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NRI FAQs

MGH since its inception has become one of India's most reputable names in the real estate sector. It's has become a company that commands the respect of its stakeholders, clients and associates. MGH is continuously seeking new opportunities, joint venture tie ups, and capital funds with like-minded investors and developers to expand our ever burgeoning portfolio.

Please go through the faqs below and our projects pages to know about the various ways you can associate with MGH.

What should a purchaser keep in mind while purchasing a residential flat?

Some important points to keep in mind while buying the flat:

  • Locality - Proximity to workplace, educational institutions, hospitals, shopping areas, entertainment centre's, transportation, pollution levels.
  • Quoted area of the flat i.e. Carpet, Built Up Area and super Built Up Area
  • Car parking space
  • Quality of construction
  • Reputation of the builder or seller
  • Sufficient water and electric supply, other utilities
  • Cost components: price, stamp duty, registration charges, transfer fees, maintenance charges, any other payments
  • Appreciation of the property for resale and rental.
  • Any other distinguishing features or advantages of the property

Should I inspect a property before buying it?

Yes. It is important to inspect the property; probably this is the largest single investment you will ever make. You should know all the details of the property and need for any major repairs / modifications before you buy. You can crosscheck the commitment made by builder and actual implementation. A close inspection points out the positive aspects of the property, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.

Few important points to check while inspecting…

  • Plumbing systems, drainage, water faucets and sanitary fittings.
  • Electrical systems, circuit breakers, wires, capacity of the electric meter, functioning of light fittings
  • Roof, walls, ceilings, floors, paint work.
  • Foundation, basement and visible structures.
  • Doors and windows, latches, locks.
  • Structural stability of the building.

Checklist for buying residential or commercial property?

Identify the property you wish to purchase

Crosscheck of current market rates of property in the vicinity and last known transactions, current market trends. Formulate commercial terms.

Distinguish between negotiable and fixed terms and conditions of the contract, eg. Price, payment schedule, time of completion etc.

Check for clear titles of the property. Ask for photocopies of the all deeds of title related to the property to be purchased. Examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any on the property must be cleared before completion of purchase of the property.

Finalize commercial terms of purchase of the property. Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property.

Ascertain outgoings to be for the property i.e. property tax, water and electricity charges, society charges, maintenance charges.

Request Vendor to obtain, if applicable, consent, permission, sanction, no objection certificate of various authorities such as the

  • society
  • the income tax authority
  • Municipal Corporation
  • the competent authority under the Urban Land Ceiling and Regulation Act
  • any other authority.

If you are looking for loan for property purchase, contact financial institutions and ask for a pre approval letter, many options are available for loans.

Permanent Account Number of Vendor and Purchaser under Income Tax laws Payment of stamp duty on the formal agreement or document for transfer of the property, signing by both the Vendor and Purchaser and registration.

After payment of the entire sale price, take over legal possession of the property and check the receipt of original documents from the Vendor of the property.

Make sure that property holder’s name is changed in all related records, e.g. society, Electricity Company, municipal corporation, Index II etc.

What is a Sale Deed?

Sale Deed also known as conveyance deed, is a document by which the seller transfers his right to the purchaser, who, in turn, acquires an absolute ownership of the property. This document is executed subsequent to the execution of the sale agreement and after compliance of various terms and conditions detailed in the sale agreement.

What Is Leasehold Property?

Leasehold Property is property leased to a lessee for a stipulated period. The Lessee pays lease premium and annual lease amount as fixed and mutually agreed by the Lessor and lessee. The land ownership rights remain with the Lessor and a prior sale-permission is normally required if you plan to transfer the property.

What Is Freehold Property?

Freehold property is a property which gives full legal rights to the owners to live and use the property. Most of the property in India is freehold, which means that ownership is transferable. A freehold property owner has the right to sell, transfer, renovate and repair the property. The freehold properties give more right and responsibility to the owner. The only disadvantage of this type of property is that the owner has to carry out repairs that may be required from time to time.

Is it compulsory to register documents for the sale of property?

Yes. Documents for sale/transfer of any immovable property of the value exceeding INR 100/- are to be compulsorily registered in the jurisdictional office of the Registrar of Sub Assurances.

Does one have to pay any amount for registration of the sale/transfer documents?

Yes. Registration of sale/transfer documents will involve payment of registration fee, as prescribed in the Registration Rules and as applicable in the States in India, where the Property is situated.

Are there any formalities to be completed or forms to be filed on execution of the Sale Deed ?

Yes. The formalities and forms may vary from State to State depending on where the property is situated.

Every State has its set forms under the Registration Rules that are required to be filled and filed along with and at the time of Registration of Sale Deed/Transfer Deed.

Can we avail loan on under construction property ?

Yes.

What is an EMI?

EMI - Equated Monthly Installments, is the amount payable to the Housing Finance Institution every month, till the loan is paid back in full, comprising of portion of interest and principal. EMI is to be paid every month through post dated cheques or through direct deductions from the salary

What is the Home loan amount generally granted by financial institutions?

80% of the Property Cost.

On what basis is the amount of the home loan decided? or on what basis a capacity of a person to repay the loan is evaluated ?

The amount of the loan for each individual depends on the following factors

  • An Indian resident or NRI
  • The income of the person applying for the loan.
  • Above 21 years of the age at the commencement of the loan.
  • Below 65 years when loan matures.
  • Number of dependants.
  • Qualifications.
  • Assets and liabilities.
  • Either salaried or self employed

What are the types of loans available depending on the interest charged?

Most Housing Finance Companies offer the fixed rate as well as the adjustable rate (Variable – Floating rate) home loan to customers.

Fixed rate: where the rate of interest charged by the HFC on the loan is constant for the first 3.5 years and revised after that.

Variable rate: Commonly known as Floating Rate, where the rate of interest charged by the HFC on the loan keeps changing with respect to the rates in the market over the tenure of the loan.

What is the difference between monthly rest and annual rest?

Monthly rest: the interest is calculated on the outstanding principal loan at the beginning of every month.

Annual rest: the interest is calculated on the outstanding principal loan at the beginning of every year.

What is the security required against the home loan?

The main security for a home loan is the first mortgage of the property to be financed, normally by way of deposit of title deeds and /or such other collateral security as may be necessary. In addition interim security may be required, if the property is under construction. The documents of title will be kept in the safe custody of the HFC until repayment of the loan.

What are the other costs in Home Loans?

Processing Charge: It’s a fee payable to HFC on applying for a loan. It is either a fixed amount not linked to the loan or may also be a percentage of the loan amount.

Pre-payment Penalties: When a loan is paid back before the end of the agreed duration, a penalty is charged by some banks/companies, which is usually between 1% and 2% of the amount being pre-paid.

Commitment Fees: Some institutions levy a commitment fee in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned.

Miscellaneous Costs: It is quite possible that some lenders may levy a documentation or consultant charges.

Registration of mortgage deed.

Can I repay the loan ahead of schedule?

Yes, you can repay a loan ahead of schedule. Some HFCs charge a pre-payment penalty.

When and where should a document be registered?

Every document which is required to be registered under the Registration Act, except a Will, should be presented at the office of theSub Registrar of Assurances for the registration within the prescribed time of four months from the date of its execution. A document is registered with a sub-registrar of a district in which the immovable property is located.

Can a document be registered after a lapse of four months?

Yes. A Deed of Confirmation with the original document attached is signed and registered.

What are consequences of non-registration of a document?

An instrument, which is not registered, is inadmissible as evidence.

On what value is the stamp duty payable on sale of immovable property and when should it be paid?

Stamp duty is payable on the market value or consideration amount mentioned in the instrument, whichever is higher. Ideally stamp duty should be paid prior to signing the instrument.

Who is liable to pay stamp duty?

Generally, the consumer i.e. purchaser or lessee of the property is liable to pay stamp duty unless there is any contract to the contrary then the stamp duty will be paid according to the terms of the contract e.g. the stamp can be payable in equal shares.

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