[Jaguar]

Originally Posted by balenoed_

Just a follow up question on this.

Actually this is going to be with a plot loan. So, say if I have put 30-40L (GV) in the sale deed and pay stamp duty accordingly, but actually paying the seller the ASP (~75L), through bank loan, is that legal and ok to do? Any cons with that arrangement?

My understanding is that it is illegal.

Since you are taking a loan, I am not sure how this will even work since the bank will expect the full amount to be shown in the registration. In the case of an apartment, the builder shows the remaining amount as some other charge like interior, maintenance, etc, but that is not possible in the case of a plot.

[balenoed_]

Originally Posted by Jaguar

I am not sure how this will even work since the bank will expect the full amount to be shown in the registration.

The bank will look at sale agreement, which will have the actual sale price. But the sale deed that follows will have the guidance value. The stamp duty depends on the value in sale deed. This is what I understood so far.

[Raj1008]

Originally Posted by condor

You have not mentioned the size of the building. Brother has a flat that is a little away from where we live, and for all such work we take help of the maintenance manager. It also helps that the guy has been around for a long time, and the complex is not too big.

You could alternately request the neighbours in the building to help out by holding the key on your behalf.

Else, find which of the brokers can give an end-to-end service. If you use this, you will need to stick to one broker and let him have the key.. you may not be able to compare offers through diff parties.

It’s a small housing society. 7 floors 28 flats. I am guessing it’s ok to give a broker the key. Back in the day 80s-90s that like giving up your flat. It was impossible to get someone out after that.

Originally Posted by Jaguar

I recently interacted with a property management company in my hometown in Kerala. They claim to provide end-to-end services, whether you want it to be just cleaned and maintained, rented out, or sell it. We have to get into a legal agreement with the firm and they take care of the rest. Appeared very professional compared to the normal brokers, but I have not done further research.

I am sure Mumbai would have many such agencies. This is a big business now that many people are staying away from their hometowns but still hold on to their homes for whatsoever reason.

Thanks will look into this.

Originally Posted by TorqueyTechie

You can install a safe key box outside the flat (something like this) Give the password to either broker or the prospective buyer directly. Additionally post the visit, you can reset the password with help from your friends.

The whole struggle is that I don’t have anyone who could do this for me.

[condor]

Originally Posted by balenoed_

But the sale deed that follows will have the guidance value.

Sale deed will not show the guidance value. It will only have the official sale price, which can be equal to or more than the guidance value.

No sale deed is going say something like " this sale is being done as per guidance value" / " the sale amount is more than guidance value by xx".

[Everlearner]

Originally Posted by balenoed_

Actually this is going to be with a plot loan. So, say if I have put 30-40L (GV) in the sale deed and pay stamp duty accordingly, but actually paying the seller the ASP (~75L), through bank loan, is that legal and ok to do? Any cons with that arrangement?

It is impossible irrespective of legality. Banks will sanction loan based on the property value as per records (along with your income profile). Ex: If you show the registration value as 30L and bank is ready to provide 75% of asset value as loan, then you can get a maximum of 22.5L of loan. The % is usually lesser for plots, so it might reduce your loan eligibility further.

Originally Posted by condor

Talk to the seller and find the max value for which the current seller will not have to pay LTCG. Register the sale for that price. This way, your LTCG when you sell will be lesser than what it could be if you register at GV today.

+1. Check with seller what is the maximum registration value he is OK to go with. Though you will pay more for stamp duty and registration, this will increase your sanctioned loan amount and also reduce your LTCG when you sell it.

[fordday]

Originally Posted by balenoed_

The bank will look at sale agreement, which will have the actual sale price. But the sale deed that follows will have the guidance value. The stamp duty depends on the value in sale deed. This is what I understood so far.

Doesn't the banks have any issue with this obvious difference in amounts shown in Sale agreement and Sale deed for the same property transaction?

Or the whole system is compromised?

[balenoed_]

Originally Posted by fordday

Or the whole system is compromised?

Yes, called as “deviation”.

[condor]

Originally Posted by fordday

Doesn't the banks have any issue with this obvious difference in amounts shown in Sale agreement and Sale deed for the same property transaction?

Or the whole system is compromised?

Banks give a loan and the borrower will be held accountable. In cases of flats, the builder will not be held responsible for anything - the borrower will have to pay back the loan.

However, such deviations are increasingly under the scanner, because such loans are likely candidates for default and hence NPA's of the banks.

[thanixravindran]

Originally Posted by balenoed_

Just a follow up question on this.

Actually this is going to be with a plot loan. So, say if I have put 30-40L (GV) in the sale deed and pay stamp duty accordingly, but actually paying the seller the ASP (~75L), through bank loan, is that legal and ok to do? Any cons with that arrangement?

This is a double edged sword and the system is designed to harass the common man who wants to bat straight at least in TN. When you register with guidance value which is well below market value, government loses its revenue. So why would the government wants that. Answer is some folks game the system when they sense land acquisition may happen there. They do a transaction for exorbitant amount and register a plot/land parcel way above guidance value by paying full registration stamp duty. When the government has to acquire the land for any purpose in the next few years, they have to compensate at 4 times the market value which is last inflated registration value. Hence the registrar insists on registration at guidance value. Otherwise they will be suspended later.

So to overcome this causing loss at guidance value registration and save themselves and at the expense of buyer they started writing the market value (actual amount or assessed amount by registration department) in the sale deed but register the deed at guidance value. Good luck in future if there is a notice for causing revenue loss to government.

[mygodbole]

Asking: I wish to sell my house in Pune, should I go the broker-route or advertise and sell myself?

No urgency.

I am aware and wary of the pitfalls if I try myself.

Just trying to gauge if going with a broker makes sense.

All advice welcome.

[warrioraks]

Originally Posted by mygodbole

Asking: I wish to sell my house in Pune, should I go the broker-route or advertise and sell myself?

No urgency.

I am aware and wary of the pitfalls if I try myself.

Just trying to gauge if going with a broker makes sense.

All advice welcome.

It always and always makes sense to cut out the middle-man.

Unless you cannot do it for any reason - lack of time, proximity to the property, soliciting the right kind of buyers, etc etc.

[balenoed_]

Originally Posted by Everlearner

If you are planning to sell the plot after a few years, then your LTCG will be more.

Originally Posted by condor

Talk to the seller and find the max value for which the current seller will not have to pay LTCG. Register the sale for that price. This way, your LTCG when you sell will be lesser than what it could be if you register at GV today.

How does LTCG work when you buy a plot, construct a house and then sell it?

Say you register a plot for 50L, construct a house for 50L and then sell for say 1.5cr. What components are considered into the equation in this scenario?

I understand for a plot buy and plot sale. Trying to understand for plot buy and house sale.

[balenoed_]

Originally Posted by thanixravindran

…they started writing the market value (actual amount or assessed amount by registration department) in the sale deed but register the deed at guidance value.

Didn’t quite get this.

Is it possible to write a value in the sale deed and register the deed for a different value.

Doesn’t registration happen on the value that is written in the deed?

[thanixravindran]

Originally Posted by balenoed_

Didn’t quite get this.

Is it possible to write a value in the sale deed and register the deed for a different value.

Doesn’t registration happen on the value that is written in the deed?

They will just ask you add a sentence in the sale deed that "Market value of the transaction is zzz" and zzz is the value provided by them. Rest of all is based on guideline value. This is just their attempt to save themselves to avoid causing loss to exchequer in audits and pass the burden to the buyer. And this practice started a year ago.

[balenoed_]

Originally Posted by thanixravindran

They will just ask you add a sentence in the sale deed that "Market value of the transaction is zzz" and zzz is the value provided by them. Rest of all is based on guideline value.

Really? Now this is one new information.

You mean they will write, for eg: that 75L is the market value and the sale deed value is 30L. Hmm.

Is this a practice only in your state and do you know if KA also does this way?