Hyderabad : The papers that matter for construction of house

The Hindu : Property Plus Hyderabad : The papers that matter


Building a house is a dream that could turn into a nightmare much before you savour the wonderful experience of living in it. That is if you are not well versed with the paper work that goes with it.

Since there is no single agency or single window for taking the necessary permissions, there is invariably some running to do around different Government offices that could well test your patience and resolve. So cumbersome are procedures and the red tape involved is really long.

13 sets of documents


Let us look at the example of the Municipal Corporation of Hyderabad and what it takes to obtain a building permission from it. There are 13 different sets of papers required before you can think of starting construction. For houses to be constructed in an area below 100 sq. yards, no permission is required in an approved layout though the plan details have to be filed.

For constructions below 10 metres in height and below 1,000 sq.m, all permissions have to be obtained at the respective MCH circle office. For multi-storied complexes, apartments and others with more than 10 mts height and above 1,000 sq.mts, the applications have to be filed at the head office.

Tax receipts


While applying for permission, you have to ensure that you are ready with your property tax receipts. It is only then that other factors come into play. Next, obtain `no objection certificate' (NOC) from the mandal revenue officer concerned in lieu of the town survey record certificate. Building plan applications should be signed by the owner, architect and the engineer.

Then, there are declaration forms signed by the owner and attested by a gazetted officer, the licence copy of the architect or engineer involved in the work, an Urban Land Ceiling Act affidavit for constructions below 1,000 sq.mts, two sets of ownership documents attested by a gazetted officer and property linked documents attested by a gazetted officer.

A non-judicial stamp paper of Rs. 20, undertaking Rs. 100 non-judicial stamp paper duly stating whether the construction is taken up by the owner and of course, building plans signed by the owner, architect and the structural engineer are necessary.

Another joint undertaking on Rs. 100 non-judicial stamp paper promising not to stock building materials on road margins, not to enclose balconies, usage of parking, payment of special payment charges, not to increase number of units and special sanitation charges is also need. There are a slew of fees to be paid like development charges, betterment charges for unapproved layouts, permit fees as per category - residential or commercial, etc.

NOC and clearance


For multi-storied buildings and constructions above 10 mts of height, other permissions have to be taken and 10 more sets of documents to be filed. These include no objection certificate from the Joint Collector, land use certificate from Hyderabad Urban Development Authority (HUDA), feasibility certificate from Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) and NOC from Airport Authority of India, if applicable.

Certificates of urban land clearance, structural stability, soil testing report; structural drawings, etc should also be filed. Even if an existing old property is to be demolished and re-constructed or any modifications are to be done different from the previously sanctioned plan, fresh applications have to be made, according to P.A.S.M. Laxman Rao, City Planner.

Once the plans are submitted, the supervisor concerned in case of the circle office will visit the site within a couple of days followed by a committee consisting of the Zonal Additional Commissioner, Deputy Municipal Commissioner and the Assistant City Planner.

In the head office, for high rises, there is a separate building committee consisting of Chief City Planner, Director of Town Planning, Institute of Architects association representative, Chief Engineers of HUDA & MCH and others. Going by rules, permissions have to be given in 15 days at the respective circle offices and within 45 days at head office.

Yet, it is common knowledge that it can take much more time than that. If officials at the circle level are invariably super busy to complete the inspection and clearance tasks, at the head office, no one is sure when the high rise building panel meets as its meetings have been more often than now irregular.

While there were plans to make the citizen charter effective and deemed permissions are supposedly the norm, it is not that simple to take up constructions without the official stamp of MCH. All the pain, of course, appears worth the effort when there is an elation of moving into the own house.

"All the procedures sure does cause much stress and strain not to speak of putting a big hole in the pocket. Therefore, the feeling on getting the final nod is akin to a student getting a visa for United States or getting a daughter's marriage fixed," is the pithy comment of an architect, well versed with the municipal ways.

Housing Finance

HYDonline - Housing Finance

There are a variety of home loans available in India, some offered by various financial institutions like Banks and Housing Finance Companies. They are:-

1) Home Purchase or apartment purchase Loans: This is the basic home loan for the purchase of a new home.

2) Existing Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased by you.

3) Home Construction Loans: This loan is available for the construction of a new home.

4) Home Extension Loans: Is given for expanding or extending an existing home. For example addition of an extra room, etc.

5) Home Conversion Loans: Is available for those who have financed the present home with a Home Loan and wish to purchase and move to another home for which some extra funds are required. Through a Home Conversion Loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need for pre-payment of the
previous loan.

6) Land Purchase Loans: This loan is available for purchase of land for both home construction or investment purposes.

7) Loans to NRIs: This loan is tailored for the requirements of NRIs wishing to build or buy a home in India.

Eligibility For a Home Loan

To qualify for a home loan most lending institutions in India require you to be:

An Indian resident
Above 21 years of age at the commencement of the loan
Below 65 when the loan matures
Either salaried or self employed
Nationalized banks offer loans to NRIs also.

The standard norms for acquiring a home loan

Securities required: In most cases the property to be purchased itself becomes the security and is mortgaged to the lending institution till the entire loan is repaid. Some institutions may ask for additional security such as life insurance policies, FD receipts, share or savings certificates.

Guarantors: Some institutions ask for 1 or 2 guarantors, others require no guarantors at all. Applying for loan: Loans may be applied for before or after selection of property. The loan amounts are sanctioned in principle to let buyers know what amounts they can avail of. This helps them decide their budgets and purchasing power. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures.

Documents required at the time of application

Latest salary slip (proof of income for salaried individuals)
Photographs
Proof of age
Identity papers
Proof of residence
Bank statements for the previous six months
For self employed, certified copies of balance sheet, profit and loss statement and tax challans for the previous 3 years
For partnership/private limited companies, the Articles of Association, partnership deed and details about the firm loan limit

Usually most companies give upto a maximum of 85% of the cost of the house. The other 15% sometimes called 'seed money' will have to be provided by a loan applicant. Out of the 85% the amount the applicant is eligible for, is decided by the age, income, no. of
dependents, monthly outgo and repayment capacity. This varies from case to case.

Rate of Interest:

Interest rates are different from institution to institution and generally range from about 12.5% to around 16%. The interest on home loans in India is usually calculated either on monthly reducing or yearly reducing balance.

Monthly reducing:

In this system the principal on which you pay interest reduces every month as you pay your EMI.

Annual reducing

In this system the principal is reduced at the end of the year, thus you continue to pay interest on a certain portion of the principal which you have actually paid back to the lender. Which means the EMI for the monthly reducing system is effectively lesser than the second system of calculating interest.

Loan amounts vary from institution to institution and usually range from Rs.1 lakh to 1 crore. Repayment period options range generally from 5 to 15 years.

Right steps for a safe and unhindered Purchase of Property

Purchasing Property

Right steps for a safe and unhindered Purchase of PropertyCall for the documents of title and link documents of the Vendor of the Property and verify the same with your legal advisorThe Encumbrance Certificates for a minimum period of 30 years needs to be verified to find out if there are any existing encumbrance over the Property. This can be acquired in the concerned sub-registrar office.The buyer should ask the vendor for the original Sale deed, Partition Deed, Settlement Deed, Power of Attorney deeds, to rule out existence of any prior mortgage by way of deposit of title documents, all the Original documents of title may be verified legally to ensure that the property is in the possession of the Vendor himself. Check whether a clearance from the Income Tax Department under Section 230-A or 269 - UC is required to be obtained as the case may be.Latest Property Tax, Water Tax and Electricity payments receipts / Kist receipts / Patta / Extract from the permanent Land Register/Urban land Tax Receipt to be verified to ensure that the Property stands in the name of the Vendor.In case of Devolution of title to the Property under a Will necessary precautions as to whether the Will is registered / probated etc to be ascertained and similarly if there is any Minor's interest is involved, it is necessary to take suitable precautions so as to create a valid title to the Property.Check whether there is any prejudicial/negative covenants in the Sale deed of the Vendor, to affect the title to the Property.To check whether the building plan has the due approval of the Municipal corporation /gram Panchayat/Civic Authority and to insist for completion certificate from the Builder/ Developer so as to ensure that there is no deviation in the approved plan.Power of Attorney document, Death Certificate, Legal Heirship Certificate if any concerning the title to the Property may be verified with the Original for authenticity.Agreement of sale and deed of sale are to be properly worded with suitable clauses to take care of situations such as default, delivery of vacant possession, payment of Stamp Duty / Registration charges, Compliance of statutory requirements, a clause on indemnity etc to be clearly mentioned. A very clear description of the Schedule of Property is to be emphasised for a good conveyance of the Property.Similarly while entering into an Agreement of Construction care should be taken to ensure that the builder/developer does not get any right to use/build on the open terrace and on other common areas which are to be enjoyed in common by all the occupants. In the case of a flat ,on completion of the building, all the occupants shall form an Association among themselves and all the parent documents of title shall be kept in joint custody.In case of Purchase of Flat the registration of the undivided share of the land which conveys the title to the Property in favour of the Purchaser is to be insisted upon.A Legal opinion on the marketability of the title to the Property is a must.

http://www.hydonline.com/business/realestate/rightpurchasing.htm

some more real estate sites in hyderabad

http://www.hallmarkconstructions.com/
This site is good and contains the information about new ventures across various states and cities
http://www.indiaplot.com

http://www.manjeera.com/
http://www.padmashree.com/
http://www.radharealty.com/
http://www.raghavendraconstructions.com/
http://www.rcconstructions.com/
http://www.saisdreamcastles.com/
http://www.shreecon.com/
http://www.sribalajirealestates.com/
http://www.themeconstructions.com
http://www.vijethaconstructions.com

Hopefully the links might be useful to you :)

Famous Real estate sites in hyderabad

These are the list that I have currently which offer either plots or flats and so on

http://www.aparnaconstructions.com/
http://www.avchousing.com/about-us.html
http://www.bhaaratbuilders.com/project.htm
http://www.bvrprojects.com
http://www.dhatriconstructions.com/index.html
http://www.education.vsnl.com/nicmargr/companies.html
http://www.grand-ville.com/aboutus.htm
http://www.greaterhydvalley.com/
http://www.greencityelitehomes.com/
http://www.greenhome.cc/index.html
http://www.harsharealestates.com/
http://www.indiacatalog.com/web_directory/real_estate/2106.html
http://www.ivrprime.com/htmls/home.htm
http://www.janmabhoomihomes.com/
http://www.jayabherigroup.com/ourventures.htm
http://www.jayadarsini.com
http://www.lakshmirealtors.com/news_roads_hyd.htm
http://www.ltinfocity.com/residential/
http://www.lumbiniconstructions.com
http://www.manikyahomes.com/meadowsIndex.html
http://www.marutihousing.com/new/index.htm
http://www.muppahomes.com/home.html
http://www.nh7villas.com/
http://www.palm-meadows.com/
http://www.plotsflatshouses.com/index.html
http://www.radharealty.com/index.htm
http://www.rishijaideepestates.com
http://www.sainathbuilders.com
http://www.saketgroup.com/
http://www.sanali.com/sanali-lakeview.html
http://www.shantasriramgroup.com/
http://www.sphinxpagoda.com/
http://www.teluguproperties.com/
http://www.thesilvercoin.com/mouryaestates
http://www.vasudevarealtors.com/
http://www.venkatasaihomes.com/floor.htm
http://www.venkusaestates.com/index.htm

Why craze for hyderabad

The congestion in ‘A’ cities like Delhi, Mumbai, Bangalore and Chennai is driving interest in Hyderabad. Realty in the city is literally on fire with big-ticket deals and awards of acres and acres to attract mega projects. The reasons that are pushing Hyderabad realty to the next orbit are scope for expansion into satellite towns, cost advantage and linked infrastructure development.

The growing commercial office space segment of the real estate market in Hyderabad, driven primarily by the IT sector, is steadily moving towards new locations especially to erstwhile suburbs. While development of satellite pockets around the city seems to be the common thread linking all three metros down South, Hyderabad paints a unique picture in realty trends, attracting companies to set up base in the city like no other emerging metropolis.

The market for commercial space is expected to grow at a frenetic pace. The reason is that while prices in certain areas have matched average price levels in other metros, the average price in Hyderabad is still a good 30% lesser than the average price in Bangalore and about 10-11% lesser than those in Chennai, says Andhraproperties.com CEO P S Sudhakar. Rental prices in areas like Ameerpet are still as low as Rs 20 per sq.ft per month.

Some realtors in the city maintain that Hyderabad’s traditional cost advantage is waning due to the flow of IT and allied companies into the city, leading to rise in prices. Land and office space prices have more or less equalised across Bangalore, Chennai and Hyderabad when it comes to the central business district, and few other areas, says Shyam Chandan from Chesterton Meghraj, Hyderabad.

Rental prices for fairshell properties in the Central Business District that lies along the road from Jubilee Hills to Begumpet have risen by 25% in the last few months, touching Rs 28-29 per sq.ft per month. Rental costs in areas like Madhapur are in the range of Rs 37-39 for warmshells and Rs 28-29 for fairshells. “The sale price for a built facility is about Rs 3,000 per sq.ft, just about the same as in other cities in India, Indu Projects MD Syam Prasad Reddy.

Hyderabad, over the years, has continually managed to draw big names like Infosys and Microsoft to set up campuses in the city. And the state government’s ability to provide global companies large tracts of land at concessional rates is a major reason for these companies coming the city’s way. However, as a fallout of this, land prices around these campuses skyrocket. In fact, prices in areas like Gachibowli and Madhapur are expected to touch Mumbai levels in a few years, says Sudhakar

It then seems quite paradoxical then that market pundits continue to be bullish on Hyderabad’s ability to draw companies and developers alike, to invest in real estate in the city. The commercial office space market is expected to grow at a healthy rate for at least the next two-three years, says Reddy.

About 15 million square feet of developed office space is expected to enter the market over the next two years.The reasons for the buoyancy are many. For one, the influx on new property will make sure property prices don’t rise above the current level. Prices are expected to stabilise over the next few years, and either plateau at rates prevalent in cities or stay a touch lower, says Mr Chandan.

Also, Hyderabad’s low cost of living, excellent road infrastructure, the new international airport at Shamshadbad and the proposed metro rail corridor amongst others, have today come to become the differentiating factor for companies to choose Hyderabad over other cities as a destination for setting base. Smaller companies which do not get government patronage come to the city because the bigger companies are moving here and also because of Hyderabad’s other cost advantages, says Mr Reddy.

Miyapur and Hitec City

Find in the picture how various companies are located in the Hiec City and around
You can find Infosys, TCS and so on in the picture.
This makes Miyapur an affordable place to stay and construct house

International Airport Shamshabad

Note the International airport and the development of the shamsabad. The NH7(6 track express highway)
Infosys now has the proposed layout of Maheswaram mandal
Tukkuguda junction will now be a center and also pedda toopran.
Preferably a residential site at residential ventures near proposed 250ft outer ring road.

How Shamshabad and Hitec are getting closer

if you carefully observe the way Hitec City and Shamshabad are getting closer results in the escalation of rela estate prices around the areas where the Express highway is built (Red coloured line)
It starts at SHamshabad and ends at Miyapur(I suppose)
so areas those are bound to increase include places of kndapur and shamshabad and also in and around Deer park