Usually, a home buyer makes an advance payment to finalize their selection in terms of the property type. It gives assurance to the real estate developer that they are keen on proceeding with the purchase. Almost every homebuyer needs to go through it.
If you are planning on buying your next property, are you familiar with the advance payment terms and conditions? If not, then here are the important terms you should be aware of:
- Booking or token amount:
- Stamp duty:
- Home loan advanced payment:
- Advanced brokerage payment:
The booking or token amount is an integral part of your home buying process. In some cases, you may see that the real estate developer may not show much interest unless you pay the token or booking amount. After making this payment, you may also have to pay at least 10% of the entire transaction value. Failing to buy the house might result in the real estate developer or agent forfeiting the token amount.
As a home buyer, you have to keep in mind the stamp duty on property that you have to pay. The stamp duty on house purchases differs from one house to another, and you may have to ask the real estate developer or look for the actual price online. You may check with the sub-registrar’s office to know the exact amount of the stamp duty charges.
Apart from the home loan down payment that the homebuyer has to incur if they opt for one, there may also be additional charges that one needs to know about. If the home seller has a running home loan on the property they are selling, they can ask for an advance payment from the home buyer to close the loan.
One of the important payment terms of home buying is the advance brokerage payment. It may come up if the homebuyer opts for a real estate agent to help them buy the property. As the broker helps with various processes of the home buying journey, including the real estate stamp duty details, this payment to the agent cannot be denied.
So in case you are looking to buy 4 BHK Apartments In Hyderabad, make sure you keep in mind these important advance payment scenarios. These miscellaneous charges may increase with the increase in property size. For example, if you opt for 5 BHK Apartments In Hyderabad, then the stamp duty and registration charges will be higher when compared to a 4BHK.
What is the stamp duty value of the house property?
The stamp duty is the tax imposed on a particular property when it is sold or during a transfer of ownership. It varies from one state to another.
Is there a fixed token amount?
No, it varies on the property type and the negotiation with the real estate developer or agent.
Do I have to make a down payment for a home loan?
Yes. If you have opted for a home loan, you will need to make a down payment.