DOES
THE AGREEMENT FOR SALE HAVE TO BE REGISTERED?
The agreement for sale between the builder and purchaser
has to be registered as required by the law of the
land. One must register within four months from the
date of execution of the Agreement at the office of
the Sub-Registrar appointed by the State Government,
under the relevant Registration act.
UNDER
WHOSE NAME DO I PURCHASE THE STAMP PAPER AND WHO PAYS
THE STAMP DUTY DURING A TRANSACTION OF BUYING AND
SELLING?
The Stamp paper is generally purchased in
the name of the executor to the agreement. Generally,
the buyer pays the Stamp duty unless agreed otherwise.
DOES
THE PROPERTY HAVE TO BE INSURED?
You will have to ensure that the property is duly
and properly insured for fire and other appropriate
hazards, as required by banks / financial institutions
with whom you may wish to mortgage the property, during
the pendency of loan. In such cases, the beneficiary
of the policy will be the concerned institution offering
the loan. Even otherwise, it is advisable to insure
your property for hazards and fire.
HOME LOANS
WHAT IS
THE LOAN AMOUNT WHICH CAN BE SANCTIONED?
Banks / financial institutions sanction loan
amounts based on certain criteria depending upon your
repayment capacity (which takes into account your
age, qualifications, assets, liabilities, stability
of occupation, savings history) and according to your
income. You can include income of other members in
your family too, in case you want to increase the
amount of your loan. The maximum loan that can be
sanctioned varies with housing finance companies.
Generally, the maximum loan amount is 80 to 85% of
the cost of your home.
WHAT
IS MEANT BY AN EMI (EQUATED MONTHLY INSTALMENT)?
An EMI is the monthly amount to be repaid to the bank
or financial institution against a loan amount borrowed
for a fixed period of time. An EMI has two components,
the principal component and the interest component.
There are two methods - reducing balance method and
the monthly reducing balance. The Reducing Balance
method reduces the principal amount already paid from
the outstanding loan amount. Every time you make a
payment, you pay interest on that part of the original
principal sum that has remained unpaid till then.
The loan carrying the lower EMI for the same tenure
is the cheaper option.
WHAT
IS PRE-EMI INTEREST?
Pending final disbursement, you pay interest on the
portion of the loan disbursed. This interest is called
pre-EMI interest. Pre-EMI interest is payable every
month from the date of each disbursement upto the
date of commencement of EMI.
WHAT
IS A FLOATING INTEREST RATE?
A loan taken on a floating interest rate, is a loan
where the interest rate which is payable is linked
to the market rate. e.g. the bank lending rate. The
interest rate payable by you will also rise and fall
as per bank lending rates which may also fluctuate.
WHAT
IS A HOME IMPROVEMENT EXTENSION LOAN?
A home improvement loan is one that is made available
to do external works like structural repairs, waterproofing
or internal work like tiling and flooring, plumbing,
electrical work, painting, etc. A extension loan is
one which helps you to meet the expenses of any alteration
to the existing building like extension/ modification
of your home. One can avail of such a loan facility
of a home improvement/extension loan, after obtaining
the requisite approvals from the relevant municipal
corporation/building authority.
WHAT
IS AN ANNUAL REST?
Interest is calculated on annual rests. The effective
rate of interest varies depending on the term of the
loan. For a loan with a term of 15 years, the effective
interest rate would be higher by a very small percentage
(in terms of a fraction) per annum than the indicated
rate of interest.
DO
BANKS / FIS ASSIST ONE IN SELECTING
PROPERTY / BUILDING / FLAT OF ONE'S OWN CHOICE?
Yes, certain banks / FIs have approved builders and
developers and will assist you in of your choice.
WHAT
SECURITY DOES ONE PROVIDE AGAINST THE LOAN AMOUNT
TO BE BORROWED?
Generally, by way of deposit of title deeds
and/or such other collateral security as may be necessary.
Additionally, if the property is under construction
interim security may be required. Collateral or interim
security could be assigned to the Bank/ FI where the
surrender value is at least equal to the loan amount.
It could be other forms of guarantees or pledge of
shares acceptable by the bank / FI. One should ensure
that there is no existing mortgage or loan or litigation
which can affect the title of the property. The title
should be clear, marketable and free from encumbrances.
CAN
ONE REPAY THE LOAN AHEAD OF SCHEDULE?
It is possible to repay a loan ahead of schedule.
A form of a penalty termed as a pre-payment penalty
is payable to certain institutions.
HOW
DOES ONE GET A TAX BENEFIT ON THE LOAN?
There is an eligibility for certain tax benefits on
principal and interest components of a loan under
the Income Tax Act, 1961. Moreover, you can get added
tax benefits under Sec 88 on repayment of principal
amount.
MATERIALS
HOW WOULD YOU COMPARE THE QUALITIES OF PLYWOOD?
Plywood generally holds nails and screws better than
oriented strand board. Plywood also holds up better
if it gets wet.
WHAT
IS THE BEST KIND OF FLOORING TO CHOOSE?
Your flooring choice will depend on your preferences,
your budget, and where you are going to install it.
Here are some of the main choices:
a) Vinyl tile squares: The least expensive
type of flooring, vinyl tile comes in a wide variety
of colours and patterns. Since it is impervious to
water, relatively easy to clean, and quick to install,
it is commonly put down in kitchens and bathrooms.
As vinyl tile gets old it tends to fade and discolour.
It is easily scratched or cut, but individual squares
can be removed and replaced.
b) Vinyl sheet: Prices range significantly
depending on quality. Vinyl sheet flooring is often
selected because of attractive patterns and because
it covers a large area with no risk of individual
tiles working loose at the edges. It is impervious
to water but can be cut or scratched easily.
c) Laminates: Laminate flooring is constructed
of several layers of plastic-type resins compressed
under high pressure to a hard fiber or particleboard
core, with melamine backing and printed surface. It
can be made to appear like different types of wood
flooring or even marble and flagstone. It is put together
in tongue and groove fashion and is not attached to
the subfloor as are standard hardwoods. Many carry
a 10 year or more warranty against staining or fading.
There is some difference of opinion, even among experts,
about whether to use laminate in a place where it
will get wet.
d) Ceramic tile: Wide range in costs depending
on quality, colour, and material. It wears well and
is not easily stained. Because it also repels water
if the grout is sealed properly, it is widely used
for entryways, kitchens, and baths. If installed over
wood, it must have solid underlayment that will not
flex and subsequently crack the tile. Installing a
solid underlayment, however, may raise the finished
floor higher than adjacent flooring, causing an uneven
transition unless calculated in advance.
e) Hardwoods: Hardwood floors cover the spectrum
in colour, types of wood, style, and price. They are
available as traditional tongue and groove strip and
plank to parquet squares. Hardwood floors range from
labor-intensive parquet requiring on-site sanding
expertise to factory finished products often installed
by homeowners themselves. Newer finishes and finishing
techniques make wood floors much easier to care for
than in the past. Factory-finished floors come in
a wide array of patterns and edge treatments. This
type of floor can be laid quickly and without sanding
dust and odor. Unfinished floors offer a wider choice
of wood but require expert sanding and finishing in
the house. The final appearance is more dependent
on the people doing the sanding and finishing than
on the wood itself.
WHAT
TYPE OF SUBFLOORING IS BEST?
Preferred subfloors in the cases where ceramic tiles,
marble or other stone floors are laid are mortar bed
or cement board.
HOW
DOES ONE GET THE POLISHED FINISH ON THE CONCRETE SURFACE?
This requires labor-intensive work and careful timing.
First the concrete is leveled, then bull floated to
bring the cream to the top. When the water sheen has
disappeared, you must begin repeatedly troweling the
slab with a rectangular steel trowel. Repeated steel
troweling on firm yet still wet concrete gives it
the polished finish. You kneel on a square of plywood
while doing this and step to a second square of plywood
when you must move. And you must move quickly before
the concrete sets too firmly. In other words, this
is usually a job for an experienced professional.
WHAT
IS THE DISADVANTAGE OF USING CERAMIC TILES?
a) Joints can rupture, especially if bedding mortar
is not evenly spread out.
b) Size : In a box of 300 x 300 size, variations like
303, 296, etc, can be found.
c) Please read the relevant guides.
WATER PROOFING
HOW TO
PREVENT DAMP IN ROOF AND WALLS?
Presently, we advise people who request for
such information to meet construction chemical manufacturers
who have their own systems like FOSROC, SIKA, CICO,
PIDILITE, SAHARA, CALTECH, etc.
