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What Should You Know About Advance Payments While Buying a Home?

What Should You Know About Advance Payments While Buying a Home?

Advance charge is one of the essential matters a homebuyer comes throughout at the same time as putting a deal for a actual property assets. Advance charge for the acquisition of flat safeguards buyers’ interests. The assets come with many different supplementary charges including charges incurred toward legally shifting the asset to the name. A actual property developer can also additionally ask the purchaser for develop charge in numerous forms. So, what if a actual property developer asks the purchaser for develop charge and what a purchaser need to recognize approximately such situations?

Booking amount or token money: Many developers sometimes avoid discussing the terms of the conditions of the real estate transaction unless they are aware of the buyer's best interests. To make sure that the buyer has serious intentions to buy the property, sellers can ask repeatedly: a goodwill deposit, the reservation amount, token money, a confirmation deposit.

Stamp Duty: By law, a buyer must pay stamp duty when purchasing the property. But don't rush into doing it. There may be times when you are not interested in a particular property, or even a seller is holding back. In these cases, your entire investment in revenue stamps could be in vain. These legal documents are non-transferable and non-refundable. So make a careful decision.

Advance TDS payment: the law states that a property sale is worth more than Rs. 50 lakhs in India, a 1% tax must be deducted from the total consideration for the sale before a buyer pays the seller. The buyer must file this 1% TDS to the government along with the buyer's and sellers PAN when submitting Form 26QB. This ensures that the seller does not avoid capital gains tax. This TDS on prepayment is a common thing these days, but you should consult your financial advisor before making any payments.

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