How to make payment when buying property

739 votes

Steps :-
1. First take property chain from first allottee till date
2. Verify the deeds online or by visiting sub registrar office
3. If any chain is miss don’t buy until u hv true copy
4. Check for separate electricity, water, gas bills n verify them online n check for separate water tank, water motor, Tata sky facility to install, roof rights …check for any repairs in that flat, TDS, encroachment, red stamp etc n check all water taps, electricity switches n current amenities
5. Check whether house tax is paid up to date or not
6. Once all documents are ready then talk to dealer for any discount in brokerage if possible
7. Make agreement to sale n make sure u transfer the booking amount from your account (if u r purchasing) or from the account of buyer to sellers account n not in the account of drillers or any relative or third party.
8. Pay all circle amount from bank to bank transfer
..plz b in touch

Advocate D. Khan LawRato

593 votes

You can pay through Bank cheque or NEFT or any other handling method possible. And get the property registered and there mention the details if the amount paid and pay the requisite stamp duty upon the document.

Advocate Sishmita Kumari LawRato

322 votes

When buying property in India, the mode of payment can vary, and it's essential to follow legal and financial best practices. Here are the common payment methods for property purchase:

1. Bank Cheque: One of the most secure methods is using a bank cheque. The cheque should be drawn in favor of the seller or as instructed by them. It provides a clear transaction record.
2. Online Transfer: Online funds transfer through NEFT or RTGS is prevalent. Ensure the seller provides their bank account details accurately.
3. Cash Payment: While cash payments were common in the past, they are discouraged now due to legal and tax implications. If you make a cash payment, ensure it's within the legal limits and keep proper documentation.
4. Demand Draft: You can obtain a demand draft from your bank and hand it over to the seller. It's a secure payment method.
5. Payment through Escrow: An escrow account is a neutral third-party account that holds the funds until all conditions of the sale are met.
6. Home Loan: If you're availing a home loan, the bank disburses the loan amount directly to the seller or builder on your behalf.
7. Token Amount: Initially, a token amount is paid as a booking fee. This is usually a small sum and can be paid in cash or cheque.
8. TDS (Tax Deducted at Source): When buying property, TDS may be applicable. Ensure you deduct and deposit TDS as per the income tax rules.

It's crucial to maintain proper documentation for all transactions and consult with a legal or financial advisor to ensure compliance with all legal requirements. The specific mode of payment may vary based on the seller's preferences and local practices, so it's advisable to discuss this with the seller and your legal advisor when finalizing the property purchase.

Advocate Chikirsha Mohanty LawRato

446 votes

The Central Board of Direct Taxes has formulated a tax law that is effective as of June 1, 2015. Any transaction in real estate, including agricultural land, must be done through a real-time gross settlement or electronic funds transfer (EFT) if the amount exceeds Rs 20,000.

Advocate Chikirsha Mohanty LawRato