My answer for how to tackle this type tenant problems in India.

Your only shot is to keep it professional. You should treat your relationship like a Doctor/Patient relationship.

• You provide a very important service to your patient. Not just something they want, but something they need.
• You will know lots and lots of personal information about your patient and have an obligation to keep that information private.
• You don’t provide the patient with any information beyond that which is required: Your office address, the number to call if there is an emergency, and what forms of payment are accepted.
• Listen to their complaints when they have them and provide appropriate solutions, but if the complaints aren’t about your services you need to refer them to someone else.
• Absolutely refuse a patient’s request to break the rules (contract) or violates the law. Don’t be afraid to refuse these requests flatly and without any explanation other than it violates the rules or law.
• Be prepared when you give bad news, like telling them that interest and fees will not be waived on late payments. Patients can be hurt, angry, and frustrated. Your job is to be the professional and emotional rock. Give them the news and their options, just like any good doctor.
• Never become emotionally involved in your patient’s troubles. You can listen and even sympathize, but don’t get involved. Limit your drama to prime time TV.
• Never and I mean NEVER get physically involved with your patient. If you do, you may end up losing everything.

There is one thing that actual doctors should have with their patients, but don’t…a contract. A very clear contract. Strive to have one that leaves nothing open to interpretation or has grey areas. When executing the contract with your patient, walk through it with them so they understand what you are requiring them to agree to. If both you and your patient understand exactly what is required out of the relationship it solves so may issues before they ever arise.

Last, but not least, don’t compromise your principals or your contract. Don’t waive the late payment fee because the payment finally comes with a sob story. Don’t wait to post the notice to pay rent or quit if they are in default. If you ever do, then your patient will cease to respect you and will ignore you whenever they find it convenient. It is nearly impossible to gain that respect back.

So that’s the magic to keeping the best possible relationship with your tenants. Keep it Professional, Clear, Uncompromising, and Respectful.

Here are the few aspects,

Rental agreement execution date. Mention the agreement execution date in both words and numeric. This should be at first line of agreement.

Landlord and tenant details – Name, permanent residential address, any of government id proof details (Ex: Passport number, driving licence number etc..)

Complete address of rental premise

Agreement commencement date. Commencement date must adhere to possession date.

Year on year appreciation. Up to 10%. Not more than this.

Monthly rent, maintenance cost, security deposit, water charge, electricity charge, parking charge etc..make sure all the charges mentioned in agreement. There should not be any surprise from landlord later.

Prefer online transaction over cash. This helps you to keep track of transaction.

Landlord bank details should mention in agreement, including PAN details if you use agreement for tax claim

Property should not sublet, re-let or part with any portion of the premises to any other person/s.

Landlord should not visit the property without prior appointment from you. There should not be any surprise visit or inspection without your knowledge.

Who is responsible for damage and mending of appliance, fixtures, fitting and furniture during your tenancy. State the responsibility

Who bare painting and cleaning cost of property while vacating. If tenant, what is the cost and how the cost measured?

Notice period for vacating flat. Usually 1–3 months

List fixtures, fittings and furniture description and quantity in agreement. If possible take the snaps of those items and send it across to landlord by email. You might adore this act when you vacate property. This helps to judge before and after condition of property. Shall avoid unnecessary argument to some extend.

Agreement must be signed by landlord and tenant at bottom of all pages of agreement.

One witness from each side has to sign at bottom of agreement.

If power of attorney (POA) is signing on behalf of landlord, cross check POA

Execute rental agreement in legal stamp paper. Never get into verbal agreement. Mention all necessary terms & conditions in agreement, don’t be in assumption and presumption condition. Bring out all the necessary statement out into agreement.

Notarize your rental agreement notary lawyer.

With so much information readily available online, Many persons think, “Why should we hire a real estate agent? ” They feel that they would be able to buy or sell a home through the Internet or through regular marketing and advertising channels without representation, without a real estate agent. However it is not easy. A few may succeed, but by and large majority of the people are likely to fail or make a wrong deal.

Please consider the following points:-

Lack of selling and buying knowledge: – You don’t know everything about buying and selling real estate. However the real estate professional knows. Lot of documents are required. The documents are to be verified. There may be unknown legal factors. Hence it is better to hire a person. Only thing is that you should be able to find the right person. For the most part, they all cost roughly the same. Why not hire a person with more education and experience than you?

Lack of time to attend to each and every prospective client:- You cannot waste your time in property showings and visits. Agents can do it for you. They also are able to identify the serious customers and shortlist them. You have lot of other work to do. Hiring an agent gives us that time.

Neighbourhood Knowledge: -Agents are likely to possess intimate knowledge about the neighbourhood of the estate which you intend to buy. They can identify comparable sales and present these facts to you. In addition they will also give you information about schools, Gardens, Hospitals available in the surrounding area. They will give you information about the crime rate and other demographic information.

Price Guidance: – You may not be fully aware about the prevailing prices in various areas. However, an agent will help to guide you to make the right choices for themselves. Selling agents will ask you to weigh all the data supplied to you and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy for you.

Market Conditions Information: – Real estate agents can offer market information such as:-

a) The average price per square foot of similar homes

b) Median and average sales prices

c) Average days on market

d) Ratios of list-to- sold prices

Such information will help to arrive at a proper decision.

Negotiation Skills & Confidentiality: – The real estate agents will negotiate better than you because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job description. Good agents are not merely postmen delivering information from buyer to seller and vice versa. They are professionals who are trained to present their client’s case in the best light and they also hold client information confidential from competing interests.

Handling Volumes of Paperwork: – Lot of paperwork is involved in agreements. The sale deed and the purchase deed runs into several pages. A small tiny mistake can cost you thousands and thousands! Since an agent has handled many such cases he will help us at proper documentation.

In exceptional cases you can also take the assistance of a lawyer.

Answer Questions after Closing: – Even after the completion of the deal certain questions can crop us from government authorities like income tax clearances, property tax assessments and what not! Your agent can come to help you in such cases even after completion of the deal. He might have previous such experience and he will take you out smoothly out of the trouble.

The only points against are:-

The fees: Selling agents will typically charge you different different percent for their services — thousands of Rupees that you would otherwise be counting as profit.

Buying agents, however, do not directly charge the buyer a fee.

An agent’s interests are not necessarily the same as yours

You are looking to buy a home at the lowest possible price, and therefore save as much money as you can, your agent’s compensation actually decreases as you find a better deal.

His commission is based on the sale deed price and hence he may get less with a less sale deed price.

Instead of this if you settle for a flat fee as commission you can come out of this problem

Considering all the above pros and cons i feel that it is always better to hire a real estate agent for real estate deals.

Before you buy a property, you must check all property documents to make sure that you buy a genuine property. The documents that need to be checked are different for under construction and ready to move properties. Here is a list of all property documents to check before buying a flat or plot.

Property Documents to Check Before Buying a Flat or Plot

Under Construction Property

At the time of Booking

1. Land Records

When you want to book a new property, ensure that the builder owns the land where he is proposing the project. Land Records give details about ownership, rights, obligations and mortgages of the property. You can check land records with the Survey Nos. Nowadays, land records for most states are made available online. For more details, check out Land Records Guide.

2. Land Use Certificate

Before developing any property, a builder needs Land Use Certificate or Change of Land Use (CLU) certificate from the urban authority. Residential projects cannot be built in a commercial or industrial zone or on agricultural land. You can ask the builder to produce a copy of Land Use or CLU Certificate.

3. Layout Approvals

Many builders sell properties under soft launch without getting layout and building approvals. They will tell you that rates will go up significantly once all approvals are received. But never fall into this trap as approvals may not come anytime soon and you can get stuck for a long time. You should never invest in a project which has not received approvals. If any builder avoids showing you the copy ofapproved layout, you should refrain from investing in such project.

4. Master Plan

Builders and property consultants will often show you upcoming infrastructure projects like Airport, Metro, Expressway, SEZ etc. on the brochure. Again a word of caution here. A news item should never be the basis of such claims. You can cross check these with the approved Master Plan of the city. In the Master Plan, you can also check whether the project falls into residential zone or not. Check out Master Plans of Indian Cities.

5. No Objection Certificates & Clearances

The builder needs to obtain clearances from Electricity, Water, Fire and Safety authorities and environment clearance etc. Make sure that the builder has received all clearances.

6. Certificate of Commencement

A Certificate of Commencement, given by the Town Planning Department, is mandatory to commence any construction of a property. This certificate is given only once all other approvals and clearances are obtained by the builder.

7. Allotment Letter

Once you give the booking amount, the builder will sign an allotment letter with you. It will mention payment plan and other important agreement clauses. Before you handover booking amount cheque, make sure that payment plan and other clauses are clear to you. You should ensure that there is a penalty clause for any delay in possession.

8. Builder-Buyer Agreement

Once you pay 20-30% of basic cost of property, the developer will signBuilder-Buyer Agreement with you. This will be a detailed agreement that will have layout plan, detailed specifications & features of the property. It will mention the possession time & penalty amount in case of delay. Make sure that you go through the agreement completely before you sign on it.

After Construction

9. Completion Certificate

Completion certificate is issued by Municipal Corporation once the project is completed as per the approved layout plan.

10. Occupancy Certificate

Occupation Certificate is also issued by Municipal Corporation after ensuring that basic amenities like Electricity Connection, Water Supply, Sewage Connection etc. are provided as per the approved plan.

Before you are handed over possession, make sure that the builder has received Completion Certificate and Occupancy Certificate.

At the time of Possession

11. Sale Deed Registration

Once the project is complete in all respects and has received Completion and Occupancy Certificates, the Builder will transfer the property in your name by executing a Sale Deed that will be registered at the Registrar’s office. Sale Deed is the main ownership document and you should keep it safely. In case, you have taken a home loan, original copy of Sale Deed will be handed over to the Bank till the time you retire your complete loan.

12. Possession Certificate

Once, Sale Deed is registered in your name, the builder will give you possession certificate after handing over physical possession of the property.

Ready to Occupy Property

1. Original Title Deed

In a Ready to Occupy property, the first document that you should see is the title deed. Confirm that the property is in the name of the seller and he has the full right to sell it. Always insist on seeing the original deed to make sure that the property is not mortgaged. You have to also make sure that the property is not already sold in part or full to anybody else. Do not buy a property if the title is not clear. You can hire a lawyer for title verification to be sure.

2. No Encumbrance Certificate

You should also make sure that the plot or house does not have any legal dues. An encumbrance certificate, available from the sub-registrar office where the Sale Deed is registered, states any legal dues and complaints against the said property. You can ask seller to provide “No Encumbrance Certificate” for minimum 13 years or to have more clarification, you can get encumbrance certificate for last 30 years.

3. NoC from Bank in case of Bank Loan

In case the seller has taken a home loan and the property is mortgaged with a Bank, the seller should take a No Objection Certificate from the Bank or if all dues are cleared, then a No Dues Certificate.

4. Share Certificate

In case you are purchasing a Cooperative Group Housing Society Flat, you should check the original Share Certificate issued by the Society that mentions the name of the owner.

5. Entire Chain of Documents

You should ask the seller to show you the entire chain of documents right from the original allotment to the present seller. The transfer of property can either happen either by way of Sale or Gift or Inheritance. In case of sale transfers, the seller should be able to produce all Sale Deeds since original allotment. Similarly, he should be able to present any gift deed, will or nominations etc. You should also check Share certificates right from the original allottee.

This will give you a fair idea of the titles and title transfers.

6. Utility Bills & Tax Receipts

You should check that all Utility bills like Electricity, Water, Gas & Telephone bills and Society Maintenance Dues are paid up to date and carry the name of present owner.

Property taxes are due to the government and are a first charge on the property. You should inspect latest property tax receipts. Ensure that they carry the seller’s name and that all taxes are paid since the beginning year of possession. You can also check property tax dues from the Municipal Corporation office. In case of any dues, ask the seller to clear them before you purchase the property.

7. Society Related Documents

At a convenient time, the seller can facilitate your visit to the society where you can inspect society registration documents, property card, occupation certificate and approved layout plans etc. In case, you are taking a home loan, the bank may ask a copy of layout plans or any other documents. You can collect a copy of any such document during your visit to the society.

8. Possession Certificate

In case, you are buying a property developed by a private builder, you should check the possession certificate and collect it at the time of sale deed registration.

9. No Objection Certificate (NoC) from Society

You will also need to get a No Objection Certificate from the Society stating that they don’t have any problems in transferring the flat to your name subject to all payments and agreements between buyer and seller.

10. Sale Deed Registration

Once you have checked all property documents, you can make full payment to the seller. Then you will have to execute the Sale Deed and get it registered at the Registrar’s office upon payment of appropriate stamp duties.

11. Change in Share Certificate

Upon execution of Sale Deed, you will have to submit a copy of Sale Deed along with membership transfer form duly signed by both buyer and seller to the society. The society will then issue new share certificate with your name as the new owner.

That concludes my list. i hope that now you can do better due diligence of property documents before you buy a property. Did i miss anything? Please let me know.

Comparative Market Analysis

A comparative market analysis is an examination of the prices at which similar properties in the same area recently sold. Real estate agents perform a comparative market analysis for their clients to help them determine a price to list when selling a home or a price to offer when buying a home. Since no two properties are identical, agents make adjustments for the differences between the sold properties and the one that is about to be purchased or listed to determine a fair offer or sale price. Essentially, a comparative market analysis is a less-sophisticated version of a formal, professional appraisal.

BREAKING DOWN Comparative Market Analysis

A comparable market analysis can also include currently listed properties, especially if no similar properties were recently sold. However, listing prices only indicate what the seller hopes to get for the property and do not necessarily reflect what it is actually worth.

Real Estate market in India has boomed over the last decade and a half. But with no regulations in place, property fraud has also increased at the same rate. In this article, we discuss top 10 real estate scams in India and how to avoid them.

Though investors these days are better informed, real estate scammers have spared no one. From NRI investors to HNIs, from rural landlords to the top corporate executives, everyone has suffered at some point or the other. Although we cannot give you a pill that will remove all your worries, we have tried to highlight major real estate scams in India and how you can avoid property fraud by following some cautionary steps before investing.

Top 10 Real Estate Scams in India

1. Title Fraud

In this type of property fraud, a scammer will forge property title documents and claim himself as the owner or power of attorney holder for the property. The scammer generally targets properties that are either lying vacant for long time and properties whose owners are staying outside the state or country. After forging documents, he would sell the property to innocent buyers and by the time a fraud can be detected the scammer flees.

Another version of title fraud is executed by fake or fly-by-night builders. The builder sells a project on land that is not owned by him. He would promise great returns on the project and offer freebies to lure innocent investors. The investors, in the name of promising future, forget to check all title documents only to realize later that they have been duped.

2. Rushed Sales

Rushed sales is a technique used by real estate marketing professionals to make the investors believe that if they don’t act now they will miss on the opportunity forever. They will try to create a situation of scarcity. For instance, they will tell you that they have only 3 units left in the project at this rate and the rates will increase in next 3 days. And in order to save money, you may take a decision that you will repent for many years. Generally, rushed sales technique is used by someone to hide facts and to push sales.

3. Assured Returns

These days, many builders offer assured 12-15% returns per annum on the investment till the handover of property. Some, even promise assured rental returns even after the possession. At the time of investment, they will also give you post-dated cheques. The real problem occurs when any of the cheques bounces. Recently, a Gurgaon based builder has been accused of defrauding more than 700 investors for over Rs. 1000 crores in a similar assured returns scheme.

4. Inordinate Delays

This is the most common problem in under-construction properties. Sometimes delay can happen for genuine reasons for eg. shortage of labor or materials, a natural calamity, socio-political disturbances etc. But most often builders will give various reasons for delays which are not true. The real reason in most cases is extreme greed. For lack of regulation, the builder collects money from investors and instead of using that money for construction, he diverts it to buy more land. In a rising market this may work to builder’s benefit as he can always sell more units to raise more money. But as soon as the real estate market stagnates or goes down, the builder is exposed. He will not have money to construct and he cannot sell the land or more units to raise more money.

The poor investor has to bear all losses for he has to pay rent as well as interest on the home loan. There are thousands of such project delay cases going on in various courts all across the country.

5. False Promises

At the time of sales, the builder may give you an offer which you cannot refuse. For instance, in an advertisement, a builder promises a rate which is 10% below market rate, a 12% assured return, assured delivery within 3 years, a buy-back scheme and a penalty of Rs. 10 per sqft. in case of any delays. You may think, “what else can I ask for? I am protected 100%.” But before you jump on this deal, Hold and Think! Aren’t these just promises? What is the guarantee that he is going to deliver on each promise? What if he just uses your money to earn higher returns and later returns your money citing some problems? The above example is inspired from a real incident. After an year of launching such a project, the builder did not have money to pay radio channels where he was running the advertisements.

6. Forced Cancellation

In a rising market, the builder will try to find all types of faults with you and your payments. He will keep looking for excuses to cancel your booking so that he can sell the same unit to another investor at a higher rate. Some builders deliberately delay projects so that many investors panic and cancel their bookings. In such a case, the builder uses investor’s money without interest and also charges a cancellation penalty.

In some cases, the builder may delay the construction and plant his own people in the market, who may offer to buy your unit in the stuck up project at a lower rate.

7. Pre-Launch Scam

In a pre-launch scheme, the builder offers few units at a discounted price till the time he receives the approval. In an ideal pre-launch project, the builder should have applied for approvals and there should be no reason for approval to be rejected. However, some builders use this scheme as a bait to attract investors. The builder sells units without applying for approvals and has no plans to get approvals. The only aim is to raise money, use it to buy land or generate higher returns.

8. Deviation from Plans & Specifications

At the time of selling, almost all builders show a beautiful sample flat and promise great amenities and specifications. However, by the time you are offered possession, you can see cost cutting across the complex – in common areas, facilities, parking and inside your home. In some cases, to extract more money from investors, the builder may increase the super area of the property without increasing the actual carpet area.

9. Selling same unit to multiple investors

In some cases, scammers sell same property to multiple investors. In other cases, the builder may sell more units than are possible in the area. For instance, a builder in Rajasthan sold 3-4 times the number of plots that could be developed in a land parcel that was owned by him. Now, all investors are fighting legal cases. The builder is on the run.

10. Encroachments

Encroachments are more common in plotted developments. Local land mafia tries to encroach land that has been lying unoccupied for a long time or where the owner stays outside the state or country.

In some cases, a scammer may take the property on rent on a long term lease and may not vacate it. He may also try to sell the property by creating forged property papers.

How to avoid Property Fraud or Real Estate Scams in India?

1. Check Builder’s Track Record

It is natural for any investor to get attracted towards low pricing and lucrative schemes. But what is the use of such schemes when the project never sees the light of the day. Therefore, you must check builder’s past record of delivered projects. This way you can reduce your construction risk.

2. Understand Details

As the popular saying goes, “The devil is in the details”, while buying property you must have complete clarity on documents and transaction details.

In case of an under-construction property:

• Ask for Builder-Buyer Agreement before investing and check all details,
• Ensure that the builder has taken all approvals. Invest in a pre-launch project only when you are sure that the builder will get approvals soon. Otherwise, it is better to wait for approvals,
• Understand delay clauses and ensure that the builder is committing a reasonable penalty in case of any delays.

In case of ready-to-move-in property:

• Involve a professional agent to ensure smooth transaction,
• Check all property papers to ensure title ownership, that if there is a loan on the property and that property taxes are paid up,
• Check Agreement to Sale and payment terms.

3. Don’t Rush

Never take a hasty decision. Complete your due diligence first and invest only where your basic criteria are met.

4. Ask Questions

If you have a doubt, ask your agent or the marketing team of the builder. For eg. if the builder has obtained approval, ask for the approved layout else ask for a copy of approval application if the property is at pre-launch stage. You should not repent later for ignoring minor details.

5. Take Professional Help

In case you do not have expertise to conduct due diligence on property, you should always seek professional help from a real estate expert or a legal counsel. You will save lakhs of rupees in interest and rental costs that you will incur if your project is delayed or never takes off.

6. Get Assurances in Writing

Builders promise moon in their advertisements and brochures. However, if you read the fine print, they will have a disclaimer saying that images, plans and amenities are indicative only. Even during construction phase, the builder will give you oral assurances, which have virtually no meaning. Therefore, it is important that you get everything in writing. Ask them to communicate with you through their official email id or on their letterhead.

7. Choose Bank Approved Projects

Banks perform their own due diligence before approving a project. So, by investing in a bank approved project you can reduce your risk to a great extent.

8. Seek Personal Recommendations

If you can get personal recommendations from any of your friends, family members or colleagues about their experience with a particular builder or a particular real estate agent, it is always better than relying on online opinions, many of which may be biased.

Final Word

Now that you know all major types of real estate scams in India, we hope that you will not rush your decision of investing. Remember the old adage, “If it seems too good to be true, it probably is”. While you may come across real great deals in real estate, you should always perform your due diligence to avoid property fraud. You should sign the booking amount cheque only if the property passes all your tests. Remember, a little bit of research can save you lakhs of rupees and a whole lot of mental agony.

Over to You

We need your love! Like and Share this article on “Property Fraud – Avoid Top 10 Real Estate Scams in India”, if you found it useful.

Housing is a basic need that every citizen is entitled to. While the rich and the upper class can easily afford to buy their own home, majority of lower middle-class and poor are still deprived of this basic facility. To address the issue of acute housing shortage in India, the Union government announced the ambitious Pradhan Mantri Awas Yojana (PMAY) under which, about 20 million affordable homes will be built by 2022. i takes you through the Pradhan Mantri Awas Yojana procedure of buying a home under this scheme.

Pradhan Mantri Awas Yojana eligibility criteria

To apply for a home under PMAY Housing for All, you must belong to the low-income group (LIG) or the economically weaker sections (EWS) of the society. Following are some other conditions that you must fulfill:

You or any member of your family is not an owner of a pucca house. A pucca house is one which is made of high quality material.

Your family comprises of: you, your spouse and unmarried children.

Households with an income of up to Rs 3 lakh per annum belongs to the Economically Weaker Section (EWS) while those having an annual income between Rs 3 -6 lakh constitute the Low income Group (LIG). If you belong to any one of these groups, you must show substantial proof of your income or make an affidavit, in order to avail the benefits under PMAY.

Those having an annual household income between Rs 6 and Rs 12 lakh will fall under the Medium Income Group (MIG) 1 category and can avail interest subsidy on loans of up to Rs 9 lakh for the purchase of the house.

Individuals earning a household income from Rs 12-18 lakh per annum will fall under Medium Income Group (MIG) 2 of the scheme and can avail the benefit of interest subsidy on home loans of up to Rs 12 lakh.

People belonging to minority groups such as SC/ST/OBC will fall under minority. These people need to provide relevant caste and income certificates to be considered under the PMAY scheme.

This is a pro-woman scheme wherein female members of a family would be given preference of owing a house.

Older and disabled citizens would be preferred over others while applying for a house situated on the ground floor.

Please note that the union government has given a nod to increase the carpet area of the flats to be allotted under this scheme. The carpet area for MIG 1 will be increased from 90 to 120 sq m while for MIG 2, it will be 150 sq m. However, the existing carpet area limit of 30 and 60 sq m for the EWS and LIG and category will remain the same.

Pradhan Mantri Awas Yojana Guidelines

How to apply for a home under the PMAY?

If you fulfill the eligibility criteria stated under the PMAY or if you are a slum dweller, you can apply through Pradhan Mantri Awas Yojana online application form. PMAY application form download here…

Click on Citizen Assessment.

Under citizen assessment, select ‘benefit under 3 components’ if you belong to the low income group (LIG) or economically weaker sections (EWS) and submit the Format-B applications.

Once done, you can track your status by clicking on ‘track your assessment status’

Pradhan Mantri Awas Yojana documents required

As per Indian Bank’s Association, the beneficiary is required to submit the following documents for purchasing a house under PMAY.

1.

Duly filled application form

2.

Self-affidavit income certificate (only if the income is below taxable limit)

3.

Unique Identification – PAN Card/Aadhar Card/ Voter ID Card/Driving License/MNREGA No. Any Other Number or A Certificate of house ownership from Revenue Authority of Beneficiary’s Native District, etc.

4.

Nationality Identification Proof

5.

Caste certificate/Proof of category (whether belonging to SC/ST/OBC/Minority)

6.

Copy of Address Proof

7.

Income Proof – Original Salary Slip/Salary Certificate/Other income

8.

Latest I.T. Return/ I.T. assessment Order/Form No. 16 if applicable

9.

Statement of Bank Accounts – last 6 months

10.

A brief note on the nature of business/activity/self-drawn attested financial statement/business license in case of self-employed.

11.

Affidavit from the beneficiary stating that he/ she or any of the family members do not own a pucca house (all weather dwelling unit) in any part of India.

Source: Bank of India

To know about PMAY subsidy, you can refer to the website.

PMAY Registration

For registration under PMAY (Urban), a free of cost demand survey is conducted both, online and offline, by the concerned Urban Local Bodies (ULBs). Eligible beneficiaries can also make online registration themselves through the Ministry’s website. The State/UT governments have also facilitated registration at their Common Service Centers (CSCs) at a nominal charge of Rs 25 plus service tax.

The eligible beneficiary can avail PMAY rural application form from any common service center across the country. To find the nearest Pradhan Mantri Awas Yojana CSC in your city, you can follow this link.

PMAY Online Registration through CSC

Following are the steps to apply online for PMAY through CSC:

1) Visit the official PMAY registration website of CSC.

2) Click on ‘Apply Here’

3) Enter your Aadhar number, select the monthly household income, check the declaration box and click ‘Next’ button at the bottom of the page.

4) On the next page, you will be asked to select the verification method. You can choose any one of the option – Iris (Eye Scan), Fingerprint or OTP. Since you require an eye scanner machine for Iris and a fingerprint machine for fingerprint, choose the OTP option and click on ‘Proceed’.

5) Upon clicking ‘Proceed’, check the declaration box and click on ‘Generate OTP’ button, post which you will receive an OTP on your mobile number linked with Aadhar card. Now, enter the OTP and click ‘Validate OTP’ button.

6) On the next page, PMAY urban application form will open wherein, you are required to fill the details and submit the form. Upon completing the process, you will be given an ‘application number’ or ‘assessment ID’ through which, you can track the status of PMAY application at later stage.

The application acknowledgement receipt can be downloaded by entering the Aadhar and application number at this link.

Pradhan Mantri Awas Yojana Benefits

The Government’s scheme comes with an intent to provide shelters to the homeless population in the country. To achieve this, the scheme offers several benefits to the identified beneficiaries.

Home Loan Subsidy

PMAY beneficiaries can easily avail the benefits of interest subsidy on the home loan. Under Credit-linked Subsidy Scheme (CLSS), homebuyers can get the subsidy depending on their income, ranging from EWS/LIG to MIG 1 and MIG 2.

All homeless to get pucca houses

Under PMAY, the Government aims to develop over a crore of houses in different parts of the country, including rural areas. Under PMAY (Rural), the beneficiaries would be identified as per the Socio-Economic and Caste Census (SECC) 2011.

Benefits for women and minorities

Under the scheme, the Government has mandated female homeownership in certain cases, even if she is not the one buying the property. Additionally, certain strata of the society including widows, transgenders, the disabled, minorities and seniors are given preference over the general public. In case, you are applying for a house under PMAY as a senior citizen, you can be assured of ground floor unit allotment.

Components of PMAY

People who want to register themselves under the ambitious housing scheme launched by the Government can submit their application in either of the four components under PMAY.

In-situ rehabilitation component deals with slum dwellers who do not own a pucca house

Beneficiary-led construction (BLC) is applicable to those who have their own land and are seeking funds to construct/renovate a residential unit

Credit-linked subsidy scheme (CLSS) is a home loan scheme granted to a certain section of the society based on their annual income

Affordable housing in partnership (AHP) is for those who neither have any land nor can afford a home loan

CLSS Scheme

In order to provide financial aid to the identified P M A Y beneficiaries, the Government had introduced CLSS under PMAY (Urban). PMAY subsidy scheme was launched with an intention to lower the home loan EMIs and lessen the burden of interest on the borrower. If you are looking to avail subsidy scheme under PMAY, here are the eligibility criteria to avail the benefits.

All the families falling under Economically Weaker Section (EWS) with an annual income of up to Rs 3 lakh can apply for CLSS scheme.

Low Income Group (LIG) consists of households with an annual income is between Rs 3 lakh and Rs 6 lakh.

Middle Income Group (MIG): The scheme has been divided into two categories. MIG-1 includes households earning less than Rs 12 lakh per annum. On the other end, MIG-2 category consists of households making less than Rs 18 lakh as annual income.

Other CLSS eligibility clauses

The applicant’s family should not own a house in any part of the country.

In the case of a married couple, either a single or a joint ownership deal is allowed. Joint ownership would be entitled to get just one subsidy.

The applicant’s family should not have availed subsidy in any housing-related schemes in the past.

Thank you

Please upvote if you find helpful information.

When buying a housing unit, a prospective homebuyer bases his purchase decision on several factors including his buying capacity, the location, security issues and layout of the house, among others. The layout is detailed in a floor plan, which makes it one of the most important document to be scrutinized by the buyer. But, what is a good floor plan and how to differentiate it from a faulty one? Let us find out.

A floor plan is the most critical aspect of any housing unit. It is a two-dimensional drawing that shows the relationship between different rooms, traffic pattern, space utilisation and physical features of the house. Generally, homebuyers use a floor plan to visualise how the housing unit will look once complete and if it will cater to their family requirements or not. Overall, a floor plan is a crucial deciding factor in the homebuying process. But, how to identify if a particular floor layout is ideal? Here are a few guidelines that will help you differentiate between a good floor plan and a flawed one.

Clear visual of the house

An ideal floor plan is the one that provides a rich visual of the interiors of the house. It offers a peek into the design and floor layout, i.e. the relative placement of each room and their direction, interconnected spaces, and the doors and windows’ location. However, a flawed floor plan will make it challenging to identify the number of rooms, accommodation facilities and the interiors.

Size of the rooms

A perfect floor plan comprises rectangular-shaped rooms as they will easily accommodate the required furniture and ensure free traffic movement. Typically, the ideal room size is 12 ft long and 10 ft wide. This is because the usual bed size in India is about 7-8 ft in length and a 12 ft by 10 ft room would ensure adequate functional space for hassle-free movement. If you plan on a twin size bed, then your room’s size should be minimum 7 ft by 10 ft.

Loading factor

The difference between the super built-up area and the carpet area is known as loading and is usually 30 percent of the entire floor plan. Ensure that the loading is not more than 30 percent as anything above indicates that the carpet area is less, while the super built-up area is more. This might leave you with a smaller indoor space. Moreover, check that the loading factor is not less than 25 percent as in this case, the common area gets compromised.

The genesis of loading for a builder is to recover the cost of additional facilities such as lifts, lobby, parking, maintenance room, and terrace.

Formula to calculate the loading factor

Carpet area X (1- loading factor) = Super built-up area

Let us assume, the super built-up area of an apartment is 1,000 sq ft and the carpet area is 800 sq ft.

800 X (1-loading factor) = 1,000

1- Loading factor = 1,000/800

1- Loading factor = 1.25

Loading factor = 1.25 – 1

So, the loading factor is 0.25 or 25 percent. As a standard, it is always expressed in percentage.

Living room

The living room should be in the middle of the house, well-ventilated and lighted and easily accessible from other rooms. Also, as living rooms are designed for family gatherings and other ceremonial activities they should be bigger than the rest of the rooms and should take into account the furniture placement and traffic movement. A living room size may vary from 14-16 ft to 18-24 ft. However, there may be other variations as well depending on the size of the unit.

Kitchen area

Prefer a floor plan with a kitchen in the rear end of the house, giving easy access to the dining area and other rooms. Besides, check if the kitchen is in the northeast corner as it will ensure ample natural light during the day, keeping your electricity bills low. Large windows for ventilation and a chimney for smoke escape are also essential, and it would be best if the windows are as big as 15 percent of the floor area.

Furniture space

Any furniture in the residential space is placed at least three feet away from the wall. Hence, make sure that there is enough space for placing furniture at different angles to avoid overcrowding. It would also be better if there are in-built shelves, wardrobes, and cabinets in each room as it will provide space for other furniture items and improve the house’s functionality.

Bathrooms

Nowadays, most of the floor plans provide attached bathrooms and water closets. Generally, 1 BHK unit has one attached bathroom, and a 2 BHK unit comprises two bathrooms- one attached to a bedroom and the other bathroom attached to the common area. Hence, check the number of attached bathrooms and the shared ones.

Check if each bathroom has windows. Ideally, a bathroom should have two windows-one for ventilation at the height of 200 mm from the ground level and other at a lower level with frosted glass panes for natural light permeation.

A basic floor plan comes with each room’s outline, wherein windows are highlighted with horizontal lines or broken lines and doors are highlighted with arcs, which indicate the space they will take while opening. Along with doors and windows, also check for balconies in the house, including the living room. Ensure they are big enough and are not included in the Floor Space Index (FSI).

A lease agreement or a rental agreement is a vital legal document that should be completed prior to a landlord renting property to a tenant. While both agreements are similar in nature, they are not the same and it is important to understand the differences.

A lease agreement is a contract between a landlord and a tenant that covers the renting of property for long periods of time, usually a period of 12 months or more. The lease agreement is very specific in detailing the responsibilities of both parties during the lease and it includes all the necessary information to ensure that both parties are protected.

1. Lease Agreements

The length of the lease and the amount of monthly rent are documented and cannot be changed. This ensures that the landlord cannot arbitrarily just raise the rent and the tenant cannot just leave the property whenever they want without repercussion.

The lease agreement is effective for the specific time stated in the agreement and is then considered ended. If the tenants wish to remain in the property, both parties must enter into a new lease agreement.

A landlord is not obligated to renew the terms of the old lease and is free to change terms and rental amounts if desired. For this reason, some tenants prefer to sign a longer-term lease if the monthly rent is very reasonable and in an area where rents are likely to increase during the term of the lease.

2. Rental Agreements

A rental agreement differs from a lease agreement in that it is not a long-term contract and usually occurs on a month-to-month basis. This month-to-month lease agreement expires and then renews each month upon agreement of the parties involved.

All the same stipulations are included in a month-to-month lease as are in a standard lease; however, either the tenant or the landlord can alter the terms of the agreement at the end of each month. The landlord has the option to raise the rent or request that the tenant quit the premises without violating the rental agreement. A landlord must give a proper 30-day notice to quit, however, prior to requesting the tenant leaves the property.

3. Pros and Cons

Both lease and monthly rental agreements have their advantages and disadvantages. Rental agreements allow landlords to rent properties that might not be desirable to long-term renters. It is also advantageous when rental amounts can rise quickly, allowing the landlord to renegotiate the terms of the agreement from month to month. They benefit tenants who only need to stay in a certain place during a transition or when they are unsure of how long they want to rent in the specific area.

A lease agreement, on the other hand, is advantageous to a landlord by providing the stability of guaranteed, long-term income. It is advantageous to a tenant because it locks in the rental amount and length of lease and cannot be changed even if property or rent values rise.

The Indian realty landscape with conducive government policies and multiple incentives registered 20 per cent hike year-on-year sales in January to March, according to Indian Real estate property site report.

The quarter witnessed the launch of about 600 new residential projects in top eight metro cities. Despite increasing COVID cases, Mumbai led all cities for the third quarter in a row with a 38 per cent share in new and re-launched projects.

Hyderabad surpassed Pune and took the second position with a 21 per cent share. Interestingly, Delhi NCR again contributed the least with a three per cent share in the overall new unit additions.

Based on properties listed on 99acres, none of the eight metro cities recorded a downward revision in average listing prices of residential apartments in January to March 2021 against the previous quarter.

“Buyer responses also reported 7 per cent surge in the same period on 99acres. Owner listings posted on 99acres also went up by 20 per cent in Jan-Mar 2021 against Oct-Dec 2020.

In the first quarter of 2021, Delhi and Mumbai top the chart for luxury housing.

Most of the demand for property priced more than Rs 1 crore was driven by these two metros followed by Bengaluru and Hyderabad.

However, understandably, affordable housing (within Rs 40 lakh) remained the most popular choice with Kolkata leading the demand followed by Chennai, Ahmedabad and Pune.

The premium market picked up some pace, especially on the back of NRI demand in cities like Bangalore and Pune.

The average property prices went up by a percent across cities like Chennai, Hyderabad, Kolkata and Ahmedabad, and maintained status quo in Delhi NCR, Mumbai, Bangalore and Pune.

The rental market continued to be grim as the slightest hope of reopening of offices and educational institutions was slayed by a fresh spike in COVID cases.

With vacancy rates rising consistently across cities, the rental values suffered a dent of 10 to 15 per cent. The fast-paced dissemination of the COVID vaccine, however, may turn tables in the next two quarters for rental spaces.

The Information Technology and Business Process Management (IT-BPM) sector led the office leasing market with 20 per cent of total leasing across the top eight cities.

The Banking, Financial Services and Insurance (BFSI) sector followed with a 15.4 per cent share in office leasing.

While Chennai led all cities with a 35 per cent market share, Pune and Delhi NCR followed with 20 per cent and 18 per cent respective shares.