<p>Should the ideal home be a grand palace or just spacious enough for one’s
              furniture and a few dreams? The answer lies in how one measures it. The carpet and built-up area are two common
              metrics to measure a space. Getting to know the difference between the two helps determine whether a new home
              will be cosy enough to accommodate one’s needs.</p>
      
      <p><strong>What is the carpet area of a house?</strong></p>
      <p>The carpet area includes all internal spaces within the walls, such as the bedroom,
              bathroom, kitchen, dressing room, study room, living room, and any other rooms. It also includes internal
              partition walls and doors that are within the enclosed space. However, it does not include exclusive external
              areas like balconies, terraces, etc.</p>
      
      <p><strong>How to calculate the carpet area of a house?</strong></p>
      <p>Here are the steps to calculate the carpet area:</p>
      <p><strong>Measure all rooms: </strong>Measure the length and width of each room within
              the walls of the house, such as the kitchen, bedrooms, bathrooms, etc.</p>
      <p><strong>Exclude other areas:</strong> Exclude the measurements
              of walls, balconies, and other utility areas.</p>
      <p><strong>Find the sum: </strong>Add them all up to arrive at
              the result.</p>
      <p>For example:</p>
      <p>Consider a house with a bedroom, kitchen, dining room, and bathroom with the
              following sizes, excluding the area covered by balconies and walls:</p>
      <p>Bedroom = 20 sq. ft.</p>
      <p>Kitchen = 15 sq. ft.</p>
      <p>Dining room = 18 sq. ft.</p>
      <p>Bathroom = 10 sq. ft.</p>
      <p>Thickness of the inner walls = 5 sq. ft.</p>
      
      <p>Carpet area = Size of bedroom + Size of kitchen + Size of dining room + Size of
              bathroom - Thickness of the inner walls</p>
      <p>Carpet Area = 15 sq. ft + 18 sq. ft + 20 sq. ft + 10 sq. ft - 5 sq. ft. = 58 sq.
              ft</p>
      
      <p><strong>What is the built-up area of a house?</strong></p>
      <p>Built-up areas are bigger than carpet areas. Typically, the carpet area constitutes
              about 70% of the built-up area, with the built-up area itself representing between 15% and 30% of the total
              property area.</p>
      
      <p>The carpet and built-up area together offer a comprehensive view of the total space
              within a property, including both usable and non-usable areas.</p>
      
      <p><strong>How to calculate the built-up area of a house?</strong></p>
      <p>To calculate the built-up area of a house, one must add the carpet area to the wall
              area while excluding external spaces such as corridors.</p>
      <p>Here’s how it works:</p>
      <ul>
          <li><strong>Determine the carpet area:</strong> This is
                  the total usable floor space within the walls of the house. For instance, if the carpet area is 63 sq. ft.,
                  this is the base measurement.</li>
          <li><strong>Measure the wall area:</strong> The wall area
                  includes the thickness of the walls surrounding the carpet area. Suppose the wall area adds 17 sq. ft. to
                  the total measurement.</li>
          <li><strong>Exclude external spaces:</strong> Corridors
                  and other external areas are not included in the built-up area calculation.</li>
      </ul>
      <p>For example:</p>
      <p>Carpet area = 63 sq. ft.</p>
      <p>Wall area = 17 sq. ft.</p>
      <p>Built-up area = Carpet area + Wall area</p>
      
      <p>Therefore: Built-up area = 63 sq. ft. + 17 sq. ft. = 80 sq. ft.</p>
      
      <p><strong>Carpet area vs built-up area - Differences at a glance</strong></p>
      
  <div class="responsive_table">
    <table>
      <tbody>
          <tr>
              <th>Particulars</th>
              <th>Carpet area</th>
              <th>Built-up area</th>
          </tr>
          <tr>
              <td>
                  Meaning
              </td>
              <td>
                  It is the net usable area of the property.
              </td>
              <td>
                  It is the total available area of the property.
              </td>
          </tr>
          <tr>
              <td>
                  Area covered
              </td>
              <td>
                  It typically makes up about 70% of the built-up area.
              </td>
              <td>
                  It usually covers between 15% and 30% of the total property
                          area.
              </td>
          </tr>
          <tr>
              <td>
                  Inclusion
              </td>
              <td>
                  It includes the rooms within the house, internal partition walls,
                          etc.
              </td>
              <td>
                  It includes the carpet area as well as exclusive balconies, open
                          terrace areas, etc.
              </td>
          </tr>
      </tbody>
  </table>
  </div>
      
      <p>Comparing carpet and built-up areas across different properties allows homebuyers to
              make informed decisions and choose the home that best fits their requirements and budget.</p>

Understand the key differences between carpet area and built-up area in property buying

Difference between the carpet and the built-up area of a house

 <p>Atharva, an IT professional, plans to marry his childhood sweetheart, Amrita, a
              wellness coach, in November 2024. Their long-cherished dream has been to begin their new life in their own home.
              Atharva and Amrita have been diligently saving for years to buy their first home right before the
              wedding.</p>
      
      <p>After months of searching, they found a beautiful 2 BHK in Whitefield, a suburb in
              eastern Bengaluru, priced at ₹90 lakhs. However, during the registration process, they were informed about the
              Ready Reckoner Rate (RRR), which increased the price by another ₹2.5 lakhs.</p>
      
      <p>Amrita, who had learned from her cousin, a recent homeowner, about how RRR may
              increase the property's stamp duty and registration fee, was prepared well in advance. Hence, their home-buying
              plans stayed on track despite the increased budget.</p>
      
      <h6>What are <strong>Ready Reckoner Rates?</strong></h6><strong>
      <p>RRR, also known as circle rates or guidance values, are the minimum prices
              established by the state government for property transactions in various areas.</p>
      
      <h6>How Ready Reckoner Rates affect homebuyers</h6>
      
      <h6>Extra upfront costs</h6>
      <p>Ready Reckoner Rates (RRR) directly influence stamp duty and registration fees, which
              are based on the higher value between the transaction price and the RRR. Even if the buyer pays less for the
              property, these fees are calculated on the RRR, increasing the initial costs.</p>
      
      <h6>Bigger loan potential</h6>
      <p>Banks use RRR to decide loan amounts. A higher RRR can result in a larger loan,
              making it easier for buyers to afford a new home.</p>
      
      <h6>Tax surprises</h6>
      <p>Purchasing a property below the RRR can lead to higher taxes for both buyers and
              sellers. It is important for homebuyers to be mindful of RRR to avoid unexpected tax consequences.</p>
      
      <h6>Why do Ready Reckoner Rates vary across cities?</h6>
      
      
      <ul>
          <li><strong>Property values: </strong>The main reason is the value of properties in different areas. High-demand locations with premium real estate have higher Ready Reckoner Rates (RRR). For example, Thane has higher rates than nearby Kalyan due to its better infrastructure and amenities. Similarly, high-end areas like Vasant Vihar in Delhi have higher rates because of their prime location and excellent infrastructure.</li>
      
          <li><strong>Market conditions: </strong>Local real estate market trends also influence RRR. Areas with high demand and limited supply have higher rates due to increased buyer competition. Conversely, low-demand areas may have lower rates to encourage more transactions. For instance, Koramangala in Bengaluru has higher rates compared to Whitefield due to its higher demand.</li>
    <li><strong>Amenities and infrastructure: </strong>The presence of adequate amenities and infrastructure also influences RRR. Cities with well-developed infrastructure, like Thane, have higher rates.
                      In contrast, areas like Kalyan, which is developing rapidly, may still have lower rates reflecting their
                      current infrastructure status.</li>
      
          <li><strong>Property type and usage: </strong>The type of property, whether
                      residential, commercial, or industrial, affects the RRR. Commercial properties usually have higher rates
                      than residential ones due to their greater market value and revenue generation
                      potential.</li>
      
          <li><strong>Development projects: </strong>Ongoing and planned
                      infrastructure projects significantly impact ready RRR. Areas near metro lines, highways, or commercial
                      developments often have a higher RRR, as these projects enhance the area's attractiveness and
                      accessibility.</li>
      
          <li><strong>Government policies: </strong>State government policies,
                      including revisions and updates to the RRR, play a crucial role. For instance, Maharashtra revises the
                      rates annually to reflect market changes, ensuring the rates remain aligned with current property
                      values.</li>
      </ul>
      <div class="responsive_table">
        <table>
          <tbody>
              <tr>
                  <td>
                      <h6>Ready Reckoner Rate: Three things to know before a property purchase</h6>
                      <br>
                      <p>1. <strong>Research thoroughly</strong>: Understand the RRR in your desired area before purchasing.
                      </p>
                      <br>
                      <p>2. <strong>Consult experts</strong>: Real estate agents and financial advisors can provide insights into
                              how it affects property prices and help you plan finances better.</p>
                      <br>
                      <p>3. <strong>Plan for additional costs</strong>: Factor in potential costs due to RRR, like higher stamp duty and
                              registration fees, into the homebuying budget.</p>
                  </td>
              </tr>
          </tbody>
      </table>
      <br>
      <table>
          <tbody>
              <tr>
                  <td>
                      <h6>Official sources to check Ready Reckoner Rates</h6>
                     
                      <p>Maharashtra: <a target="_blank" href="https://igrmaharashtra.gov.in/">https://igrmaharashtra.gov.in/</a></p>
                     
                      <p>Delhi: <a target="_blank" href="https://revenue.delhi.gov.in/content/ready-reckoner-rates">https://revenue.delhi.gov.in/content/ready-reckoner-rates</a>
                      </p>
                     
                      <p>Karnataka: <a target="_blank" href="https://karunadu.karnataka.gov.in/stamprevenue/Pages/Ready-Reckoner-Rates.aspx">https://karunadu.karnataka.gov.in/stamprevenue/Pages/Ready-Reckoner-Rates.aspx</a>
                      </p>
                     
                  </td>
              </tr>
          </tbody>
      </table>
      </div>  
      <h6>Staying informed is crucial</h6>
      <p>RRR is a vital component of the real estate landscape in India, reflecting property
              values, market conditions, and infrastructure availability. Understanding these rates proved crucial for
              first-time homebuyers like Atharva and Amruta. By staying informed and seeking expert advice, homebuyers can
              navigate the complexities and confidently embark on their home-buying journey.</p></strong>

Discover why Ready Reckoner Rates vary across different locations and how they impact property valuations

How Ready Reckoner Rates change from one place to another

<p>Homeowners who conduct meticulous research, carefully vet developers, and choose RERA-approved projects
              are
              well-prepared for their property purchase. Despite these efforts, some challenges in the homebuying
              journey
              cannot be ruled out. These may range from delayed possession to structural problems, or any other
              challenge that
              needs to be addressed. Luckily, under RERA guidelines, homeowners can file a complaint with the authority
              through
              the RERA portal in their
              respective states.</p>

            <p>Here's a step-wise guide to understand the process:</p>

            <h6>File the complaint on the official portal</h6>

            <ol>
              <li>Create an account on the RERA portal in the respective state, and after
                registration, file a complaint under section 31.</li>
              <li>During registration, there's a prompt offering the option to approach the
                Conciliation Forum for a mutually agreeable resolution. By clicking on ‘No', the site directs
                you to the complaint filing page.</li>
              <li>All complaints must be filed online using Form A, which is available after
                logging in.</li>
              <li>To file a complaint, the following details are required: the building, wing,
                flat, shop, or unit number; the names of all owners or joint owners; the total consideration value; the
                amount of money paid to date; the date of allotment or booking; the date of agreement (if any); and the
                date
                of possession (if mentioned in the agreement).</li>
            </ol>

            <h6>Upload all necessary documents and make payment</h6>
            <p>Once the complaint is filed online, the complainant needs to submit the relevant
              documents, which shouldn't be more than 20 pages. At this stage, homebuyers need to make the payment and
              then, the complaint is examined by the authority. After payment confirmation and approval of the
              complaint, the
              developer and complainant will receive notifications, and the complaint details will be displayed on the
              respective dashboards.</p>

            <h6>Be a part of the hearing and resolution</h6>
            <p>The complaints registered with the Real Estate
              Regulatory Authority are taken up for hearing based on seniority, which
              is decided as per the date of filing. The notice is sent online, and both parties get notifications on
              their
              dashboard. On the first hearing date, if the parties agree to settle, the complaint is transferred to the
              conciliation forum. If not, further hearings proceed based on merit. During hearings, parties can submit
              replies, rejoinders, or written submissions and can request amendments or file miscellaneous applications.
              <em>Roznamas</em> (records of
              proceedings) will be uploaded to the RERA website.
            </p>
            <h6>Get notified of the final order</h6>
            <p>After all arguments are heard, the authority reserves the complaint for order. Orders
              will be published on the RERA website, and both parties will be notified.</p>
            <h6><strong>Take necessary post-order action</strong></h6><strong>
            <p>If there are any defects in the order, parties can file for rectification under
              Section 39 of the Act. Additionally, any aggrieved party can file for a review of the order within 45 days
              as
              per Regulation 36 of the General Regulations, 2017.</p>

            <h6>A useful guide for homebuyers:</h6>

            <div class="responsive_table">
              <table>
                <tbody>
                  <tr>
                    <th>State</th>
                    <th>Link to register a complaint</th>
                    <th>Fees for filing</th>
                  </tr>
                  <tr>
                    <td>
                      Maharashtra
                    </td>
                    <td>
                      https://mahareraconciliation.mahaonline.gov.in/
                    </td>
                    <td>
                      ₹5000
                    </td>
                  </tr>
                  <tr>
                    <td>
                      Delhi
                    </td>
                    <td>
                      https://rera.delhi.gov.in/user/login?destination=node/1337
                    </td>
                    <td>
                      ₹1000
                    </td>
                  </tr>
                  <tr>
                    <td>
                      Karnataka
                    </td>
                    <td>
                      https://rera.karnataka.gov.in/complaintHome
                    </td>
                    <td>
                      ₹1000
                    </td>
                  </tr>
                </tbody>
              </table>
            </div>


            <h6>7 reasons to file a RERA complaint</h6>

            <p>Homebuyers have the right to file a complaint with the Real Estate Regulatory Authority if they
              experience a violation of the RERA Act by the builder, developer, promoter, or broker. The following are
              valid
              reasons to file a complaint:</p>

            <ol>
              <li><strong>Delay in possession: </strong>If the developer
                delays the delivery of the property, homeowners can file a complaint to expedite possession or get a
                full
                refund with interest.</li>
            </ol>

            <ol>
              <li><strong>False advertising claims: </strong>RERA
                guidelines ensure that developers and promoters refrain from any kind
                of false claims during marketing and advertising. If homebuyers were influenced by false advertising,
                it is possible to file a complaint
                against the developer, promoter or even the endorser involved.</li>
            </ol>

            <ol>
              <li><strong>Demand for excessive advance payment: </strong><span>Builders can also request up to 10% of
                  the
                  property's cost as an advance
                  payment. If they ask for more, homebuyers can file a complaint as per <span>RERA guidelines.</span></span></li>
            </ol>

            <ol>
              <li><strong>Issues with the project registration: </strong><span>All real estate projects are required to
                  be
                  registered under RERA. It is
                  recommended that homebuyers only opt for RERA-approved
                  projects for their dream home. If any builder attempts to sell an
                  unregistered project, it is possible to file a complaint.</span></li>
            </ol>

            <ol>
              <li><strong>Lack of project details: </strong>According to
                the Real Estate Regulatory Act, <span>builders must update all project details – plans, layouts,
                  government
                  approvals, etc. on the RERA website for customers to see. If any of this information is missing, home
                  seekers can file a complaint.</span></li>
            </ol>

            <ol>
              <li><strong>Structural defects in the project: </strong><span>Even after moving into the project, if any
                  structural
                  defects in the workmanship
                  or problems in the construction quality come to homeowners' notice, they can file a complaint. The
                  promoter is expected to compensate in case of such difficulties.</span></li>
            </ol>

            <ol>
              <li><strong>Unauthorised ownership transfer: </strong>A
                promoter cannot transfer majority rights to a third party without the consent of two-thirds of the
                allottees. If this occurs without proper consent, homeowners can file a complaint.</li>
            </ol>

            <h6>RERA protects homebuyers' rights at every step of the way</h6>

            <p>The Real Estate Regulatory Act is designed to ensure the timely recovery of possession of the property or
              money to
              homebuyers. While filing a complaint may seem daunting, understanding the process and homeowners' rights
              makes it manageable and effective. The objective of RERA is to protect a homeowner's interest. It offers a
              structured mechanism to resolve disputes on a fair and transparent platform. This also ensures
              accountability in
              the real estate sector.</p></strong>

A guide to filing a complaint with RERA and what to expect

How to file a complaint with RERA?


            <p>Imagine a world without price regulation. One fine morning, a litre of milk costs
              ₹500 and a full tank of diesel is priced as much as a small car. Picture paying ₹10 lakh for a bottle of cough
              syrup, available only through a high-stakes auction. It sounds absurd, doesn't it? Well, it certainly
              is.</p>
      
      <p>These make-believe scenarios highlight the importance of price regulations. These
              regulations exist to ensure transparency and fairness. Just like many other products and services, the real
              estate market in India also operates under specific regulations designed to standardise property values. One key
              element of this system is the Ready Reckoner Rate (RRR). This blog will explore what these rates are and explain their significance for
              homebuyers.</p>
      
      <h6>What is the Ready Reckoner Rate?</h6>
      <p>Also known as the collector rate, circle rate, or guidance value, it is a benchmark
              rate set by the state government or local authority for property transactions in a specific area. In other
              words, it is the minimum transaction value required to execute a property deal. It serves as a reference point
              for pricing properties and is also used to calculate stamp duty and registration charges. The rate plays a
              crucial role in ensuring transparency and consistency in property transactions.</p>
      
      <p>RRR is periodically revised and updated to reflect current market conditions. For
              instance, the Karnataka government announced an increase in the Ready Reckoner Rates in Bengaluru in 2023.
              Effective October 1, 2023, the rates were increased by an average of 25% to 30%, with certain areas experiencing
              increases of up to 50%. This contributed to a rise in property rates in Bengaluru.</p>
      
      <h6>How is the Ready Reckoner Rate calculated?</h6>
      
      <p>RRR is determined by several
              factors, including the property's location, type, market conditions, and
              available amenities. State governments publish a rate table that outlines the rates for various regions and
              zones within the state.</p>
      <p>To calculate the RRR for a specific property, homebuyers should first identify the
              property's zone or area based on administrative divisions or local boundaries. The rate is then determined based
              on the property's size and type.</p>
      
      <p>For example, in Delhi, RRR for 2024 varies depending on the type of property.
      </p>
      <p>Here are some highlights of the rates in Delhi for 2024:</p>
      <ul>
          <li>For Delhi Development Authority (DDA) and society
                  flats, the rate is ₹50,400 per square metre for areas up to 30 square metres.</li>
          <li>Private builder flats are valued at ₹55,400 per square
                  metre up to 30 square metres.</li>
          <li>For multi-storey apartments developed by the DDA, the
                  rate is set at ₹87,840 per square metre.</li>
          <li>Multi-storey apartments constructed by private
                  builders have a higher circle rate of ₹1.1 lakh per square metre.</li>
      </ul>
      
      <p>Similarly, here are some highlights from two other major cities:</p>
      
      <p>In Mumbai:</p>
      <ul>
          <li>The RRR for flats and apartments in Andheri East, a
                  busy western suburb in Mumbai range from ₹1.14 lakh to ₹2.44 lakh per square metre.</li>
          <li>Flats and apartments in Kalyan, a developing satellite
                  city range from ₹69,100 lakh to ₹77,700 lakh per square metre.</li>
      </ul>
      
      <p>In Bengaluru:</p>
      <ul>
          <li>In Whitefield, a prime IT hub in Bengaluru with
                  excellent connectivity and infrastructure, RRR for multistorey apartments are at an average of ₹11,007 per square metre.</li>
          <li>Kumbara Koppal Colony, located on the outskirts of
                  Bengaluru and relatively less developed, the rate is ₹6,500 per square metre.<br><br></li>
      </ul>
      <p>For a comprehensive picture of the Ready Reckoner Rates, homebuyers must view the
              rate tables for their specific state.</p>
      
     <div class="responsive_table">
      <table>
        <tbody>
            <tr>
                <td>
                   <strong>Official sources to check Ready Reckoner Rates</strong>
                    <br>
                   Maharashtra: <a href="https://igrmaharashtra.gov.in/">https://igrmaharashtra.gov.in/</a>
                    <br>
                   Delhi: <a href="https://revenue.delhi.gov.in/content/ready-reckoner-rates">https://revenue.delhi.gov.in/content/ready-reckoner-rates</a>
                    
                    <br>
                   Karnataka: <a href="https://karunadu.karnataka.gov.in/stamprevenue/Pages/Ready-Reckoner-Rates.aspx">https://karunadu.karnataka.gov.in/stamprevenue/Pages/Ready-Reckoner-Rates.aspx</a>
                    
                </td>
            </tr>
        </tbody>
    </table>
     </div>
      
      <h6>Why is it important to have a Ready Reckoner Rate?</h6>
      <p>RRR plays a crucial role in maintaining stability and transparency in real estate
              transactions. It acts like a regulatory tool and helps ensure that property valuations remain consistent and
              fair.</p>
      
      <p>In the absence of a standardised valuation system like the Ready Reckoner Rate,
              property prices can become extremely volatile. For instance, a report titled Emerging Market Indicators by The
              Economist, published in 1996, highlighted the erratic nature of Mumbai's real estate market during the
              late 1990s. At that time, Mumbai was reported to have the highest real estate prices globally. Surprisingly, the
              office rents in the city were more than twice those in cities like Paris, New York, or Tokyo. Prices in Mumbai's
              central business districts had surged four to six times their previous levels within just five years from
              1991.</p>
      
      <p>The residential real estate market fluctuations mirrored those of the commercial market. At the
              beginning of 1995, the most valuable real estate was the residential National Centre for the Performing Arts,
              still under construction at Nariman Point. This extreme volatility caused significant financial uncertainty and
              made real estate investments a high-risk endeavour for buyers.</p>
      
      <p>RRR helps authorities fix a benchmark that reflects the minimum value of properties
              in different localities. It helps stabilise the price and eliminate extreme fluctuations that can occur in an
              unregulated market. Additionally, it also impacts demand. When the RRR increases, properties can seem more
              expensive, potentially reducing demand. Conversely, a decrease in the rate makes properties appear cheaper,
              which could boost demand.</p>
      
      <h6>To sum it up</h6>
      <p>The Ready Reckoner Rate plays an essential role in the real estate market. It ensures transparency and
              regulated pricing. It also helps prevent misuse by sellers and protects buyers' rights. Additionally, it aids
              the government in generating revenue, as stamp duty and registration charges are calculated based on these
              rates. Home buyers must check the Ready Reckoner Rate in their state to make informed decisions about purchasing real estate.</p>


Understanding Ready Reckoner Rates: A Comprehensive Guide for Homebuyers

Everything you need to know about the Ready Reckoner Rate


            <p>A home is a symbol of love and protection for a family. But, is enough thought given
              to protecting this symbol itself? Home insurance is all about that. Often seen mistakenly as a needless expense,
              it actually safeguards a home and its precious contents.</p>
      
      <h6>So, what is home insurance?</h6>
      
      <p>Home insurance is property insurance created
              to cover losses and damages to one’s home. It includes the physical
              structure of the home, personal belongings, and much more. Let’s dive deeper.</p>
       <h6>What do insurance policies protect?</h6>
      <p>Various home insurance policies cover different aspects, tailored to meet specific needs.</p>
      <ul>
          <li><strong>Standard fire and special perils policy:</strong> Coverage against fire outbreaks and special perils such as natural calamities, leakages, damage by riots and so on.</li>
          <li><strong>Home structure/building insurance: </strong>Coverage of home structure including permanent fixtures, such as kitchen and
                  bathroom fittings, including garages, outdoor rooms and so on.</li>
          <li><strong>Public liability coverage: </strong>Say, a
                  guest experiences some damage while inside the insured’s home, then such a policy provides coverage
                  against the same.</li>
          <li><strong>Personal accident: </strong>Compensation is
                  given if the insured person is permanently disabled or passes away due to accidental or physical injury, no
                  matter where it has happened in the world.</li>
          <li><strong>Burglary &amp; theft:</strong> If burglary or
                  theft occurs in the insured house, and valuable contents are stolen or damaged, the policy covers the same.
          </li>
          <li><strong>Contents insurance: </strong>Covers valuables
                  inside the house from damages and loss – such as documents, portable equipment, jewellery, TV,
                  refrigerator, and so on. If there is a fire or flood, the policy helps replace interiors.</li>
          <li><strong>Tenants’ insurance: </strong>A must for
                  a tenant - because even though the property is rented it belongs to the resident during their stay.</li>
          <li><strong>Landlords' insurance: </strong>This is ideal
                  for landlords as it covers issues like loss of rent and public liability.</li>
      </ul>
      <p>Just as it is crucial to know what is covered in home insurance, it is equally
              important to know what is not covered. There is no coverage against:</p>
      <ul>
          <li>Willful destruction of property or damage due to wear
                  and tear.</li>
          <li>Loss of property due to war.</li>
          <li>Loss of property that has stayed unoccupied for more
                  than a specified period.</li>
          <li>Money as collectibles, antiques or cash.</li>
      </ul>
      <h6>What are the benefits of home insurance to a home buyer?</h6>
      <p>A home buyer can experience four-fold benefits:</p>
     <div class="responsive_table">
      <table>
        <tbody>
            <tr>
                <td>
                    <h6>Financial protection</h6>
                    <p>Fires, burglaries or natural disasters come unannounced and
                        can significantly
                            damage property. Without insurance, this could mean a huge out-of-pocket cost. Home insurance
                        serves as a shield of protection for the homebuyer.</p>
                </td>
                <td>
                    <h6>Security and assurance</h6>
                    <p>Having the confidence that
                            one’s home and belongings are safeguarded,
                        even in the face of an unforeseen disaster, can provide great
                            peace of mind. With home insurance, financial support to recover and rebuild is at hand.
                    </p>
                </td>
            </tr>
            <tr>
                <td>
                    <h6>Liability coverage</h6>
                    <p>Accidents can happen unintentionally. If someone is harmed, they may
                            hold the homeowner legally responsible. Under such
                            circumstances, home insurance can help pay for legal fees, medical and any other
                            expenses that can be exorbitant in such cases.</p>
                </td>
                <td>
                    <h6>Additional living expenses coverage</h6>
                    <p>This is an important facet where if the insured home is damaged and
                            becomes uninhabitable, the coverage helps pay for temporary living arrangements, such as hotel
                            stays or rental homes, allowing normal life to continue as far as possible.</p>
                </td>
            </tr>
        </tbody>
    </table>
     </div>
      
      <h6>When and how to buy home insurance?</h6>
      <p>Anytime is the right time to buy home insurance. Most insurance companies offer it
              through their website, but it’s also available offline at the company branches.</p>
      
      <h6>Ready to buy home insurance? These are the 5 important things to be mindful of.</h6>
      <ol>
          <li>Make sure that
                  the policy provides adequate coverage for the home's structure and personal belongings. Underinsuring can
                  create problems in case of a major loss.</li>
          <li>Understand what is excluded from a policy. Standard
                  policies exclude damage from natural disasters like floods, earthquakes, which need separate coverage.</li>
          <li>Consider riders for specific needs, such as valuable
                  jewellery, home offices, or other high-value items.</li>
          <li>Paying a higher
                  deductible can bring down premiums, but it means paying more out of pocket in case of a claim. Finding a
                  balance that suits one’s financial situation is key.
          </li>
          <li>Pick an insurance provider with a good track
                  record, customer service and a strong financial rating. This ensures
                  they can pay out claims when needed.</li>
      </ol>
      <p>The importance of home insurance is often undermined. The truth is, it's a vital part of protecting
              one of life’s significant investments. The benefits of home insurance are far more important than the cost. Whether you are a new homeowner or someone who has
              owned a home for years, evaluating insurance needs and ensuring adequate coverage is a wise decision and
          a robust way to protect yourself against life's
              uncertainties.</p>


Explore the essentials of home insurance and understand why it's a crucial investment for protecting your property

Home insurance 101: Why every homeowner needs it

  <p>What if buying a home isn't stressful any more? Imagine if the process is more
              seamless, transparent and secure. All the hard-earned money is protected, buyers' interests are
              prioritised and there are fair practices every step of the way.</p>
            <p>Welcome to the transformative era of RERA, the Real Estate (Regulation and
              Development) Act, which is reshaping the landscape of the Indian real estate market and empowering
              homebuyers.
              The legislation instilled a sense of transparency, accountability, and efficiency in the industry.</p>

            <p>Let's look at how RERA
              guidelines safeguard homebuyers through the key provisions.</p>

            <ol>
              <li><strong> Mandatory property documentation</strong>
                <p>According to Section 4 of the RERA Act, developers must submit essential documents
                  like the land approval and allotment letter, agreement for sale, conveyance deed, and more. This
                  requirement
                  ensures that all builders are legally bound to deliver critical property
                  documents to buyers, thus enhancing trust and transparency in the
                  process.</p>
              </li>

              <li><strong> Developer's credibility</strong>
                <p>Section 4 also mandates the disclosure of the developer's project details for
                  the last five years, including their completed and ongoing projects. This also includes the completion
                  status
                  and any pending legal cases on any of the projects under the builder's portfolio. Since this
                  information
                  is required to be submitted during the application for registration, buyers get a clear picture of the
                  developer's reliability in the industry.</p>
              </li>

              <li><strong> Financial security</strong>
                <p>According to Section 4 (2)(I)(D), developers need to deposit 70% of the funds
                  received from buyers into a separate escrow account with a scheduled bank. A real estate company can
                  only use
                  the funds for construction and land costs. This prevents misuse of funds and protects the buyers'
                  investments. In case a developer violates this provision, it can lead to penalties.</p>
              </li>

              <li><strong> Duties of the promoters</strong>
                <p>In Section 11 of the RERA Act, 2016, the promoter duties are outlined, which
                  include:</p>
                <ul>
                  <li>Executing a registered conveyance deed of the flat,
                    plot, or building in favour of the buyer</li>
                  <li>Obtaining the completion and occupancy certificate
                    from relevant authorities and providing it to the owners</li>
                </ul>
              </li>

              <li><strong> Standardised carpet area</strong>
                <p>Before RERA guidelines were applied in the industry, the calculation of carpet area varied amongst
                  developers. As a result, it led to inconsistent property prices. Now, the Real Estate Regulatory Act
                  provides a standard
                  definition and calculation method for carpet areas. This ensures uniformity and prevents arbitrary
                  price
                  hikes.</p>
              </li>

              <li><strong> Parity in interest rates</strong>
                <p>Prior to the Real Estate Regulatory
                  Act, there was no uniformity in interest rates for payment defaults.
                  However, with RERA, there's a mandate that interest rates on default must be the same for both parties
                  involved. This results in fairness, as buyers earlier faced higher interest rates on defaults compared
                  to the
                  interest paid by developers in case of delayed possession.</p>
              </li>

              <li><strong> Cap in advance payment</strong>
                <p>According to Section 13 (1) of the RERA Act, 2016, developers and promoters
                  cannot accept more than 10% of the
                  home's cost as an advance or as application fees before they sign the sale agreement. This provision
                  also
                  protects buyers from various malpractices that were common before RERA.</p>
              </li>

              <li><strong> Buyer rights</strong>
                <p>One of the biggest advantages of opting for RERA-approved projects is that it offers
                  various rights to home buyers. For instance,</p>

                <ul>
                  <li><strong>Delay in possession: </strong>In this case,
                    buyers can withdraw from the housing scheme and demand a full refund with interest from the due date
                    till
                    the amount is refunded. They can also choose to continue with the home and receive compensation with
                    interest till the project is completed and possession is given.</li>
                </ul>

                <ul>
                  <li><strong>Post-possession defects: </strong>According to
                    Section 14 (3), if any structural defect, quality defect or defect in workmanship or
                    service is discovered within five years of possession, the developer must rectify it within 30 days
                    at no
                    extra cost. Home buyers are entitled to compensation if the builder fails to do so.</li>
                </ul>
              </li>
            </ol>


         <div class="responsive_table">
          <table>
            <tbody>
              <tr>
                <td>
                  <strong>10 quick tips for safe real estate investment under RERA guidelines</strong>
                  <br>
                  1. Ensure the project is
                  registered under RERA to avoid penalties.<br>
                  2. Choose developers with a
                  good track record for better compliance and returns.<br>
                  3. Verify project registration
                  for every phase before investing.<br>
                  4. Assess the developer's
                  financial health to avoid delays.<br>
                  5. Ensure pricing is based on
                  carpet area only, not super built-up costs.<br>
                  6. Look for RERA registration
                  in ads; avoid unregistered projects.<br>
                  7. Confirm all necessary
                  project approvals and licences.<br>
                  8. Know the difference between
                  carpet and super built-up area.<br>
                  9. Ensure any plan changes are
                  documented and agreed upon.<br>
                  10. Verify the land is free
                  from disputes and fully controlled by the developer.<br>
                </td>
              </tr>
            </tbody>
          </table>
          <br>
          <table>
            <tbody>
              <tr>
                <td>
                  <strong>Where to check RERA registration&nbsp;</strong>
                  <br>
                  For Maharashtra - <a target="_blank" href="https://maharerait.mahaonline.gov.in/SearchList/Search">https://maharerait.mahaonline.gov.in/SearchList/Search</a>

                  <br>
                  For Delhi - <a target="_blank" href="https://rera.delhi.gov.in/registered_promoters_list">https://rera.delhi.gov.in/registered_promoters_list</a>
                  <br>
                  For Karnataka - <a target="_blank" href="https://rera.karnataka.gov.in/viewAllProjects?language=en">https://rera.karnataka.gov.in/viewAllProjects?language=en</a>

                </td>
              </tr>
            </tbody>
          </table>
         </div>

            <p>The RERA Act of 2016 has been instrumental in protecting home buyers and ensuring a
              fair, transparent, and accountable real estate sector. Its provisions safeguard buyers' investments,
              promote
              timely project completion and ensure the quality of construction. By standardising processes and enforcing
              strict regulations, RERA has significantly improved the home-buying experience, making it more secure and
              trustworthy.</p>


Find out how RERA Protects Home Buyers: Key Provisions And Benefits

Top 8 provisions in RERA guidelines for homebuyers' peace of mind

 <p>While navigating the real estate landscape, one is bound to encounter legal jargon at every step of the
              way. Understanding these technical terms is essential, especially for first-time homebuyers, to make
              informed decisions and keep potential financial shocks and stress at bay.</p>

            <p>Here are some real estate legal terms that every Indian homebuyer must know:</p>


            <ol>
              <li><strong>Certificates</strong>
                <ul>
                  <li><strong>Commencement Certificate (CC)</strong>
                    <p>Issued by municipal authorities, a CC permits the builder to start constructing the building.
                      This certificate can be obtained only after seeking necessary approvals, clearances and sanctions
                      from relevant authorities.</p>
                    <p><strong>Importance:</strong> It helps know the legitimacy of the project, thereby protecting
                      buyers against all potential legal issues.</p>
                  </li>
                  <li><strong>Occupancy Certificate (OC)</strong>

                    <p>An OC is a legal document that conveys the readiness of a building for occupancy. It certifies
                      that the builder has adhered to all regulations, safety measures, and other compliance
                      requirements while completing the project, making it safe for habitation.</p>
                    <p><strong>Importance:</strong> Apart from confirming the project’s legitimacy, it eliminates
                      the possibility of homebuyers being expelled from the building and deprived of basic amenities
                      like water and electric supply. </p>
                  </li>

                  <li><strong>Encumbrance Certificate (EC)</strong>
                    <p>An EC is a document that certifies a property title’s defect-free status. It ensures that
                      no third party can claim the transferred ownership, protecting owners against potential legal and
                      monetary liabilities.</p>
                    <p><strong>Importance: </strong>It offers peace of mind to buyers and helps them obtain a home loan
                      or withdraw money from their Provident Fund (PF) to buy a house.</p>
                  </li>
                </ul>
              </li>
              <li><strong>Areas</strong>
                <ul>
                  <li><strong>Carpet area</strong>
                    <p>The carpet area refers to the net usable area of a floor, including the area of internal walls.
                      It specifically excludes the size of external walls, areas under service shafts, exclusive balcony
                      or veranda areas, and exclusive open terrace areas. Buyers are entitled to a refund and an annual
                      interest if the delivered carpet area is less than that promised.</p>
                    <p><strong>Importance:</strong> Adhering to a standardised carpet area while pricing the property
                      ensures fairness in the deal. Transparency on the net usable area also helps owners shortlist
                      suitable interior design styles for their new abode.</p>
                  </li>

                  <li><strong>Built-up area</strong>
                    <p>The built-up area is the total available space in the property. This includes the carpet area
                      plus other areas such as the external walls, balconies, terraces and internal staircase in the
                      case of a duplex. A built-up area is usually 15% to 30% more than the carpet area.</p>
                    <p><strong>Importance</strong>: It gives a holistic idea of the property’s total available
                      space, helping buyers understand the potential for future renovations and expansions.</p>
                  </li>

                  <li><strong>Super built-up area</strong>
                    <p>The super built-up area encompasses the built-up area along with common areas such as the
                      corridor, lobby, swimming pool, gym, etc.</p>
                    <p><strong>Importance: </strong>The super built-up area influences people’s quality of life
                      since it concerns residential amenities. It also impacts maintenance charges that are paid for the
                      upkeep of the building.</p>
                  </li>
                </ul>
              </li>
              <li><strong>Deeds</strong>
                <ul>
                  <li><strong>Sale deed</strong>
                    <p>A sale deed is a written document that records a sale transaction between a homebuyer and a
                      seller. The seller, known as the grantor, transfers the ownership rights to the buyer, known as
                      the grantee, in exchange for monetary consideration.</p>
                    <p><strong>Importance: </strong>It serves as legal proof of transfer of ownership to the buyer. It
                      also clearly details the terms, price, and other conditions to avoid ambiguity or fraud.</p>
                  </li>

                  <li><strong>Conveyance deed</strong>
                    <p>This is a legal document that transfers the right of ownership from one party to another with or
                      without monetary consideration. It is a broad term that includes a sale deed as well as other
                      deeds, such as an exchange deed and a will deed.</p>
                    <p><strong>Importance:</strong> Much like a sale deed, a conveyance deed makes ownership transfers
                      between two parties legally binding.</p>
                  </li>
                </ul>
              </li>
              <li><strong>Mortgages</strong>

                <ul>
                  <li><strong>Fixed-rate mortgage</strong>
                    <p>In a fixed-rate mortgage, the interest rate remains fixed throughout the loan tenure. It is not
                      affected by market or economic changes. The lender locks the interest rate, protecting borrowers
                      against potential market rate hikes. Hence, such loans tend to have slightly higher rates than
                      floating interest rates.</p>
                    <p><strong>Importance: </strong>The fixed rate of interest makes budgeting and overall financial
                      planning easier for borrowers. </p>
                  </li>

                  <li><strong>Adjustable-rate mortgage</strong>
                    <p>An adjustable-rate mortgage or a floating-interest rate loan does not offer fixed interest. In
                      this case, the home loan interest rate is tied to a benchmark rate and fluctuates throughout the
                      tenure. Although such loans have lower rates than fixed interest rates at the outset, they can
                      increase later.</p>
                    <p><strong>Importance</strong>: Floating-rate loans allow borrowers to capitalise on falling market
                      interest rates.</p>

                    <p>Learning about loans with fixed and floating interest rates can help homebuyers choose a credit
                      option that would suit their financial circumstances, needs and risk appetite.</p>
                  </li>

                  <li><strong>Pre-EMI</strong>
                    <p>An Equated Monthly Instalment or EMI, which can easily be ascertained with a home loan EMI
                      calculator, is the repayment of the home loan to the lender. A pre-EMI is the repayment of the
                      loan during the construction of the property, and it only involves the interest component.</p>
                    <p><strong>Importance: </strong>The flexibility to repay only the interest amount for a certain
                      period helps borrowers with short-term cash management.</p>
                  </li>

                  <li><strong>Full EMI</strong>
                    <p>Full EMI repayments start after getting possession of the property and include both principal and
                      interest, unlike pre-EMIs.</p><p><strong>Importance: </strong>Full EMIs facilitate faster loan
                      repayments, implying reduced interest payments over the loan tenure.</p>
                  </li>
                </ul>
              </li>
            </ol>


            <p>Also, read about:</p>
            <p>1) Ready reckoner rate</p>
            <p>2) Important property documents</p>
            <p>3) Deed vs title</p>
            <p>4) Home insurance</p>
            <p>5) Detailed Project Report (DPR)</p>

Learn essential real estate terms to make informed decisions in the Indian property market

Important real estate jargon Indian homebuyers must know


            <p>Homeownership is a cherished dream for many, a dream that signifies stability,
              comfort, and a sense of belonging. As James Allen once said, "The home should be the treasure chest of living." In today's financial landscape, home loans have become the key to unlocking this treasure, making the journey to
              owning a home more attainable than ever before.</p>
      
      <p>Beyond simply making homeownership attainable, home loans also promise significant
              tax advantages. But, are these tax benefits substantial, or are they merely myths? Let's delve into the
              details.</p>
      
      <h6>Understanding home loan components</h6>
      
      <p>Before we explore the tax benefits that homeownership may provide, it is important to
              understand how they come into play. It begins with the understanding of how a home loan works. A home loan
              comprises two primary components:</p>
      
      <ul>
          <li>The principal amount</li>
          <li>The interest</li>
      </ul>
      
      <p>The tax benefits associated with home loans apply differently to these components and
              fall under various sections of the Income Tax Act.</p>
      
      <h6>Section 80C: Tax deduction available on the principal repayment amount</h6>
      <p>Section 80C of the Income Tax Act provides a tax deduction on the principal amount of
              the home loan repayment. This section also includes deductions for registration and stamp duty charges incurred
              during the property purchase. The maximum deduction allowed under Section 80C is ₹1.5 lakh in a financial
              year.</p>
      
      <p>However, this limit encompasses other investment options like ELSS funds, PPF, and
              tax-saving fixed deposits, meaning the combined deduction for all these investments, including the home loan
              principal repayment, cannot exceed ₹1.5 lakh.</p>
      
      <h6>Section 24(B): Tax benefit on interest payment</h6>
      <p>Under Section 24(B), tax is deducted on the interest component of the home loan. This
              deduction can be availed on loans for purchasing, constructing, or renovating a house. For self-occupied
              properties, the maximum deduction is ₹2 lakh per annum.</p>
      <p>However, there is no upper limit on the interest deduction on a rented property. The
              prepayment and processing charges are also deductible under this section.</p>
      
      <h6>Section 80EE: Applicable to first-time homebuyers</h6>
      <p>First-time homebuyers are eligible to claim further tax rebates under Section 80EE.
              This benefit exceeds the deductions available under Sections 80C and 24(B). Under this section, first-time
              homeowners are eligible for a deduction of up to ₹50,000 on interest
              payments. However, there is one
          condition. The home loan amount should not exceed ₹35 lakh and the value of
              the property should be under ₹50 lakh.</p>
      
      <h6>Tax rebates on home loans at a glance</h6>
      
      <div class="responsive_table">
          <table>
              <tbody>
                  <tr>
                      <th>Income Tax Section</th>
                      <th>Maximum Deduction (per annum)</th>
                      <th>Conditions</th>
                  </tr>
                  <tr>
                      <td>
                          24 (B)
                      </td>
                      <td>
                          Up to ₹2 lakhs
                      </td>
                      <td>
                          Applicable for buying or constructing a new house
                          <br>
                          Must be completed within five years from the end of the FY when the
                                  loan was taken
                      </td>
                  </tr>
                  <tr>
                      <td>
                          80 C
                      </td>
                      <td>
                          Up to ₹1.5 lakhs
                      </td>
                      <td>
                          Applicable if the property is retained for at least five years after
                                  possession
                      </td>
                  </tr>
                  <tr>
                      <td>
                          80 EE
                      </td>
                      <td>
                          Up to ₹50,000
                      </td>
                      <td>
                          Can be availed by first-time home buyers
                          <br>
                          Applicable for a loan amount of up to ₹35 lakh and a property value
                                  of up to ₹50 lakh
                      </td>
                  </tr>
              </tbody>
          </table>
      </div>
      
      <h6>Joint home loan deductions</h6>
      <p>A home loan taken jointly allows co-owners to claim individual tax deductions. Each
              co-owner can claim deductions on the interest component and principal repayment.</p>
      <p>This means that when a loan is applied for jointly, each owner can deduct up to ₹2
              lakh on the interest paid on the home loan under Section 24(B).</p>
      
      <p>Similarly, under Section 80C, each co-owner can deduct up to ₹1.5 lakh on principal
              repayment. Such an arrangement would double the tax benefits available for every co-owner independently making
              these deductions, provided all the stipulated conditions are met.</p>
      
      <p>Consider this - Rohit and Brinda Sharma, a couple, are co-owners of a property in
              Kalyan, on the outskirts of Mumbai. If they jointly apply for a home loan, the interest component would be
              available up to ₹4 lakh, and the principal repayment would be up to ₹3 lakh in tax deductions. This will boost
              individual tax savings for both Brinda and Rohit. Joint home loans thus present an attractive financial strategy
              for many borrowers, who can afford to take joint home loans.</p>
      
      <p>Some additional considerations:</p>
      
      <div class="responsive_table">
          <table>
              <tbody>
                  <tr>
                      <th>Property ownership and holding period</th>
                      <th>    Construction period</th>
                  </tr>
                  <tr>
                      <td>
                          <ul>
                              <li>Eligibility for deduction under
                                      Section 80 C of the Income Tax is not applicable from day one.</li>
                          
                              <li>Homeowners must retain the property
                                      for at least five years after possession to leverage tax benefits under this
                                      section.</li>
                              <li>If the property is sold before this
                                      period, the deductions claimed will be added back to the taxable income in the year of
                                      sale.</li>
                          </ul>
                      </td>
                      <td>
                          <ul>
                              <li>The construction period is also
                                      relevant for eligibility for deduction under Section 24(B).</li>
                              <li>The property must be constructed
                                      within five years from the end of the FY when the loan was taken.</li>
                              <li>If the construction exceeds this
                                      period, the deductible interest amount is reduced to ₹30,000.</li>
                          </ul>
                      </td>
                  </tr>
              </tbody>
          </table>
      </div>
      
      <h6>Evaluating tax benefits on home loans</h6>
      <p>The Income Tax Act of 1961 incorporates specific provisions designed to encourage
              homeownership by offering financial relief to borrowers. These tax advantages can reduce the overall cost of home ownership substantially, making home loans an attractive financial option for many individuals.</p>
      
      <p>However, it is essential to understand that these benefits come with specific
              conditions and limitations. The deductions are subject to the borrower's compliance with the prescribed rules,
              and the overall benefit depends on individual financial circumstances, including other investments and the
              income tax slab applicable to the borrower.</p>
      
      <h6>Choosing the right lender</h6>
      <p>Given the complexities of home loan tax benefits, selecting a reputable lender who
              can provide detailed guidance on the applicable tax laws is crucial. A well-informed lender can help borrowers
              maximise their tax benefits and make the most of their home loan.</p>
      
      <h6>Tax saving: A possibility with home loans</h6>
      <p>Tax benefits on home loans are a reality, offering significant financial relief to
              borrowers. Consulting with a tax consultant or financial advisor is often the best way to understand these
              benefits fully. These professionals provide personalised advice, ensuring that homeowners maximize their tax
              savings and make the most informed financial decisions.</p>
      
      <p>With a clear understanding of the different sections of the Income Tax Act applicable
              to home loans, homeowners can effectively reduce their overall tax liability and make informed investment
              decisions. Therefore, having a roof over one's head does not just instill a sense of pride and
              security, but also provides the
              perks of reducing one's overall tax burden.</p>

Uncover the truth about tax benefits on home loans and how they can impact your financial planning

Tax benefits on home loans: Fact or myth?

<p>Established in 2016, the Real Estate
              Regulatory Authority (RERA), (RERA Act), was brought into effect in May
              2017. RERA guidelines are defined to protect the homebuyer and increase investments in the real estate
              industry. The Real Estate Regulatory Act brought renewed vigour among homebuyers by infusing transparency and accountability
              in the industry.</p>
      
      <p>Buying a home for most of us isn't just an investment, it's a
              life-changing decision. It involves most of our life's savings and thus, it's a highly important
              asset. However, any kind of conflict in the property or any delay in possession can cause emotional stress. In
              the past, homebuyers have often found themselves in legal battles because of a lack of regulation in the process
              of homeownership.</p>
      
      <p>In other investments like mutual funds or equity, regulations by SEBI or the
              Government of India help streamline operations. However, this kind of regulatory board was missing in the real
              estate domain. With RERA, times are changing positively.</p>
      
      
      <h6>What is a RERA-approved project, and why does it matter?</h6>
      
      <p>A RERA approval signifies that a particular project adheres to all standards and regulations set by the Real Estate Regulatory
              Authority. As a result, it helps protect the interests of homebuyers and
              investors and promotes transparency, efficiency, and accountability in the sector.</p>
      
      <p>For real estate developers, obtaining a RERA certificate is a comprehensive process.
              It involves submitting detailed plans, documents, financial estimates, and project timelines. The authority
              reviews the submissions, including legal compliances, land titles and permissions, before giving its
              approval. Before a developer markets or sells any units in a project,
              they must register it with RERA.</p>
      
      <p>Similarly, financial transparency is highly rated in RERA-approved projects. Developers must
              disclose project costs, funding, fund utilisation, and more. RERA constantly monitors quality standards, safety
              protocols and construction norms, assuring that homebuyers get complete value for their money.</p>
      
      <p>RERA guidelines also require developers to
              open an escrow account and deposit a portion of the project funds they can use only for construction purposes.
              Since RERA also mediates disputes, RERA-approved projects instil confidence in buyers and contribute to more accountability and trust.
      </p>
      
      <h6>Top 7 benefits of choosing RERA-approved projects:</h6>
      
      <ol>
          <li><strong>Minimises risk</strong> - It offers peace of mind to homebuyers
                  and investors since the
                  project complies with legal requirements and regulatory guidelines. As a result, it reduces legal risks and
                  uncertainties like unauthorised projects or delayed possession.</li>
      
          <li><strong>Protects the homebuyers </strong>- Since real estate is a
                  significant investment, RERA's oversight mechanisms help protect the interests of investors and
                  buyers. The dispute resolution forums and grievance redressal mechanisms promise enhanced consumer
                  protection.</li>
      
          <li><strong>Boosts market credibility</strong> - A RERA approval increases the
                  credibility and market reputation of a developer. Homebuyers are more inclined to opt for projects backed by
                  trusted developers who have a track record of delivering projects successfully.</li>
      
          <li><strong>Improves return potential</strong> - RERA-approved projects tend to offer a
                  higher resale value and better rentals as they adhere to quality standards and timely possession. Also, with
                  buyers' confidence, there's a higher demand for such properties.</li>
      
          <li><strong>Promises fair pricing</strong> - Since developers provide a
                  detailed breakdown of the project's costs - land, construction and others, buyers can expect
                  fair pricing practices. The transparency prevents hidden costs and ensures that every consumer pays a fair
                  price for the property.</li>
      
          <li><strong>Protects against false advertising</strong> - Developers with
              RERA-approved projects can only
                  offer potential customers accurate and substantiated information. Thus, homebuyers feel confident about the
                  purchase. Developers can be held responsible for any incorrect or inflated promises made during advertising
                  or marketing the project across any media.</li>
      
          <li><strong>Offers structural defect liability</strong>- If developers have any
                  structural flaws in the project that can put owners or tenants at risk or cause bodily or financial
                  problems, they can be held liable by RERA. By monitoring projects after they are completed for a
                  predetermined amount of time and ensuring that developers pay for any damages that arise, RERA prevents
                  buyers from paying additional costs.</li>
      </ol>
      
      <h6>4 lesser-known facts about RERA-approved projects</h6>
      
      <div class="responsive_table">
      <table>
          <tbody>
              <tr>
                  <td>
                      <strong>Standardised methods</strong> for carpet area calculation
                              that result in consistency and clarity for potential homebuyers to compare properties
                              easily.<p></p>
                  </td>
                  <td>
                      <strong>Consumer-friendly dispute resolution</strong> for quick
                              solutions without lengthy legal battles in case of any issues with the property.<p></p>
                  </td>
              </tr>
              <tr>
                  <td>
                      <strong>Online registration</strong> for all properties so that
                              buyers can access project details and track the progress of their homes conveniently from
                              anywhere.<p></p>
                  </td>
                  <td>
                      <strong>Encourages the use of green building practices </strong>to
                              promote eco-friendly living and contribute to sustainability.<p></p>
                  </td>
              </tr>
          </tbody>
      </table>
      </div>
      <br>
      <div class="responsive_table">
      <table>
          <tbody>
              <tr>
                  <td>
                      <h6>Where to check if a property is RERA registered?</h6>
                      
                      <p>For Maharashtra - <a target="_blank" href="https://maharerait.mahaonline.gov.in/SearchList/Search">https://maharerait.mahaonline.gov.in/SearchList/Search</a>
                      </p>
                      
                      <p>For Delhi - <a target="_blank" href="https://rera.delhi.gov.in/registered_promoters_list">https://rera.delhi.gov.in/registered_promoters_list</a></p>
                      
                      <p>For Karnataka - <a target="_blank" href="https://rera.karnataka.gov.in/viewAllProjects?language=en">https://rera.karnataka.gov.in/viewAllProjects?language=en</a>
                      </p>
                  </td>
              </tr>
          </tbody>
      </table>
      </div>
      
      <p>Investing in RERA-approved projects
          offers numerous benefits, from transparency and accountability to quality
              assurance and legal protection. It ensures that the real estate investment is secure, providing peace of mind
              and long-term value. As a homebuyer, it's important to conduct thorough research, analyse all RERA
              documents carefully and invest in projects by credible and reputable developers. By being vigilant and
              proactive, homeowners can minimise risks and maximise returns in real estate.</p>

Discover how RERA-approved projects offer added protection, transparency, and reliability

Benefits of choosing RERA-approved projects for homebuyers

 <p>Mr. Mehta, a chartered accountant, secured a high-paying job in a multinational
              company. He was appointed as their senior internal auditor. His appointment letter, printed on the
              company's official letterhead, clearly mentioned his job title, date of joining, remuneration and other
              important details. If the difference between 'senior internal auditor' and 'appointment
              letter' in this example is clear, it won't be too hard to understand the difference between a title
              and a deed.</p>

            <h6>Decoding 'deed vs title'</h6>

            <h6>How to define 'title'?</h6>
            <p>A title denotes the legal ownership of an
              asset, which can be tangible or intangible. In real estate parlance, it
              refers to the ownership of a property. The title is passed to the buyer
              from the seller when a house is bought. This title confers the buyer the
              right to own, control and use that house. A buyer can hold the title individually or jointly.</p>

            <p>Here are two important things to note about property titles:</p>

            <ol>
              <li><strong> Title search</strong>
                <p>For stress-free home ownership, the title must be free of any defects. For example,
                  no third party should be able to claim the transferred ownership. Earlier, one had to visit local
                  government
                  offices to check the title status. However, the task has become much easier with the advent of
                  digitalisation.
                  Now, buyers can run a title search online by simply visiting the land record website of the state
                  where the
                  property is located. For instance, homebuyers in Maharashtra can visit the official<a href="https://bhulekh.mahabhumi.gov.in/" target="_blank"> Mahabhumi</a> website to get the desired results. To end
                  their search, they must enter the details of the concerned property. They must also mention the
                  details they seek, such as the pricing or dispute
                  history.</p>

                <p>Title checks are a must before deciding on a property to avoid being subject to
                  financial or legal challenges in future.</p>
              </li>

              <li><strong> Title insurance</strong>
                <p>Title insurance protects home buyers from potential losses owing to defective titles.
                  It is retrospective in nature since it covers events that have already occurred in the past. Despite
                  its
                  uniqueness and ability to offer peace of mind to buyers, it is quite uncommon in India.</p>
              </li>
            </ol>


            <h6>What is a deed?</h6>

            <p>A deed is a legal instrument that facilitates the transfer of title or ownership
              between two parties. Once both parties sign the deed, it must be registered with the concerned area's
              Sub-Registrar's office to be legally binding.
            </p>
            <p>A deed typically consists of the following components:</p>
            <ul>
              <li>Date and place of recording the deed</li>
              <li>Details and signatures of parties</li>
              <li>Consideration amount</li>
              <li>Rights and privileges of the owner</li>
              <li>Property details</li>
              <li>Terms of transfer</li>
              <li>Warranties</li>
            </ul>
            <h6>Types of deed</h6>
            <ul>
              <li><strong>Sale deed:</strong> It involves a seller and a
                buyer, in which ownership is transferred in exchange for monetary considerations. The seller is called
                the grantor, and the buyer is
                referred to as the
                grantee.</li>
              <li><strong>Gift deed:</strong> Unlike a sale deed, a gift
                deed does not involve monetary considerations since the ownership is transferred from one party to
                another
                as a gift. The one who transfers the ownership is known as the donor, while the one who receives it is
                the
                recipient.</li>
              <li><strong>Lease deed:</strong> This deed records the
                transfer of the right to occupy a property for a specified period. The landlord is known as the lessor,
                whereas the tenant is referred to as the lessee.</li>
              <li><strong>Mortgage deed: </strong>A mortgage deed
                records the terms of a loan between a borrower and a lender. There is
                no transfer of ownership; the deed only gives the lender the legal right and interest in a
                property.</li>
              <li><strong>Exchange deed: </strong>This deed records a
                barter. One party transfers the ownership of a property to another party in exchange for the ownership
                of
                another property. There is no money involved.</li>
            </ul>
            <h6>Deed vs title: Differences at a glance</h6>

            <div class="responsive_table">
              <table>
                <tbody>
                  <tr>
                    <th>Differences</th>
                    <th>Meaning</th>
                    <th>Form</th>
                    <th>Timeline</th>
                  </tr>
                  <tr>
                    <th>TITLE</th>
                    <td>
                      A legal term denoting a person's legal ownership of a property.
                    </td>
                    <td>
                      A concept.
                    </td>
                    <td>
                      Can keep changing and evolving.
                    </td>
                  </tr>
                  <tr>
                    <th>DEED</th>
                    <td>
                      A legal document that establishes that ownership.
                    </td>
                    <td>
                      A physical document. An intangible ownership or title is
                      transferred from one person to another through a tangible deed.
                    </td>
                    <td>
                      Establishes the ownership at a specific point in time.
                    </td>
                  </tr>
                </tbody>
              </table>
            </div>

            <h6>To sum it up</h6>
            <p>Although used interchangeably, a deed and a title are notably different.
              Understanding the meaning and importance of both helps ensure a seamless home-buying experience.</p>

Understanding the key differences between a deed and a title

Deed vs title: Understanding key differences

 <p>Trivia: D B Remedios was the first borrower from the first organised player in the
              home loan market. He took a ₹30,000 loan at a fixed rate of 10.5% in 1978: an amount less than half of the
              ₹70,000 that he spent to build his home in Malad, Mumbai. Inarguably, the criteria of home lending four decades
              ago were quite different from what they are today. It's worth finding out what lenders are now seeking in
              home buyers before sanctioning a home loan to them. 
      </p>
      <p>Let's understand the factors that determine home loan eligibility to navigate the process
              more effectively and increase the chances of approval.
      </p>
      <ol>
          <li><strong>Credit score</strong>
              <p>The<a target="_blank" href="https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-score-en-315/">
                      Consumer</a> Financial Protection Bureau says that credit score is
                  based on information from a buyer's previous credit reports. Using this past behaviour, the score predicts
                  how likely a homebuyer is to repay a loan in time. A higher credit score means that a homebuyer has a good track
                  record of managing and repaying loans. This borrower can get better interest rates and loan terms.</p>
          
          <p>3 tips to improve or keep up a good credit score: Pay bills on time | Reduce debt
                      | Do not take any other loan before seeking a home loan</p></li>
      
          <li><strong>Age and loan term</strong>
              <p>Those in their prime working years and who can repay the loan earlier have a better
                  chance of getting a home loan.</p>
          <p>It's prudent to choose a loan term that
                      aligns with one's financial goals. But, remember, shorter terms may come with lower interest rates but
                      also higher monthly payments.</p></li>
      
          <li><strong> Income</strong>
              <p>A consistent and sufficient income assures lenders that the homebuyer can make the monthly loan
                  payments and fulfill other
                  financial obligations comfortably.</p>
          <p>3 documents to submit for this purpose: Pay slips | Tax returns | Bank statements
                  </p></li>
      
          <li><strong>Employment record</strong>
              <p>If a borrower has been employed in a steady job or has had a consistent business
                  income for a certain period, this means that the homebuyer is financially
                  stable. 
          </p>
          <p>Maintain consistent employment or business operations for at least two years
                      before applying for a home loan.</p></li>
      
          <li><strong> Existing financial obligations</strong>
              <p>Any ongoing financial obligations - like car loans and credit card debts - are
                  counted as additional debt and burdens. These affect home loan
                  eligibility.</p>
          <p>Repay existing loans and do not take new ones before applying for a home
                      loan.</p></li>
      
          <li><strong> Debt-to-income ratio</strong>
              <p>The above concept also relates to a factor called the debt-to-income (DTI) ratio
                  - basically the percentage of monthly gross income used for paying loans or debts. Let's say a
                  borrower's DTI ratio is 35%, it means that 35% of their total monthly income is used to pay debt each
                  month. This includes any loan payments, credit card payments, car loans,
                  and other debts.</p>
          <p>A DTI less than 36% is good.</p></li>
      
          <li><strong> Property value and location</strong>
              <p>If a property is located in an attractive location with good resale value, there is a
                  better chance of getting a loan. Here, the property's cost works as a
                  collateral for the loan - and the lender's risk is reduced.</p>
          <p>Research neighbourhoods and property values, to invest in a property
                      that is likely to appreciate.</p></li>
      
          <li><strong> Ability to make Down Payment</strong>
              <p>When purchasing a house, a down payment is the initial amount of money which is paid
                  by the buyer. This could range between 10 to 20% of the property's value, and would vary on the
                  lender's terms as well as the buyer's financial standing. It is obvious that a higher down payment
                  reduces the loan amount needed, increasing the chances of getting a loan.</p>
          <p>It's recommended to make a down payment of 15%-20% of the cost of a home
                      when availing a home loan.</p></li>
      
          <li><strong> Savings and assets</strong>
              <p>Have substantial savings and assets? That's good news for lenders when it comes
                  to home loan eligibility -
                  as it indicates financial stability. </p>
          <p>A healthy savings account indicates that a borrower has a financial cushion to
                      fall back on.</p></li>
      
          <li><strong> Loan type and amount</strong>
              <p>The type of loan (such as a fixed-rate or floating interest rate) and the loan amount
                  affect the debt-to-income ratio and overall financial profile. A home
                  loan eligibility calculator can prove helpful in this regard.</p>
          <p>Choosing a loan type and amount as per one's financial situation and goals
                      is key.</p>
          <p>Hence, preparing early on and being aware of
                  these home loan eligibility
                  criteria can help one navigate the
                  home loan process with confidence. Every lender is different, and doing research and homework can help
              one inch closer to their dream of owning a home.</p></li>
      </ol>

Understand the key factors lenders consider when determining your home loan eligibility to improve your chances of approval

How lenders determine your home loan eligibility: 10 factors

   <p>Creating a new home design is one of the most cherished aspects of making a homeownership dream come
              true. When
              interior design styles perfectly
              balance personal expression, functionality, and aesthetics, homeowners can look forward to a space they
              can call
              their own. Remember, a home should reflect personal tastes and not just follow trends to feel more sacred
              and
              comfortable everyday.
            </p>

            <p>Whether it's the striking play of light, the subtle work of textures, or the
              spectacular work of art - there's something valuable in every design element.</p>

            <p>Here are 5 easy-to-follow tips for designing a new home with different types of styles in interior
              design:</p>

            <ol>
              <li><strong> Light up every nook and corner</strong>
                <p>Natural light makes spaces appear more welcoming and vibrant. It also boosts the
                  productivity and positivity of the entire family. Consider ways to maximise natural light in every
                  corner of the
                  home - choose lighter colours for walls, ceilings, and furniture to help reflect natural light. If
                  possible, install larger windows, especially in the living room or the master bedroom. Strategically
                  placing
                  mirrors opposite the windows can reflect light and create an illusion of a bigger space.</p>

                <p>Lamps are a great artificial light source that can imitate natural light in the pesky
                  dark areas of the house. Add a dramatic overhead lamp in the living room, or choose a bedside lamp
                  with an
                  artistic flair to show off some creative genius.</p>

                <p><strong>Pro tip:</strong> Check the colour of the light bulbs. Warm
                  bulbs give a soft yellow tint, while cool bulbs are generally harsher and blue-hued.</p>
              </li>

              <li><strong> Go green for natural bliss</strong>
                <p>Nature has a timeless allure. It offers peace, beauty, and a sense of grounding in
                  every environment, including homes. In residential interior design, incorporating greenery isn't just
                  a
                  trend, it's the need of the hour. It facilitates well-being, sustainability, and freshness -
                  something everyone needs in the hustle and bustle of busy lifestyles.</p>

                <p>Indoor plants are a great addition to a new home. They purify the air and infuse
                  homes with creative energy. In fact, plants act as a bridge that brings people closer to nature and
                  reminds them of the world's amazing
                  natural wonders.</p>

                <p><strong>Pro tip:</strong> Mix tall plants, tabletop greens, and trailing
                  vines with the décor for more depth and dynamism in the interior design styles.</p>
              </li>

              <li><strong> Get artistic for picture-perfect walls</strong>

                <p>Art adds allure, evokes emotions, and has the power to tell stories in the most
                  spectacular way. Even without splurging on statement pieces, homeowners can get creative and brighten
                  up spaces
                  with some wall art. From abstract paintings, and family photos to travel memories, every piece of art
                  reflects
                  personal journeys and experiences. Art is one of the finest ways to make homes truly unique.</p>

                <p>Choose artwork that either complements the room's colour scheme or creates a
                  contrast for a dramatic look. Don't forget to invest in a good frame - they aren't just
                  protective casings but help enhance the artwork.</p>

                <p><strong>Pro tip:</strong> Hang art pieces at eye level for the best
                  results so that they are easily admired. Around dining or living spaces, art could be placed a little
                  lower.</p>
              </li>

              <li><strong> Incorporate smart storage to magically declutter</strong>
                <p>While a new home promises a lot of space, it also requires effective storage
                  solutions to maintain an organised home. With smart storage, homeowners can keep spaces tidy and
                  maximise the
                  available square footage. In residential interior design, a clutter-free environment is associated
                  with a sense of calm and mental well-being.
                  In more modern households, less is often more. When unnecessary items are eliminated, there's more
                  space
                  for meaningful décor and functional design.</p>

                <p>Foldable furniture or vertical shelves are great ways to optimise space. Built-in
                  closets, shelves, and cabinets can also efficiently use wall space. A modular kitchen with smart
                  storage
                  mechanisms like magic corners, tall units, pull-out units, and an appliance garage can keep cooking
                  spaces
                  mess-free, too.</p>

                <p><strong>Pro tip</strong>: Choose furniture that doubles as storage. For
                  instance, ottomans with hidden compartments, beds with drawers underneath, a wall with a cupboard on
                  one
                  side, etc.</p>
              </li>

              <li><strong> Mix and match textures for fun</strong>
                <p>Texture can be overlooked in interior design
                  styles, but it silently reflects comfort and character in every space.
                  Introduce different textures to add depth, contrast, and tactile dimensions to spaces for more sensory
                  responses.</p>

                <p>Blend soft and hard textiles. For instance, plush curtains with glass tables or metal
                  fixtures in the living room create a cohesive look. Don't forget to add natural textures like wood,
                  bamboo, and stone for an organic touch. Play with different patterns like geometric for a contemporary
                  vibe,
                  floral for a classic feel, etc.</p>

                <p><strong>Pro tip:</strong> Just like accessories elevate outfits, they
                  also elevate homes. Add items like vases, coffee table books, decorative bowls, etc., for texture
                  play. To
                  infuse diversity, invest in various materials like paper, metals, ceramics, and more.</p>

                <p>These small but effective tips will go a long way in imbibing personality and character into any new
                  home design. Remember, every home tells its owners' story with pride and perfection. With a little
                  extra thought and effort, one can transform
                  residential interior design into a
                  work of art.</p>

                <p>Strike the right balance between the design form and functionality, and look forward
                  to a stylish, comfortable, and sophisticated living experience.</p>
                  <p>Happy decorating.</p>
              </li>
            </ol>


Get expert tips to design and create your dream home with great style and functionality

Create a dream home: 5 expert tips for superior design and functionality

 <p>Earlier, the unregulated nature of the Indian real estate sector caused severe
              hardships and inconveniences to
              homebuyers. To put an end to their misery and boost real estate investments in the country, the Indian
              government passed the Real Estate (Regulation and Development) Act in 2016, which came into effect on May
              1,
              2017.</p>

            <p>The Act laid the foundation for the Real
              Estate Regulatory Authority or RERA, which governs the functioning of the
              country's real estate segment.</p>

            <p>Here are some RERA guidelines that every homebuyer in India must know:</p>

            <ol>
              <li><strong>RERA registration</strong>
                <p>RERA registration aims to boost the country's law-compliant and transparent
                  real estate projects. Before inviting people to invest in or buy the property, residential builders
                  must
                  mandatorily register themselves with their respective state RERA in two cases:</p>
                <ul>
                  <li>If the total land area is more than 500 square
                    meters</li>
                  <li>If there will be more than eight apartments in all
                    phases combined</li>
                </ul>

                <p>The Act also prohibits unregistered builders and developers from advertising their
                  properties.</p>

                <p>Buyers can visit their state's online RERA portal to look for RERA-approved projects. For instance,
                  buyers in
                  Maharashtra can look up the <a target="_blank" href="https://maharera.maharashtra.gov.in/"><span>MahaRera</span></a> website. This check is
                  important to avoid any legal or financial issues in the future.</p>
              </li>

              <li><strong>Carpet area</strong>
                <p>Simply put, the carpet area is the total area that can be covered with a carpet.
                  However, the lack of clarity or guidelines on the inclusion of areas in the carpet area resulted in
                  higher and
                  unfair property prices for buyers. To avoid this, RERA
                  guidelines defined the carpet area as the net usable floor area,
                  excluding the space occupied by external walls and areas beneath service
                  shafts, exclusive balconies or veranda areas, and exclusive open terrace
                  areas. This ensures that developers adhere to a standard definition of carpet area while pricing the
                  property.</p>
              </li>

              <li><strong>Advance payment</strong>
                <p>RERA guidelines prohibit developers and buyers
                  to ask or pay more than 10% of the total property cost as advance payment, i.e., before signing the
                  Builder
                  Buyer Agreement (BBA). Moreover, the amount must be paid only after the execution of the sale
                  agreement, which
                  again has a standard format under RERA to avoid any ambiguity or fraud.</p>
              </li>

              <li><strong>Escrow deposit</strong>
                <p>To protect the financial interests of buyers, RERA mandated developers to transfer
                  70% of the amount collected from buyers to an escrow account, a secure third-party account that
                  temporarily
                  holds funds until the first and second parties complete a transaction. The money can be withdrawn from
                  the
                  account only after authorisation certificates from the associated architect, engineer and chartered
                  account have
                  been furnished. These withdrawals are also subject to half-yearly audits.</p>
              </li>

              <li><strong>Approval for changes</strong>
                <p>The sanctioned plan of a building helps all parties know the property well. This
                  includes various plans such as site, building, and landscape plans. It also includes structural plans
                  and
                  permissions approved by competent authorities. If the builder intends to make modifications to the
                  sanctioned
                  plan, it can only be done after getting written consent from at least two-thirds of the home
                  allottees.
                </p>
              </li>

              <li><strong>Project delivery</strong>
                <p>Prior to the introduction of RERA, delayed completion and handover of possession were
                  common scenarios in the Indian real estate landscape. However, now, this would mean penalties for the
                  developer
                  in the form of interest payments to the buyer until the possession is given to them. Buyers also have
                  the right to claim a refund
                  of the amount paid and terminate the contract. In this case, too, buyers are entitled to interest
                  payments.</p>
              </li>

              <li><strong>Right to information</strong>
                <p>In addition to the right to timely delivery of the project and to claim refunds,
                  buyers have the right to know all the essential details related to the property, including the
                  sanctioned plan
                  details, layouts and site plans, stage-wise completion schedule, quarterly progress updates, etc.
                  Moreover, they
                  are also entitled to receive all the relevant documents concerning the property after receiving
                  possession.</p>
              </li>

              <li><strong>Defect liabilities</strong>
                <p>Given their deadly nature, building defects demand immediate actions from developers.
                  According to RERA guidelines, if
                  the constructed property demonstrates any structural or workmanship defect within five years of
                  possession, the
                  developer must rectify it while bearing all the costs incurred. If the issues are not fixed within 30
                  days of
                  intimation, then the buyer is entitled to compensation that will be decided by the respective state
                  RERA.
                </p>
              </li>

              <li><strong>Grievance redressal</strong>
                <p>RERA mandated all states to set up an Appellate Tribunal to address the complaints
                  and concerns of buyers. Buyers can lodge an online or offline complaint against the developer for
                  reasons such
                  as delayed possession, changes in the property plan without obtaining necessary consent, providing
                  false or misleading information, etc.
                  The redressal must be made within 60 days of filing the complaint.</p>

                <p>The introduction of RERA was a welcome move by the Indian government, which continues
                  to largely service Indian homebuyers in terms of cost, convenience and time.</p>

                <p>However, a good knowledge of RERA
                  guidelines is important to seek maximum benefits.</p>
              </li>
            </ol>


Ensure a smooth property purchase in India by understanding these 9 key RERA guidelines

9 RERA guidelines to know before buying a property in India

  <p>Property ownership is a universally cherished aspiration. It brings a sense of stability, security, joy
              and pride. But the journey to true property ownership continues beyond booking a property. True ownership
              is secured only after successfully registering the property with the government. Here is a comprehensive
              guide on property registration details broken down into steps for easy navigation.</p>

            <h6>Why is it necessary to register a property?</h6>

            <p>Property registration in India is a mandatory legal requirement under Section 17 of the Indian
              Registration Act 1908. By registering a property, the buyer secures legal ownership and ensures that the
              transaction is recognised and enforceable by law. This step is vital for safeguarding the buyer’s
              rights and interests in the property.</p>

            <p>Several laws govern property registration in India. The Registration Act of 1908 mandates registration
              for property sales exceeding Rs 100 in value. Further, the Indian Stamp Act of 1889 requires stamp duty
              payment on registrable property documents.</p>

            <div class="responsive_table">
              <table>
                <tbody>
                  <tr>
                    <td>
                      <strong>The legal framework</strong><br>
                      <strong>The Indian Registration Act 1908</strong>: This act creates a public record of the
                      transaction, which establishes clear ownership and helps resolve disputes if any.<br>

                      <strong>The Indian Stamp Act, 1889:</strong> This act requires the payment of stamp duty on
                      property documents creating right, title and interest in an immovable asset. Stamp duty is a form
                      of tax collected by the government on property transactions and appropriate stamp duty paid on
                      documents recognises the document as evidence in a court of law.
                    </td>
                  </tr>
                </tbody>
              </table>
            </div>

            <h6>How to prepare for the registration of property?</h6>

            <p>Before the registration process begins, conducting thorough due diligence on the property to be purchased
              is wise. Here's how to go about it:</p>

            <ul>
              <li><strong>Verify ownership history: </strong>Ensure the property's ownership records are clear of
                disputes or claims.</li>

              <li><strong>Clear all dues: </strong>Settle outstanding property taxes. Verify utility bills and
                maintenance charges are paid.</li>

              <li><strong>Calculate stamp duty: </strong>Determine stamp duty based on the property's market value and
                circle rate.</li>

              <li><strong>Prepare the deed: </strong>Draft the sale or transfer deed with all necessary details.</li>
            </ul>

            <p>While seemingly tedious, these steps are crucial safeguards against future legal complications.</p>

            <h6>A step-by-step guide to property registration</h6>

            <p>Step1:</p>

            <p><strong>Value estimation: </strong>The first step in registering a property is to determine its market
              value using the area's circle rate. Registering a property safeguards a fair deal for both buyers and
              sellers. A precise estimate also makes calculating the necessary stamp duty and registration fees easier,
              making the process smooth and transparent.</p>

            <p>Step 2:</p>

            <p><strong>Stamp paper purchase:</strong>&nbsp; Non-judicial stamp paper can be conveniently acquired
              through online portals or licensed vendors. Online options offer easy ordering from home, and quick
              delivery is another advantage. Licensed vendors provide physical stamp papers for immediate use.</p>

            <p>Step 3:</p>

            <p><strong>Deed drafting: </strong>When registering property, it's important to draft the appropriate deed
              (sale, gift lease, etc.) on the necessary stamp paper. This document details the terms and outlines the
              conditions. These are the conditions of the transaction, ensuring it meets all legal requirements.</p>

            <p>Step 4:</p>

            <p><strong>Sub-registrar visit: </strong>A visit to the sub-registrar's office is critical for property
              registration details. The buyer, seller, and two witnesses must be at the office. They must bring the
              necessary documents, such as the sale deed, identity proof, and passport-sized photographs. The
              sub-registrar will verify these documents, and both parties will provide their biometric data and
              signatures for authentication.</p>

            <p>Step 5:</p>

            <p><strong>Fee payment:</strong> The registration fee for property transactions must be paid before
              registration. This fee typically varies by state and is calculated based on the property's value.</p>

            <div class="responsive_table">
              <table>
                <tbody>
                  <tr>
                    <td>
                      <strong>Registration fees across regions</strong>
                      <ul>
                        <li>The registration fee in Mumbai is 1% of the property value if the property is worth less
                          than ₹30 lakh. For properties valued above ₹30 lakh, a fixed registration fee of ₹30000
                          applies.</li>

                        <li>In Bangalore, the registration charges are similar. Properties priced below ₹30 lakh incur a
                          1% registration fee, and properties priced above ₹30 lakh have a flat registration fee of
                          ₹30000.</li>

                        <li>In Delhi, the registration fee is also 1% of the property value for all transactions.</li>
                      </ul>
                    </td>
                  </tr>
                </tbody>
              </table>
            </div>

            <p>Step 6:</p>

            <p><strong>Document verification: </strong>To ensure legal compliance and authenticity, the sub-registrar
              verifies documents such as the sale deed, identity proof, and tax receipts. After verification, a receipt
              is issued, confirming the property's registration in the buyer's name.</p>

            <p>Step 7</p>

            <p><strong>Deed collection: </strong>The registered sale deed can generally be collected from the
              registrar's office within a few days. It depends on the local office's efficiency and specific state
              regulations.&nbsp;&nbsp;</p>

            <p><strong>Making the digital shift: Online property registration</strong></p>

            <p>In this digital age, some Indian states offer online property registration services. While the
              availability varies by state, these portals typically allow stamp duty calculation, fee payment, and
              appointment scheduling. However, an in-person visit to the sub-registrar's office is usually required to
              complete the process.</p>

            <p><strong>Understanding property valuation</strong></p>

            <p>Various valuation methods are used when registering a property. These include market value, circle rate,
              bank valuation, and construction agreement value. Each technique can influence the registration fees
              differently, making it essential to understand their implications.</p>

            <p><strong>Factors influencing registration charges</strong></p>

            <p>Several factors can affect property registration fees. These include the type and age of the property,
              the nature of the transfer, the location, the owner's gender, and available amenities. For instance,
              commercial properties often incur higher fees than residential ones, while some states offer discounts for
              properties registered in a woman's name.</p>

            <p><strong>Recent changes and benefits of property registration</strong></p>

            <p>Recent changes have streamlined the registration process, making document copies immediately available
              due to computerisation. It's important to note that unregistered properties now lack legal validity in
              court and cannot claim certain tax benefits.</p>

            <p>Registering a property offers numerous advantages. It provides legal proof of ownership, aids in dispute
              resolution, prevents encroachment, and offers potential tax benefits. Moreover, it facilitates property
              mutation, which is crucial for government tax collection.</p>

            <p><strong>Navigating property registration challenges</strong></p>

            <p>While online registration has made the process more convenient, it is not without challenges. Government
              portals can be slow and prone to technical glitches. Despite the digital options, an in-person visit to
              the sub-registrar's office is often still necessary to complete the registration.</p>

            <p><strong>The final step towards homeownership&nbsp;</strong></p>

            <p>Property registration in India is a crucial step in securing one's investment. Remember, thorough
              preparation is key. Each step, from verifying documents to understanding valuation methods, plays a vital
              role in ensuring a smooth registration process.</p>
            <p>While the journey may seem daunting, it's essential to approach it with patience and diligence. After
              all, the reward of becoming a lawful property owner lies at the end of this process, with all the rights
              and benefits that come with it.</p>


Learn the crucial steps and requirements for property registration in India to ensure a smooth process

The essential guide to property registration in India

 <p><em>“Landlords grow rich in their sleep.”</em></p>

            <p>While buying a precious home to live in is a dream for every family, buying a home as
              an investment is a different dream for many. Investing in real estate is considered one of the most
              popular long-term wealth building solutions. It generates rental income and profits via property
              appreciation, delivering
              excellent capital gains. It helps investors boost their income and diversify their investment portfolio.
              Residential investments include homes, condominiums, row houses, townhouses, etc., while commercial real
              estate
              includes ownership of retail stores, offices, storage facilities or even warehouses.</p>

            <p>Let's look at the top 3 reasons to consider a real estate investment:
            </p>

            <ol>
              <li><strong> Capital appreciation</strong>
                <p>Since property value increases over time, investors can expect capital gains with
                  their realty investment. It's the profit one gets from the difference in the purchase and sale prices.
                  While investors can realise their capital gains only after they sell the property, it still adds to
                  their net
                  worth. Also, in the last few decades, real estate prices have risen dramatically due to the high
                  demand for
                  housing. In the top eight cities in India, housing prices rose by<a target="_blank" href="https://www.ibef.org/industry/real-estate-india"> 7% YoY</a>, owing to persistent demand and
                  steady borrowing rates.</p>
              </li>
              <li><strong> Rental income</strong>
                <p>Real estate is expected to grow at<a target="_blank" href="https://www.ibef.org/industry/real-estate-india"> 9.2%
                    CAGR</a> from 2023 to 2028 - thanks to factors such as urbanisation,
                  expansion of rental market, and appreciating prices. Real estate
                  investment provides steady cash flow. This can be a great investment
                  option for investors who seek a consistent monthly income – for instance, retirees and those
                  looking for
                  an alternative source of income. Also, income from real estate investment serves as a buffer against
                  stock market fluctuations.</p>
              </li>
              <li><strong> Sense of security</strong>
                <p>Unlike stocks or bonds, real estate is a physical asset that offers a feeling of
                  stability, especially in volatile financial markets. Investors feel
                  complete peace of mind knowing their investment is physical and enduring, less susceptible to
                  fluctuations that
                  plague other investment types. In times of economic uncertainty, a real estate investment can feel
                  more secure
                  – providing immediate and long-term financial benefits.</p>
              </li>
            </ol>
 <h6>Different ways to invest in real estate</h6>

            <p>The simplest method of real estate investment is to purchase a flat or apartment and
              put it onin on rent. This requires a significant initial investment and also involves certain maintenance
              costs on an annual basis. For investors who want to start small, consider renting out a portion of an
              existing
              property – but make sure to include all terms and conditions in the rental agreement.</p>

            <p>Fix-and-flip is another popular investing mode that's often seen among those
              who have general contracting experience. The ownership of the asset is relatively short-term, but this
              kind of
              investment does generate good returns.</p>

            <p>Investors can also choose Exchange-Traded Funds (ETFs) and mutual funds in real
              estate stocks or Real Estate Investment Trusts (REITs) for high liquidity and low costs. After the success
              of
              REITs in India, investors are also considering fractional ownership – wherein they can park their
              money in
              realty while reducing the investment costs.</p>

            <h6>5 top factors to consider before investing in real estate:</h6>


            <ul>
              <li><strong>Type of property</strong>
                <p>Investors should start with the kind of property that best suits their goals –
                  residential, industrial, commercial, retail, etc.</p>
              </li>

              <li><strong>Location</strong>
                <p>Location is key in real estate. Is the
                  location of the property easily accessible? Does it have scope for growth in the future? Properties
                  that are
                  road-touch tend to appreciate at a better rate. Also, it is important to
                  be mindful of a property's age and condition.</p>
              </li>

              <li><strong>Finances</strong>
                <p>Since real estate investment requires a hefty amount, it's important to check
                  if investors have the funds readily available in savings or if they can apply for a loan. Banks prefer
                  investors
                  with a good credit score, steady income and a trusted repayment history.</p>
              </li>

              <li><strong>Legalities</strong>
                <p>Before investing, it's essential to check if the property seller has all the
                  property documents in order. This protects the investor's interest and also helps establish ownership.
                  Also, loan applications are approved only if the property deeds are verified, so this is a crucial
                  step in
                  investing.</p>
              </li>

              <li><strong>Market conditions</strong>

                <p>Real estate affects the stock market and vice versa. Investors must be able to gauge
                  when is the right time to invest in real estate and, similarly, when is the right time to sell.</p>


                <p>Investing in real estate in India is a
                  lucrative opportunity. However, it requires careful consideration. When investors do their research,
                  understand
                  the market and legal framework, and make informed decisions, they will definitely reap high returns.
                  Real estate
                  investments provide stability and diversification, especially for investors who who want to invest for
                  the long term.</p>
              </li>
            </ul>

Explore the potential benefits and opportunities of real estate investment, along with valuable insights to guide your investment decisions

The value of real estate investment - opportunities and insights

  <p>In the age of Instagram and Pinterest, every click and tap can lead to abundant
              inspiration for home décor. Whether renovating a preloved house or setting up a new one from
              scratch, the
              interior design style is what transforms a house into a home. However, finding the right residential
              interior design can be
              overwhelming. Amidst this bombardment of information and images, identifying one's unique taste and style
              is essential.</p>
            <p>This article simplifies the process of decorating a house by distinguishing between
              five of the most popular interior design styles in India. It can help homeowners understand the nuances of
              each style.</p>
            <p><strong>Different types of styles in interior design</strong></p>
            <ol>
              <li><strong>Minimalist</strong>
                <p>Perhaps the most sought-after trend in today's time, minimalism focuses on a "less is
                  more" approach. This style is rooted in the philosophy of decluttering and simplicity. Ideally suited
                  for urban
                  homes and people with busy schedules, minimalism can also be embraced by others who appreciate a clean
                  and
                  serene environment.</p>
                <p>Minimalism focuses on a few statement pieces that elevate the beauty of the home.
                  While minimalist houses may seem empty, they place a strong emphasis on light. Large windows, which
                  can serve as
                  statements themselves, allow natural light to flood the space. Additionally, the decor typically
                  includes a few
                  standout elements like a striking coffee table, a statement wall or painting, a couple of vases, and a
                  well-placed rug. Clean lines and shapes are central to minimalist design.</p>
                <p>Additionally, neutral colours such as grey, white, black, teal, and beige dominate
                  the minimalist palette. The entire theme of the house is usually limited to two or three colours to
                  create a
                  calming atmosphere.<strong></strong></p>
              </li>


              <li> <strong>Maximalist</strong>
                <p>While minimalism is highly functional and aesthetically appealing, it may seem
                  impersonal or even run-of-the-mill to some. For these homeowners, the opposite approach, maximalism,
                  may stand
                  out.</p>
                <p>Maximalism embraces a vibrant and eclectic style. It incorporates a plethora of
                  colours, paintings, vases, furniture, carpets, flowers, plants, showpieces, books, and more to
                  decorate a space.
                  Maximalism is truly central to an individual's unique taste, with no rules or boundaries. It focuses
                  on
                  creating contrast, ensuring that no two objects are the same.</p>
                <p>Maximalist homes often feature colourful
                  furniture, bright walls, wallpapers, and textured rugs. This style allows for a rich and dynamic
                  environment
                  where every corner reflects the homeowner's personality and interests.</p>
              </li>



              <li> <strong>Bohemian</strong>
                <p>Bohemian, or boho, is a rebellious style that defies strict rules and conventions.
                  This style is characterised by its eclectic nature and a mix of natural elements. These include
                  plants, wood,
                  rattan, and cotton. Bohemian style has seen a surge in popularity across
                  commercial and residential building design in recent years.</p>
                <p>The bohemian style often incorporates artistic and handcrafted elements. These
                  include batik prints, jute, and macramé in the form of dreamcatchers, wall hangings, hammocks,
                  and table
                  mats. It uses an array of unique and mismatched furniture pieces rather than adhering to a coordinated
                  set. The
                  colour palette typically features earthy tones like browns, yellows, and blues to create a warm but
                  laid-back
                  vibe.<strong></strong></p>
              </li>



              <li> <strong>Coastal</strong>
                <p>Inspired by the vast ocean and rolling waves, the coastal theme is one of the most
                  calming interior design styles. It
                  uses a serene colour palette dominated by shades of blue and white to create a soothing environment.
                  This style
                  draws inspiration from the sea and incorporates plenty of natural light to keep the space bright and
                  inviting.</p>
                <p></p>
                <p>Coastal décor often features beach elements through paintings of the sea,
                  shell lamps, and wind chimes. Fresh plants in earthy pots are used to mimic the natural scenery of a
                  beach.
                  These add to the relaxed and refreshing atmosphere of the house.</p>
                <p>The style favours understated elements like neutral-coloured cushions, glass
                  tabletops, and white flowers to create a clean and airy feel. It is ideal for beach houses or those
                  who are
                  always in the mood for a beach vacation!<strong></strong></p>
              </li>


              <li><strong>Traditional Indian</strong>
                <p>Traditional Indian style embodies the essence of India's rich cultural heritage. It
                  features pan-Indian artwork, paintings, and prints. The walls are typically painted in neutral colours
                  but
                  adorned with vibrant and diverse Indian artwork, such as intricate wall carvings and decorative
                  mirrors.
                </p>
                <p>Upholstery often showcases motifs, embroidery, and intricate patterns. The furniture
                  is typically crafted from high-quality woods like rosewood, mango, teak, or mahogany. Additionally,
                  the decor
                  often includes references to Indian mythology and history.</p>
                <p>Finding a new home design can be confusing, but the most
                  important thing to remember is to stick to one's personal taste. Creating a space that closely aligns
                  with
                  individual preferences ensures that the home is comfortable, functional, and visually appealing. For
                  additional
                  guidance, consulting with professional interior decorators can help bring one's vision to life.</p>
              </li>
            </ol>

Explore various interior design styles to discover which one best reflects your taste and transforms your space into your ideal home

Exploring different types of styles in interior design: Find the perfect match

 <p>For long, the real estate sector remained largely unregulated with uneven information
              distribution, no financial discipline, terms favouring developers, and little or no grievance redressal forums
              for home buyers. 2016 was a game changer when the Real Estate Regulatory
              Authority (RERA) Act was introduced with a purpose of protecting the
              interests of homebuyers, boosting real estate investments,
              and ensuring transparency in general. The said Act mandates that each state establish its own regulatory body and
              create
              rules to oversee its functioning.</p>
          <h6>But, what is RERA and how does the home buyer gain from it?</h6>
          <p>RERA or Real Estate Regulatory Authority is a body that came into existence as per
              the Real Estate (Regulation and Development) Act, of 2016. For home buyers, RERA offers support and protects
              them in critical areas: delays in project delivery, changes in project plans, lack of information and more.
              Let's look at five such crucial areas:</p>
          
          <div class="responsive_table">
              <table>
                  <tbody>
                      <tr>
                          <td>
                              <strong>Builders can't delay projects any more</strong>
                              Developers have to adhere to project schedules and timelines, failing
                              which, they face heavy
                              penalties – giving the home buyer peace of mind and guarantee on house/flat delivery as
                              per the project schedule.
                          </td>
                          <td>
                              <strong>Builders can't charge excess</strong>
                              Developers would earlier charge for constructed and outstanding
                              areas. Now the developers charge solely based on the ‘carpet area.
                          </td>
                          <td>
                              <strong>Buyers' go-to grievance forum</strong>
                              Regulatory bodies are a set-up in every state to resolve
                              builder-consumer disputes. Consumers can expect a swift resolution.
          
                          </td>
                          <td>
                              <strong>Builders to address defect</strong>
                              The builder will repair structural defects in the property until 5
                              years from the date of handing over possession.
                          </td>
                          <td>
                              <strong>What you see is what you ge</strong>
                              No more over-promising. Every advertisement shall bear the RERA
                              registration number and all promos and classifieds truthfully.
                          </td>
                      </tr>
                  </tbody>
              </table>
          </div>
          <h6>Other RERA guidelines that support the buyer:</h6>
          <p>RERA guidelines state that developers cannot collect more than 10% of the total cost
              of a flat/house before signing and registration of the agreement. Promoters to provide a clear property title
              and ensure legal ownership. The guidelines guarantee fair transactions and standardisation of the sale
              agreement. Thus, RERA guidelines
              bring clarity to both developers and homebuyers, so they know their rights and responsibilities.</p>
          <h6>Is every real estate project a RERA-approved project?</h6>
          <p>Residential and commercial projects that have land area exceeding 500 square
              metres, or the number of apartments proposed to be developed
              are more than eight apartments, are required to be compulsorily registered under RERA. Developers can only market
              and
              sell projects once they are RERA-approved, and are obligated to sell properties solely based on the carpet area,
              which is the
              net usable floor area</p>
          <p> Before investing in a property,
              it's important to verify whether it is a RERA-approved
              project. Here's how:</p>
          <ul>
              <li> Each state has a
                  dedicated RERA website. Visit the MahaRERA website (<a target="_blank" href="https://maharera.mahaonline.gov.in/">https://maharera.mahaonline.gov.in/</a>) to check the status of
                  the project in Maharashtra. Similarly, visit the state
                  RERA websites of Delhi (<a target="_blank" href="https://www.rera.delhi.gov.in/">https://www.rera.delhi.gov.in/</a>) and
                  Karnataka (<a target="_blank" href="https://rera.karnataka.gov.in/">https://rera.karnataka.gov.in/</a>) to
                  check the projects in those geographies, and so on.</li>
              <li> Search using one of
                  the following:
                  <ol>
                      <li> project's name</li>
                      <li> promoter's name</li>
                      <li> registration number</li>
                  </ol>
              </li>
          </ul>
          
          <ul>
              <li> This will provide
                  you with all the necessary details, including project status, approvals, and timelines.</li>
              <li> With the details on
                  the website, homebuyers can also see that the project has all the required approvals and that the developer
                  has a good track record.</li>
          </ul>
          <h6> Ensuring compliance at every step</h6>
                  <p>The Real Estate Regulatory
                      Authority looks into registered projects and can take action against
                      non-compliant developers. The Real Estate Regulatory
                      Authority approves and monitors real estate projects and their progress.
                      They promote the sector by ensuring fair practices and protecting the interests of the home buyers. RERA
                      also
                      ensures that developers stick to the sanctioned project plan. They aren't allowed to make any changes to
                      the plan unless two-thirds of the allottees agree.</p>
                  <p>All in all, RERA ensures accountability by holding builders/developers accountable for their commitments,
                      thus
                      reducing the risk of project delays. It establishes a legal framework for
                      swift and fair dispute resolution. By standardising key terms like
                      carpet area, RERA eliminates
                      ambiguity, making transactions clearer and more straightforward.</p>
                  <p>RERA has been a game changer for the real estate sector of India. It has led to
                      strong positive shifts such as improved consumer confidence, due to higher developer professionalism in the
                      real
                      estate sector and improved transparency. Now it is the turn of homebuyers to equip themselves with greater
                      information and awareness about the many benefits they can gain from implementation of RERA, and make home
                      buying a pleasant
                      experience.</p>

Explore RERA regulations and how they protect your interests as a buyer

A complete guide to understanding RERA

<p>If there is one long-term goal that most Indians share, it is buying a home. Watching this dream become a reality can
    be overwhelming - emotionally and financially. Home loans, taken often to own a house, come with interest
    rates that easily run into lakhs. Hence, a thorough understanding of interest rates is essential for making a
    financially prudent choice.</p>
<p>There are two types of interest rates to choose from - fixed and floating interest
    rates.</p>
<p>Here are a few vital details to help homeowners make an informed decision.</p>
<h6>What are fixed interest rates?</h6>
<p>As the name suggests, fixed interest rates remain fixed throughout the loan tenure. The rate is predetermined and is
    not affected by market conditions or broader economic factors, offering predictability and stability.</p>
<p>Let's look at the pros and cons of fixed interest rates.</p>
<h6>Pros of fixed interest rates</h6>
<ul>
    <li><strong>Easy mechanism: </strong>First-time home buyers may find it difficult to
        understand the intricacies of market trends and their impact on interest rates. Fixed interest rates are easier
        to understand and manage because of their straightforward approach.</li>
    <li><strong>Mental peace: </strong>Borrowing can be a stressful experience. The
        indifference of fixed interest rates to market and economic uncertainties offers peace of mind.</li>
    <li><strong>Budgeting ease: </strong>When the interest rate is fixed, the Equated Monthly
        Instalment (EMI) amount can easily be ascertained using a home loan repayment calculator. Fixed
        and known expenses are easier to manage and budget for.</li>
</ul>
<h6>Cons of fixed interest rates</h6>
<ul>
    <li><strong>Higher rates:</strong> Because the lender assumes a certain degree of risk by
        locking the interest rate, fixed interest rates are usually 1% to 2.5% higher than floating interest rates. This
        translates to a relatively higher borrowing cost.</li>
    <li><strong>Inability to gain from falling rates:</strong> The fixed nature of a fixed
        interest rate is a double-edged sword. While it can help save costs significantly when the market interest rates
        are rising, the inability to capitalise on falling interest rates can prove costly.</li>
    <li><strong>Prepayment penalties</strong>: Most lenders who offer
        fixed-interest rate loans often impose prepayment penalties to discourage borrowers from foreclosing on the
        loan. This limits the possibility of paying off the loan early and becoming debt-free. While this is a
        common practice, some banks do not levy any prepayment charges on fixed-interest rate loans if the loan is
        repaid with personal funds.</li>
    <li><strong>Refinancing challenges:</strong> Refinancing the loan to harness falling
        interest rates may be time-consuming and costly.</li>
</ul>
<p>Now that you understand the meaning, advantages and disadvantages of fixed interest rates, let's move on to
    floating interest rates.</p>
<h6>What are floating interest rates?</h6>
<p>A floating interest rate is not steady. It is linked to the lender's benchmark rate, which moves in tune with
    the market interest rate. The changes in these rates lead to fluctuations in the floating interest rate. The
    floating interest rate is also known as an adjustable interest rate.</p>
<p>The lender resets the interest rate at periodic intervals to reflect the changes in market rates. These can be in
    calendar periods such as quarterly or half-yearly. Alternatively, they can also be customised as per each borrower.
    Either way, the lender reserves the right to decide the reset schedules.</p>
<p>Although the reset increases or decreases the loan tenure as per market scenarios, borrowers can request changes in
    the EMI amount instead of the loan tenure. They can also choose a combination of both. This
    flexibility was extended to borrowers by the Reserve Bank of India (RBI) in 2023. Further, RBI also allows switching
    from a floating to a fixed interest rate arrangement.</p>
<p>Let's look at the pros and cons of floating interest rates.</p>
<h6>3 pros of floating interest rates</h6>
<ol>
    <li><strong>Lower rates: </strong>At the outset, floating interest rates are lower than
        fixed interest rates. There is also a possibility of further decline, whichthat results in
        substantial long term savings.</li>
    <li><strong>Ability to gain from falling interest rates: </strong>The positive correlation
        between the floating rate and market rate allows capitalising on falling interest rates, resulting in lower EMI
        costs.</li>
    <li><strong>Prepayment flexibility:</strong> Unlike fixed-interest rate loans,
        floating-interest rate loans allow loan prepayments, increasing borrowers' flexibility.</li>
</ol>
<h6>3 cons of floating interest rates</h6>
<ol>
    <li><strong>Financial planning challenges: </strong>Planning for finances becomes
        difficult due to the fluctuating nature of the interest rate. The disparity in the EMI amount across the tenure
        can cause a great deal of inconvenience while estimating the long-term borrowing cost.</li>
    <li><strong>Possibility of higher rates: </strong>The rise in the market rate directly
        leads to a rise in the floating interest rate, thereby leading to a higher repayment amount.</li>
    <li><strong>Market expertise:</strong> Understanding market trends to anticipate future
        rates is important for benefitting from floating interest rates. Thus, such rates may not be suitable for every
        borrower.</li>
</ol>
<h6>Difference between fixed and floating interest rates at a glance</h6>
<div class="responsive_table">
    <table>
        <tbody>
            <tr>
                <th>Particulars</th>
                <th>Fixed interest rate</th>
                <th>Floating interest rate</th>
            </tr>
            <tr>
                <th>Nature</th>
                <td>
                    <p>Fixed rate</p>
                </td>
                <td>
                    <p>Fluctuating rate</p>
                </td>
            </tr>
            <tr>
                <th>Rate</th>
                <td>
                    <p>Slightly higher at the outset</p>
                </td>
                <td>
                    <p>Slightly lower at the outset</p>
                </td>
            </tr>
            <tr>
                <th>Market influence</th>
                <td>
                    <p>Unaffected by market changes</p>
                </td>
                <td>
                    <p>Affected by market changes</p>
                </td>
            </tr>
            <tr>
                <th>Predictability</th>
                <td>
                    <p>High</p>
                </td>
                <td>
                    <p>Low</p>
                </td>
            </tr>
            <tr>
                <th>Prepayment penalty</th>
                <td>
                    <p>Yes</p>
                </td>
                <td>
                    <p>No</p>
                </td>
            </tr>
            <tr>
                <th>Ease of financial planning</th>
                <td>
                    <p>Yes</p>
                </td>
                <td>
                    <p>No</p>
                </td>
            </tr>
            <tr>
                <th>Suitable for</th>
                <td>
                    <p>- First-time borrowers</p>
                    <p>- Long-term loans</p>
                </td>
                <td>
                    <p>- Individuals with market knowledge</p>
                    <p>- Short-term loans</p>
                </td>
            </tr>
        </tbody>
    </table>
</div>

<h6>Choosing between fixed and floating interest rates</h6>
<p>To decide on a specific type of interest, homeowners must carefully review the pros and cons of each option.
    Additionally, they must also consider the following points:</p>
<ul>
    <li><strong>Risk appetite: </strong>As a borrower, having a fair idea of the risk tolerance level is
        essential to avoid any financial shocks. A fixed interest rate can be ideal if seeking predictability from
        the loan matters. However, a floating rate can make more sense if there is financial bandwidth to cope with
        potential rate fluctuations.&gt;</li>
</ul>
<ul>
    <li><strong>Loan tenure: </strong>Short-term loans are unlikely to get drastically affected by interest rate
        fluctuations, making a floating rate a better option. However, a fixed rate may be better if the loan tenure is
        long, owing to its predictability and stability.</li>
</ul>
<ul>
    <li><strong>Age: </strong>Given their predictable nature, mid-aged or older borrowers may find fixed interest rates
        better. Conversely, young borrowers with a higher risk appetite may want to try floating interest rates for
        potential cost savings.</li>
</ul>
<p>Both fixed and floating interest rates each come with their own set of pros and cons. Homeowners must make a choice
    only after carefully assessing their budget, needs, risk appetite, market knowledge and other vital factors.</p><p>
</p>

Understanding fixed and floating interest rates: Key differences and how they impact your finances

All you need to know about fixed and floating interest rates

  <p><em>“Good fortune is what happens when opportunity meets with
              planning.”</em></p>
  
  <p>Thomas Edison</p>
  
  
  
  <p>Having a plan is crucial for development - whether it's personal,
          professional, or even national. A plan is a statement of intent that sets out how the one develops over a period
          of time. It's a road map that helps us to achieve the vision for future growth. Development plans, also
          known as master or city plans, are blueprints for developing cities and regions. They offer a structured
          approach to the use of land, infrastructural development, and urban planning for sustainable growth. The plans
          address zoning, public facilities, environmental conservation and more for well-organised development.
  </p>
  
  <p>Let's look at the key development plans for top Indian cities and how they
          benefit homebuyers.</p>
  
  <p><strong>Core contents of a development plan:</strong></p>
  
  <ol>
      <li><strong>Zoning proposals</strong> - Land in any city or region is
              categorised into different zones for residential, commercial, agricultural, and industrial use. As a result,
              it prevents conflicts between different kinds of developments in the area.</li>
  
      <li><strong>Public land designation</strong> - In every city, certain areas
              are allocated for public amenities like parks, schools, hospitals, government offices, and more. These
              spaces offer the necessary facilities for residents, and also contribute to the overall community's well-being.</li>
  
      <li><strong>Transport</strong> - In every development plan, there's
              provision for roads, public transit and pedestrian pathways that provide better connectivity and
              accessibility for families for all their daily conveniences.</li>
  
      <li><strong>Water supply</strong> - Provisions for the right water supply and
              drainage systems are essential in every housing project, to maintain public health and contribute to environmental sustainability.
      </li>
  </ol>
  
  <ol start="5">
      <li><strong>Community facilities</strong> - Every region with residential
              areas includes a good set of recreational centres, libraries, cultural institutions and more, that enrich the quality of life for
              people.</li>
  
      <li><strong>Industrial sites</strong> - Local authorities dedicate suitable
              locations for industrial development to promote economic growth of the city, and also contribute to minimal
              environmental impact.</li>
  
      <li><strong>Environmental conservation—</strong>The best development plans
              protect natural landscapes while also contributing to concrete growth. With the right efforts to care for a
              region's green spaces and biodiversity, every area can maintain its ecological balance and improve urban
              aesthetics.</li>
  
      <li><strong>Preservation of heritage sites</strong>—Authorities also include
              measures to preserve historical sites, buildings, and other structures to maintain the community's
              identity and character and keep the connection with history alive.</li>
  
      <li><strong>Flood and emergency management</strong> - Every city also needs a
              plan for emergency control, flood management, and drainage management to mitigate risks in flood-prone
              areas, especially during the rainy season.</li>
  
      <li><strong>Development regulations—</strong>Authorities create plans and
              regulations that govern the height, density, and land-use
          to ensure orderly development.</li>
  </ol>
  
  
  <p><strong>Importance of development plans for homebuyers</strong></p>
  
  <table>
      <tbody>
          <tr>
              <td>
                  <p><strong>Dedicated zones</strong></p>
                  <p>Analysing zoning compliance ensures that property is in the right
                          zone and avoids future legal hassles.</p>
              </td>
              <td>
                  <p><strong>Community areas</strong></p>
                  <p>Reviewing public land designations and community facilities offers a
                          chance to avail essential services.</p>
              </td>
              <td>
                  <p><strong>Simplified transport</strong></p>
                  <p>Understanding transport proposals indicates future accessibility and
                          property value appreciation.</p>
                  
              </td>
          </tr>
          <tr>
              <td>
                  <p><strong>Eco-friendly futures</strong></p>
                  <p>Evaluating environmental considerations helps to gauge the area's
                          living conditions in emergency situations.</p>
              </td>
              <td>
                  <p><strong>Cultural connect</strong></p>
                  <p>Being aware of preservation efforts for historical sites helps
                          homebuyers appreciate the potential for cultural engagement.</p>
              </td>
              <td>
                  <p><strong>Economic development</strong></p>
                  <p>Thinking about the industrial and commercial development in the area
                          offers a chance to expect better returns and ample employment opportunities.</p>
              </td>
          </tr>
      </tbody>
  </table>
  
  <p><strong>A few insights into development plans</strong></p>
  
  <p><strong>Delhi Development Plan 2041</strong></p>
  <ul>
      <li>Fostering a sustainable, liveable and vibrant city.</li>
      <li>Promoting green development areas.</li>
      <li>Enhancing mobility through cleaner fuels.</li>
      <li>Addressing housing needs with a focus on rental and small-format housing.
      </li>
      <li>Cleaning the Yamuna River.</li>
      <li>Conserving the city's heritage fabric.</li>
  </ul>
  
  <p><strong>Karnataka Development Plan</strong>&nbsp;</p>
  <ul>
      <li>Addressing zoning, public amenities and infrastructural improvements.
      </li>
      <li>Creating a sustainable urban environment.</li>
      <li>Integrating green spaces.</li>
      <li>Improving public transport networks.</li>
      <li>Decongesting the city by developing peripheral areas.</li>
      <li>Enhancing connectivity through new roads and metro lines.</li>
  </ul>
  
  <p><strong>Mumbai Development Plan 2034</strong>&nbsp;</p>
  <ul>
      <li>Linking Floor Space Index (FSI) to road width to reduce congestion and promote
              orderly development.</li>
      <li>Focusing on affordable housing.</li>
      <li>Providing incentives to developers.</li>
      <li>Aligning with RERA guidelines for transparency and accountability.</li>
      <li>Addressing housing shortages, traffic congestion and enhancing public
              amenities.</li>
      <li>Making Mumbai a more liveable city.</li>
  </ul>
  
  <p>Land-use planning is an integral part of our nation's development, which
          can't be isolated from other processes like social and economic planning. Development plans contribute to
          urban planning and guide sustainable growth and development not just for a city but also for all citizens. For
          homebuyers, having access to such important information helps in making well-informed decisions. It also ensures
          that their investments align with their current and future needs and the overall community's
          well-being.</p>

Why development plans matter: A homebuyer's guide

Development plans, also known as master or city plans, are blueprints for developing cities and regions. They offer a structured approach to the use of land, infrastructural development, and urban planning for sustainable growth. The plans address zoning, public facilities, environmental conservation and more for well-organised development.

A blueprint for your home: Understanding development plans

  <p>When buying a home for the first time, the journey is often filled with eagerness, thrill and a fair share of paperwork. Since a home is one of the biggest investments in a lifetime, it can come with its
                        fair share of pitfalls, especially if the paperwork isn't in order. There can be legal disputes,
                        unprecedented delays causing financial losses, or even difficulty in obtaining loans if home buyers don't
                        have all the property documents
                        for their home. Along with completing all the other formalities, it's important to see if all the
                        documents are verified, up-to-date, and free from legalities for a lifetime of peace of mind.</p>
                
                <p>From the sale deed vs. title deed to the occupancy certificate, here are the top 10 property documents owners must check and verify
                        before buying and moving into their homes.</p>
                
                
                    <h6> Title deed</h6>
                <p>Like the name suggests, it establishes the property's ownership. It must be
                        clear and free from legal issues, disputes and encumbrances. While buying pre-owned properties, home buyers will
                        need a mother deed that mentions the chain of ownership records. Every buyer must verify the title deed and
                        ensure that it is marketable and clear before finalising the property.&nbsp;</p>
                
                
                    <h6>Sale deed</h6>
                <p>One of the highly important property
                        documents is the sale deed. It is proof of the sale, mentioning party
                        details, property details including location, proof of payment of consideration and registration details. A sale
                        deed must be registered within four months from the execution date; otherwise, it is considered invalid.
                        Furthermore, it should be registered in the sub registrar's office and is an essential document for future property
                        sale.</p>
                
                
                    <h6> RERA registration certificate</h6>
                <p>Imagine finding a dream property - it checks all the boxes, it's in the perfect
                        location and fits the budget, too. However, if the project is not RERA registered, it can leave buyers
                        vulnerable - sometimes, possession might get delayed, or in other cases, the project may stall with no
                        protection for homebuyers. A RERA
                        registration certificate is a unique number that buyers can check on the RERA website to ensure that
                    a project is legitimate and that they
                        can trust the builder. Remember, a RERA registration is mandatory for projects where the land to be developed is
                        over 500 sq. m., and there are
                        eight or more flats in the project.</p>
                
                
                    <h6> Building approval plan</h6>
                <p>This document is issued by the local authority or municipality to ensure that the
                        construction adheres to all the approved norms. It also verifies the legality of the property and compliance
                        with regulations.</p>
                
                
                    <h6>Khata certificate</h6>
                <p>This document establishes the homeowner's identity for tax payments and is
                        important for obtaining utility connections like water and electricity. It's a revenue document that
                        checks the property's details—including the size, location, area, and more—to pay property
                        taxes, and verification of the Khata certificate is necessary wherever applicable.</p>
                
                
                    <h6> Completion certificate (CC)</h6>
                <p>The local development authority inspects the property once it's completed. The
                        completion certificate proves that the project complies with all the safety standards, regulatory requirements,
                        building codes, and approved plans. It's a must to obtain utility connections and occupancy
                        certificates.</p>
                
                
                    <h6> Occupancy certificate (OC)</h6>
                <p>After the building or a home is constructed, the local municipal authority issues the
                        OC, which verifies that the property is ready for habitation. This document helps in getting a home loan or approvals for rentals and commercial
                        purposes.</p>
                
                
                    <h6> No Objection Certificates (NOCs)</h6>
                <p>A developer must obtain NOCs from various departments and authorities while
                        completing the project. This includes the pollution control board, fire department, water and electricity
                        boards, and more to confirm that the project complies with all legal norms. The number of NOCs can vary
                        according to the state. A home buyer must obtain a copy of these certificates and keep it safe for future
                        reference.</p>
                
                
                    <h6> Allotment letter</h6>
                <p>The developer or builder issues the allotment letter, which includes details of the
                        property, payment plan, additional charges, and the amount paid by the buyer. It is the preliminary confirmation
                        of the allocation of property/flat to a particular buyer. It is usually issued when a home buyer invests in the
                        purchase of a flat/ home in an under-construction project.</p>
                
                
                    <h6> Possession letter</h6>
                <p>It's time for some good news. The developer will issue this letter, indicating a date on which the buyer can claim ownership and move into the
                        flat/property. Remember, this isn't proof of the property's
                        title. However, the letter indicates the date on which the buyer can take possession and move into their dream
                        home.</p>
                
                
                <p>All in all, navigating the realty market can be quite an adventure - whether for a
                        first-time buyer or a seasoned investor. Having a good grasp of these key property documents can make the process safer
                        and more secure. Understanding and verifying all the above-mentioned documents gives peace of mind to every
                        buyer and protects investments from legal and financial bumps down the road.&nbsp;</p>
                    

Important documents to review before buying your dream home

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