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What is Virtual Staging in the Real Estate World? 

A remunerative deal often slips out of hand because the buyer cannot imagine how the interiors will look after being furnished. As a result, homebuyers often get confused about the space they see and hesitate about spending a lump sum of money for it. However, when one can see a fully-furnished property in place of just an empty stretch of space, he or she might stick with their former decision. Virtual staging works like magic in such cases as it is key to achieving the ultimate look. It is effectively used in the real estate world to create a virtual space where the client can see and feel how the area will look after being furnished completely. 

What is Virtual Staging? 

Virtual staging is the method of furnishing empty properties virtually.  

In other words, it is a kind of real estate digital marketing strategy where buyers can get a picture of how their fully furnished properties will look. Specialists can expertly stage and bring in more viewers.  

From marble textures, and wooden floors to luxury couches, dining tables, indoor plants and all-set kitchens, the virtual stage can display it all digitally and grab the buyer’s interest then and there.  

Benefits of Virtual Staging: 

Virtual staging has many benefits. It acts as an effective tool that makes it a lot easier to convince buyers and sell a property in the real estate world. Some of the key benefits of the technology: 

  • It is a very cost-effective method in comparison to traditional home staging. 
  • One can redecorate according to their choices. 
  • It gives a warm and homely feeling to the buyers. 
  • It imitates the size, height, and depth of the space. 

How does it work? 

Virtual staging bridges the gap between how the property looks and how it will look in the future after proper furnishing and decoration. A proper photograph of the empty space is the first step towards virtual staging.  

First, experts in virtual staging have to work on the photograph to bring realistic visual effects to the empty space and make it look like a living space.  

Then, professional designers will place furnishings from digitally generated items and catalogues- floor finish, rugs, mats, couches, tables, chairs, mirrors, plants (and whatever you wish to have at your place)- in the photograph of the empty space to give the space a homely feel, your desired look, and ambience. 

As per recent statistics, 90% of the population is searching and getting involved with the real estate world. With the rapid growth of real estate, virtual staging is becoming more prevalent and accessible due to its innovative way of staging homes. 

Why Virtual Staging? 

  1. Saves time: It takes a lot of time and effort to decide on your interiors and then imagine how they shall suit your empty space. A lot of brainstorming, research work, small details and measurements must be considered, which can take weeks or months. But when you are doing virtual staging, it will consume less amount of time and give you the desired output. 
  1. Attractive photographs: As the competition is increasing day by day, dealers are putting up stunning photographs online to appeal to buyers. So, to stand out in this competitive market, one needs to have attractive images of even empty spaces. This can be achieved only by virtual staging. A furnished look of the empty space will convince buyers better than just empty spaces. 
  1. Cost-effective: Any seller or buyer will wish to deal with the property cost-effectively. Finance is a term everyone keeps in mind while selling or buying a property. Virtual staging software helps to save money as it can provide a different look to different customers using the same empty space. One can alter the furnishings as per customer needs. 
  1. Adds volume: A blank space always gives a feeling of void, whether for home, office, or commercial purposes. Buyers may get confused about how it looks after proper furnishing and whether it will suit their requirements or not. Using virtual staging, you can add furniture, limitless objects, designs, floor finish, etc., according to your choice. These add volume to the photograph and attract more potential customers. 
  1. High-quality pictures: Sometimes, the photographer fails to capture the whole dimension or a high-quality picture in real staging. But in virtual staging, you receive high-quality images with everything on point. Unlike real staging, light and shadow, perfect angle, and so on is not a problem here. Virtual staging is totally based on digital technology, giving you the perfect shot of both the empty and furnished space. 

Conclusion 

Virtual staging is a game changer in the real estate world. It has brought in more potential buyers and led to a rise in profit. Virtual staging has numerous benefits and makes it easy for the customer to decide whether spending a substantial amount of money on the house will be worth it. 

What is an easement right on the property?

The Indian Easements Act of 1882 applies to the territories of Madras and Coorg. Easement property right empowers a landowner to compel the owner of another land to allow something to be done or to refrain it from happening based on the fact that it would benefit the dominant tenement.  

This Act takes the non-possessory rights of property into consideration. Thus, it allows one to use certain facilities without emphasising much on the title and ownership. Right to air, light, and right of way are some basic examples of easement property rights. 

It can be viewed as a privilege enjoyed by the dominant landowner over the other who is obliged to abstain from or compelled to do something. The following are certain essential requirements to possess the easement property right- 

  1. Dominant heritage and dominant owner- The landowner that enjoys certain rights over the property that is not owned by them legally is known as the dominant owner. Hence, the land in this respect is referred to as the dominant tenement or heritage.  
  1. Servient Heritage and servient owner- The landowner that cannot restrict the dominant owner from using their land is known as the servient heritage or servient tenement. The actual landowner in this case is referred to as the servient owner.  

Section 4 of the Indian Easement Act, 1982, defines “easement” as the right which allows the usage of another person’s land for a designated purpose.  

Types of the easement property rights- 

There are four types of easement property rights: continuous or discontinuous, apparent or non-apparent.  

Continuous easement- A continuous easement can be regarded as that type of privilege in terms of property rights which by nature is continual with or without the act of a person. Allowing cattle to continuously graze on the existing pasture is an example of continuous easement.  

Discontinuous easement- This type of easement requires a conscious act on the part of a person to manifest or yield benefits for the party concerned. The construction of sanitary facilities can be regarded as an example of discontinuous easement.  

Apparent Easement- The presence of this type of easement right is shown with the help of some sign that is permanent. If any interested person enquires about the permanent sign, its components will become clear.  

Non-apparent Easement- A non-apparent easement does not come with any particular sign.  

Description and analysis of the different types of easement property rights 

As mentioned earlier, there are three main types of easement property rights: Right of Way, Right of Light, and Right of Air.  

Right of way- 

There are two main categories here: 

Public rights– They aim to benefit the ordinary people. Common examples of it may include- highways, bypass roads, flyovers, etc. It has an element of service for the greater good of the public in it. 

Private rights- These rights lie in the hands of specific individuals rather than owners of dominant tenements.  

Right of Light and Air-  

This right aims to prevent the owner of an adjoining area from constructing a building or placing it on his land to ensure that the light and air received by the dominant tenement are not obstructed.  

There are various ways to acquire the right to light, and they include the following- 

  • A grant or covenant that, by nature, may be implied or expressed.  
  • The Indian Easement Act provides necessities that tenants may enjoy without interruption for twenty years, beginning from the day of establishment of the property or their tenancy period.  

Remedies present in terms of the easement property right- 

The court does not interfere in easement property rights if the obstruction of light and air is trivial. However, if the tenement experiences problems that carry an element of severity, the court would very well interfere in the redressal of grievances.  

It must be understood here that the material aspect of the entire scenario is given a lot of importance. A case shall be heard in the court if a construction is diminishing the value of the dominant edifice or is taking away from the comfort that the tenant earlier experienced. If the tenant can continue with their business like before, then it does not stand much chance of being dealt with in court.  

In India, the courts may take up a case only if financial compensation does not provide adequate relief. However, the court will grant an injunction if a man with the right to light and air faces difficulty due to the building or structure constructed by their neighbour.  

However, the court would take up the matter only if a severe comfort loss occurred. The court would not entertain cases with a mere loss of fanciful vision. It must also be noted that if the party concerned moves the court after the completion of the building, a mandatory injunction may not necessarily be granted.  

Conclusion 

Easement property right differs from a lease as it does not entitle a person with the right of possession. It only provides certain specific reliefs for the violation of certain fundamental rights. Cases regarding the right to way, light, and air are heard only if there is a violation of rights on a greater scale, such that the party concerned is facing great difficulties that they did not face before. 

In the case of Hero Vinoth Vs Seshammal, it was ruled that a case regarding the violation of property rights would only take place if necessary and if the problem could not be solved with the help of a grant.  

What to look for on a home tour? 

Everyone has in mind some of the things they need in their home and the things they don’t. However, no one has a complete picture of what they must prioritize or look for during a home tour. Doing it in person is more difficult as you may forget or lose focus while exploring a house. 

A home tour is an exciting part of the journey to buy your house. It can sometimes become a nerve-wracking experience, no matter how exciting it sounds.  

Therefore, when you are on a scheduled home tour, you need to consider some crucial factors. Keep reading to know more about it. 

Important things to consider in a home tour 

Wall and floor condition 

Besides looking for an aesthetic or attractive finish, notice defects like warped floors, watermarks, or small cracks in the wall. These are important signs that indicate the overall house quality. However, vertical hairline or foundational cracks in the wall of around 1/8 of an inch are not a cause for concern. Thus, you do not need to worry about it.  

Look around the doors or window frames. If there is a wide horizontal or diagonal crack, it is a thing to be concerned about. They can be present anywhere on the wall and might be due to foundational issues or water damage.  

A soft or bouncy floor is a big red flag. These are indicative of termites, rotting wood, and low-quality construction.  

Odour of the house during the home tour

Although visuals of the house might seem important, you must also focus on other factors. For example, the odour of the house is important to determine if it is fit for living.  

Your nose will help you uncover many issues you may not notice. For example, mildew and molds are issues that can be understood with the smell. The smell of mold is similar to wet socks, and mildew has a light musty odour. These are serious issues that might give rise to health problems.  

Many homeowners use fragrances beforehand so that they can mask these odours. However, if you can smell excessive diffusers, candles, or sprays, it might not be about setting the mood but hiding some odour issues with the home. 

Storage space 

In every household, storage is a big priority. You may notice there are numerous closets, cabinets, or similar storage spaces, but that might not be enough. Your family might need more space for extra wardrobes, dressers or something else. Thus, you must see the empty spaces available in the house to customize it according to your needs.  

Keep the drawing space, dining room, and kitchen in mind when looking for storage space. You may need to fit big appliances or tables according to your family’s needs. These will also consume a lot of storage area

Integrated fixtures and systems issues during the home tour

Integrated fixtures and systems are a bigger concern than you think. They are not small changes that can be easily done like changing the exterior appearance of some parts of the house. 

For example, don’t focus on loose cabinet hinges or wonky ceiling fans. Instead, look at how the electrical wiring, heating, and cooling elements are working and if they are in good condition. Eroded or exposed wires, inadequate ventilation systems, and a problem with power can cost you a lot of money and is also hazardous to your family’s safety. 

The air conditioning unit making a grinding or squealing sound needs to be serviced or replaced. Besides this, vibrating wall outlets or flickering lights is a sign of an issue with the electrical wiring. Replacing or fixing them might be a costly business.  

Parking 

You may or may not own a car now, but you don’t know what will happen in the future. All homes do not come with a parking spot. If you are someone who uses a car often, you must look into the parking situation and what options are available near the house like street parking or so.  

Parking will definitely become competitive if the house is in a densely populated area. However, places with ample parking may have regulations about street parking. Therefore, you must know all details about parking because this can become a daily issue when you start living there. 

More about a home tour 

During a home tour, a person has to keep several factors in mind including secondary ones. Starting from architectural style to number, location, and size of the bedrooms and bathrooms, it is recommended to look into everything.  

You need to look into the condition of plumbing, water availability and noise levels outside the house. Conditions of stairways, roofs, and gutters must also be proper. Remember, no matter how perfect the house may look, it should always have remodelling opportunities. 

Conclusion 

It is rather difficult to find a home that matches your desired aesthetic and functionality. The home tour plays a pivotal role in this process. It helps to determine the best house for your family and customize it according to your needs. Therefore, you must carefully look at all the crucial aspects besides its appearance.  

The importance of a sanctioned site plan 

Home buyers usually have two options to choose from- a ready-to-move-in house or a house still under construction. Statistically speaking, most of them prefer the latter. This is because they get to choose and customize the features and design of their house including the type of floor, direction of the property (whether it would face north, south, east or west), external view (park or pool), number of elevators, fire escape and so on. We understand that it is difficult to contain the excitement of becoming a homeowner which is why buyers often tend to overlook or miss out on examining important things such as the site plan. However, a site plan is one of the most important documents, which, if not reviewed properly, may lead to dissatisfaction after an expensive investment. Thus, it is your primary responsibility as a home buyer to check the sanctioned site plan before agreeing to the deal.  

Before discussing further, let us first understand what exactly a site plan is. 

What is a site plan and a sanctioned site plan?  

The site plan, also called the plot plan, is basically an architectural drawing that presents the entire layout of the property you are about to buy. The diagrammatic presentation includes many things such as the apartment or building location, clubhouse location, parking area, garden, swimming pool, terrace and so on.  

According to section 2 of the Real Estate (Regulation and Development Act) of 2016, a sanctioned site plan implies a site plan that has obtained the required permission and approval from the respective civic authority before the initiation of the project.  

Changes to the sanctioned site plan  

The Real Estate Act 2016 has made it compulsory for the developer to abide by the specifications made in the original sanctioned site plan that was approved by the RERA authority.  

However, minor changes can be made if deemed necessary. In any case, the following areas are off-limits: 

  • Any addition to the area or site 
  • Alterations in height 
  • Removing a specific part of the building  
  • Changing fixtures or equipment  
  • Constructing, removing or carving out a wall or any of its parts, joist, floor, beam or column 
  • Closing off or changing the means of access 

If the developer wants to make changes in the above-mentioned sectors, they need the approval and consent of a minimum of two-thirds of the buyers or allottees who are supposed to have a unit in the apartment or building.  

Why is a sanctioned site plan important?  

  1. Provides detailed information about the building and its location 

A sanctioned site plan is very important as it provides the home buyers with a thorough idea of the scale, size, type and orientation of the property.  

If you are a potential buyer who wishes to opt for an under-construction building, we recommend that you look into sectors such as plot location, building position, accessibility to public transportation, and the means of access and entry.  

  1. Maintains transparency with the home-buyers 

Before agreeing to the deal, buyers are entitled to a copy of the sanctioned site plan. This is in accordance with sections 19(1) and 19(5) of the RERA Act.  

Similarly, according to section 11 (3) (a) of the RERA Act, the builder or promoter needs to hand over the sanctioned site plan to the allottee during the time of booking and allotment letter issue. They need to display the approved plan at either the site itself or any other place as decided by the authority.  

If the promoter or developer does not comply with the above rules and fails to display the sanctioned site plan, then the buyer has the right to leave the project. Moreover, the promoter is legally entitled to pay back the entire amount invested by the allottee along with the interest rate as applicable as per Section 18 of the Act.  

  1. Prevents delays 

Another advantage of having a sanctioned site plan is that it lessens risks such as project cancellation or delay in its execution. As it falls within a legal framework, it becomes essential that the project is completed in a timely manner, thus adding to the advantage of potential home-buyers.  

  1. Legal recourse in case of any malpractice  

If the sanctioned site plan is altered without informing the buyer or allottees, they can lodge a complaint. As already stated before, it is prohibited that any structural or other change be made without the approval of the buyer first. This is in accordance with section 14(2)(i) of the RERA Act.  

Wrapping up 

Before the RERA was implemented on March 10, 2016, the buyer did not have a well-defined protection against changing the site plan.  

However, things took a turn for good after the implementation of the RERA Act. There is greater transparency between the buyer and the developer, thus leading to greater trust. This is why you should always examine the sanctioned site plan thoroughly before finalizing the deal.  

Why is it a good idea to buy property in Ravet?

Ravet is a well-developed sub-urban region in Pune, situated along the Pawana River and home to modern apartment buildings and the famous Tilak Bridge. The ISKON temple present here acts as a source of tourist attraction.  

Ravet has great social amenities as it is connected to the neighbouring cities with well-planned development. This region is well known for offering luxurious properties near the city area at an affordable cost. 

One of the main highlights of this region is that it is located at the crossroad of the Mumbai-Pune expressway and is well connected to different parts of the city, including railway stations and the airport. Hence, it is an ideal location for leisure as well as work. One should lose no opportunity of buying a property here as its scenic beauty also serves the purpose of building a farmhouse here.  

Five reasons to buy property in Ravet 

  1. Ravet provides brilliant capital appreciation  

Ravet is situated at a very advantageous location and is well connected to the neighbouring cities. The price of properties in Ravet is a lot less than that of the adjoining areas, and with time this has become a great investment option. 

The availability of hospitals, hotels, and shopping complexes in the region further encourages investment in real estate. Moreover, there are several well-reputed educational institutions present in Ravet. In terms of recreation as well, one can find several options to choose from.   

  1. Close to industrial areas  

Ravet is near the industrial region of Pimpri- Chinchwad MIDC and Hinjewadi. Needless to say, in this age where people are moving out of their homes for corporate jobs and earn a good salary, they often look for places close to their offices. Ravetprovides numerous options and helps make life more comfortable for office-goers. Moreover, Pune has developed into a hub of IT sector companies, and thus many people migrate to Pune every year. 

The residential properties in this region are always in high demand as young IT professionals try to find a comfortable, well-maintained, and secure living area for themselves and their families.   

  1. Upcoming residential projects  

Owing to its advantageous location and the availability of social amenities, several reputed companies have planned to undertake residential projects in this region.  

Several lucrative deals have been signed to develop projects around the Mumbai-Pune expressway. Some of the tallest and most luxurious towers in Pune, comprising 2 – 6 BHK homes are coming up in Ravet. Such projects have been in high demand because they cater to the needs of people of all age groups.  

Most of the properties in Ravetare elegantly designed and close to nature. However, this does not highlight seclusion as it has already been mentioned how well-connected and industrially prosperous this developed region is.  

As the demand for residential complexes is increasing here, the government is further investing in the development of this region. It has already granted permission to several projects to ensure the proper development of infrastructure facilities.   

  1. Growing prospect of employment  

Ravet is suitable even for people who are not employed and looking for jobs or need to settle somewhere as it offers various options for building a career in the corporate sector. Some of the most reputed MNCs are situated in this area, and they often encourage the participation of young people as well as adults in their corporations. 

Moreover, various IT hubs are located at easily commutable distances. Therefore, finding a lucrative job in Ravet often comes in handy, manifesting the demand for polished and affordable residential areas in this region. The Rajiv Gandhi Infotech Park, the DLF Akruti IT Park, and Panchshil Tech Park are the main sectors providing employment opportunities.   

  1. Growth factor involved in investment  

Ravet is an area that has shown enormous growth in recent years and has attracted people from all over the country. Therefore, the property rates of this region have a lot of upside potential. 

For example, it has been estimated that a property purchased in 2022 will cost 20% more in 2025. Therefore, the returns one can expect from an investment in the properties of this region are pretty good. Thus, long-term investors should consider buying properties here to earn the maximum from their one-time investment.   

Wrapping Up 

Ravet has developed into a well-furnished region and has the potential to provide excellent returns on investment. Therefore, people can also buy property in this region for residential or commercial purposes. The connectivity and social amenities provided by this region are extremely luring.  

With government investments flowing in, one can expect the area to develop further and cater to the needs of more people. The neighbouring areas are well-developed and provide access to essential regions. However, purchasing luxury properties at such an affordable rate is challenging today. 

Top Reasons Why You Should Invest in Indian Real Estate today

Due to the consistently high level of demand, real estate in India is an excellent choice for investment. For most Indian families, the realisation of their desire to purchase a brand-new home is the fulfilment of a lifelong ambition. The realisation of this desire will not only provide you with emotional fulfilment but also the promise of financial progress due to the high rate of return offered by investments in real estate in India. 

In this article, we will look at the variables that continue to make real estate the most popular option of investment for Indians.  

6 Reasons to Make Real Estate Investment in India  

Some of the most convincing reasons for real estate’s continued popularity as an Indian investment opportunity are as follows: 

  1. This industry is expanding quickly 

The market for real estate in India is seeing rapid expansion at the moment. The value of the real estate industry is projected to increase from US$ 1.72 billion in 2019 to US$ 9.30 billion in 2040, and its contribution to the country’s GDP is anticipated to reach over 13% by 2025. 

As the focus of the world moves from China to India, real estate investments may be lucrative. Many foreign businesses are establishing operations in India, which bodes well for the country’s employment market. Since more individuals will have access to capital, the demand for housing is expected to rise. 

  1. Lucrative Investment Return 

Real estate prices in India almost always go up over the course of time. When it comes time to sell an investment, one might realise a huge return if the investment was well chosen.  

Additionally, rents have a pattern of increasing with the passage of time, which results in a rise in cash flow. It has been shown throughout history that the longer a person retains ownership of the real estate, the greater the amount of money they will generate from the investment.  

  1. Substantial Cash Flow through Rental Income 

After deducting the cost of the mortgage and other operational expenditures, the net revenue from an investment in real estate is referred to as cash flow. The opportunity to produce cash flow via real estate investments in India is substantial. A rental income that is consistent each month is a wonderful example of passive income, and it also provides the investor with financial stability over the long term. 

The majority of the time, a person’s cash flow will only improve over the course of time as they pay down their mortgage and develop equity. Cash flow from a successful real estate investment should typically be at least 6% higher than the initial investment. 

  1. Investment Opportunity That Is Safe & Secure 

When compared to other asset classes, such as stock markets and cryptocurrency, real estate investments are considered to be among the most secure financial strategies. In contrast to the unstable stock markets and volatile cryptocurrency markets, real estate values tend to be more stable and less prone to frequent swings. 

In the real estate industry, RERA has developed well-documented and well-known legal precedents, including property registration and stamp duty. Once these steps have been completed, the likelihood of being a victim of theft or fraud is significantly reduced if you invest in a reputable builder’s project. 

  1. Tax Advantages 

Real estate-related tax deductions have the potential to balance income and bring about total tax savings. Rental income is not subject to self-employment tax in any way.  

While this is going on, the government provides tax deductions for things like the depreciation of assets, insurance costs, upkeep and repairs, legal costs, and even the accrued interest on a mortgage. Investors in real estate are eligible for reduced tax rates because of the nature of their long-term investments. The reasonable expenditures of owning, running, and maintaining the property are often deducted in whole or in part. 

One may deduct up to ₹ 1.5 lakh on house loan principal amounts under section 80C. Similarly, you may reduce your interest payments by a maximum of two Lakhs under Section 24. As a result, real estate investment in India becomes more financially feasible, and a significant chunk of taxable income is reduced. 

  1. Leverage 

One of the most important advantages of investing in real estate is the opportunity to employ leverage, which is purchasing a property with just a part of one’s own funds while financing the remainder of the purchase price via a loan. For example, if you purchase a home for 1 crore rupees. You may make a down payment of as low as ₹10-15 lakhs from your resources and get a home loan to finance the remainder.  

This implies you’ll just have to put down a very small deposit to become the property’s official owner. It also makes sure that you don’t invest all of your money in property Investment and that you set aside some funds for any crises. 

Conclusion  

Investing in real estate in India continues to be one of the most popular forms of capital allocation. You may rest easy knowing that over the course of time, the value of your investment will consistently go in an appreciating direction. Take advantage of this opportunity to ensure a prosperous future for yourself, enjoy a life of comfort, and leave a lasting legacy for the people you care about. 

With the real estate market in India on such a roll, investing in a home might be one of the smartest choices you ever make. The down payment assistance program that HomeCapital provides might be of great assistance to you in achieving this objective. Accelerate the process of purchasing a home in only 5 simple steps. Pick your tenure, get immediate in principle approval, electronically sign the documents, submit supporting documents, and then receive funds in your account. 

Difference Between Relinquishment Deed and Release Deed 

The concepts of “release deed” and “relinquishment deed” are not only incomprehensible to many people, but they also cause a great deal of confusion. The vast majority of individuals are under the impression that the two acts are equivalent to one another. However, this is not completely correct.  

There are certain minor distinctions that are important to note. In this article, we will go through the primary distinctions that exist between the two. 

What is a Relinquishment Deed? 

The document known as a relinquishment deed is a piece of legal drafting that is signed by co-owners of property who have acquired ownership of the property via inheritance. A “releasor” executes the deed, relinquishing title and/or rights to the property to the “releasee,” who receives the property in exchange.  

Relinquishment deeds are performed only between legal successors of properties, unlike transfer deeds, sale deeds, and gift deeds.  

What is a Discharging Deed? 

A “release deed” or “deed of release” is a legally binding document that you sign to waive any obligations or rights you have to a piece of property, allowing the buyer to acquire the property completely and clear of any liabilities or other restrictions.  

It is common practice for one co-owner to complete a release deed in order to transfer their interest in the property to the other. 

Prerequisites for Relinquishment and Release Deed 

Execution and registration of these deeds are subject to strict rules set out in Section 17 of the Registration Act of 1908. The relinquishment deed has to be prepared on paper with a stamp on it.  

After that, it has to be brought up in front of the sub-registrar whose authority the property falls under, along with the appropriate fees for registering it. In addition to your signature, this deed has to be signed by two witnesses in order to be executed. The release deed, on the other hand, is not necessary to be notarized. 

Relinquishment Deed vs. Release Deed 

The differences between a release and a relinquishment deed are compared and contrasted in the following table: 

Point of Distinction Release Deed Relinquishment Deed 
Contracting parties Parties to a release deed are often the owner of the property and the banker. The parties to a relinquishment document may be related to one another since they are co-owners who inherit the property. 
Registration The act of registering a release deed is completely voluntary. In spite of this, it is recommended by legal experts that you get your release document notarized. A relinquishment deed has to be registered in accordance with the Registration Act of 1908 in order for it to be considered a legitimate legal document. 
Consideration In order for a release deed to be valid, there must be some kind of consideration, which takes the form of a transfer of security for the debt from the banker to the property owner. There is the possibility of conducting a review. On the other hand, the deed of relinquishment could be signed even if there is no regard shown by family members to one another. 
Encumbrance When the release deed is signed, only then does the property become free of any liens or other restrictions. The property described in this deed does not typically have any encumbrances attached to it. 
Accountability of the interested parties The obligation to pay the dues is one that is placed squarely on the shoulders of the property in question. In response to this, the bank will hand over ownership of the property to the buyer. The main responsibility for discharging the duty lies with the individual who is handing up the property. 
Objective A release deed’s principal function is to cancel any mortgage or other encumbrance placed on the property in favour of the bank. The fundamental objective is to relinquish one of the co-owners rights to the property in exchange for the other. 
Duties and Privileges It is the owner’s responsibility to pay all of the dues, and the owner is the only one who has the capacity to get ownership of the property. Both responsibility and the authority to change the title in favour of the owner are vested in the banker. The banker must accept the dues. Waiving the rights to renounce the property owned by an individual and is entitled to either the agreed-upon compensation or nothing at all. The party obtaining the property right is required to obtain the right and may choose whether or not to pay the agreed-upon amount. 

Revocation of Relinquishment Deed and Release Deed  

In most cases, a registered deed cannot be cancelled only for the reason that the individual transferring their title has changed their mind after the deed has been recorded.  

One has the legal right to challenge a relinquishment for the same reasons that one has the legal right to void an overall contract. Deception, undue influence, intimidation, and falsification are all possibilities. 

It is essential that the two sides come to an agreement about the cancellation. Both parties refer to the individual who relinquishes the deed as well as the person who benefits from the deed being surrendered. In the event that this is not possible, your sole option is to challenge the deed in court. In contrast, once a release deed has been signed, it is impossible to go back on it. 

Conclusion 

Both release deeds and relinquishment deeds are analogous to a binary contract, and in order to be considered a legal deed, they are required to have the same fundamental elements. However, a relinquishment document is created when two parties get together, regardless of whether or not there is a consideration. On the contrary hand, a release deed cannot be considered legal until compensation has been exchanged for it. 

Knowing the differences between a release deed and a relinquishment deed may aid you in the property transfer process as you search for a new home.  

HomeCapital’s downpayment assistance program may be able to assist you in the event that you are experiencing financial difficulties. When you choose HomeCapital for your down payment needs, you won’t have to worry about any hidden fees since it is an interest free offering for home buyers to accelerate their homeownership dream. 

Capital Gains Tax: What Is It, and How It Works n

India’s economy is still growing. Therefore it needs continuous infusions of capital to keep booming. Realtors and investors play a significant role in propelling India’s economic development, making Capital Gains Tax a crucial tool by providing them with favourable tax treatment for asset purchases and sales.  

In the following paragraphs, we will discuss the concept of capital gains tax and how it is calculated. 

What is Capital Gains Tax? 

When an investor sells an investment and earns a profit, that profit is subject to a tax known as the capital gains tax. It is necessary to pay this amount for the fiscal year that coincides with the sale of the investment.  

If an Indian citizen inherits property and does not sell it, they are exempt from paying capital gains tax under the country’s Income Tax Act. However, if the inheritor chooses to sell the property, the tax must be paid on the profits. 

Types of Capital Assets 

  • Short-term Capital Asset 

If an investment is kept for fewer than three years, it is considered a short-term capital asset. However, real estate, including homes and land, now only needs to be held for 24 months instead of the previous 36. Thus, if an individual decides to sell a piece of land or a house after having owned it for at least 24 months, the profit from the sale is considered a short-term capital gain. 

If the property is the result of an inheritance or a gift, the duration of the previous owner’s possession is also relevant in assessing whether the asset is better classified as a short-term or long-term capital asset. Any bonus stocks or privilege shares will be classified according to the date they were granted. 

  • Long-term Capital Asset 

Long-term capital assets are those that a person has owned for a period of time more than three years, making them eligible for the term. This category includes assets like debt-oriented mutual funds, jewellery, and other items that have been kept for more than 36 months, and there is no reduction period of 24 months in this scenario. 

Tax Rate on Long-Term and Short-Term Capital Gains  

Tax Type Condition Tax Applicable 
Long-term capital gains tax Except for sales of units or shares of equity-oriented funds 20% 
Long-term capital gains tax Upon the sale of equity-oriented fund units or common stock 10% in excess of Rs. 1,00,000 
Short-Term capital gains tax When no securities transaction tax applies The STCGT is applied to the taxpayer’s ITR, and the person is taxed according to his income tax bracket. 
Short-Term capital gains tax When the securities transaction tax applies 15% 

Calculating Long-Term Capital Gains Tax 

The following is a rundown of the steps involved in calculating long-term capital gains: 

  1. First, the person must evaluate the asset’s full value. 
  1. Following that, the person must subtract the following: 
  • Expenses incurred as a result of the transfer 
  • Acquisition expenditures 
  • Improvement expenditures 
  1. After completing the above steps, a person must next subtract any applicable exemptions provided under the following sections to determine the long-term capital gains tax: 
  • Section 54B, 
  • Section 54F, 
  • Section 54EC, 
  • Section 54. 

Calculating Short-Term Capital Gains Tax 

Individuals need to follow the steps outlined below in order to arrive at an accurate estimate of their short-term capital gains tax: 

  1. The first thing that the person has to do is consider the full value of the property. 
  1. After that, the points that are listed below need to be subtracted: 
  • Capital outlays made to improve the property 
  • All the money spent on buying the property 
  • Costs associated with the sale or exchange of the property 
  1. After the deduction, the remaining sum is the short-term capital gain. 

Deductions to Reduce Capital Gains Tax 

If you possess an asset, you may be able to lower your capital gains tax liability by taking advantage of provisions under the following sections of the Income Tax Act.  

  • Section 54 

The capital gains on the selling profits of a residential real estate are excluded from taxation if those funds are subsequently invested in the acquisition of another residential property. This, however, is contingent on the following criteria being met: 

  1. Buying real estate should be done no more than two years after selling it, or at the very most, a year in advance. 
  1. If the property is still in the construction phase, the transfer must occur no later than 3 years from the original property transfer date. 
  1. Within the first 3 years after acquisition or construction, the newly purchased property is not transferable. 
  1. There should be an Indian location for the newly purchased property. 
  • Section 54F 

You are eligible to get the advantage of Section 54F if you sell any other asset, such as agricultural property that is within 10 kilometres of a city or rare artworks, jewellery, or loan money, for example. This clause allows a deduction to be taken from the profits of the liquidation of any financial instrument in order to pay for the acquisition of a home or other residential property.  

  • Section 54EC 

Any profits made on bonds issued by the National Highways Authority of India (NHAI) or the Rural Electrification Corporation (REC) are free from capital gains tax in excess of Rs 50 lakh. They come with a fixed rate of interest (now 5.25%) and a term of 5 years. These bonds have a taxable interest rate. To qualify for this write-off, your investment must have resulted in a financial gain from the sale of land and buildings. 

Conclusion 

It is important for investors with taxable accounts to understand the capital gains tax, the method by which capital gains tax is computed, and the distinction between long-term and short-term capital gains.   

Investors have a better chance of retaining a greater portion of their earnings if they are knowledgeable about the various tax rates and structures applicable to capital gains. 

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Understanding of Mutation of Property in India 

The mutation of property is a complicated process and involves many necessary steps. After the registry of your property, it is necessary to execute a mutation or transfer of ownership in the government records. This process will ensure that you are appropriately registered and get the right property documents.  

In this article, we will discuss the mutation of property in greater detail. 

What does mutation of property entail? 

Mutation, or “Dakhil Kharij” in Hindi, is the legal procedure through which the legal title of an asset is transferred from one owner to another upon its sale or transfer. It is necessary whenever an asset is transferred, whether through selling or acquisition, the owner’s demise, succession, gift, or the use of a Power of Attorney.  

Once the mutation of property is accomplished, the asset is officially recorded in the owner’s name. Having this information allows the government to levy a property tax, the amount of which varies from one state to another. 

Significance of mutation of property  

Both the registration and the mutation of the property are essential. In addition to being useful to the authorities, this will also be beneficial to the new owner.  

The following are some of the many benefits that come from keeping mutation records: 

  • The mutation records provide the government authorities with assistance in determining the appropriate person to charge with the real estate taxes and other levies. 
  • It is possible to correct any mistakes that have been made in the land registry or to report any unauthorised transactions that have been made against your property by using the mutation records. 
  • Prospective purchasers may want a mutation certificate as part of the buying process, and having one on hand is helpful. 
  • A property mutation certificate is required before agricultural land may be sold. 

Property registration vs. mutation of property 

When purchasing real estate, the buyer is responsible for paying the necessary stamp duties and registration fees to the land revenue department where the transaction took place. After the payment of the stamp duty as well as the registration fees, the process of property registration is said to be accomplished.  

On the other hand, the mutation of property takes place at a subsequent stage and might take up to a year after the ownership has been officially registered. Unlike a sale deed, which requires both the buyer’s and the seller’s signatures, the buyer alone is responsible for the mutation of property. When compared to property registration, the process of property mutation is very slow. 

Mutation of property types 

  1. Mutation of agricultural land  

When it comes to land used for agriculture, mutation is a key prerequisite. Without a mutation, the ownership of the land can never be transferred to the new owner. The records of revenue should be updated to include both the mutation and also the new owner’s name.  

This step is essential due to the fact that, in the event that the government acquires land, the compensation would be given to the property owner or owners who are listed in the revenue databases of the local councils. 

  1. Mutation of non-agricultural land  

The mutation is optional but highly encouraged for all non-agricultural properties, including but not limited to apartments, single-family homes, and residential plots, at any time following the registration of the property.  

In the absence of a mutation, the sale deed’s right remains in effect. This means that the buyer will continue to be the legal proprietor of the property after the sale has closed.  

Although obtaining a mutation permit is not required in this situation, it is essential when selling a property again. The lack of it poses a possible risk to the completion of the transaction. 

How to Apply? 

Property changes are regulated by local governments. The procedure for submitting an application differs from one state to the next. Many state administrations have made efforts to move the mutation procedure online. If you want to change your name and don’t want to use the online mutation procedure, you’ll need to go to the appropriate municipal office. 

Documents required

  • In case of the sale of property  

In the event that the property is going up for sale, the following papers are needed for the mutation of the property: 

  1. Applicant’s Aadhar card  
  1. Ration card 
  1. Property tax receipt 
  1. Postage stamps of the appropriate value 
  1. Sale deed 
  1. Both current and previous registration deed 
  1. Formalised mutation application form 
  • In case of inheritance or will  

The following legal papers are necessary for the mutation of a property in the event that the legal proprietor or the Titleholder passes away. 

  1. Title holder’s death certificate 
  1. Affidavit of applicability on stamp paper 
  1. Legal document of the Succession 
  1. Will Copies 
  1. A duplicate of the power of attorney 
  1. Registration Deeds 
  1. Sale Deed 
  1. Aadhar Card 
  1. Other documents mandated by the department 

Charges for Mutation of Property  

Due to variations in how property mutations are handled from state to state, fees also vary widely. Some jurisdictions, however, have made it easier to pay for land mutations by creating online application facilities.  

The prices for property mutations vary between ₹ 25 and ₹ 200. Online fee payment options include UPI, NEFT, RTGS, IMPS, debit/credit card, etc. The process of obtaining the mutation document from the relevant authorities might take anywhere from 5 to 30 days. 

Conclusion  

In conclusion, the mutation of property is critical for keeping accurate records of ownership. To put it another way, it would facilitate the buyer’s future property sales. In addition, the availability of an online application for property mutation has made the formerly laborious and time-consuming procedure more streamlined and straightforward.  

With your newfound knowledge of property mutation, you’ll be well prepared to apply for this legal document while buying your ideal home. HomeCapital is here to help you with your down payment needs. No interest is charged on the down payment assistance loans we provide, and the application process is quick and easy to complete online. 

What Exactly is the Building Code? 

Building regulations are set by different local governments as per their own needs and requirements. They also differ according to the type of structure being built. For example, if a structure is a single-family home, then it will have different regulations than a high-rise building or an office complex. In order to keep the buildings safe and suitable for human occupancy, there are building codes that need to be followed.   

In this article, we will go over the fundamentals of a building code, including what it is, why it exists, and what its requirements are. 

What is a Building Code?  

The term “building code” describes a set of laws and ordinances enacted to control the construction sector. The building code is composed of both fundamental construction standards and supplementary administrative restrictions.  

Regulations for plumbing, sewage systems, electricity, and fixtures, as well as the size and layout of rooms and hallways, and the construction of underpinning, floors, roofs, and stairways, are all specified in a building code. 

Prerequisites for Buildings in General  

Structures that are found to be in violation of building codes are subject to fines, suspensions, and even demolition. The following are requirements that must be met for buildings in general: 

  • Every structure above 13 metres in height is required to have an elevator built. There has to be a lift with a nominal capacity of six passengers that can be used directly from the ground level. The number of elevators might vary depending on precise projections based on applicable rules of the Building Code. 
  • Before obtaining a construction permit for apartments above three floors, the Directorate of Fire Force or an official authorised by them must provide a certificate of approval. Every level of a house, apartment, or another kind of living quarters that has a floor area that is more than 150 square metres and can accommodate more than twenty individuals is required to include at least two doors that are as far apart as they may be. 
  • The Building Code specifies that at least one stairway must have a fire staircase installed. A complete plan showing the placement of the pipes, accelerator pumps, and water reservoirs at different levels must be presented for authorisation to the relevant authorities, with the blueprints and segments of the structures. In the case of power failure, diesel generators should be installed in any building taller than 25 metres. 
  • The Building Code stipulates stringent requirements for the quality of both the materials and the craftsmanship used. No new building or structural additions or alterations may be made in the areas between a facility and an overhanging electric supply line. 
  • The defensive significance of a building’s interior is enhanced by the presence of upright conductive material such as rain gutters and downspouts, water systems, elevator rails, flat metal strips, metal bracing or reinforcements, electrical systems, and wires. Lightning Arrestors, once installed, may prevent significant damage to electronic and electrical equipment. 
  • Depending on where you live, there may be specific restrictions in place for things like plumbing and sanitation. Accidents and the spread of illness may be avoided by only allowing maintenance and repairs to be done to plumbing, sewage, and sanitisation systems during certain times of the day. In terms of actual content, the Building Code specifies what must be done during construction. 

Reasons why you should care about Building Codes 

Having up-to-date hazard-resistant construction rules that are strictly adhered to is one of the greatest methods to protect our communities from the effects of natural catastrophes. The minimal standards for design and construction stipulated by building codes are intended to promote the stability and safety of buildings.  

Some of the ways in which stricter enforcement of codes might benefit a community are as follows: 

  • Building codes safeguard 

Safer wiring, better fire protection, and more robust construction are just a few of the many ways in which building codes safeguard residents. These dangers may be mitigated if the local construction regulations are up to date. 

  • Building codes have financial benefits 

Communities with up-to-date building codes can save lakhs in damages. This is determined by analysing how regions without stringent construction regulations perform. As a bonus to the financial benefits, less harm is done to personal possessions. As a result, the community is spared the upheaval of having to relocate temporarily, the loss of revenue, and the interruption of daily life. 

  • Building codes are constantly evolving 

A structure constructed in accordance with current regulations may be relied upon to include the most recent scientific and technological advancements. Building rules are revised to account for new data, such as the findings of post-disaster studies, while still resting firmly on the shoulders of decades of accumulated construction expertise. Adopting new regulations includes many different parties who all work together to ensure the public’s health and safety while keeping costs low. There is also a growing interest in climate adaptation and sustainable practices. 

  • Building codes equalise the odds 

Improved build quality, uniform permits, and strict code enforcement are all possible due to the standards established by building codes. Smaller towns may more easily work together to implement the code via mutual help agreements if their larger neighbours do the same. 

  • Building codes benefit your community 

Incorporating building codes into a community may result in cheaper insurance rates, lower bond rankings, and assistance when requesting government subsidy funding, all of which can assist in saving a lot of money. If the community in which you live wants to adopt a new building code or enhance the one they already have, they may submit an application for funding to assist them in doing so. 

Wrapping up 

All sorts of constructions must adhere to the building code in order for the design and construction processes to be legal. It covers everything that has to be addressed in order to have a building process that is both safe and organised.  

With your newfound understanding of building codes and how they work to keep you safe, you can begin your search for the perfect home. If you want to start the process of becoming a homeowner, HomeCapital is the best place to start. HomeCapital can offer you up to 50% of the down payment amount, interest-free, so you may buy the home of your dreams.