Sale deed is defined under Section 54 of the Transfer of Property Act, 1882 as; “Sale” is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. A sale deed is a legal document that transfers the ownership of tangible property (such as land, buildings, or other real estate) from one party to another in exchange for a specified amount of money. The title of the ownership of the property has been transferred to the buyer from the seller. The parties can be called as the seller or transferor and the buyer or transferee.
The Section 105 of Transfer of Property Act says that “A lease of immovable property is a transfer of a right to enjoy the such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specific occasions to the transferor by the transferee, who accepts the transfer on such terms. Lessor, lessee, premium, and rent defined—The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service, or another thing to be so rendered is called the rent.” Lease deeds are legally binding documents and serve to protect the interests of both the landlord and the tenant by clearly defining their rights and obligations during the term of the lease. This contract will contain all the terms and conditions to be followed while that property is being rented out to that particular tenant.
A relinquishment deed is a legal document that transfers the ownership of a property from one person to another. It is commonly used in cases where a co-owner/ legal heir wishes to transfer their share of the property to another co-owner or legal heir. It's commonly used when the owner of a property wants to relinquish their ownership or interest in the property to another party, typically without any monetary exchange involved.
Under the Transfer of Property Act, 1882, a gift deed is a legal document used to transfer the ownership of property or assets from one person (the donor) to another person (the donee) without any consideration or payment in return. The Transfer of Property Act provides a framework for the lawful transfer of property, and a gift deed is one of the methods recognized for such transfer. Each state have different amount of stamp duty that is payable for gift deed and that too is determined by the facts of the case.
A legal declaration of a person’s intention to give his/her property to another person who may be or may not be a legal heir is called a will. A will takes effect after the death of a person. It is in a document form. In other words, A "Will Deed" is a legal document that outlines the wishes and instructions of an individual (testator) regarding the distribution of their assets and the management of their estate after their death.
In simple words, A "Declaration Deed" typically refers to a legal document where an individual formally declares certain facts, intentions, or legal status regarding a property or other matters. A declaration deed is a legal document containing all the vital information about the property. Builder’s name, construction area, type of land/building, total carpet area, amenities in the building, number of flats, etc. are all mentioned in this document. It is mandatory for the builder to execute a declaration deed.
A partnership deed, also known as a partnership agreement or articles of partnership, is a legal document that outlines the terms and conditions governing a partnership between two or more individuals or entities engaged in a business venture. It serves as a contract between the partners, setting forth their rights, responsibilities, and obligations towards each other and the partnership as a whole.
1.Purpose: Home loans are specifically designed to help individuals or families finance the purchase of a residential property. This could be a house, apartment, condominium, or other types of residential units.
2.Types of Home Loans:
Interest Rates: Home loan interest rates can vary based on factors such as the borrower's credit score, loan amount, loan term, and prevailing market rates. It's crucial to compare rates from different lenders to get the best deal.
Loan Terms: Home loans typically have terms ranging from 15 to 30 years, although shorter or longer terms may be available depending on the lender.
Down Payment: Borrowers are usually required to make a down payment, which is a percentage of the property's purchase price. The size of the down payment can affect the loan amount, interest rate, and mortgage insurance requirements.
Repayment: Home loans are repaid through monthly installments that include principal and interest. Some loans may also require payments for property taxes and homeowners insurance, which can be escrowed by the lender.
Eligibility Criteria: Lenders assess factors such as the borrower's income, employment history, credit score, debt-to-income ratio, and the property's value before approving a home loan.
To encourage more and more people buy their own house, government of India provides tax deduction on the principal as well as interest paid on home loan. An individual is eligible to claima deduction of up to Rs 1.5 lakh under Section 80C of Income Tax of India 1971 Act in a financial year. While a deduction of up to Rs 2 lakh is allowed on the interest portion under Section 24B of Income Tax of India Act. The deductions under income tax are only available after the construction of the house is complete. You can’t claim the income tax deductions while the property is under construction. Read: to know more about home
loan deductions.
In case of second house, you are eligible to claim deduction for the entire amount of housing loan interest paid under Section 24B of Income Tax Act.
Unlike other loans where lenders charge prepayment penalties on payment made towards home loan , there are no prepayment penalties on floating rate home loans . So, whenever you have surplus money, you can utilize it for making part payment towards your home loan and lower your burden. However, there will be prepayment charges in case of floating rate home loan.
In case of home loan you have the facility to transfer your home loan to different lender if he is giving you loan at a lower interest rate.
For many people buying house with own money is not possible, home loan as it can be repaid in easy monthly installments makes it easier to buy a house.
Among all types of home loan, It has the longest repayment tenure which goes up to 30 years, so one can reduce the burden of equated monthly installments by extending the tenure. Use our house loan EMI calculator to know how EMI change as you change your home loan tenure
You will also benefit from the rise in prices of the property over time.
As rent in metro cities is quite high they put strain on your monthly budget. It is better to pay the EMIs and own a house.