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All you need to know about joint home loans

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A joint home loan will allow you to get a higher loan as the income of co-borrowers will be considered. The number of people who can avail a joint home loan can be anywhere between 4 and 6, depending on their individual credit profiles.

You want to buy your dream home. You apply for a home loan. The bank rejects the application saying you are not eligible for such a high amount as your income is low. This is where a joint loan becomes useful.

A joint home loan will allow you to get a higher loan as the income of co-borrowers will be considered. The number of people who can avail a joint home loan can be anywhere between 4 and 6, depending on their individual credit profiles.

WHO ALL CAN APPLY?

Joint home loans can be taken by an applicant along with a spouse. You can also apply jointly with parents or siblings, but there could be certain conditions which you need to check with the bank beforehand.

Adhil Shetty, CEO, Bankbazaar.com says, “A married couple or a parent and child can take a joint loan. Some banks allow brothers to take a joint home loan provided they will both be co-owners of the property. Banks insist that all co-owners of the home must be coborrowers in a joint home loan.

However, sisters, friends or unmarried couples living together are generally not allowed to take joint home loans by banks.

LOAN ELIGIBILITY

The home loan eligibility goes up in the case of joint home loans as the repayment capacity goes up depending on the income of the co-applicant. For example, assume you would like to buy a property worth Rs 1 crore. The bank is ready to fund 80% which is Rs. 80 lakh. Suppose your income does not meet this requirement, then you will be forced to look at a house which costs less. However, if your spouse is working, then both your income as well as your spouse’s income will be considered to determine the loan amount.

Renu Sud, managing director, HDFC, says, “If a women is a first applicant /co – applicant and sole or joint owner of the property then applicants can avail the home loan at 5 bps below the normal applicable home loan rate.”

About 35% of monthly income as EMIs for all debt is ideal. Anything more than that could cause trouble, especially when your EMIs rise due to an increase in interest rates.

REPAYMENT PROCESS

The repayment process for a joint home loan is similar to that of a regular home loan. The payment can be made from a single or joint account by way of cheques or electronic clearing system (ECS).

Co-borrowers can also share the number of EMIs between them such that a specific number of cheques can be issued by one borrower and the balance by the other.

Most importantly, repayment of the joint home loan is the collective responsibility of all the borrowers.

Always remember to pay the EMIs as per schedule. If one of you fail to pay the EMI then the other will be liable towards payment. In case of any delay or defaults in EMI, legal action is taken against the borrower as well as the co-borrower.

WHAT HAPPENS IN CASE OF A DISPUTE?

All home loan applicants should sign a separate Legal Liability Agreement which clearly defines liability of each party and helps sort the situation in case of any dispute. In case of any default, the bank can proceed with the recovery process against all the co-operatives.

TAX BENEFITS

Both the applicants can claim tax benefits on servicing of the housing loan. For example, if co-borrowers are servicing the loan jointly in equal proportion, then each of them can claim tax benefit of up to Rs 2 lakhs on interest payment which effectively means they can claim up to Rs 4 lacs jointly which otherwise would have been limited to Rs 2 lakhs only. This helps them to get the effective rate of interest on their loan down substantially which is a huge saving.

Sanjiv Bajaj – Managing Director, Bajaj Capital, says, “One can avail tax benefit on home loan up to Rs 1.5 lakh under Section 80C and 2 lakh under Section 24. But if you go for a joint home loan along with your spouse in the ratio of 50: 50, then both of you can claim these benefits separately. So the combined limit will be Rs 3 lakh under Section 80C and 4 lakh under Section 24. This can reduce your overall cost of loan for the family considerably.”

Bajaj adds that total deduction will be Rs 7 lakh and if both spouses are in the highest tax slab, they will get a tax benefit of Rs 210000- which is just double compared to an individual home loan, although this provision may vary from person to person.

Joint home loans are undeniably beneficial. So, joining hands with your better half makes good sense.

Source : businesstoday

Regulation

Property Brokers Gets Alert As Maha-Rera Indicate Towards A Mandatory Registration

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Property Brokers Gets Alert - MahaRERA

Soon a notification would be issued by the Maharashtra Real Estate Regulatory Authority (MahaRERA), for the 1 lakh and odd property brokers across the state to get themselves registered at the earliest. In spite of the eminent deadline, barely 12 per cent property brokers in Maharashtra have registered under the MahaRERA.

Being the back bone of the real estate market, real estate agent channelizes the markets, in which the money is either brought by the promoters or by the buyers. But with the passage of time, there is a loss of trust of real estate agents among the general public. In order to reverse this scenario, government has formed the RERA with, Central Advisory Council and Real Estate Appellate Tribunal, so that people can regain trust in real estate agents and also setting up a strict penalty to the system for the defaulters, due to which this unbalance has emerged.

The new guidelines for the agents are being set by the RERA consultants, that will bring awareness among the agents as well as the buyers, also it will provide the consulting service to the agents to get registered by RERA.

Currently, there are only 12 percent of the brokers, that have registered themselves with the authority. The facts given by the Confederation of Real Estate Brokers Association of India’s (CREBAI) Maharashtra, reveals that near about 7000 brokers have registered with MahaRERA till now. The authority further assures that after the registration, the brokers will get a special status and it will help them to generate more revenue in future. This registration by RERA, will be the license symbol for all brokers, projects and developers.

According to CREBAI members, there still exits a hesitation among the brokers for the registration, as nearly 80% of them usually deals in secondary or re-sale property. And in accordance with the new rule, only a Maha-RERA-registered broker can market newly registered projects. All the property brokers are supposed to be registered with the authority and the developer, in order to render their services. During this registration, the developers are also liable to disclose the name and other details of the authorized agents.

A registration number will be provided to the real estate agents by the regulators, which they have to mention in each sale they make. With this, the agents will be required to maintain books of account, records and documents related to every transaction made by them. They will also be restrained from making any kind of false representation, whether it be orally, written or by visual representation. Brokers will have to share all the documents and the information about the project with the buyers, which they are entitled to at the time of booking a property.

Under this act, the real estate brokers can register as an individual or as a part of an organisation. Under an individual registration, they have to pay Rs 10,000. But when registering as a part of a firm, they are expected to pay Rs 1 lakh, which they have raised as an issue with MahaRERA.

Once the regulation comes in order, and agents get registered, it would be a lot difficult for them to mislead the home buyers. And home buyers will be able to cross-check most of this information on the regulator’s website.

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Regulation

Karnataka RERA List Creates Panic Among The Developers

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Karnataka Rera List Creates Panic Among The Developers

With thousands of crores at the stake, Karnataka government’s list of 440 housing projects, has created a panic among the developers and the buyers. The listed projects are termed as under investigation for violating the Real Estate Regulatory Authority (RERA) norms. According to Sunil Kumar P, the secretary for real estate regulation and development says there is no reason for home buyers to panic, “for now”. He said that the list of projects has been made public to warn errant builders to fall in line. The names were made public to inform buyers from fraudulent companies and also maintain transparency. The original list came out on January 5, with 780 names. Which was later updated to 440 names on January 12.

As most of the projects listed are the one, that hasn’t registered with the RERA, Karnataka. Many advocates and CREDAI functionaries have cried foul over the “improper” manner in which the projects have been listed.

With the list, comes the accusation by the critics that the RERA authorities haven’t done their work properly, as it had names of even those projects which already had the occupancy certificate. As the projects which have been completed and their occupancy certificate had been issued before the implementation of the RERA, are not bound to register under RERA. However, the developers are complaining that the buildings that have been completed years ago are also mentioned in the list.

Several developers have received notices from the RERA, some of those projects were completed much earlier. No information has been provided on the basis of the list. CREDAI officials are hoping that the RERA authorities will update the list with more accuracy for the benefit of all stakeholders, as the customers have started to seek an explanation from the developers listed.

According to them, the RERA authorities have been looking for RERA numbers, of ongoing and completed projects by visiting the developers’ websites. The builders whose number were missing got mentioned in the list. As most of these projects got finished already before RERA. The names directly got uploaded without any written notices to the builders.

According to RERA authorities, these 440 projects came under investigation for not complying with RERA. The names of the projects were gathered through websites and newspapers. The authorities decided to make these names public as they did not reply to RERA notices. The developers also haven’t notified the authorities about the funds, they have taken from the buyers, as they are still unregistered.

So, the only way left to make builders comply was to pick up their names randomly from all possible sources and make them public. This lack of reply, according to authorities, creates a suspicion on the projects, but that also doesn’t mean that builders are on the wrong side.

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Regulation

Rajasthan RERA Springs Into Action As Four Builders Violates The Law In Jaipur

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Rajasthan RERA

The Real Estate Regulatory Authority (RERA), Rajasthan has issued advisory against the four developers, who were found to be violating the rules. Two of the developers were issued show cause notices for advertising their projects without getting registered under the RERA (Rajasthan), while a fine was imposed on the other two developers for not depositing required documents. As the developers in Rajasthan are allegedly missing the deadlines and not keeping up to their promises, this action by RERA on the technical grounds might be a good beginning to rein them in.

The Real Estate Regulatory Authority (RERA) is taking action against the developers, who failed to submit the documents for registration of their ongoing construction projects under the RERA Act. According to the RERA official, the authority is planning to issue notices and provide final seven days’ time to these defaulters. There are nearly 200 ongoing projects, where the respective builders have not deposited complete documents. Now these builders will have to deposit the remaining documents along with penalty. If the required documents are not provided, then the project will be cancelled and termed as ‘illegal’.

Builders of two housing projects, Galaxy Manglam Grand City and Ginni Homes, were imposed with penalty of four times project fee for failing in submitting the required documents, even after registering the project online with RERA. It was later informed that these two developers have violated section 3 of RERA Act 2016. A 15 days’ time period has been provided by the authority. In case, the builders fail to stick to the given deadline, RERA will order a cancellation of the project registration and take appropriate action in accordance to the rules.

Similarly, two other notices were issued under Section 35(1) under the RERA Act 2016 to Manglam builders and Shubham Group for advertisement of their projects without prior registration. On January 9, the notice was issued by RERA, exercising its powers taken by the u/s 35(1) of the Real Estate (Regulation and Development) Act, 2016 for contravention of section 3 and 11 of the Act. In which any kind of violation committed by the builder by advertising in market, or offering for sale or inviting persons to purchase in any manner, any apartment or building in the real estate project prior to registration of the sale, will be prohibited.

The authority has instructed these developers to stop such illegal action immediately and explain in writing within seven days. A penalty would be imposed if the developers are found guilty. If no explanation is provided within the given time, the authority may pass necessary decision in accordance with the law. Shubham Group was allegedly found guilty for publishing advertisement in newspaper inviting booking for Shyam Vatika, a residential township, which is coming up on Diggi Road. Similarly, Manglam Build Developers Ltd allegedly published advertisement of invites for booking in Manglam Aroma project in Patrakar Colony. The buyers are encouraged to register their complaints with the regulatory authority. In case of a fraud, the consumers can go forward after checking the registered project profile on the RERA online portal. Even if they have booked a flat in a residential complex, they can inform the authorities about their developers not registering on portal.

The builders also believe that this ‘Act’ will bring a transparency in the system, which would definitely benefit the customers. As most of the genuine developers have already registered their ongoing projects with RERA. This new system has eradicated non-serious developers from the market, hence protecting the interest of the home buyers.

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