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Difference Between Relinquishment Deed and Release Deed 

Posted on by HomeCapital Team

The concepts of “release deed” and “relinquishment deed” are not only incomprehensible to many people, but they also cause a great deal of confusion. The vast majority of individuals are under the impression that the two acts are equivalent to one another. However, this is not completely correct.  

There are certain minor distinctions that are important to note. In this article, we will go through the primary distinctions that exist between the two. 

What is a Relinquishment Deed? 

The document known as a relinquishment deed is a piece of legal drafting that is signed by co-owners of property who have acquired ownership of the property via inheritance. A “releasor” executes the deed, relinquishing title and/or rights to the property to the “releasee,” who receives the property in exchange.  

Relinquishment deeds are performed only between legal successors of properties, unlike transfer deeds, sale deeds, and gift deeds.  

What is a Discharging Deed? 

A “release deed” or “deed of release” is a legally binding document that you sign to waive any obligations or rights you have to a piece of property, allowing the buyer to acquire the property completely and clear of any liabilities or other restrictions.  

It is common practice for one co-owner to complete a release deed in order to transfer their interest in the property to the other. 

Prerequisites for Relinquishment and Release Deed 

Execution and registration of these deeds are subject to strict rules set out in Section 17 of the Registration Act of 1908. The relinquishment deed has to be prepared on paper with a stamp on it.  

After that, it has to be brought up in front of the sub-registrar whose authority the property falls under, along with the appropriate fees for registering it. In addition to your signature, this deed has to be signed by two witnesses in order to be executed. The release deed, on the other hand, is not necessary to be notarized. 

Relinquishment Deed vs. Release Deed 

The differences between a release and a relinquishment deed are compared and contrasted in the following table: 

Point of Distinction Release Deed Relinquishment Deed 
Contracting parties Parties to a release deed are often the owner of the property and the banker. The parties to a relinquishment document may be related to one another since they are co-owners who inherit the property. 
Registration The act of registering a release deed is completely voluntary. In spite of this, it is recommended by legal experts that you get your release document notarized. A relinquishment deed has to be registered in accordance with the Registration Act of 1908 in order for it to be considered a legitimate legal document. 
Consideration In order for a release deed to be valid, there must be some kind of consideration, which takes the form of a transfer of security for the debt from the banker to the property owner. There is the possibility of conducting a review. On the other hand, the deed of relinquishment could be signed even if there is no regard shown by family members to one another. 
Encumbrance When the release deed is signed, only then does the property become free of any liens or other restrictions. The property described in this deed does not typically have any encumbrances attached to it. 
Accountability of the interested parties The obligation to pay the dues is one that is placed squarely on the shoulders of the property in question. In response to this, the bank will hand over ownership of the property to the buyer. The main responsibility for discharging the duty lies with the individual who is handing up the property. 
Objective A release deed’s principal function is to cancel any mortgage or other encumbrance placed on the property in favour of the bank. The fundamental objective is to relinquish one of the co-owners rights to the property in exchange for the other. 
Duties and Privileges It is the owner’s responsibility to pay all of the dues, and the owner is the only one who has the capacity to get ownership of the property. Both responsibility and the authority to change the title in favour of the owner are vested in the banker. The banker must accept the dues. Waiving the rights to renounce the property owned by an individual and is entitled to either the agreed-upon compensation or nothing at all. The party obtaining the property right is required to obtain the right and may choose whether or not to pay the agreed-upon amount. 

Revocation of Relinquishment Deed and Release Deed  

In most cases, a registered deed cannot be cancelled only for the reason that the individual transferring their title has changed their mind after the deed has been recorded.  

One has the legal right to challenge a relinquishment for the same reasons that one has the legal right to void an overall contract. Deception, undue influence, intimidation, and falsification are all possibilities. 

It is essential that the two sides come to an agreement about the cancellation. Both parties refer to the individual who relinquishes the deed as well as the person who benefits from the deed being surrendered. In the event that this is not possible, your sole option is to challenge the deed in court. In contrast, once a release deed has been signed, it is impossible to go back on it. 

Conclusion 

Both release deeds and relinquishment deeds are analogous to a binary contract, and in order to be considered a legal deed, they are required to have the same fundamental elements. However, a relinquishment document is created when two parties get together, regardless of whether or not there is a consideration. On the contrary hand, a release deed cannot be considered legal until compensation has been exchanged for it. 

Knowing the differences between a release deed and a relinquishment deed may aid you in the property transfer process as you search for a new home.  

HomeCapital’s downpayment assistance program may be able to assist you in the event that you are experiencing financial difficulties. When you choose HomeCapital for your down payment needs, you won’t have to worry about any hidden fees since it is an interest free offering for home buyers to accelerate their homeownership dream. 

Capital Gains Tax: What Is It, and How It Works 

Posted on by HomeCapital Team

India’s economy is still growing. Therefore it needs continuous infusions of capital to keep booming. Realtors and investors play a significant role in propelling India’s economic development, making Capital Gains Tax a crucial tool by providing them with favourable tax treatment for asset purchases and sales.  

In the following paragraphs, we will discuss the concept of capital gains tax and how it is calculated. 

What is Capital Gains Tax? 

When an investor sells an investment and earns a profit, that profit is subject to a tax known as the capital gains tax. It is necessary to pay this amount for the fiscal year that coincides with the sale of the investment.  

If an Indian citizen inherits property and does not sell it, they are exempt from paying capital gains tax under the country’s Income Tax Act. However, if the inheritor chooses to sell the property, the tax must be paid on the profits. 

Types of Capital Assets 

  • Short-term Capital Asset 

If an investment is kept for fewer than three years, it is considered a short-term capital asset. However, real estate, including homes and land, now only needs to be held for 24 months instead of the previous 36. Thus, if an individual decides to sell a piece of land or a house after having owned it for at least 24 months, the profit from the sale is considered a short-term capital gain. 

If the property is the result of an inheritance or a gift, the duration of the previous owner’s possession is also relevant in assessing whether the asset is better classified as a short-term or long-term capital asset. Any bonus stocks or privilege shares will be classified according to the date they were granted. 

  • Long-term Capital Asset 

Long-term capital assets are those that a person has owned for a period of time more than three years, making them eligible for the term. This category includes assets like debt-oriented mutual funds, jewellery, and other items that have been kept for more than 36 months, and there is no reduction period of 24 months in this scenario. 

Tax Rate on Long-Term and Short-Term Capital Gains  

Tax Type Condition Tax Applicable 
Long-term capital gains tax Except for sales of units or shares of equity-oriented funds 20% 
Long-term capital gains tax Upon the sale of equity-oriented fund units or common stock 10% in excess of Rs. 1,00,000 
Short-Term capital gains tax When no securities transaction tax applies The STCGT is applied to the taxpayer’s ITR, and the person is taxed according to his income tax bracket. 
Short-Term capital gains tax When the securities transaction tax applies 15% 

Calculating Long-Term Capital Gains Tax 

The following is a rundown of the steps involved in calculating long-term capital gains: 

  1. First, the person must evaluate the asset’s full value. 
  1. Following that, the person must subtract the following: 
  • Expenses incurred as a result of the transfer 
  • Acquisition expenditures 
  • Improvement expenditures 
  1. After completing the above steps, a person must next subtract any applicable exemptions provided under the following sections to determine the long-term capital gains tax: 
  • Section 54B, 
  • Section 54F, 
  • Section 54EC, 
  • Section 54. 

Calculating Short-Term Capital Gains Tax 

Individuals need to follow the steps outlined below in order to arrive at an accurate estimate of their short-term capital gains tax: 

  1. The first thing that the person has to do is consider the full value of the property. 
  1. After that, the points that are listed below need to be subtracted: 
  • Capital outlays made to improve the property 
  • All the money spent on buying the property 
  • Costs associated with the sale or exchange of the property 
  1. After the deduction, the remaining sum is the short-term capital gain. 

Deductions to Reduce Capital Gains Tax 

If you possess an asset, you may be able to lower your capital gains tax liability by taking advantage of provisions under the following sections of the Income Tax Act.  

  • Section 54 

The capital gains on the selling profits of a residential real estate are excluded from taxation if those funds are subsequently invested in the acquisition of another residential property. This, however, is contingent on the following criteria being met: 

  1. Buying real estate should be done no more than two years after selling it, or at the very most, a year in advance. 
  1. If the property is still in the construction phase, the transfer must occur no later than 3 years from the original property transfer date. 
  1. Within the first 3 years after acquisition or construction, the newly purchased property is not transferable. 
  1. There should be an Indian location for the newly purchased property. 
  • Section 54F 

You are eligible to get the advantage of Section 54F if you sell any other asset, such as agricultural property that is within 10 kilometres of a city or rare artworks, jewellery, or loan money, for example. This clause allows a deduction to be taken from the profits of the liquidation of any financial instrument in order to pay for the acquisition of a home or other residential property.  

  • Section 54EC 

Any profits made on bonds issued by the National Highways Authority of India (NHAI) or the Rural Electrification Corporation (REC) are free from capital gains tax in excess of Rs 50 lakh. They come with a fixed rate of interest (now 5.25%) and a term of 5 years. These bonds have a taxable interest rate. To qualify for this write-off, your investment must have resulted in a financial gain from the sale of land and buildings. 

Conclusion 

It is important for investors with taxable accounts to understand the capital gains tax, the method by which capital gains tax is computed, and the distinction between long-term and short-term capital gains.   

Investors have a better chance of retaining a greater portion of their earnings if they are knowledgeable about the various tax rates and structures applicable to capital gains. 

Do you plan on selling your old house? This guide will assist you in navigating the taxation of capital gains. However, HomeCapital may assist you if you are looking for a new home. HomeCapital provides up to 50% interest-free financing for down payments with no interest levied to the home buyer. 

Understanding of Mutation of Property in India 

Posted on by HomeCapital Team

The mutation of property is a complicated process and involves many necessary steps. After the registry of your property, it is necessary to execute a mutation or transfer of ownership in the government records. This process will ensure that you are appropriately registered and get the right property documents.  

In this article, we will discuss the mutation of property in greater detail. 

What does mutation of property entail? 

Mutation, or “Dakhil Kharij” in Hindi, is the legal procedure through which the legal title of an asset is transferred from one owner to another upon its sale or transfer. It is necessary whenever an asset is transferred, whether through selling or acquisition, the owner’s demise, succession, gift, or the use of a Power of Attorney.  

Once the mutation of property is accomplished, the asset is officially recorded in the owner’s name. Having this information allows the government to levy a property tax, the amount of which varies from one state to another. 

Significance of mutation of property  

Both the registration and the mutation of the property are essential. In addition to being useful to the authorities, this will also be beneficial to the new owner.  

The following are some of the many benefits that come from keeping mutation records: 

  • The mutation records provide the government authorities with assistance in determining the appropriate person to charge with the real estate taxes and other levies. 
  • It is possible to correct any mistakes that have been made in the land registry or to report any unauthorised transactions that have been made against your property by using the mutation records. 
  • Prospective purchasers may want a mutation certificate as part of the buying process, and having one on hand is helpful. 
  • A property mutation certificate is required before agricultural land may be sold. 

Property registration vs. mutation of property 

When purchasing real estate, the buyer is responsible for paying the necessary stamp duties and registration fees to the land revenue department where the transaction took place. After the payment of the stamp duty as well as the registration fees, the process of property registration is said to be accomplished.  

On the other hand, the mutation of property takes place at a subsequent stage and might take up to a year after the ownership has been officially registered. Unlike a sale deed, which requires both the buyer’s and the seller’s signatures, the buyer alone is responsible for the mutation of property. When compared to property registration, the process of property mutation is very slow. 

Mutation of property types 

  1. Mutation of agricultural land  

When it comes to land used for agriculture, mutation is a key prerequisite. Without a mutation, the ownership of the land can never be transferred to the new owner. The records of revenue should be updated to include both the mutation and also the new owner’s name.  

This step is essential due to the fact that, in the event that the government acquires land, the compensation would be given to the property owner or owners who are listed in the revenue databases of the local councils. 

  1. Mutation of non-agricultural land  

The mutation is optional but highly encouraged for all non-agricultural properties, including but not limited to apartments, single-family homes, and residential plots, at any time following the registration of the property.  

In the absence of a mutation, the sale deed’s right remains in effect. This means that the buyer will continue to be the legal proprietor of the property after the sale has closed.  

Although obtaining a mutation permit is not required in this situation, it is essential when selling a property again. The lack of it poses a possible risk to the completion of the transaction. 

How to Apply? 

Property changes are regulated by local governments. The procedure for submitting an application differs from one state to the next. Many state administrations have made efforts to move the mutation procedure online. If you want to change your name and don’t want to use the online mutation procedure, you’ll need to go to the appropriate municipal office. 

Documents required

  • In case of the sale of property  

In the event that the property is going up for sale, the following papers are needed for the mutation of the property: 

  1. Applicant’s Aadhar card  
  1. Ration card 
  1. Property tax receipt 
  1. Postage stamps of the appropriate value 
  1. Sale deed 
  1. Both current and previous registration deed 
  1. Formalised mutation application form 
  • In case of inheritance or will  

The following legal papers are necessary for the mutation of a property in the event that the legal proprietor or the Titleholder passes away. 

  1. Title holder’s death certificate 
  1. Affidavit of applicability on stamp paper 
  1. Legal document of the Succession 
  1. Will Copies 
  1. A duplicate of the power of attorney 
  1. Registration Deeds 
  1. Sale Deed 
  1. Aadhar Card 
  1. Other documents mandated by the department 

Charges for Mutation of Property  

Due to variations in how property mutations are handled from state to state, fees also vary widely. Some jurisdictions, however, have made it easier to pay for land mutations by creating online application facilities.  

The prices for property mutations vary between ₹ 25 and ₹ 200. Online fee payment options include UPI, NEFT, RTGS, IMPS, debit/credit card, etc. The process of obtaining the mutation document from the relevant authorities might take anywhere from 5 to 30 days. 

Conclusion  

In conclusion, the mutation of property is critical for keeping accurate records of ownership. To put it another way, it would facilitate the buyer’s future property sales. In addition, the availability of an online application for property mutation has made the formerly laborious and time-consuming procedure more streamlined and straightforward.  

With your newfound knowledge of property mutation, you’ll be well prepared to apply for this legal document while buying your ideal home. HomeCapital is here to help you with your down payment needs. No interest is charged on the down payment assistance loans we provide, and the application process is quick and easy to complete online. 

What Exactly is the Building Code? 

Posted on by HomeCapital Team

Building regulations are set by different local governments as per their own needs and requirements. They also differ according to the type of structure being built. For example, if a structure is a single-family home, then it will have different regulations than a high-rise building or an office complex. In order to keep the buildings safe and suitable for human occupancy, there are building codes that need to be followed.   

In this article, we will go over the fundamentals of a building code, including what it is, why it exists, and what its requirements are. 

What is a Building Code?  

The term “building code” describes a set of laws and ordinances enacted to control the construction sector. The building code is composed of both fundamental construction standards and supplementary administrative restrictions.  

Regulations for plumbing, sewage systems, electricity, and fixtures, as well as the size and layout of rooms and hallways, and the construction of underpinning, floors, roofs, and stairways, are all specified in a building code. 

Prerequisites for Buildings in General  

Structures that are found to be in violation of building codes are subject to fines, suspensions, and even demolition. The following are requirements that must be met for buildings in general: 

  • Every structure above 13 metres in height is required to have an elevator built. There has to be a lift with a nominal capacity of six passengers that can be used directly from the ground level. The number of elevators might vary depending on precise projections based on applicable rules of the Building Code. 
  • Before obtaining a construction permit for apartments above three floors, the Directorate of Fire Force or an official authorised by them must provide a certificate of approval. Every level of a house, apartment, or another kind of living quarters that has a floor area that is more than 150 square metres and can accommodate more than twenty individuals is required to include at least two doors that are as far apart as they may be. 
  • The Building Code specifies that at least one stairway must have a fire staircase installed. A complete plan showing the placement of the pipes, accelerator pumps, and water reservoirs at different levels must be presented for authorisation to the relevant authorities, with the blueprints and segments of the structures. In the case of power failure, diesel generators should be installed in any building taller than 25 metres. 
  • The Building Code stipulates stringent requirements for the quality of both the materials and the craftsmanship used. No new building or structural additions or alterations may be made in the areas between a facility and an overhanging electric supply line. 
  • The defensive significance of a building’s interior is enhanced by the presence of upright conductive material such as rain gutters and downspouts, water systems, elevator rails, flat metal strips, metal bracing or reinforcements, electrical systems, and wires. Lightning Arrestors, once installed, may prevent significant damage to electronic and electrical equipment. 
  • Depending on where you live, there may be specific restrictions in place for things like plumbing and sanitation. Accidents and the spread of illness may be avoided by only allowing maintenance and repairs to be done to plumbing, sewage, and sanitisation systems during certain times of the day. In terms of actual content, the Building Code specifies what must be done during construction. 

Reasons why you should care about Building Codes 

Having up-to-date hazard-resistant construction rules that are strictly adhered to is one of the greatest methods to protect our communities from the effects of natural catastrophes. The minimal standards for design and construction stipulated by building codes are intended to promote the stability and safety of buildings.  

Some of the ways in which stricter enforcement of codes might benefit a community are as follows: 

  • Building codes safeguard 

Safer wiring, better fire protection, and more robust construction are just a few of the many ways in which building codes safeguard residents. These dangers may be mitigated if the local construction regulations are up to date. 

  • Building codes have financial benefits 

Communities with up-to-date building codes can save lakhs in damages. This is determined by analysing how regions without stringent construction regulations perform. As a bonus to the financial benefits, less harm is done to personal possessions. As a result, the community is spared the upheaval of having to relocate temporarily, the loss of revenue, and the interruption of daily life. 

  • Building codes are constantly evolving 

A structure constructed in accordance with current regulations may be relied upon to include the most recent scientific and technological advancements. Building rules are revised to account for new data, such as the findings of post-disaster studies, while still resting firmly on the shoulders of decades of accumulated construction expertise. Adopting new regulations includes many different parties who all work together to ensure the public’s health and safety while keeping costs low. There is also a growing interest in climate adaptation and sustainable practices. 

  • Building codes equalise the odds 

Improved build quality, uniform permits, and strict code enforcement are all possible due to the standards established by building codes. Smaller towns may more easily work together to implement the code via mutual help agreements if their larger neighbours do the same. 

  • Building codes benefit your community 

Incorporating building codes into a community may result in cheaper insurance rates, lower bond rankings, and assistance when requesting government subsidy funding, all of which can assist in saving a lot of money. If the community in which you live wants to adopt a new building code or enhance the one they already have, they may submit an application for funding to assist them in doing so. 

Wrapping up 

All sorts of constructions must adhere to the building code in order for the design and construction processes to be legal. It covers everything that has to be addressed in order to have a building process that is both safe and organised.  

With your newfound understanding of building codes and how they work to keep you safe, you can begin your search for the perfect home. If you want to start the process of becoming a homeowner, HomeCapital is the best place to start. HomeCapital can offer you up to 50% of the down payment amount, interest-free, so you may buy the home of your dreams.

Why is a Completion Certificate important for Home Buyers?

Posted on by HomeCapital Team

When it comes to purchasing a home, there is a predetermined set of paperwork that must be completed. Paperwork is necessary to prove your ownership of the property when you resell it or when you apply for a mortgage.  However, there are a few pieces of paperwork that absolutely need to be in order before you can take the property’s ownership from the developer. A completion certificate is one such document.  

In this article, we will go over the meaning of a completion certificate as well as the significance of having one when buying a home. 

What is a Completion Certificate? 

A completion certificate is an official document attesting to the fact that a building was constructed in accordance with applicable laws and regulations. From the total height to the quality of the materials used, everything about the project should be included on the certificate of completion.  

In a nutshell, a completion certification serves as a guarantee that the structure in which you are going to reside has not deviated in any way from the established standards.  

Importance of Completion Certificate 

1. For developers 

A completion certificate is essential for developers to get legal approval for their development. Without this certificate, the construction is not considered to be within the bounds of the law, which might lead to complications in the future.  

The following is a list of some of the key reasons why it is so vital: 

  • The name of the builder, the location and description of the property, the dimensions of the building, and the specifications of the building’s components are all included. 
  • The building’s height, setback from the street, and distance from neighbouring buildings have all been determined to be in accordance with the authorised construction plan. 
  • The developer cannot submit an application for an occupancy permit until they have received it. 
  • This certification is necessary to provide access to essentials like running water, power, and sewage systems. Without the completion certificate, the builder cannot hand over the keys to the buyer. 

2. For home buyers 

It’s a common misunderstanding that only builders and developers need completion certificates. Buyers are required to have it, for the following reasons: 

  • Possession of a completion certificate ensures that the buyer is not occupying an illegal structure. 
  • The reliability of water and power supply is ensured. 
  • You can’t take advantage of the property tax breaks until you have your certificate of completion. 
  • A completion certificate is needed to switch from commercial to residential water rates for finished constructions. 
  • The authorities may issue a fine or force a buyer to vacate the property if they do not possess a completion certificate. 
  • Without a completion certificate, it will be impossible to sell the home in the future. 

How to get a Completion Certificate? 

After construction gets completed, the developer might get a completion certificate. It is the responsibility of the developers to submit an application to the relevant municipal body. The authorities won’t provide a certificate of completion until they’ve inspected the construction. 

The requirements for filing for it are not uniform throughout the country. Different laws apply in each state.  

All of the required paperwork is as follows: 

  1. The application form that has been completed 
  1. The building can’t be considered complete unless it’s been signed off on by either an architect or a registered engineer. 
  1. Document certifying construction plan approval (copy) 
  1. Property tax receipts 
  1. Certificate of structural integrity or letter from responsible technical staff (copy) 
  1. A letter of permission, if applicable, is necessary for the implementation of a lift. 
  1. Approval for the scheme of water supply  
  1. NOC for the sanitation system 
  1. Electricity supply authorisation 
  1. A provisional completion certificate declaration  
  1. If applicable, any further documents or declarations 

Home buyers can get a copy of the certificate from the builder once the work has been inspected and authorised. 

How long does it take to get a Completion Certificate? 

If the application is complete, the local authority will schedule an inspection with the developer. The construction will be inspected by a team from the Municipal Corporation at predetermined intervals. After all compliance requirements have been met, they will issue it, usually within three to four weeks. 

If the investigation team finds a major violation of the regulations, they could send out a letter with orders for the demolition of the structure. When minor violations occur, the team administers the appropriate punishment.  

Conclusion 

A completion certificate is proof that a structure complies with all local, state, and national statutes and is constructed to standard. It also guarantees that the facility’s essential services will be accessible to all tenants. As a result, if you’re purchasing a brand-new home from a developer or owner, don’t forget to ask for and get a completion certificate.  

Getting an occupancy permit, which attests to the building’s suitability as a place to live, requires the certificate as a prerequisite. Therefore, having a completion certificate means you’re purchasing and living in a secure dwelling. 

Now that you are aware of the completion certification, it is possible that you may want financial aid in order to pay the first deposit on your new house. Simply apply for a loan on HomeCapital’s website for up to 50% of your down payment. There is no interest payable with down payment loans from HomeCapital, and the application process is quick and easy to complete online. 

Advantages of open space in housing societies 

Posted on by HomeCapital Team

The congestion of today’s cities has caused a number of environmental problems, making it imperative that new communities be built with generous amounts of open space. A large usable outdoor space is an essential component of any housing society, particularly in densely populated metropolitan areas.  

In the following paragraphs, we will go through the many benefits that open spaces provide to housing communities. 

8 Reasons why open spaces are important 

The idea of open spaces has been gaining popularity in recent times. In fact, many people are now looking for housing societies with open spaces. It is not just because they want more space but also because they want a more comfortable lifestyle. Some of the advantages include:  

1. Increase in appeal 

The presence of greenery and water sources is largely responsible for the appealing appearance of our surroundings, as well as for the absence of pollution in the air. As a direct result of this, your lifestyle improves. Therefore, open spaces provide people with a feeling of security and help them feel more comfortable in the surroundings in which they dwell. 

2. Scope of growth 

It’s crucial to encourage physical activity in today’s youth since youngsters spend too much time sedentary. Children require housing societies that serve as a safe place for them to play outside, ride bicycles, and socialise with their peers in a dedicated setting. 

3. Open space reduces stress 

The stresses of modern life have begun to take a major toll on our emotional well-being. Everyone knows that mental health is just as crucial to overall health as physical health. That’s why we need wide-open places.  

Staying cooped up inside all the time may have a negative influence on our brain’s ability to operate, which in turn can affect our disposition and output. The freedom to move about and the resulting mental revitalisation that results from a lack of clutter is invaluable. 

4. Motivates a healthy and active lifestyle 

Adopting a healthy way of life is crucial to your physical and mental health. Having extra room to move about outside of your home might inspire you to do more exercise.  

You may go for a morning stroll, an evening jog, or perhaps a bicycle ride. Some of the newer developments in housing societies include health clubs, pools, and even gaming rooms to encourage residents to lead active balanced lives. It’s a boon for those who have put off getting in shape for years, as well as a reward for fitness fanatics. 

5. Location for fun and games 

What could be more relaxing than sitting back in a comfortable nook of the living room on a lazy Sunday evening to watch your children play? Individuals who reside with their elderly parents or who have household pets are another group that would benefit greatly from open spaces. The ability to walk around freely and breathe fresh air is often essential for elderly persons. They feel revitalised, and their physical and mental health are both preserved as a result of it. 

6. Connecting with people 

Getting to know other individuals who share your interests is easier in open spaces. Communicating and interacting with others are vital to our well-being. Whether you’re looking for a 2BHK or 3BHK apartment in housing societies, the common denominator is the need for an open area where you and your neighbours may enjoy a brisk morning jog or a leisurely evening walk.  

Moreover, open areas in housing societies are necessary for the occasional outdoor party or small gathering. 

7. Open space increases home value 

A great return on investment may be attained by investing in homes that have a lot of open space. Buyers are more likely to be interested in purchasing one of these types of houses rather than a standalone structure that offers no feeling of safety. It raises the property’s market worth, which enhances the likelihood that you will get a substantial amount of money back when you sell the home in the future. 

8. Enhances safety and well-being of residents 

Since open spaces often have several amenities, hiring security personnel is essential. Women and children alike are allowed to roam these locations at any time of day or night. The identities of many open-area societies’ vegetable sellers and servants are also documented with them, raising the degree of safety in these communities even further. 

Conclusion 

To summarise, the advantages of open spaces in housing societies include fostering social connections, maintaining physical and mental health, experiencing the beauty and connecting with nature. As many of you may well know, open spaces are sometimes the only places inside housing societies that provide people with any kind of reprieve from the surrounding towering concrete monoliths.   

If you’re looking to buy a home in a housing society with plenty of open space, HomeCapital is the ideal place to start. You may get interest-free down payment help via the HomeCapital program. Interest-free down payment assistance is available via the HomeCapital program and may be used for your first contribution, stamp duty, and possession charges. 

Reasons why the demand for 2 BHK flats is higher in India 

Posted on by HomeCapital Team

Apartments are residential units that typically include sleeping quarters, a living area, and a kitchen. Largely due to the increasing prevalence of the nuclear family, apartment living has exploded in popularity throughout India. Apartments are constantly in great demand in the nation, so developers strive to provide enticing features that will appeal to potential tenants. Builders have started offering a range of floor plans, beginning with the BHK possibilities. There are further variants, such as 2.5 BHK, which is a more recent addition to 1 BHK and 2 BHK apartments. Taking everything into consideration, the 2 BHK plan continues to be the most popular choice among house purchasers. This article will explain why there is such a strong demand for it around the nation. 

What are 2 BHK apartments? 

A 2 BHK apartment features two bedrooms, one of which is a standard-sized master suite, and the other is a smaller room. Additionally, linked to the rooms may be a hallway, kitchen, and bathroom. The demand for these apartments is rising.  

2 BHK apartments in India are an excellent alternative for anybody who works from home or has a family that does and needs more space. For those who want to live in luxury without breaking the bank, such an apartment is a great option because of all the features it provides. 

Reasons behind the growing demands for 2 BHK flats in India 

The following considerations explain why the demand for 2 BHK apartments is consistently high in India: 

1. Lower costs 

Affordability is the primary driver of the growing demand for these flats in India. It is the most popular size among home buyers because it strikes a good balance between affordability and spaciousness.  

2. Ideal for those who want to start a family 

In India, those above the age of 35 make up the bulk of home buyers. These people would, in all likelihood, be interested in starting or growing their families. As a result, a one-bedroom apartment is out of the question. A 2 BHK apartment will be more affordable and practical for a family than a higher BHK model, making it an attractive choice for those who are ready to settle down.  

3. Greater availability of services in 2 bhk

The builders put a lot of thinking into the extras that they may provide to the individuals who purchase their homes. You will receive more than what you paid for when you purchase a 2 BHK apartment since you will have access to the facilities and services that are located inside the apartment complex.  

You will also have access to a larger living area. The increased demand for these in India may also be attributed to this factor. A 1 BHK flat is still an excellent investment, but if you can afford a 2 BHK in a building with nice facilities, you’ll get a lot more bang for your buck. 

4. It’s more affordable to maintain 

When compared to larger flats, 2 BHK apartments are simpler to clean and maintain. It is possible that the costs of maintaining it will be somewhat more than the costs of maintaining a 1 BHK flat, but the gap between the two will not be as large as it would be if you choose to live in a 3 BHK flat.  

As a result, purchasing a 2 BHK apartment is a good financial move. Potential consumers are also attracted to purchasing it because of the low maintenance costs that come with it. 

5. Efficient use of space in 2 bhk

The effective use of space is another factor contributing to the popularity of apartments in India. For most people, it just doesn’t make financial sense to shell out more money for a fancier house. It’s possible that a one-bedroom apartment (a 1 BHK) would seem cramped, but anything larger can be overwhelming.  

2 BHK apartments are ideal for those who value both size and convenience. The purchase of such a type of apartment is thus the option that makes the most sense for first-time homeowners, particularly for nuclear families. 

6. A realistic choice 

Buying a 2 BHK apartment in India is a sensible decision for the majority of homeowners. The majority of the country’s population is interested in purchasing modest luxury residences. This led to the conception of “affordable housing.”  

This enabled purchasers to get a dwelling that was neither too large nor too costly. Consequently, 2 BHKs have become a more realistic alternative for purchasers in the present day. 

7. Higher availability in the market 

For obvious reasons, 2 BHK flats are often available. Buyers interested in small luxury houses or those looking to start a family would find these types of flats to be the most sensible option. Due to the great demand for this particular BHK type, developers often prioritise including 2 BHKs in their developments. As a result, there is no shortage of these apartments in India.  

Conclusion  

The acquisition of a 2 BHK apartment is an excellent alternative for anybody looking to either put money into real estate or move in with their family. It is the “Goldilocks” of apartment living since it satisfies both the need for substantial space and the need for affordability. 

Are you thinking of purchasing a 2 BHK apartment? HomeCapital, the country’s first program of its kind, offers down payment assistance to qualified applicants. With the aid of our program, you may get an interest-free credit for the down payment on a 2 BHK apartment. 

What is the loading factor in apartments? 

Posted on by HomeCapital Team

The majority of purchasers in today’s market do extensive research before shortlisting potential apartments. Before reserving a flat, several factors, including the popularity of the builder as well as the building’s geographical location and the facilities it offers, are taken into account. The majority of investors educate themselves on the terminology of the real estate industry so that they may make educated decisions. The details may be easily overlooked, though. Even if a buyer is familiar with various real estate terminologies, it doesn’t guarantee they’ll understand concepts like the loading factor or how to calculate it properly. Therefore, in this article, we will go over all there is to know about the loading factor, including how to calculate it. But before we get into it, let’s understand a few crucial terminologies. 

Conventional real estate terms and their meanings 

1. Carpet area 

Measured from the insides of the walls, this is the usable space. The carpet area in an apartment would include the balcony space. Terrace sections often get a deduction of 30–50% when calculating carpet square footage. Each developer has their own formula for calculating the ratio of carpet to marketable square footage. A larger ratio is preferable. 

2. Built-up area 

This denotes the whole floor space of a flat. It encompasses the space occupied by the carpet, as well as the region that is hidden by the wall thickness and ductwork. In the majority of instances, it is around 10-15 percent higher than that of the apartment’s carpet area. 

3. Super built-up area 

As it relates to apartment buildings, this is also the “saleable” area. It is determined by multiplying the total square footage of a structure by a markup for public areas like lobbies, hallways, pump facilities, electrical rooms, etc., as well as for private areas like bedrooms and bathrooms. All of the facilities are designed for everyone’s use (with the exception of parking spots) but aren’t individually priced for each buyer. 

4. Loading 

The term “loading” refers to the difference that exists between the carpet area and the super built-up area. 

What is the loading factor? 

The Super built-up area minus the carpet area is the loading factor for flats. Every apartment has a certain amount of shared space, which is calculated by multiplying the carpet area by a certain ratio. It’s equal to the remainder when you split the super built-up area by the carpeted area.  

Home buyers should be aware that the reason developers charge loading is to recoup the costs of amenities like lobbies, service rooms, elevators, parking, and terrace. Builders were previously exempt from disclosing the difference between the super-built area and the carpet area, but this changed with the passage of the Real Estate Act, 2016, which ensures that buyers have access to this information and can make educated decisions based on it. 

How do you determine the loading factor? 

The loading factor may be determined with the use of a simple formula: 

Carpet area × (1-loading factor) = Super Built-up area 

For instance, let’s say that an apartment features a super built-up area of 1,600 square feet and a carpet area of 1,300 square feet.  

Now, 1,300 × (1-loading factor) = 1,600 

1-loading factor = 1,600/1,300 

Loading factor=1.23-1 

So, the result is 0.23 or 23 per cent. 

When you see 1.23, it indicates that the developer has applied a loading factor of 23 per cent to the carpet area. 

What is the optimal loading factor for a residence? 

Ideally, the loading factor should be under 30 per cent. If the price is over that, the customer will get less carpet area. When compared to larger projects with more features, smaller ones are easier on the load balance.  

Loading factors in premium developments may be as high as 60 percent due to the higher quality of the builder-provided facilities in comparison to those in mid-range projects. The government-allocated plots have zero loading factor.  

Loading factor break-up across cities 

The loading factor has a direct relationship to the number and quality of the facilities that are offered by the developer. As a result, it is not consistent from project to project and city to city. The loading factor that is typical in India’s four most important metro areas is broken down in the following table for your perusal. 

City Loading factor 
Bangalore 20-30% 
Chennai 25-30% 
Delhi NCR 30-40% 
Mumbai Metropolitan Region 40-50% 

There is no hard and fast rule dictating the loading factor. Thus it is up to the developer to justify excessive loading fees in light of the amenities provided. Many purchasers are forced to settle for a smaller unit at a greater price. However, they need to weigh the benefits against the costs. The high loading fees and house purchase costs are sometimes justified by the greater amenities and profits associated with smaller residences. 

Conclusion 

When buying a home, it’s crucial to consider the Loading Factor. In case you are relocating from one location to another, it is important to research it in advance. The loading factor may be determined using the formula presented in the aforementioned paragraphs. Remember to study other relevant concepts before attempting the loading factor calculation. 

It is time for you to start searching for your ideal home now that you are familiar with the formula for calculating the loading factor. By providing interest-free finance for half your down payment, HomeCapital makes it simpler to buy the home of your dreams. 

ERP Real Estate and its Benefits to the Industry 

Posted on by HomeCapital Team

Most real estate and construction businesses are increasingly becoming dependent on digital platforms in recent times. According to the latest survey on construction industries, their workflow mainly relies on software and spreadsheets. The real estate market has dramatically evolved in the present century as new age digital technology has been incorporated into the industry. Real estate ERP has also played a significant role in this progress. 

What is real estate ERP? 

ERP stands for Enterprise Resource Planning software.  

The ERP software is used to reduce human errors and enhance the productivity of the real estate construction business procedures. 

The software helps automate and streamline business methods, procurement, sales, HR, inventory, and many more. It uses improved cutting-edge technology to aid in business growth. 

Companies must adapt to the changing business environment for a successful real estate business.  

ERP software has proven to be beneficial in this case as it can be customized according to different business needs.  

The complete management process of a real estate company is included under this. Thus, activities such as property lease, sales, financing, general business management, and project execution can be done with ease using ERP software.  

Therefore, all business owners must have a digital solution which is specially designed to remain afloat in the market. 

Benefits of Real Estate ERP 

ERP software helps to enhance performance and minimize errors in business.  

Nowadays, multiple industrial sectors such as catering, manufacturing, institutes, and real estate use ERP systems to simplify and boost their processes. There are various benefits of using ERP in the real estate business. Some of these are listed below. Keep reading to know more. 

1. End-to-end business support and security  

ERP software provides end-to-end business support for both pre-and post-project completion, like marketing, sales, and finances. 

Moreover, it has an in-built firewall protection system that stores data and prevents all kinds of breaches and hacks. It monitors every activity closely which makes it difficult to illegally access customer data, thus building trust.  

2. Automation of manual tasks through ERP

Real Estate ERP software can help automate old business methods and increase a company’s employee productivity. For example, suppose customer data arrives late from the sales department to the marketing department. In that case, the productivity rate is bound to slow down, and the implementation of new marketing strategies might fall behind. 

On the other hand, ERP helps to store all the required data on one platform so that any team members can access it. As a result, ERP software helps to eliminate manual tracking of data, bursts traditional methods of a company and accelerates the business procedure. 

3. One-stop data storage and management 

Business projects in construction or real estate must be completed within the given time period.  

ERP software has a secured platform that offers efficient storing and timely data management, making it easy to complete the work on time. Business owners are thus able to track and analyse project data with ease.  

Besides this, the calculation of financial costs becomes easy and accurate. Thus, the Real Estate ERP software’s concurrent and efficient tracking benefits help to improve project production and progression. 

4. Real-time business information through ERP

Every company wants well-performing and efficient software to maintain data while their business expands. An ERP system can simplify the process of data input and update all information accurately in real-time. All departments remain connected through one platform. They can sync their work to increase the productivity and efficiency of the business and stay afloat. 

If a company lacks reliable data, there can be risks of decreased net operating income from the real estate business. Accurate data is important to make the right business decisions on time. Besides, issues like this can also reduce opportunities in marketing.   

5. Overall reduction in project cost 

A real estate company must have an accurate estimated budget and a fixed time if it wants to seal the deal with its clients. These two factors are very important, as a company with a good project design can crack big deals with these estimation factors. 

Customised ERP software can easily calculate your proper project expenditure and the time needed to complete a project. It also helps to make sure that the project’s cost does not exceed the estimated one. Thus, real estate companies can skillfully use the resources and labour within the allotted time and budget. 

6. Effective sales and marketing techniques using CRM 

Marketing and sales have a pivotal role in all types of business including real estate. A company can create a loyal customer base when it fulfils their expectations and ensure their satisfaction by implementing effective sales and market strategies.  

ERP software provides a CRM which assists the marketing and sales team in storing and tracking all information about real-time customers in a real-time manner. 

Wrapping up 

Every real estate business aims to provide quality services to its customers and meet all their demands on time. If you use ERP software in your business, it becomes easier to function. Thus, its integration in your construction or real-estate business will help overcome challenges and progress at a rapid rate.  

Rights Of An Apartment Owner

Posted on by HomeCapital Team

To begin with, property or apartment ownership comes with multiple responsibilities on the part of the owner whose primary objective is property protection and no unfair use or exploitation.  

However, many apartment or property holders in India are not really aware of their rights. Therefore, it is important that they know what their legal property rights are. In addition, they must be aware of the fact that they have to bear the cost of common expenses.  

People mainly discuss the rights and duties of tenants in India but knowing the rights of the owner is equally important, although it may seem insignificant.  

The government of India passed an act named the Rent Control Act in 1948 that speaks of the protection of the rights of owners. So, in this article, we will provide you with detailed insights on a few basic rights of an apartment owner. 

Essential Rights of an apartment owner  

Well, before we enlighten you with the basic rights of an apartment owner, let’s just briefly understand what ownership is.  

So, to keep it simple, ownership of a property means the right to use, possess, and give away the property to potential tenants for rent legally.  

Every apartment owner should know their rights and duties to exercise their power and duties within the jurisdiction of the law. So, let us now discuss the six basic rights of an apartment owner. 

1. The apartment owner right to temporarily repossess property 

The first and foremost thing an apartment owner should be aware of is their right to gain the property back temporarily. An owner enjoys the title of the property he or she holds. Simply put, holding a title document for a property is immensely important, and whoever holds the title owns or possesses the title document of the apartment.  

If any buyer has cleared all the payments, then they can hold the property title document. However, there are a lot of times when homebuyers fail to clear the payment or have to go to court. In that case, the title possession stays with the owner.  

2. The exclusion right 

Another important right of the owner that you must be aware of is the right to exclusion. The right to exclusion simply states that the owner can control who gets to enter the property. In other words, this right is similar to the privacy protector of the owner.  

With the help of this right, an owner can control trespassing. Owners are entitled to allow only the law enforcement officers if they have a warranty. Apart from that, they are not obliged to permit anyone who wants to enter the property.  

3. The apartment owner right of control and enjoyment 

The owner can use their property however they please but there are some obligations or restrictions that they must follow. As the law also binds the owner, he or she must avoid these restrictions. 

For instance, the owner cannot frequently party, play loud music, or do something which creates problems for the neighbours. They must avoid this kind of behaviour as owners are required to maintain a proper balance between their rights and others’ rights as well.  

As the apartment owner falls under the associations, state and local law restrictions also apply to them, and they must obey those rights to avoid problems.  

4. The right of putting the property on rent 

Another fundamental right of the owner is that they can rent out their properties to the tenants in order to derive more income. They can also rent out their property to a business. However, the owner must have a written agreement or legal papers while renting out to avoid issues in the future. Apart from that, they can also increase the property’s rent as and when necessary, as it is within their rights.  

5. The apartment owner right to selling 

Apart from renting or disposing of the property, an owner can also sell the property. And the owner is within the domain of exercisable rights if he wants to sell the property.  

However, they must clear the loan, if any, is associated with the property. Without clearing out the due payments, they cannot sell the property.  

6. The right to expel 

Another important right of the owner is that they can evict or expel any tenants if they cause any issues. The Rent Control Act has made it difficult for the apartment owner to evict any tenants staying in the apartment or property for years.  

However, with the Draft Model Tenancy Act of 2015, it has become easier for owners to handle their property and evict the tenants if needed.  

Wrapping up 

Apart from all these, an owner must insure the property with title insurance as it aids them in protecting the property during renting or selling. The owner must know all these fundamental rights for them to utilize their property correctly and avoid issues in the future.