSTRUCTION LOAN
Applicant KYC and Financial Documents:-
- Latest Passport size Photo -1
- Pan card, Voter Id, Passport, Driving License, Adhar Card, Signature proof
- House Rental / Lease Agreement, Electricity Bill, Gas Bill,
- Latest 3 month Salary Slip ( Salary Reflecting Bank statement )
- Latest 6 month Bank statement / Pass book zerox
- Latest 2 years form -16 with ITR
- Present Company Appointment Letter, Incremental letter
- Old Company Reliving letter
- Present Company ID proof, Visiting card
- Education Qualification Certificate,
- Marriage Certificate
- Latest 3 years Employment proof and Appointment letter
- Repayment track record of existing loans
- Bank processing fee cheque ( From Salary A/C)
- All Documents are Self attested
- Latest passport size Photo -1
- Pan card, Voter Id, Passport, Driving License, Adhar Card,
- All Documents are Self attested
- 1967 to Till date RTC
- 1989 to Till date Survey no. and Site no EC
- Latest Tax Paid receipt
- Mother Deed, Sale Deed, Partition Deed, Sale Agreement
- Layout Plan
- Khatha, Khatha certificate,Betterment charges receipt (Khatha in the name of present owner)
- Approved Plan, License and Estimation
- Any GPA copy, Family tree
WE ARE PROVIDING HOMELOAN FOR B KHATA PROPERTY IN BANGALORE(EAST,NORTH,SOUNTH,WEST)
Monday, 21 December 2015
First allow us to look into what's meant by “Khata” consistent with BBMP (Bruhat city Mahanagara Palike). Khata is associate degree account of assessment of a property, recording details regarding your property like size, location, designed up space so on for the aim of payment of capital levy. it's conjointly a form of identification of the one who is primarily accountable for payment of tax. it's needed once you need a building license, trade licence or loan from banks or the other money transactions. it's obligatory for all property homeowners to pay capital levy, thence you wish to possess khata.Now distinction between Khata and deed is, khata is associate degree account of assessment of a property for payment of tax solely. thence khata won't confer possession of property. Whereas deed is that the valid document that confer possession on property.
A Khata is actually a revenue document, particularization the assessment of a property, recording details regarding the property like size, location, designed up space so on for the aim of payment of capital levy. it's conjointly a form of identification of the one who is primarily accountable for payment of capital levy.
Let us look into the explanations behind the origin of A Khata and B Khata lands. In 2007, those underneath the seven town Municipal Councils (CMC)?of Bommanahalli, Dasarahalli, Krishnarajapuram, Raja Rajeshwari Nagar, Mahadevapura, Byatarayanapura, Yelahanka, one city Municipal Council (TMC) of Kengeri and a hundred and ten villages, were brought underneath the fold of the city Mahanagara Palike (BMP). Following this enlargement and creation of the Bruhat city Mahanagara Palike (BBMP), those that failed to have acceptable approval from the involved development authority associate degreed however to return underneath the orbit of the Palike were issued an acknowledgment that was in common idiom referred to as ‘B’ Khata.
However, in reality, ‘B’ Khatha doesn't exist. Property identification numbers square measure entered into a register known as as ‘B’ register stating that the civic agency has been paid its dues by the property homeowners. For voters in would like of associate degree approval from the acceptable development authority however have a Deputy Commissioner (DC)?conversion, the BBMP re-introduced Betterment Charges which is able to entail folks to require a Khata on their property. this can be however B Khata originated within the mind of property homeowners however not lawfully
Now the disadvantages of getting B khata is that, you'll not get building license, trade licence or loan from banks or the other money transactions. thence it's huge hurdle to possess B Khata land. currently what square measure the ways in which of changing B Khata land to A khata?
By paying betterment charges you'll convert B Khata to A Khata. however you'll face heap of hurdles, few of them square measure as below.
1) you ought to have DC born-again property
2) Tax should be paid until date
3) Betterment charges for the conversion property have to be compelled to paid to BBMP.
So the answer is to avoid getting B Khata properties and like A Khata to possess snug position in dealing future money group action hurdles.
WE ARE PROVIDING HOMELOAN FOR B KHATA PROPERTY IN BANGALORE(EAST,NORTH,SOUNTH,WEST)
Saturday, 19 December 2015
Khata is critical when you apply for any permit of building or for exchange, applying for credit from any banks or monetary foundation. Khata is a record which comprise every one of the subtle elements of property like name of proprietor, size of structures, area of property and every other point of interest that documents property charge. Taking after is aide for enrolling Khata.
Application for Khata: Get a Khata application structure (costs Rs. 10) or more duplicates of 5 archives (advancement charges receipt, Receipt of most recent Property Tax paid, building approval letters, title testament, representation of design). It is accessible either online or at any BBMP office.
Application for Encumbrance testament (EC): Get an EC application (Form-22) accessible free of expense at sub-enlistment center office. It ought to be for a time of no less than a year. The expense of EC is Rs. 35 for one year. You should backpedal following a day or two to gather the EC. While applying for EC, one needs to convey duplicate of offers deed.
Get Notarized duplicate of reports: Get Notarized of the accompanying Sale deed, Form II (on the off chance that you have), Possession Certificate (in the event that you have), GPA (if utilized), and top off the structure – green and pink.
Present the Application: Tag the application to the authorized reports, EC, most recent property charge receipt, plan of the level alongside the normal archives and submit to the neighborhood ARO Office. Get the pink affirmation with accommodation number, stamped and marked by particular officer.
Postliminary: Go back following 15 days to check the status. Continue doing this till you get the interest note. Interest note demonstrates the sum you have to pay as Khata enrollment expense.
Evaluation of Property: Once you present the Khata application, the BBMP Revenue In-control and Assistant Revenue Officer by and by visits the property to survey the property. After the property is evaluated BBMP formally imparts this saying the property measurements (in sq feet), its quality according to BBMP appraisal and the expense risk subsequently.
Pay enrollment charge: Submit the DDs according to the interest note to ARO Office and get a stamped affirmation. When you get affirmation, it implies the procedure has started. The organization charge or request note sum is two for every penny on the stamp paper esteem. A great many people confound this to be two for each penny of the property estimation said in the deal deed. The interest note is issued in bunches. So do co-ordinate with others in your building whose names are in the interest note to get every one of the DDs.
Khata warning: Check the notice to see that your name is spelt accurately and other data like range of level, auto park, thus on are right. Take the Khata notice to the ARO office with an application asking for issue of Khata testament (pay Rs. 25) and Khata concentrate (pay Rs. 100).
Khata Registration: Once you pay the Khata Registration charge, in around 1-2 weeks, one gets the notification for paying the pending property charge. Without this the Khata Extract won't be issued in your name. However, in the event that you have come to this point it implies Khata has been in fact enrolled on your name.
Subsequent is vital for effectively enlisting your Khata and getting your Khata Certificate. On the off chance that any BBMP official requests cash separated from the Khata enrollment charge and cost of use structure, you can hold up a grumbling with the concerned Revenue Officer. Try not to include center men for Khata enlistment. Methodology senior BBMP authorities at the zonal level on the off chance that you counter any issues.
In the event that you don't get any reaction from BBMP following 2-3 months, record "Right to Information (RTI) application" to look for data on status of Khata enrollment. There is no recommended structure for application looking for data. Be that as it may, the application ought to have name and finish postal location of the candidate. The application can be made on plain paper. The candidate is not required to give any explanation behind looking for data. If there should be an occurrence of dismissal of your application, candidate would be educated the purposes behind dismissal
WE ARE PROVIDING HOMELOAN FOR B KHATA PROPERTY IN BANGALORE(EAST,NORTH,SOUNTH,WEST)
Friday, 18 December 2015
KHATA'S IN BANGALORE
In 2007, seven town Municipal Councils (CMC) of Bommanahalli, Dasarahalli, Krishnarajapuram, Raja Rajeshwari Nagar, Mahadevapura, Byatarayanapura, Yelahanka, one city Municipal Council (TMC) of Kengeri and a hundred and ten villages were brought underneath the ambit of city Mahanagara Palike (BMP). afterward, Bruhat city Mahanagara Palike (BBMP)was created and it came to light-weight that a lot of properties underneath the ambit of BBMP failed to have applicable approval from the involved exploitation authority.
Prior to the formation of BBMP, the municipal councils accustomed collect tax underneath the capital price system underneath the provisions of the state Municipalities Act, 1964 and therefore the villages were grouping tax underneath the state panchayet dominion Act, 1993. The then BMP was grouping taxes underneath the annual rental price system. Thus, would like for a consistent taxation policy for properties underneath the ambit of freshly ingrained BBMP was accomplished and in 2009, a replacement section 108A was inserted to the state Municipal firms Act, 1976.
Many unauthorized properties continued to fancy the civic amenities while not paying capital levy. when the modification to the Act, BBMP might levy tax on a building made in violation of the provisions of the building byelaws or made in an exceedinglyn unauthorized layout or in a revenue land or from a building occupied while not supplying of occupancy or a completion certificate. These properties were issued Associate in Nursing acknowledgment that was in common idiom referred to as ‘B’ Khata.
In reality, capital levy collected from such buildings/properties is registered underneath a separate register, i.e. ‘B’ Register and therefore the Khatha issued underneath the register came to be referred to as B Khatha.
Which is healthier – A Khatha or B Khatha ?
It is better to travel for properties having A Khatha as just in case of B Khatha you're not entailed to own building license, trade licence or loan from banks or the other monetary transactions. B Khata could be a temporary live which is able to enable you to shop for or sell a web site, however you may face issues after you select construction.
Whenever the intervening irregularity is resolved, B Khatha are often born-again in to A Khatha. Here area unit the wants for changing a B Khatha to Associate in Nursing A Khatha:
(1) you must have DC born-again property
(2) capital levy should be paid until date
(3) Betterment charges for the conversion of property needs to be paid to BBMP
WE ARE PROVIDING HOMELOAN FOR B KHATA PROPERTY IN BANGALORE(EAST,NORTH,SOUNTH,WEST)
Thursday, 17 December 2015
Documents required for registration:
The property coming under the jurisdiction of the BBMP (Bruhat Bengaluru Mahanagara Palike), gram panchayat, town panchayat, municipalities and municipal councils or any corporation in the state requires six important documents. The lists of documents required are as follows.
1. Khata and tax determination receipt issued by BBMPor corporation,
2. An affidavit,
3. Sanction plan or Conversion certificate, if the property is on converted land,
4. Title deed or allotment order or possession certificate or sales document, if the Property is given by a government department or agency,
5. PAN issued by Income Tax Department or Form 60 and 61 if the property value is more than Rs 5 lakh,
6. Declaration in Form 1 under the Karnataka Stamps Rules, 1977. (Prevention of Undervaluation of property).Documents required for registration of Summary
Uniform procedure across State. Discretionary powers of Sub-Registrars removed. Documents required for the purpose have been listed
Now registration of property is easy and there will be uniformity across the state. The new guidelines prevent the harassment of citizens demanding different documents while registering the property. Also the property without proper documents cannot be registered, thereby preventing the haphazard growth of cities
Wednesday, 16 December 2015
The Karnataka High Court has recently made it compulsory that the Bruhat Bangalore Mahanagara Palike (BBMP) cannot award 'B Khata' certificates to buildings and properties The High Court ascertains that these are just certifications for the eligibility of being assessed for property tax and are in themselves no way to be taken as proof of ownership or legality. In other words, if a property does not have an A Khata, it is illegal as per the Karnataka High Court. The High Court has ordered the BBMP to include all properties in the Form-A Register (A Khata). The ownership of a BBMP B Khata is not proof of ownership of your property and it means that it still has pending sanctions that have to be approved.
This mandate came on the heels of 20 residents of Sharadamba Residency, an apartment complex situated in Kengeri Hobli in South Bengaluru, getting together to do something about their plight. They approached the High Court and challenged the BBMP's move to issue their apartment complex only the B Khata.
While the motion may clarify a lot of confusion regarding A and B Khata, a lot of residents with B Khata are uncertain as to how to proceed further. Here are a few things you should know if you are the owner of a property and you only possess B Khata.
Understand what a Khata is
'Khata' means 'account' and is nothing more or less than a document that is proof that the property owner has an account with the BBMP for paying property tax. The Khata certifies that a particular property owner is liable to pay property for his or her property. The Khata has details like the name of the owner, size of property, location, tax assessment, built-up area, property number, demarcations and more specifications.
Understand that a Khata is not to be confused with title deed or occupancy certificate
A title deed is a written contract between the buyer and seller. Khata is different. It is nothing but a document validating that your property is eligible for property tax. You cannot apply for Khata without a title deed. Khata is not as good as an occupancy certificate. It is not a sign of ownership but just a document of assessment of property and a certification from the government that the property has been bought and now has a new tax assesse.
Understand the contents of a Khata document
The Khata consists of the Khata certificate and the Khata extract. The Khata certificate includes certification to the effect that a specific property's revenue records are in the owner's name. The second is the Khata extract, which gives details such as the location, demarcations and boundaries of the property, its exact dimensions, whether the property is residential or commercial, tax assessment details and more.
What is a PID?
A PID is a Personal Identification that is given to a property. With not all the properties under the BBMP jurisdiction possessing a PID, the High Court has made it mandatory for properties to have new PIDs instead of the old ones. A PID is a property identification number. PIDs hold important information on properties, ward number, street name and number, plot number and details and more. The new PID will show the BBMP who has and hasn't paid taxes and can be accessed online.
The question of A and B Khata has been created by BBMP, which maintains Form A and Form B for collecting property tax. The taxes of properties that are unauthorized residential or commercial are recorded in Khata B. The BBMP's misrepresentation of the provisions and rules of Section 108A (3) and Rule 11, and subsequently the developers' inability to procure occupancy certificate, has led to this widespread confusion. This is how the nomenclature of Khata A and Khata B came about, in 2009 when the BBMP wanted to derive taxes even from properties such as agricultural land that were in the midst of conversion and approval or were awaiting the same and other such exceptions.
Buying a property with B Khata
Having a B Khata certificate only certifies that the owner has been paying property tax and it is in no way an authorisation of his or her possession of that property. The person cannot sell or resell his or her property with only a B Khata. In December 2014, the High Court in Karnataka has declared that a building or property having only a B Khata is an illegal property.
What to do if you have a B Khata property
In the case of flats, it is important to put pressure on your developer to give you the occupancy certificate, instead of giving you just a Khata from the BBMP. In case of Khata, make sure if it is A or B Khata.
People with a B Khata property have to give other documents such as the title deed and all other paperwork that points to the fact that they have constructed property on non-agricultural land and with no violation of building norms and with enough space for road widening. Once an occupancy certificate is procured, then your Khata can easily be transferred to the A register. The documents needed are:
- Title deed and sale deed
- Copies of property tax receipts that have been paid previously
- Order of conversion of the land from agricultural to non-agricultural
- Proof of any improvement charges paid, if applicable,
- Khata extract issued by the Panchayat submitted by the developer
- A blueprint showing the location of the property and dimensions and other certified specifications
- The possession certificate
- The occupancy certificate
we are providing homeloan for bkhata properties & construction also we are doing
Wednesday, 9 December 2015
What is B Khata?
"B" Khata is not a qualification to the property, but rather basically an affirmation that assessment for the said property is being paid to the legislature. It is not a title deed and is only a recognizable proof entered in a register titled "B" and subsequently the name "B" Khata.
To get the data about the properties which are under the BBMP, Bangalore duty net , BBMP keep two distinct registers. Those properties which don't have clear titles are enlisted in B register ('B' Khata) where as Title Cleared Properties are enrolled in An enrolled ( A Khata ).
We , WWW.bkhataloans.com are experianced in managing advance for B khata property , We tied up with numerous banks and monetary establishments which offers Loans for your B-Khata properties. Fill above contact points of interest and let us get credit for your greatly merited property.