Independent House / Villa

This document is the most important, as it establishes ownership over the land and thereby the house. It also helps to trace the past ownership of the land .It is your responsibility to check the title deed and ensure that there are no legal disputes associated with the property.

A sale deed of the plot of land gives the seller the right to sell. It transfers the ownership of the plot of land from the seller to you.

Make sure that the seller of the plot of land has the sale deed (The right to sell the land to you).

You have to make sure that your plot of land has been converted from Agricultural land to Non Agricultural land. This is also known as the land use conversion (DC Converted land).

Only a DC (Deputy Commissioner) can convert the agricultural land to a non agricultural land and this land is called DC converted land.

You need to check the encumbrance certificate which states that the property is free from any outstanding loans or a loan liability. You need to check for the past 30 years to ensure that the property you are purchasing is free from any encumbrance.

• Inspect the site and get it marked for dimensions. Any encroachment might lead to litigations and problems in the future.

• Check the electrical and plumbing points.

• Meet the architect once every week to review the progress of construction. Plan ahead for the next week. Always budget for unplanned expenses.

• Have an expert independently check the materials of construction used such as bricks, iron and steel and wooden supports.

• Make sure the support staff involved in the construction such as the plumbers, electricians and carpenters do the work as per required standards.

A villa commands a premium price because they are basically less in number. The constant demand for villas comes from an increasing urban population with very good incomes. The higher demand and lesser supply of these villas raises its price and investors make a profit. Unlike other properties its appeal increases with the passing of time.

Non resident Indians who intend to create a safety zone in case they have to return to the country are showing keen interest in villas. Non resident Indians mainly look out for high end apartments and villas as they provide high returns with time.

Villas have a high demand in the second home market and as a holiday home. The affluent seek villas which are built according to their tastes and preferences. Developers take responsibility for the maintenance of these villas.

Many of the developers have financing tie ups with banks which help in the sanctioning of home loans for the villa. About 25% of the cost of the villa needs to be financed by the borrower and the remaining amount will be sanctioned based on the eligibility criteria of the borrower. Generally 60 times the net monthly income can be availed by the borrower up to 45 years of age.

Tax Aspects Involved while taking a loan for the purchase of a villa/ Independent house:These are same as the purchase of a plot of land used for construction and residential purposes.