To help readers keep pace with what’s happening in the real estate sector, Mint’s Q&A will appear every other Monday.
The flat I have finalized is on a floor that has been added on top of an existing building as part of the transfer of development rights (TDR). Can you let me know the checks involved in case of a TDR property? Will I get a loan for the same?
These kinds of projects are either constructed by a developer or by a housing society itself. In either case, you would need to check for the agreement that the developer/contractor has entered into with the society for undertaking this project.
This should be backed by a resolution passed by the society appointing the developer/contractor.
You must also check if the development right certificate is in favour of the society/developer vide which they have been granted permission to load TDR on the property; building approval plans; commencement certificate; copy of the conveyance in favour of the society; property card showing the name of the society; assessment taxes paid by the society; latest title certificate from an advocate and/or solicitor; and occupation certificate.
To avail the loan, in case the society is constructing the property, then you would need to submit the original allotment letter issued by the society and/or sale agreement between you and the society, duly stamped and registered.
If a developer is constructing the property, you would need to submit the original agreement for sale with the developer, duly stamped and registered.
Also, you must ask for a letter from the society, stating that post this sale you will be included as a member of the existing society.
Some time ago, I got my loan sanctioned at 11% interest and now plan to avail it. Now that the rates are lower, will the current rates be applicable on my loan?
In cases such as yours, where the customer is availing his first disbursement, organizations such as HDFC would offer the rate of interest applicable on the day of disbursement, even though the rate when the loan was approved was different. However, this practice may be different with some institutions, which you may have to check.
Renu Sud Karnad is joint managing director, HDFC. Readers may write in with their queries and comments to email@example.com