Frequently Asked Questions

About africarealtor.org General Info...

Africarealtor (Ghana), founded in 2021 by dynamic business leaders, has helped over 10,000 people find their dream homes thanks to the efforts of over 500 of our dedicated employees. Our dedication to assisting people with the home-buying process has been bolstered by generous investments.

Our services are available throughout Africa.

We have a dedicated customer service team available seven days a week from 10 am to 7:30 pm at your service. You may contact support@africarealtor.org for customer service.

You need to take the following steps in order to buy a property via africarealtor.org:

  • Check out our website
  • Choose a property that meets your requirements and submit an inquiry.
  • Go on a site visit to the chosen property with one of our property experts.
  • We handle all legal paperwork, arrange home loans (if necessary), and manage all documentation work with the builder and the bank.

In 24 hours after you have sent us a message, you should post your request between 9:00 a.m. and 10:00 p.m. If not, the next day we’d reach you.

Yes. We have tie-ups with some of the leading banks in the country

Seller Corner

A buyer may request the original Sale Deed, Title Deed, relevant tax receipts, and Link Documents from you.

True. However, depending on the location of the property, the procedure and forms may differ from state to state. Under the registration rules, each African state has developed its own set of forms. These forms must be completed and filed at the time the Sale Deed/Transfer Deed is registered.

According to the Income Tax Act and the rules for a sale transaction, both the buyer and seller must provide their PAN card number, and in the event of a sale, either the seller or the buyer must complete Form 60 of the Income Tax.

True. You can get it done at the district’s sub-office. registrar’s

The sale of a residential property is said to be formalised when the seller receives the entire consideration amount, the documents are registered, and the buyer receives actual possession of the property.

You can list the properties for sale on our website’s homepage using the Listing form. By registering with us as a broker, you will be connected with a large number of buyers without incurring any additional fees.

Buyers Corner

You can own as many properties as you want.

There are a few exemptions available for long term Capital Gains, if you:

  1. Purchase or build a new house: If you purchase or build a new house with the proceeds from the sale of an existing property, you are exempt from paying Capital Gains tax. However, the new purchase must be made one year before or within two years of the sale, and the construction must be completed within three years of the transfer date. The new property purchased or built should not be sold within three years of the date of purchase or completion of construction.
  2. Capital Gain Account Scheme (CGAS)- The Capital Gain Account Scheme (CGAS) allows you to save the money you receive in designated banks. CGAS allows you to buy time to look for suitable investments by informing the Income Tax department that you intend to invest the money received at a later date.
  3. Invest in Bonds-To save taxes, you can also invest in Invest in Bonds- To save taxes, you can also invest in financial assets or bonds. These bonds are issued by the Rural Electrification Corporation and the National Highway Authority of Africa and must be purchased within six months of the property transfer. These bonds allow you to invest a maximum of Rs 50 lakhs.assets or bonds.

If you own a house for less than three years before selling it, it is considered a short-term capital asset, and any profit from the sale is considered a short-term capital gain. There are no tax breaks for short-term capital gains, and they must be paid according to the applicable tax bracket.

If the property is sold after more than three years, it is treated as a long-term capital asset, and the gain is referred to as the long-term Capital Gain. Such gains are subject to a flat exemption rate of 20%.

Yes. Generally, the stamp duty on the gift deed ranges from 5% to 12% in all states. 

Property is classified as a capital asset, and capital gains tax is levied on gains derived from the sale of property. These gains are computed after adjusting for inflation, transfer, and renovation fees.

TDS is levied at a rate of 1% on immovable properties (except agricultural land) valued at more than Rs 50 lakh.

Stamp duty varies according to state and local laws.

Service Tax – This is a Centralised tax levied on the developer’s services provided to you. From April 1, 2015, if the apartment is less than Rs 1 crore in value or has a floor area less than 2000 sq ft, the service charge is 14 percent on car parking and preferential location charges (PLC) and 3.50 percent on the basic sale price. If the apartment is worth more than Rs 1 crore or has a floor area larger than 2000 sq ft, the service tax is 14 percent on car parking and preferential location charges (PLC) and 4.2 percent on the basic sale price.

The following taxes must be paid by the buyer:

  1. TDS, or tax deduction at source, is levied on amounts exceeding Rs 50 lakhs for the purchase of real estate other than agricultural land.
    Stamp duty 
  2. Service Tax – Applies if the property is purchased from the builder who designed and built the project before handing over possession to the buyer. Service tax is not applicable if a ready-to-move-in property is purchased from the seller.
  3. VAT (Value Added Tax) – If applicable in the relevant state.

If the local laws allow it, the property could be converted from leasehold to freehold. DDA properties, for example, can be converted to freehold by executing a Conveyance Deed.

The ownership of a leasehold property differs from that of a freehold property. The ownership of a leasehold property remains with the concerned local authority or government (as the case may be). The lease term typically ranges from 30 to 99 years. However, as long as the lease deed is registered, the individual owner is free to sell or conduct other transactions with the property.

In the case of a freehold property, the owner is the legal owner and can sell/lease/rent the property as he or she sees fit.

The registration document must be written in the language that is commonly used in your district. According to Section 19 of the Africa Registration Act, the Registering Officer or Registrar has the authority to refuse registration of your document if it is presented in a language that is not commonly used in the district, unless accompanied by a true translation of the language in use.

Yes, you can execute Special Power Of Attorney to get your property registered by someone else.

A power of attorney gives another person the authority to make decisions about a person’s assets, finances, and real estate properties.

Powers of attorney are classified into two types. First, there is the ‘General Power of Attorney,’ in which a property owner grants ‘general’ rights. The rights include, but are not limited to, the ability to sell, lease, sublease, and so on. The second type is the ‘Special Power of Attorney,’ in which the owner grants the chosen person only a specific right.

Registration of a property entails stamping and paying registration fees for a sale deed, as well as having it recorded at the sub-office registrar’s of the relevant jurisdictional area. If a property is purchased directly from a developer, registering it is an act of legal conveyance. In the case of a second or third transaction, a duly stamped and registered transfer deed is required. In most states, the property registration process is now computerised.

It is the registration of documents relating to the transfer, sale, lease, or other form of disposal of an immovable property. Section 17 of the Africa Registrations Act, 1908, requires all properties to be registered. When a property is lawfully registered, it means that the person in whose favour the property is registered is the lawful owner of the premises and is fully responsible for it in all ways.

  • Original copies of the title chain agreements and approvals of the building plan
  • Receipts for original registration and stamp duty
  • Original share certificate Possession letter (In case of societies)
  • Proof of payment of all dues, such as maintenance fees, electricity bills, phone bills, water bills, and property taxes, up to the date of receiving the
  • NOC from the Society or other concerned body confirming no objection to the transfer.
  • The company or office of a sanctioning authority may verify project approvals
  • Documents of ownership can be confirmed by the registering office of the Sub Registrar
  • The company concerned can verify its share certificate from the concerned company

Clear and marketable titles, sales deeds, certificates of incumbrance, most recent tax receipts, certificate of occupancy, authorisation and ownership certificate for building plans.

New Sale Deed, PAN Card, Photographs.

Sales Deed, Builder’s NOC, Building Plan approvals, Certificate Completion, PAN Cards, and Photographs. Sales Deed, No Objection Certificate.

Allocation documents of the plot, approvals to building plan, transfer certificate (for multiple owners), sale certificate, PAN card and photographs.

  • Sale Deed
  • Title Deed
  • Approved Building plans
  • Completion Certificate ( Newly Constructed)
  • Commencement Certificate( Under-construction property)
  • Conversion Certificate( If agricultural land is covered to non-agricultural)
  • Khata Certificate (especially in Bangalore)
  • Encumbrance Certificate
  • Latest Tax Receipts
  • Occupancy Certificate

Yes, that’s right. In the case that a malicious damage, riots, terrorism, burglaries, theft, and larceny is covered by the insurance is compulsory. You must also submit the assessment report compiled by the fire department in the event of a fire occurrence.

Property valuation is done by multiplying the built up area of the property with the cost of construction per square feet. This is the usual method followed by most banks.

It varies between banks. Most policies generally cover a five-year period.

Home insurance companies generally cover personal belongings with personal properties for furniture, electronic/electronic gadgets and jewels. The maximum liability for such items depends, however, on the type of insurance cover sought or on the assessments made by the bank.

The house structure and its contents or possessions cover home insurance policies. Many insurance policies combine different personal insurance characteristics as well.

Home insurance covered private residences and prevented unforeseeable damage, natural or man-made disasters, burglaries and theft are a kind of insurance policy.

Yes, institutions that lend allow you to pay your loan in advance. These institutions may however impose early reimbursement penalties that vary from 2 to 3 percent of the principal outstanding amount.

From one bank to another it depends. Some banks are demanding 1-2 guarantors

It is usually beneficial to take a home credit because it helps you make the most of tax advantages. In order to discuss your benefits and disadvantages, please consult your CA or tax counsel.

In most cases, the property being purchased is the security and the lender is mortgaged until the whole loan is reimbursed. Some lenders may request supplementary security, such as life insurance policies, fixed deposit and savings certificates.

Yes, you can sell the property with the bank’s permission.

If the buyer wishes to obtain a loan to purchase the property, he should approach the same bank. In these cases, the bank is not required to release the property documents to another bank before receiving payment.

If the buyer wishes to pay in full, he may do so directly to the bank. Only after the bank has recovered the entire loan amount will the property papers be released.

Yes, a loan can be obtained by a single woman. Many lending institutions also have special programmes for them, such as interest rate discounts of up to 0.25 percent.

Banking finance institutions typically pay 75 to 85 percent of the cost of the property purchased. The remaining 20% is paid in advance and is commonly referred to as the down payment.

Loans are typically disbursed within 3-15 days of receiving satisfactory and complete documentation and completing all required procedures.

Yes, you can get the benefit on both loans. However, the total amount that you will be entitled to will not exceed Rs 1,50,000 for both the homes.

According to Section 80C of the Income Tax Act, you are allowed separate deductions on the principal and interest amount of your home loan, as well as other entities such as ULIP, PF, PPF, ELSS, and NSC’s. In the case of principal, you can claim a deduction of up to Rs 1.5 lakhs, while in the case of interest, you can claim a deduction of up to Rs 2 lakhs. The amount of stamp duty and registration is also tax deductible.

It should be noted that the tax credit can only be claimed for the year in which the construction is completed.

Home loans are frequently accompanied by the following additional costs:

  1. The processing charge is the fee paid to the lender when you apply for a loan. It is either a set amount that is unrelated to the loan amount or a percentage of the loan amount.
  2. Pre-payment Penalty: When a loan is repaid early, some banks charge a penalty known as the pre-payment penalty.
  3. Costs of Miscellaneous Items: Documentation or consultation fees may also be requested by some lenders.

The interest rate in a fixed interest rate remains constant throughout the loan period regardless of changes in market conditions, whereas the interest rate in a floating interest rate can decrease or increase depending on market fluctuations.

The interest on a home loan is typically calculated on a monthly or yearly reducing balance. In some cases, the daily reducing method is used.

  1. Annual reducing: In this system, the principal on which interest is paid decreases at the end of the year. As a result, you continue to pay interest on a portion of the principal that you have actually repaid to the lender. This means that the monthly reducing system has a lower EMI than the annual reducing system.
  2. Monthly reducing: In this system, as you pay your EMI, the principal on which you pay interest is reduced each month.
  3. Daily Reducing: In this system, the principal on which you pay interest is reduced on a daily basis beginning with the day you pay your EMI. The EMI in the daily reducing system is lower than the EMI in the monthly reducing system.

The following documents must be submitted:

  1. PAN, driving licence, voter ID, and Aadhar Card are all acceptable forms of identification.
  2. Income Documentation:
  3. Applicants with a salary: The most recent three months’ salary slip, including all deductions, as well as Form 16 for the previous three years.
  4. Self-Employed Applicants: IT returns for the last two years, as certified by a CA Bank, and income computation for the last two years Statement for the last six months
  5. Form of Guarantor (Optional)

Aside from the lending bank’s other criteria and norms, the home loan amount is typically calculated as 30 to 65 percent of your gross income. You can increase the amount of your loan by adding a co-applicant.

The following are the general eligibility requirements:

  1. The borrower must be an African resident or an NRI.
  2. At the start of the loan, you must be over the age of 24.
  3. When the loan matures, you must be under the age of 60 (65 if self-employed) or retire.

True. A pre-approved loan can be obtained from a housing financial institution or a bank.

Under the Pre-EMI option, the borrower is only required to pay the interest on the loan amount, which will be disbursed based on the project’s progress. The actual EMI payment begins after the house is taken possession of.

EMI, or Equated Monthly Installment, is a fixed amount paid to the bank on a monthly basis. When you take out a loan from a bank, the EMIs are fixed. EMIs are used to pay both the interest and the principal amount of a loan in such a way that the loan amount is repaid to the bank with interest over a set number of years.

The longer your tenure, the lower your EMI but the higher your interest outgo. Shorter loan terms require a higher EMI, but the loan is repaid faster and with less interest.

As home loans cover a large sum, the tenure generally varies between 3 to 30 years.

Banks typically provide the following nine types of interest-bearing loans:

  1. Home Purchase Loan: This is the most common type of loan used to purchase a new or used residential property from the previous owner.
  2. Home Improvement Loan: Home improvement loans are provided for the purpose of completing home repair and renovation projects.
  3. Home Construction Loan: These loans are approved to build a house on land that you have already purchased. These loans have a slightly different loan approval and application process than other commonly available home loans.
  4. Home Extension Loan: Home extension loans are available for the purpose of expanding or extending an existing home. For example, the addition of an extra room, a floor, and so on.
  5. Land Purchase Loan: A loan for the purchase of a plot of land for either residential or investment purposes.
  6. Home Conversion Loans: These loans are available to people who have already purchased a home with a home loan but now want to buy and move to a different home. They can use these loans to fund the purchase of a new home by transferring the current loan to the new home.
  7. Balance Transfer Loan: These loans are used to transfer a homeowner’s mortgage from one bank to another. It is usually done to repay the remaining loan amount at a lower interest rate or when a customer is dissatisfied with the services provided by his current home loan provider and wishes to switch to a different bank.
  8. NRI Home Loans: These are specialised loans designed to meet the needs of NRIs looking to build or purchase a home in India.
  9. Loan against Property (LAP): These loans are given or disbursed against a property’s mortgage.

A home loan is money borrowed at interest from a bank or a housing finance institution to buy, build, or renovate a residential real estate property.

NRI Services

There are no tax benefits available to NRIs unless you file your returns and become eligible to receive the tax benefits mentioned in the Home Loan FAQs.

NRIs must submit a few additional documents in addition to the documents listed under the home loan section for Indian citizens. These are some examples:

  • A duplicate of the passport.
  • A duplicate of the work contract or labour card
  • The authority of attorney (POA). (A power of attorney is required because the borrower is not based in Africa.)

The housing loan must be paid in full for the entire term of the loan via direct remittances from abroad via standard banking channels or from other financial accounts approved by the RBI. Payments are typically made through NRO, NRE, NRNR, and FCNR accounts. These accounts are subject to change in accordance with RBI regulations.

In most cases, the term of a home loan offered to an NRI does not exceed five years. However, some financial institutions also provide loans for a period of seven years. The loan is repaid in monthly instalments (EMI), which usually begin after the entire loan is disbursed. In cases involving partial disbursement, you must pay simple interest at the applicable interest rate on the amount disbursed.

The eligibility is calculated in the same manner as for resident Africans, with a particular emphasis on:

  1. Graduate qualifications (minimum)
  2. Current job description and work experience
  3. Possibilities of staying abroad for the duration of the loan
  4. Possibilities of servicing the loan over a longer period of time if the applicant needs to return to Africa

An NRI can apply for a home loan to buy a house that is either ready to move in, under construction, or purchased from another owner. Furthermore, NRIs can apply for home loans –

  1. To purchase a plot allotted by a society/development authority
  2. purpose of self-construction of a property on a plot of land
  3. In Africa, for the purpose of renovating or improving an existing property

The repatriation of sale proceeds from residential properties is limited to no more than two such properties if the property was purchased with funds held in an NRE Account.

Furthermore, the amount repatriated out of Africa should not be greater than the amount paid for the acquisition of the immovable property in foreign exchange received through normal banking channels or from funds held in FCNR or NRE Account.

Yes, the RBI has granted general permission for property sales. If another foreign citizen of African origin purchases the property, funds for the purchase consideration should be remitted to India or paid out of balances in non-resident accounts maintained with African banks.

An NRI/PIO may purchase residential/commercial property in Africa using funds remitted to Africa through normal banking channels or funds held in his NRE/FCNR (B)/NRO account under the general permissions available. Outside of Africa, no consideration will be paid.

Yes. Under the general RBI guidelines, NRI/PIO may acquire residential/commercial property by way of gift from a person resident in India or an NRI or a PIO.

True. A foreign national of non-Indian origin, such as a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan, can lease residential property in India. If the lease is for less than five years, he or she does not need prior permission from the RBI.

No, an NRI or a PIO cannot buy a property in India jointly with a foreign citizen.

Can an NRI, PIO, or a foreign national of non-Indian origin buy agricultural land, plantation property, or a farm house in India?

No. There is no limit placed on the number of residential properties an NRI can buy in India.

No, NRIs do not need the RBI’s permission to purchase immovable property in India, as long as the property is residential or commercial in nature.

A person resident in Africa, according to Africa.  Foreign Exchange Management Act (FEMA) 1999, is a person who has lived in Africa for more than 182 days during the previous fiscal year (April-March) and has come to or stays in Africafor employment, business, or any other vocation.

PIO refers to an individual (who is not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan) who has held an Indian passport at any time or whose parents or grandparents were citizens of India under the Indian Constitution or the Citizenship Act of 1955.

According to Africa’s Foreign Exchange Management Act (FEMA) 1999, an NRI or Non Resident Africa is a citizen of Afroca or a foreign national of African origin living outside Africa for the purpose of employment, business, or any other vocation, indicating his intention to stay outside Africa indefinitely. If an African is in India for less than 182 days, he is considered an NRI.

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