Important rights of home loan defaulters

Does intermittent home loan installment delinquency bother you? Our expert insight in to the privileges conferred to the borrower who is unable to pay the loan amount within the stipulated time period. Read on to know more... 

With the increase in the disposable income of a buyer and availability of flexible home loan schemes, a once loan-averse investor is also willing to purchase a property on loan. The trend is largely witnessed in metro cities, where employment opportunities are driving many working professionals to shift to their own residential base rather than paying monthly rent. However, the majority of home buyers fail to analyze their repayment capacity, resulting in home loan defaults. There can be several reasons for non-repayment of a home loan but this does not imply that the bank or the lending institution will immediately seize the property to realize the loan value. 

Usually, a three-month notice period is served to the borrower, if installments are due for long. Besides, there are several other rights that are vested to a borrower. According to Murali Dhar, Principle, Financial Consultant "The Banking Codes and Standard Board of India (BCS61) along with Indian Banks Associate (IBA) has defined some rights of a borrower that can be exercised if one is unable to repay the loan amount. These rights are important to know if anyone is availing a home loan or realises that payment of loan amount in future will be difficult owing to his impending financial instability."

Notice period to be served

The bank should serve a notice to the borrower before any legal action is taken against the property under question. The notice should include total debt amount to be paid by the borrower and a formal notice mentioning the time period within which the borrower has to pay the amount. A minimum of 60 days' notice is given if the borrowers account is classified as a non-performing asset (NPA) and the amount falls due by 90 days. If the borrower fails to deposit the amount within the stipulated time period, the bank can sell off the property to realize the loan value. However, the bank has to serve another notice period to the borrower including all the details pertinent to the sale of the property.

Right code of conduct

Representatives from the lending institution have no right to abuse or threaten the borrower. Any kind of bullying or violence will be addressed as a criminal offence. In addition, the bank should respect customer’s privacy and should not embarrass him in front of others. The failure in the non-payment of the loan amount does not imply that the lender can brand the borrower as a defaulter. Besides, even if the borrower is unable to pay the entire home loan amount, one can reach out to the bank to settle the financial dispute amicably.

Place of contact

Although the borrower has failed to pay the home loan amount, it will be the borrower who decides the place of contact rather the bank. If no such place is decided, a representative from the bank can meet the borrower at the permanent address mentioned in the documents submitted to the bank.

Seizure of the property

According to IBA, seizing the property is the last measure that the bank will resort to and a legal notice should be served to the borrower before such action is initiated. Once the custody of the property is taken, the bank has to ensure complete safety of it and if the borrower pays the dues before the sale of the property, he has full right to take the repossession of the property.

Right to the fair value of the property

If the borrower fails to submit the outstanding amount within the stipulated time period of 60 days, then the bank has right to sell off the property. The bank has to send a notice to the debtor before selling the property specifying the value of the property as assessed by the experts along with details like reserve price, date and time of auction. In any case, if the borrower finds that the property is undervalued then he can express his objection in writing. Alternatively, if the property is sold at a higher price, the bank should pay off the excess amount to the borrower, after realizing the due amount.

 

Buy Spacious 2BHK and 3 BHK Flat in Thane, Contact Prestige Residency sales office to Know More @ 022 25985951 - 55 

Prescon Realtors & Infrastructures Private Limited

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi

Thane West - 400601

Phone: 91-22-25985951-55

Email: prescon@prescon.in

Top Five Interior Décor Trends to avoid

There are some decor trends that might be popular but have been done to death. Would you rather adopt a design for your home that is popular but overdone or create your own style statement? The top five interior decor trends that is either overhyped or outdated. Greyscale, white furniture and bling are some of the elements that have been repeatedly used and are better avoided.

Decor trends come and go only to come back again, much like fashion trends. However, how do you know which trends to choose for your home and which ones to let go of? While your home should represent your personality, it is good to have some expert guidance to ensure that you do not just follow the herd and end up with a house that screams passé or outdated. Following are the five design trends that experts believe your home can do without:

Bling

Most people have a fascination for shiny objects, be it in furniture, colour of the walls or fixtures. Some believe that shiny elements are associated with wealth and glamour. However, more often than not, excessive use of shiny objects in home decor can make your home look tacky. Today’s age is more about subtle elegance and muted sophistication. You do not need shiny artifacts to garner attention especially when they may take draw the focus away from your tasteful decor elements. Avoid using bling as much as possible in your interiors. If you really cannot resist glitter, shimmer and shine, try keeping it restrained to accent pieces such as cushion covers to avoid turning your home into a disco.

Bulky multi-purpose cabinets

Most Indians have at least one such piece in their home. One furniture item that holds everything including TV, sound system, crockery, trophies, books and photographs, this trend is still common in India. However, in the age of minimalism, multi-purpose cabinets seem very outdated. That these days sleek are the norm and less is more. Such bulky units take up a lot of space and are hard to clean regularly with all the things we keep stocked up in them. This is one trend that is long past its age.

Shades of grey

Grey and its various tones have taken the design world by storm. This is one trend design experts are seeing everywhere and, in some homes, in everything. While this is a popular trend, warns that too much of anything can turn even the most beautiful of trends into a tacky fad. Too much of grey will make your home look boring and lifeless. Use grey in moderation and try to break the monotony by using different textures. Grey can be used as an accent colour or to balance an eclectic home.

White furniture

This is one trend that highlights wealth, even more than bling does. However, white furniture, especially white upholstered furniture, looks good only in catalogues or in rich households with staff dedicated to keeping it spotless in regular and normal homes, white furniture is highly impractical as it will get stained in no time, thanks to kids, pets, pollution and clumsy family members or guests. If you really want to include white furniture, opt for those that are painted white instead of those made with white fabric.

Table and sofa covers

Do you remember the plastic covers that we had on our tables to protect them from spills? What about the frilly and lacy covers on the back of the sofa and the armrests? They belonged to the 90s, and are best left there. Clean furniture is great but use of plastic in home decor as a trend has died long ago. If you still have a cover on your table or sofas, throw them right away. It might be practical but it is outdated and creates a very cheap impression on your guests. Showing off your fabulous furniture is the 'in thing right now. If you want some coverage, go for colourful throws on your light coloured sofas and place mats for the table.

 

Buy Spacious 2BHK and 3 BHK Flat in Thane, Contact Prestige Residency sales office to Know More @ 022 25985951 - 55 

Prescon Realtors & Infrastructures Private Limited

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi

Thane West - 400601

Phone: 91-22-25985951-55

Email: prescon@prescon.in

Invest in property to save capital gains tax

When a property is sold, the gains are liable to tax. Investing the gains in another property within the stipulated time exempts you from this tax. In case you sold a property, you are liable to pay capital gains tax. Any gain or loss arising on transfer of a property is subject to tax provisions under the head 'Capital Gains'. According to the Income Tax Act, a 'capital asset' means property of any kind, which is held by an individual, whether connected with his business profession or not. Any property flat, house, building, site, farm house, commercial property etc is subject to capital gains on its sale transfer.

Gains from sale transfer subject to tax

It is not only the sale of a property that triggers capital gains. Even certain specified kinds of transfers are deemed as sale and any gain thereon is subject to capital gains tax. Transfer of property means an act by which one person conveys property to another. The income arising on transfer of a capital asset is subject to capital gains tax if there is a transfer of a capital asset during the previous year. A transfer is deemed to have taken place on the date on which possession has been given of the property. If payment is received but the transfer has not been effected it will not be treated as a sale transaction. Under the income tax law, capital assets may be of two types: Long-term capital asset Short-term capital asset In case a property has been held for more than 36 months, the capital gain arising there on is treated as long-term capital gains. In case the property is transferred or sold after it was held for less than 36 months, the income will be treated as short-term capital gains.

The period of holding of a capital asset determines its taxability whether it is a long-term capital asset or short-term capital asset, and accordingly, whether you have incurred a long-term or short term capital gain loss.

Arriving at capital gains

The exact amount of capital gains is arrived at by applying the Cost Inflation Index (CII).This index is published by the Income Tax Department. The present worth of a property is arrived at by applying the CII to the cost of the property as well as any improvements made to it. This is deducted from the sale amount received by the transferor from the transferee to arrive at the capital gains.

Avenues for exemption

Some tax planning can save tax under Section 54EC in respect of long-term capital gains. You can invest the gains in a residential property or in capital gains bonds. It needs to be ensured that the conditions prescribed under the Section are strictly complied with, or else the amount claimed as exempt can be made subject to tax.

Under Section 54 of the Income Tax Act, in order to avoid paying capital gains tax, you should have bought a residential property within a period of one year before or should do so two years after the date on which the transfer took place. You can also construct a residential property within a period of three years after the date of transfer. In these cases, if the amount of the capital gains is equal to or less than the cost of the new property, the capital gains will not be charged to tax at all.

In case the new house is sold within a period of three years of its purchase or construction, for the purpose of computing capital gains in respect of the new property, the cost will be reduced by the amount of the capital gains.

Capital gains account

The amount of capital gains which is not appropriated towards the purchase of a new property, before the date of furnishing the income tax returns can be deposited in a 'Capital Gains Account Scheme' with a specified bank. The amount should be deposited before the due date for filing the income tax returns.

The amount used for the purpose of purchase or construction of a new property together with the amount deposited in the account will be deemed to be the cost of the new property. In case the amount deposited in the account is not used wholly or partly for the purchase or construction of a new property within the specified period, the amount not used will be charged to tax as income of the previous year in which the period of three years from the date of the transfer of the original property expires.

Long-term bonds

Under Section 54EC, you can also invest the capital gains within six months of transfer in long-term bonds of the National Highways Authority of India and Rural Electrification Corporation of India Ltd. Investments in these during one financial year cannot be more than Rs 50 lakhs.

 

Contact Prestige Residency sales office to Know More @ 022 25985951 - 55

TIPS FOR SELECTING DECOR FOR KID’S ROOM

Here are some suggestions for a lively, comfortable space for your children.

In every house, the children's room is a vital space. Children want a colourful and cheerful space where they can play, study and pursue their various hobbies. Many parents, these days, are employing their own creativity or taking tips from architects and engineers to get the decor right while designing their children's room.

Basics

Special attention should be given to colour and texture of wall paint, furniture such as study table, cupboard, coat racks, closet, bed, and benches, chalkboard, corkboard, pin-up board, night lamp and decorative objects. All these should be chosen considering the children's age, their imagination and keeping their colour choice in mind. Closet storage, benches and coat racks are used more often if kids can reach them easily.

Creative space

Children are imaginative and relate easily to fairy tales. So, you can begin with painting stars and a moon on your child's ceiling or a cityscape around the edge of the room.

Kids enjoy decorating their room with removable wall transfers or wall tattoos. Hanging strings or clipping an interactive border in front of a window is eye catching.

Kids would love a display space mounted on the wall where they can place small things on an instant magnetic board. Their art ability can be shown on a peel-and stick corkboard by displaying a cut out of any shape, cartoon or toy. Simply peel off the backing. It can be attached to any wall to create a fun pin-up space.

Kids love to decorate their rooms with their favourite cartoon characters. Their favourite toys teddy bears, planes, and wind chimes can be hung from the ceiling so that they can see them while sleeping. Decorate their room with family photos, and charts and posters of their choice.

Colour and texture

Use non-toxic, water based paint to put the child's handprint in the border and observe their growth. Multiple types of lighting can be employed here.

Use washable paints so that your child can give free rein to your imagination and creativity on the walls.

Design a cupboard such that it can be used to store their story books, drawing books, music player, paint box, colours, stickers, and other knick knacks. Pick bed sheets, cushion covers and other linen in light, soothing colours if they prefer plain or with cartoons and other animated characters. Avoid heavy, dark colours.

The colour of bathroom tiles and wall paint should suit the choice and age of your child. Give a fresh, calm ambience to this space with room fresheners.

A separate rack for shoes and socks for different occasions and seasons will keep it organised and easy to pick from.

Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 - 55

Top 11 must checks before buying a second home

 Verification is the key before making a house purchase. A lot has been said about the do’s and don’ts before investment. If you are still in a dilemma, then here’s a quick guide:

• Check whether your chosen developer brand is a listed company. A listed firm is seen as transparent & accountable which directly impacts its share prices in the market
• Physical and social infrastructure surrounding the property is astute. Not only will it ease the living condition of end-users but also help in getting good returns in future. Location of the property is important
• Presence of street lights, police stations, fire stations and general security is an absolute necessity. High occupancy in nearby projects also ensures safety/security to some extent
• The legal background of the developer must be checked to ensure that s/he is not involved in any legal hassles
• The title to the land of the project and all the regulatory approvals should be in place. Verifying all documents pertaining to land title, approvals of building plans and commencement of construction is a good idea
• Consider whether the place is a good investment and if it’s the kind of property that’s going to be attractive for the next buyer. For someone who’s planning to stay long, these details will help
• Check the original papers, as in some cases people show only copies of the originals. Besides, this will also help to ascertain the usage allowed on the property i.e. commercial, residential or mixed. Also, find out if the property is freehold, leasehold or a government accommodation. The best practice is to get the property deed reviewed by an expert lawyer just to make sure there are no loop holes
• Ensure all taxes have been paid on the selected property and the seller has all receipts. Before buying the property, ensure the owner has the Encumbrance Certificate. Finally, for a valid ownership, a registered Sale Deed needs to be executed, in the absence of which you will not get a valid title to the property
• Other documents to be checked carefully include Encumbrance Certificate, Release Certificate, Surveyor's Report and finally if the owner is an NRI or is not present, then the Power of Attorney
• The property buyer can also file an application to the PRO of the authority in order to verify the land title, approved building plan and the Completion Certificate of the property
• All terms, conditions and stipulations pertaining to the agreement, including the delivery schedule, should be mentioned in the Sale Agreement. It must be ensured that at the time of handing over possession of the property, compensation for delay in possession, recourse to legal remedy, all are clearly mentioned. All future steps have to be taken in accordance with the same

It is imperative to make all checks before signing on the dotted line. To avoid hassles, be in touch with the builders/dealers to address or highlight issues immediately. In case there is no action/response taken, you can knock the door of the consumer court. Maintain a file of all communications.

Contact Prestige Residency sales office to Know More @ 022 25985951 - 55