How much important is Possession Letter and Occupancy Certificate for Homebuyers?

Many home-buyers, particularly first-timers are not aware of Occupancy Certificate (OC) and often mistake it to be the same as possession letter. There are several documents which are required during the purchase of a property and obtaining them could prove to be a tedious process. But occupancy certificate is a crucial document which must be sought and buyers have the right to take legal action against the developer if the same is not given to them.

As these certificates are not required while registering a property, the vast majority of the home buyers tend to disregard or ignore gathering these documents from their previous owners or developers of the apartment.

Possession Letter

The possession letter is issued by the developer for the buyer expressing the date of ownership of the property. The original copy of this document needs to be produced for securing a home loan. A possession letter alone would not suffice for legitimate ownership of the property unless OC has been acquired.

Occupancy Certificate

Occupancy Certificate is issued at the end of the construction by a local government agency or planning authority. The document is a proof of the building's compliance with applicable building codes and other laws. It indicates that the property is in a suitable condition for occupancy. The developer is in charge of acquiring occupancy certificate and is issued only once the building has been finished in all regards and is prepared to be possessed. A completion certificate is received by the builder from the metropolitan authorities upon completion of construction.

Acquiring Occupancy Certificate can be required under respective State laws. According to these state laws, one can't lawfully move into a building unless the builder or developer gets an Occupancy Certificate from the particular nearby authoritative or municipal bodies. The corporation or municipality can request that the property owners leave such unlawfully possessed flats or force overwhelming penalties for the sake of 'regularization'.

Conclusion

There are a huge number of apartments in urban areas like Bengaluru, Mumbai or Delhi which have been possessed with no Occupancy Certificates. In a large number of the cases, the building arrangements of these flats are affirmed however they don't get OCs due to not adhering to the approved building plan or because of different infringement.

As an informative buyer, you ought not act in flurry. While grasping handover of the property, ensure the developer furnishes you with every one of the documents. You have legitimate appropriate to get all the property related documents. So don't listen to any excuse given by the developer and immovably ask for possession letter, occupancy certificate, and other documents.

Provident fund may get you a home loan!!

The Employees’ Provident Fund Organization, also known as EPFO is considering the decision of letting the subscribers pledge their future PF contributions to buy a house.  Here is how to use your Provident Fund to finance a home purchase. 

Purchase of a house/plot or Construction of the house:

Under the Provident Fund scheme, a subscriber can withdraw his PF money after the contribution of 5 years for the purchase or construction of house. The loan amount would depend on the purpose for which you are taking the loan. For purchasing a plot, the loan available shall be restricted to 24 months’ basic salary and dearness allowance (DA) and in case of the loan, to purchase or construct a house; availability shall be enhanced to 36 months of basic salary and DA. It is pertinent to note that the property cannot be purchased jointly with anybody else, except your spouse.

In case you withdraw from your provident fund account, the construction should begin within six months and be completed within 12 months of the withdrawal. In case you intend to buy a ready house, the purchase also needs to be completed within six months. The withdrawals for the purchase or the construction can be made in one or more installments, depending on the circumstances.

Subscribers can also avail the withdrawal facility again for additions or improvement of the house, only after 10 years from the first withdrawal, subject to the same eligibility criteria, vis-à-vis the amount.

Repayment of housing loan through Advances

For the repayment of the outstanding balance of home loan taken by you, the provident fund scheme allows you to avail of the withdrawal facility. The advance amount cannot exceed 36 months of basic salary and DA. This withdrawal can only be made for loans availed from specified entities like public financial institutions, Municipal Corporation, governments and state government, registered co-operative society, state housing board, nationalized banks, or a development authority.

The proposal, however, is in preliminary discussion stage and the government is exploring the possibility for providing a suitable low-cost housing scheme for subscribers of Employees Provident Fund.

Ready To Buy Your First Home?

Planning to buy a home for the very first time? Investing in a new home is one of the best kinds of investment in today’s age. While planning on the home, the few things that you consider are budget, space and feasibility. However, many first time home buyers get overwhelmed with the fact that buying a home comes with a wide load of responsibilities, majorly financial.

Given below are few things you should note if you are planning on purchasing house for the first time.

Contact a Buyer's Agent

Many people do not understand the role of a buyer’s agent. Buyer’s agents are experienced people within a certain locality. They have thorough knowledge and information about the complete location, including connectivity, availability of offices, educational institutes and commercial areas. They are the best people who can search you a house that best fits your budget. These agents also have the legal obligation of introducing you to the builder or developer from whom you plan you purchase. The agents negotiate contracts and will help you through the complete buying process. If required, they can also help you find attorneys, inspectors and movers.

Take Professional Financial Advice

While buying your new home, you have to deal with huge amount of money transaction. Therefore, it is wise to consult a financial expert. These experts will walk you through many different kinds of home loans that best suits your requirements and budget. This information will enable you to filter out your choices and make it easier for you to search.

Gather Market Knowledge

Here, you might need a little help from the buyer’s agent. The agents can gather you all the market comparables in a particular area of your interest. They will let you know the recent selling prices of the homes that you decide upon. This information will further help you negotiate with your offer price. At times you may come across houses where negotiation becomes a must. However, the homes that are fairly rated based on the rest of the market, may need no negotiation at all.

Get a Thorough Inspection

This is one of the major steps that one must implement while buying a new home. A thorough inspection is very crucial. No matter how good your home appears and how perfectly it meets your budget, there could be certain underlying issues that might end up causing undue stress. If any issue is found during the inspection, you could ask your buyer’s agent to get it fixed. However, if the issues are too large you can always pull back your decision of buying the house.

Thus, list down your requirements and start looking out. Buying your first house, referring to the above mentioned points, would make your search smooth and hassle free. let your new home be one of your best investments.

Arihant Group turns out to be best private home

The most anticipated building of value foundation has gone to a Faridabad as most prestigious monster Arihant Group is accompanying a universal lodging range, in particular Arihant Southwinds. 

This private undertaking fills some amazingly hot offers that are shortly in vogue. Whether the outline part or structural engineering of the flat, quality is affirmed in each corner and guarantees in any case new extravagant life. 

Arihant Group is started working by 25 years and from that point forward it is developing so as to convey the quality administrations till now innovative and strong base. Long for getting pleasurable in abnormal living range is currently getting to be reality by the dispatch of rich Arihant Southwinds. Moreover, this venture has given the extraordinary emotions as well as opens the entryway of chances to the home purchasers. 

It's a nature of framework and Excellency of inattentiveness that makes Arihant Group the wealthiest realty proficient in the nation. 

· Location of the Arihant Southwinds is close to South Delhi. 

· The flat offers an improved availability to immensely essential pleasantries of Delhi-NCR 

· Completely secured by nature green magnificence and full water bodies 

The individuals who travel long separations every day for the working environment arranged in Delhi or whatever other city of NCR, they will clearly draw in with this mega private society. Moreover, a worldwide green environment guarantees to offers a well being focused way of life at Arihant Southwinds Faridabad. 

This is a live example of rich green magnificence planned by universally eminent modeler and tastefully molded green bodies around the circle of this most youthful private area which gives an exquisite atmosphere and perfect for living.