Frequently Asked Questions About Buying Property in India

<h2>What are the hidden charges when buying property in India?</h2>
<p>When purchasing property in India, buyers often encounter several hidden charges beyond the basic property price. These include stamp duty (typically 5-7% of property value varying by state), registration charges (around 1% of property value), GST on under-construction properties (1-5% depending on property type), legal fees for document verification (₹10,000-50,000), home loan processing fees (0.5-1% of loan amount), property valuation charges, maintenance deposits, transfer charges, and society membership fees. It's crucial to budget an additional 10-15% of the property value to cover these hidden costs. Always request a detailed cost breakdown from your builder or seller before finalizing the purchase.</p>

<h2>How does GST impact property buyers in India?</h2>
<p>GST (Goods and Services Tax) significantly impacts property purchases in India, particularly for under-construction properties. For affordable housing (properties up to 45 sq meters in metro cities and 60 sq meters in non-metro cities with value up to ₹45 lakhs), GST is charged at 1% without input tax credit. For other under-construction properties, GST is 5% without input tax credit. Ready-to-move-in properties and resale properties are exempt from GST. However, buyers should note that builders include GST in the total price, and this amount is paid in installments along with the property payment. It's important to verify that the builder is GST-compliant and provides proper invoices for tax benefits and loan processing.</p>

<h2>What documents are required for home loan approval in India?</h2>
<p>Home loan approval in India requires comprehensive documentation. Essential documents include: identity proof (Aadhaar card, PAN card, passport, voter ID), address proof (utility bills, rental agreement, passport), income proof for salaried individuals (last 6 months salary slips, Form 16, 3 years ITR with computation, last 6 months bank statements), income proof for self-employed individuals (3 years ITR with audit reports, business proof, bank statements, GST returns), property documents (sale agreement, NOC from builder, approved building plan, property tax receipts, encumbrance certificate, title deed), employment proof (offer letter, employee ID), and photograph. Additional documents may include investment proofs, existing loan statements, and co-applicant documents. Banks typically verify these documents within 7-15 days before sanctioning the loan.</p>

<h2>What is the process for NRIs to buy property in India?</h2>
<p>Non-Resident Indians (NRIs) can freely purchase residential and commercial properties in India, though agricultural land, plantation property, and farmhouses are restricted. The process involves: opening an NRE/NRO bank account in India for transactions, obtaining a PAN card (mandatory for property transactions), conducting thorough property due diligence through lawyers, ensuring property has clear title and necessary approvals, signing the sale agreement (can be done through Power of Attorney if unable to visit India), paying stamp duty and registration charges in Indian Rupees from NRE/NRO account, registering the property at the sub-registrar office, and obtaining encumbrance certificate. NRIs can repatriate sale proceeds of up to 2 residential properties per financial year after obtaining necessary clearances. It's advisable to appoint a reliable Power of Attorney holder and maintain all transaction documents for FEMA compliance.</p>

<h2>What should I check before signing a property sale agreement in India?</h2>
<p>Before signing a property sale agreement in India, conduct thorough verification: verify seller's identity and ownership through title deed and sale deed, check encumbrance certificate (EC) for past 13-30 years to ensure no existing liabilities, verify approved building plan from municipal corporation, confirm property tax payments are up-to-date, check for pending dues (maintenance, society charges, utility bills), verify RERA registration for under-construction projects, ensure property has occupancy certificate (for ready properties) or commencement certificate (for under-construction), check land use and zoning regulations, verify measurements match sale agreement, review payment terms, possession timeline, and penalties, check builder's track record and financial stability, ensure agreement includes all amenities and specifications promised, verify parking space allocation, and review cancellation and refund policy. Always engage a property lawyer for legal vetting before signing, and ensure the agreement includes clauses for delays, quality issues, and force majeure situations.</p>