An Article about "Realty to survive in future"

Realty to survive in future

 

The growth rate of the country’s population is prodigions. The Indian population grows at a every ten years rate of more than ten per cent, naturally needs to find a corresponding number of new homes over and above the existing number of residences of the previous ten-year period. In addition to the above core need, at least ten per cent of the existing number of houses require the need for reconstruction or replacement, to stand up to the changing tastes of youth who inherit the elder generation's homes. These two factors are considered to be favourable to the growth and sustenance of Realty Sector and constitute the mainstay of Real Estate Business demand structure.

The second factor makes very little demand for additional space. It creates only demand for construction activity. Old buildings are extended within existing land area or demolished and built vertically with more space added through the means of enhanced FSI.

Obviously the need of the increased population for housing units creates demand for new land for construction. But the availability of land for new construction has been shrinking over the past few decades, which forces the Governments to enhance the Floor Space Index for construction in many major urban areas. To add to this unavoidable phenomenon, Governments both at State and Central levels have been voraciously gobbling up all available lands under the pretext of Economic Development and Industrialization.

In the fond desire of generating sustainable employment State Industrial Development Corporations and others of the kind have taken away vast tracts of land out of the market, for preferential allotment to Industries. In spite of such supportive measures, an unconscionably high number of industrial units are today lying sick, with the land and other resources invested in them becoming unproductive. In addition, a high percentage of the developed industrial plots are lying unsold with the corporations. If the prescribed price of the plots for allotment of these plots, one will be wondering why these plots are remaining unsold.

Even with a conservative estimation, it could be said that thousands of hectares of developed industrial plots in most States are lying unsold, despite the fact of ridiculously low prices at which these are proposed to be sold.

There is something that does not meet the naked eye behind this queer phenomenon.  There is a strong case for moratorium on further acquisition of land for industrialization until all the idle plots are allotted to deserving units.

Then we are witnessing there are the lands acquired for Special Economic Zones and Port Development. The special economic zones have run into a total failure. Everywhere there are erupting agitations against new land acquisitions. Cumulatively, all these factors join together effecting in the reduction of land available for the growth of new construction on the housing sector. Some serious steps need to be taken to address concerns of the citizens about land for their essential housing needs, which remain one of the three basic requirements for any human being.

The practical measures as mentioned above could well create a favourable situation of easing out the problem of land availability for new construction. The Policy makers while examining and formulating policy options, should keep in their minds the interests of the small dealers and facilitators. Adequate reserve land should be kept for the expanding growth of housing units which has to match the increasing population. This will forestall the future problems.

Property Registration

An Article about "Transfer of Property by a Co-owner"

Transfer of Property by a Co-owner

The term property in common parlance indicates the economic status of a person. Any property is held by an individual to draw out benefit from it. Transfers are made by owners themselves, ostensible owners and the co-owners and the co-owners or we can say joint owners. When two or more persons enjoy common ownership of a property, for example say in a coparcenary the male members and now even daughters have a common and  equal interest in the ancestral property, any co-owner can transfer his own share in the property to a stranger or another co-owner. And that transferee steps in the shoes of the co-owner (transferor) and gets clothed with all his assets and liabilities. We can say that the transferee becomes the co-owner.

Section  44  Says

Transfer by one Co-owner- Where one of two or more co-owners of immovable property legally competent in that behalf transfers his share of such property or any interest therein, the transferee acquires, as to such share or interest, so far as is necessary to give effect to the transfer, the transferor's right to joint possession or other common or part enjoyment of the property, and to enforce a partition of the same, but subject to the conditions and liabilities affecting , at the date of the transfer, the share of interest so transferred.

Where the transferee of a share of a dwelling house belonging to an undivided family is not a member of the family, nothing in this section shall be deemed to entitle him to joint possession or other common or part enjoyment of the house.
Who  is  a  Co-owner?

Ownership consists of innumerable number of claims, liberties, powers with regard to the thing owned. Ownership is of different kinds. There are absolute and limited, sole ownership, co-ownership, vested ownership, contingent ownership and corporeal. When a person owns a property in one time it is called sole ownership, but if the property is owned by more than one person then it is called joint ownership. By means of partition one can have co-ownership changed into sole ownership.

The expression co-owner is wide enough to include all kinds of ownerships such as joint tenancy, Tenancy in common, Coparcenary, membership of undivided Hindu family, Joint purchase of property etc. The very fact of the reference to the property that the parties have certain shares, indicates that they are co-owners.

In Indian Law, a co-owner is entitled to three essentials of ownership-
1) Right to possession,
2) Right to enjoy,
3) Right to dispose 

Therefore, if a co-owner is deprived of his property, he has a right to be put back in possession. Such a co-owner has an interest in every portion of the property and has a right irrespective of his quantity of share, to be in possession jointly with others. This is also called joint-ownership.

The following are the types of co-ownerships:

Tenants  in  Common

When the type of co-ownership is not specifically stated, by default a tenancy in common is likely to exist. Each tenant in common has a separate fractional interest in the entire property. Although each tenant in common has a separate interest in the property, each may possess and use the whole property. Tenants in common may hold unequal interest in the property, but the interests held by each tenant in common is a fractional interest in the entire property. For e.g. B owns a 25% interest in the property and A owns a 75% interest. Each tenant in common may freely transfer his/her interest in the property. Tenants in common do not have the right to survivorship. Therefore, upon the death of one tenant in common, his/her interest passes via Will or through the laws of intestacy to another person who will then become a tenant in common with the surviving co-owners.

Joint  Tenancy

The most attractive feature of joint tenancy is the right of survivorship. Upon the death of one joint tenant, his/her interest immediately passes to the surviving joint tenants and not to the decedents estate. Joint tenants hold a single unified interest in the entire property. Each joint tenant must have equal shares in the property. For e.g. B and A hold a 50% interest. Each joint tenant may occupy the entire property subject only to the rights of the other joint tenants.

Unlike tenants in common, joint tenancy has several requirements that must be met in order to be properly created. Massachusetts law requires that in order for a joint tenancy to be created specific language must be included in the conveyance or devise.  Such language includes that the grantees take the land: “jointly”, “as joint tenants”, “in joint tenancy”, “to them and the survivor of them”, or using other language in the instrument that it was clearly intended to create an estate in joint tenancy. However, even if such language is contained in the conveying instrument, a joint tenancy may not exist. There are four additional common law requirements necessary in order to create a joint tenancy.

The four unities are,

1)  Unity  of  Time
The interests of the joint tenants must vest at the same time.

2)  Unity  of  Possession
The joint tenants must have undivided interests in the whole property, not divided interests in separate parts.

3)  Unity  of  Title 

The joint tenants must derive their interest by the same instrument (e.g. a Deed or Will)

4)  Unity  of  Interest

Each joint tenant must have estates of the same type and same duration. All four unities must exist. If one unity is missing at any time during the joint tenancy, the type of co-ownership automatically changes to a tenancy in common. A joint tenancy may be created by a Will or Deed but may never be created by intestacy because there has to be an instrument expressing joint tenancy. A joint tenancy is freely transferable.

Tenancy  by  the  Entirety

This type of co-ownership is exclusively for husband and wife. Similar to joint tenancy, tenancy by the entirety provides the right of survivorship. To exist, tenancy by the entirety requires that the four unities of joint tenancy exist plus a fifth unity of marriage between the two co-owners. However, even if all five unities exist, the type of co-ownership may still be joint tenancy if the conveying instrument indicates such. Unlike joint tenancy, tenancy by the entirety does not allow one spouse to convey his interest to a third party. However, one spouse may convey his/her interest to the other spouse. A tenancy by the entirety may only be terminated by divorce, death, or mutual agreement by both spouses. A terminated tenancy by the entirety becomes a tenancy in common.               

In Konchunju Nair v. Koshy Alexander it was held that if a co-owner wants to erect a dwelling house on the land he is free to do so. If division of co-ownership of property takes place, the co-owner can claim, that the said property be allotted to his share. The Court would ordinarily grant such an equitable right.

When is a co-owner legally competent to make a transfer?

Section 7 of the Transfer of Property Act, 1882 provides that every person competent to contract i.e. a major and of sound mind or is not disqualified by law for contracting. Therefore even the interest of a co-owner or co-sharer can be sold, mortgaged, leased to another co-sharer or to a stranger. The fact that the partition has not taken place by metes and  bounds, does not stand in the way of the interest of a co-owner.

According to the law prevailing in some areas, a coparcener of a Hindu Joint Family can alienate his share in the Joint Family Property for consideration. Such a coparcener is  a  legally competent person. But in some cases of Mitakshara coparcenary, the consent of other coparceners is required before any such transfer. Also where one co-owner is in exclusive possession of a plot of a joint land and lets it out to a tenant without the consent of other co-sharer landlords, such a tenancy will not bind the latter. The lease in such a case will only be confined to the interest and share of the lessor.

In Baldev Singh v. Darshani Devi it was held by the Court that a co-owner who is not in actual physical possession over a parcel of land cannot transfer a valid title of that portion of the property. The remedy available to the transferee would be to get a share out from the property allotted after the partition or to get a decree for joint possession or can claim compensation from the co-owner.
In Rukmini and others v. H.N.T.Chettiar it was held by the High Court of Madras that a co-sharer cannot be allowed to cause prejudice to the other co-sharers by putting up a substantial construction during the pendency of a suit for partition filed by the other co-sharers.

The High court of Punjab and Haryana in a case of Hazara Singh v. Faqiria  where a co-owner contended that he had, by adverse possession, a peaceful undisturbed possession by the other co-owners had become the sole owner of a land, held that the possession of a co-owner is possession of all the co-owners. It cannot be adverse to them unless there is a denial of their right to knowledge by the person in possession. If a co-sharer is in possession of the entire property, his possession cannot be deemed to be adverse he possesses the property on behalf of all others.  

What  are  the  rights  of  a transferee  in  such  a  transaction?

Basically this section deals with the rights of a transferee and also safeguards their rights. The transferee steps into the shoes of his transferor i.e. the co-owner, and is clothed with all the rights and becomes subject to all the liabilities of his transferor. In short, we can say that he becomes as much a co-owner as his transferor was before the transfer. 

Following are his rights after the transfer-Right  to  Joint  Possession
Every joint owner or co-owner of property has a proprietary right in the whole estate. After the transfer, the transferee becomes the co-owner and gets all his rights. He also has the right to joint possession in property except a dwelling house. If a co-owner or his transferee ousted from joint possession, he is entitled to joint possession by a suit, and is not necessary forced to sue for partition. A co-sharer can sue for possession either for the benefit of the entire body of co-sharers or for the partition and possession of the plaintiffs share.

Property Registration

Valid Transfer of Property Rights by a Seller

Valid Transfer of Property Rights by a Seller

Marketability of Title is the condition precedent for sale of any immovable property. Under Section 55(1) (a) of the Transfer of Property Act, the seller is bound to disclose any material defect in the property or title and to produce all the documents of title to answer the requisitions on title made by the purchaser.  Under Section 55(2) of the aforesaid Act, the Vendor is deemed to warranty the title or the right to sell. 

Marketable Title:

The statutory covenant of title is implied in every contract for sale of an immovable property, even if there is no express clause embodying such a warranty. The term “Marketable Title” refers to absolute right, title, interest and ownership of the Vendor to convey the property without any hindrance. 

In other words, the title is considered to be marketable if the same is free from encumbrances, claims and beyond reasonable doubts. Thus, if there is any encumbrance or claims and the vendor does not discharge it, the title cannot be said to be marketable.

In fact, Section 55   (1)  of the Transfer of Property Act envisages that if the property is sold subject to any encumbrances or claims, it should be so clearly stated and the Vendor will be under obligation to discharge any such encumbrances existing at the time of sale on the property. 

On the other hand, if any encumbrance is found to exist and the same is not revealed before completion of sale, then the Vendor is bound to pay for the same or indemnify the purchaser in that behalf.

The primary duty lies on the person intending to sell the property to prove that title of the property is free from any defects and any subsequent transfer will not make such transaction either void or voidable.

For example, if the vendor owns a property as Kartha of the Joint Hindu Family in which minor’s rights and interests are involved, the Kartha is bound to prove the legal necessity for sale or to obtain an order from the competent Court seeking permission to the property on behalf of the minors. 

Restrictions on title:

Implied warranty of title on the part of the Vendor, although absolute, will not however apply to cases where there is a clear contract between the parties to the contrary. 

Such a contract can be either express or implied, but the contract must be such as would clearly negate the warranty of title. 

Thus, certain restrictions are imposed on the purchaser’s right to examine the title in full, which is done when the Vendor is not sure of making out a marketable title, particularly when the Vendor is not in possession of the property. 

Though, the restrictions may be contrary to the provisions under Section 55 of the Transfer of Property Act, the same will be binding on both the parties by virtue of mutual agreement and understandings and even if defect in the title is found subsequently, objections in this regard cannot be raised due to such restrictions.

Where the Vendor stipulated that the property would be conveyed as he has received the same from his predecessor or that the title of the Vendor has to be accepted without dispute or that it should not be enquired into and the Purchaser is bound to accept the title of the Vendor as it appears to be, such a stipulation would be contrary to the contract and Section 55(1) (c) and (2) of the Transfer of property Act will not apply. Further, such a condition will not relieve the Vendor from the obligation of making out the best title though the purchaser would be bound by such condition even if the title is proved to be defective. 

However, in absence of such a contract to the contrary, the Vendor is bound to remove all the defects even if the purchaser was aware of the same. Again an express covenant does not, in clear and unambiguous terms supersede the implied covenant.

Thus, by virtue of Section 55(2) of the Transfer of Property Act, the purchaser can rest his claim on the implied covenant of title contained therein.

Conditions restricting the title or proof of title to which the purchaser is entitled must neither state nor suggest things which, to the Vendor’s knowledge, are incorrect. The condition will not be binding if it requires the purchaser to assume that what the vendor knows to be false or it affirms that the state of title is not accurately known to the vendor when, in fact, it is known.

Production and Scrutiny :

In order to examine the title of the Vendor, the purchaser has to examine all the relevant title deeds in the possession or power of the Vendor.  Under Section 55(1) (b) of Transfer of Property Act, the Vendor is under an obligation to produce not only those documents in his possession but also in his power to produce. 

Thus, if the Vendor has deposited the title deeds with a mortgagee, the Vendor has to produce such documents for inspection of the purchaser through mortgagee. However the Vendor is not under an obligation to produce irrelevant documents not in his possession or power but it is the discretion of the purchaser to inspect the same at his own  cost.

It is only after production of all the relevant title deeds, assistance of advocates having sufficient experience in the scrutiny of the title documents will help the purchaser to conclude whether the Vendor has got marketable title or not.

When the property market is favorable to the Vendor, the Vendor, many  times, dictates the terms and tries to foist a title on the purchaser.

Adhere to the norms

Under any contract of transfer, fundamental principles of Transfer of Property Act must be strictly adhered by the parties, without letting out either of the parties to escape from their respective obligations, which will reduce litigations and ensure transfer of marketable title from the vendor to the purchaser, free from encumbrances, liens, claims, etc. When a faulty title is passed on to the purchaser, it is bound to result in the spate of claims and litigations. 

Purchasing the property involves various steps such as scrutiny of title deeds, verification of documents, executing the deed of Agreement to sell, making  payment as agreed between the Vendor and the Purchaser and transfer of ownership and title deeds  in the name of the Purchaser by executing Sale Deed. 

It is not advisable to purchase a property hastily by approaching the brokers and subsequently entangling oneself into litigations in case of any defective title.
Ownership and right over the property has to be passed on in compliance of the provisions as envisaged under law for which services of Advocates having sufficient experience and knowledge in property transactions is necessary to avoid litigations that are likely to arise in future.

Property Registration

An Article about "Ownership of Immovable Property"

Ownership of Immovable Property

 

 

Before understanding the  terminology of 'Ownership of Immovable Property' it is necessary to understand what an immovable property is. In common parlance immovable property means land, buildings and  things which are  permanently attached to the land.

 According to Section 2(gg) of the Karnataka Stamp Act,1957 “immovable property” includes land, buildings, right to ways, air rights, development rights, whether transferable or not, benefits to arise out of land and things attached to the earth or permanently fastened to anything attached to the earth. The Transfer of Property Act, 1882, does not define the word 'immovable property' in detail, but only mentions that immovable property does not include standing timber, growing crops or grass.  According to the Karnataka General Clauses Act, 1899 immovable property shall include land, benefits to arise out of the land and things attached to the earth or permanently fastened to anything attached to the earth.  The words “attached to the earth” has been elaborately described in Sec.3 of the Transfer of Property Act.  According to this section, attached to the earth means --

1.    Rooted in the earth as in case of trees and shrubs;

2.    Imbedded in the earth as in case of walls or buildings or

3.     Attached to what is so imbedded for permanent beneficial enjoyment of that to which it is attached.

Ownership

Let us now understand something about ownership. Ownership can be broadly classified into two absolute ownership and restrictive ownership.  The ownership is an amalgam of rights, interest and title which is recognised  under law.  The word absolute ownership is a bundle of rights connected to some specified property. The word right has a wide meaning.  It gives powers to the person said to have rights to do something or  act, or not to do such thing or act, in relation to his property.  Rights are of different types such as Right in Rem, Right in Personam etc. “Right in Rem”.  is available against the whole world while the “Right in Personam”, is available against a specified person, or group or group of persons.  The owner of any property has a legal right which is recognised under  the laws of the land.  It consists of following rights which are only illustrative and not exhaustive:

1.   Right of Possession and occupation.

2.   Right to use and enjoy his property without undue interference of outsiders.

3.  Right of alienation of his property as provided under law in favour of any person's without any restrictions  by way of sale, gift, transfer by Will, and by creation of trust.

4.  Right to make alteration to the property/structure, consume, destroy, repair, reconstruct, hypothecate, mortgage, lease and to use the property as security to borrow funds.

These  rights are  rights in rem available against the whole world subject to the restrictions imposed under various laws like Land Reforms Act, Land Revenue Act, Town Planning Act etc.

Restrictive  Ownership

Apart from absolute ownership, there are other types of ownerships which are restrictive in nature.  In restrictive ownership, certain rights detailed under absolute ownership are restricted or not available for certain specified period.

Co-ownership

Under co-ownership, there will be more than one person who  jointly own the same property.  Both the persons have equal or certain percentage of rights to possess and enjoy the property as agreed to between them.  In the case of co-ownership, the owners  own the whole property jointly and thereby their respective shares are not physically ascertainable with definite measurement and  boundaries.  The shares are undivided.  For example, in  case four persons own a property of 1200 sft, each of them  would be entitled to 300 sft.of undivided share in this property. This 300 sft of undivided share of property could be  any part of the building/property and cannot be confined to a specific part.  Share of the co-owners in the property need not necessarily be equal.  It depends on their investment in the property as detailed in the purchase document.  In the absence of any such details as to the share of investment made for acquisition of property it is presumed in law, that all the co-owners have equal undivided share of interest, right and title in the property as per section 45 of Transfer of Property Act. It is always advisable to clearly mention the share of investment of each co-owner in the property and their undivided share in right, interest, title in the property for the purpose of alienation, inheritance and taxation.The Co-owners share in the property is inheritable and  transferable.  The concept of this co-ownership is often termed as “Tenants in common” in legal parlance. Practically, it is not possible to identify or divide a  property held jointly  by metes and bounds. Thus, the co-owners possess and enjoy the property in unison.

Dual  Ownership

Many owners of land, lease the property to others on long lease.  The terms of lease also gives right to the lessee to construct buildings and enjoy the benefits of such buildings on leased lands.  This practice has led to dual ownership of land and building.  The land is owned by one person and the structures thereon is owned by another person.  The terms of lease also stipulate whether the ownership of the building will get transferred to the lessor or the owner of the land free of cost on expiration of the lease period or has to pay for acquisition of such structures.  The Income Tax Act recognises the dual ownership concept and the owner of the building is taxed for the income received from the property.

Ownership  by  part  performance

In sale and purchase of immovable property, the parties generally enter into a sale agreement detailing the terms of contract and registration of the sale deed is done later, on performance of duties by the parties as detailed in sale agreement.  At times the seller receives major portion of consideration and hands over vacant possession of the property to the purchaser pending registration of sale deed.  This is called part performance.  The purchaser / transferee who is in possession of property gets equitable title over the property.  This is recognised under section 53 A of the Transfer of Property Act.  Even in the absence of registered sale deed and though legal title is not conferred on the purchaser / transferee, the rights of the purchaser / transferee is secured against the seller or any person claiming through the seller.  The only remedy available to the seller is to file a suit for payment of balance of sale consideration.  The requirements of part performance as detailed in Section 53A are as follows;

1. There must be a contract like sale agreement, etc., in writing containing  details of the contract including handing over of the vacant possession of the property to the purchaser.

2. The contract shall be for transfer of immovable property for consideration.

3. After the contract is entered into the seller has put the purchaser in possession of the property and the purchaser has taken the possession of the property in part performance as per the terms of contract.

4. The purchaser has done something in pursuance of the contract like payment of consideration or has performed or is willing to perform his part of contract.

However, this equitable right derived from part performance is available only against seller or anybody claiming under or through the seller.  But the provisions of this section do not affect the rights of a person who has  purchased the property for valuable consideration and who has no notice of prior  contract or part performance.  Equitable rights of transfer under  part performance are  recognized under the Income Tax Act 1961.

Interest

The other most frequently used word in property transaction is “interest”.  It is a right available against the entire world, when it is related to some property, land, building, immovable and movable.  The interest may be vested, contingent or absolute.

Vested interest is an interest in property enforceable by a person at present or on a future date linked to happening of certain specified event whereas the contingent interest is an interest available only on a future date and not at present, which is subject to happening of some uncertain event.  In vested interest the happening of the event is certain, whereas in contingent interest it is uncertain.  Hence it is contingent.  As the interest is contingent, it is not transferable or inheritable.  But on the happening of such uncertain event, the contingent interest becomes vested interest, when it is transferable and inheritable.

Title

The word title which an owner has over the property is a legal right. The title has to be established with documentary evidence.   The title is  transferable and inheritable. From the documents of title you will come to know who is the owner of the property and if the documents of title are defective even  the financial institutions will not advance for purchase or construction. 

Joint  Tenancy

This is different from Tenants in Common or Co-ownership.  In Co-ownership, the legal heirs succeed to the right and title of the deceased co-owner. In Joint tenancy, the other Joint owner succeeds to the right of the deceased joint owner and not his legal heirs.  This concept is not in practice in India, unless specifically made in certain documents.  In the absence of any such specific reference, the court presumes the ownership as 'Tenants in common' and legal heirs succeed to the share of the deceased joint owner.

Knowledge of the type of ownership of  the property you own would help you immensely in your possession and enjoyment of the  property.

Property Registration

An Article about "PUBLIC NOTICE BEFORE PURCHASE OF PROPERTY"

PUBLIC NOTICE BEFORE PURCHASE OF PROPERTY

 

It is not uncommon that we do come across publication of notices in news papers concerning the property transactions. The reason for such publication is to make known to all concerned that a particular property is under process of purchase by the advertiser and to give an opportunity to the affected party to raise objections, if any, against such purchase.

For peaceful possession and enjoyment of the property the purchaser has to exercise proper care and diligence to ensure that property purchased by him is free from encumbrances, charge and litigation. Any laxity on the part of purchaser to conclusively find out as to whether the vendor has good and marketable title and the property is free from encumbrance would land the pur-chaser   not   only   in   uncalled  for litigations  but  also financial strain.

Public Notice

At the outset, it may stated that issuance of Public Notice in respect of purchase of an immovable property is not a statutory requirement. There is no hard and fast rule as to the procedure  an intending purchaser has to adopt to  find out whether the vendor has a valid and marketable title and the property is free from encumbrance. The charge or encumbrance created under an unregistered document on the property cannot be discovered from the documents obtainable from the registering or municipal authorities. Charge created by deposit of title deeds, pending court cases or transfer of property under a will would fall into this category. To protect the interests of the purchaser upon purchase of the property and to avoid litigations, normally public notices are taken out in leading and widely circulated news papers notifying the intention of the purchaser to purchase the property in question so that the persons who have a vested interest in the property could put forth their objections for such sale sup¬ported by documentary proof. Such notices are generally published immediately after entering into a sale agreement with the vendor in two dailies, one in English language daily and other in a vernacular language daily which have wide circulation in the area where property is situated. The notice acts as an intimation or

Information or a caution to all the concerned to facilitate them to take such steps as are necessary to protect their interest.

A notice shall contain the intention of the purchaser, description of the property with boundaries and the fact of execution of the sale agreement, if any. The notice invites the public having interest in the property to file objections along with documentary proof within a stipulated time. The notice shall also indicate that in case no objections are received within the stipulated time, the sale process will proceed with treating the property as unencumbered with a clear rider clause that objections received after the stipulated time will not be acted upon. The notice must spell out in clear terms the intention of the party with no ambiguity whatsoever.

It is to be noted that issuance of Public Notice can at best be termed as a precautionary step since it has no binding force on any one having interest in the property to act in a particular manner. The interested party may not act swiftly in terms of the notice and enforce his right over the property at an opportune time. Further, there is every likelihood that the Public Notice may go unnoticed by the affected party. However, the public notice would serve as intimation to the public that the purchaser has a bona fide interest in the property and the interested parties can file objections, if any, for the said sale transaction. The purchaser in his own interest has to get the objections scrutinized by an experienced advocate having knowledge in property matters so that he can avoid the likely litigations and embarrass¬ment at a later date after the purchase.

Section 55(1) of the Transfer of Property Act, 1882 makes it mandatory that the seller is bound to disclose to the buyer any material defect in the property or in the seller's title thereto, which the seller is and the purchase is not aware and the buyer could not with ordinary care discover such defect. But, the seller for obvious reasons may not truly disclose all the defects in the property or in his title. Therefore, it is advisable that the purchaser of the property should verify and make search of all the relevant documents and exhaust all the avenues available to him to find out that the property under consideration is free from encumbrance and the vendor has a good and marketable title.

Deemed Notice

The Transfer of Property Act, 1882 puts some onus on the purchaser and in certain cases the purchaser is deemed to have notice of encumbrances. Section 3 of Transfer of Property Act defines "Notice". A person is said to have notice of a fact, when he actually knows the fact, or when, but for willful abstention from an enquiry or search which he ought to have made, or gross negligence, he would have known it. According to Explanation I to sec.3 where any transaction relating to immovable property is required by law to be registered and accordingly registered, any person acquiring such property or any part of or share or interest in the property shall be deemed to have notice of such instrument from the date of registration. 

The Explanation II to sec.3 stated that any person acquiring any immovable property or any share or interest in any such property shall be deemed to have notice of the title, if any, of any person who is for the time being in actual possession thereof. Further, Explanation III to sec.3 states that a person shall be deemed to have had notice of any fact if his agent acquires notice thereof whilst acting on his behalf in the course of business to which that fact is mate¬rial. Thus, notice could be classified into (1) Actual notice when a person has the knowledge of actual fact, (2) Constructive notice, where the information is available on proper enquiry and search, and (3) Notice to the agent of the purchaser, where the information is given to or received by the agent in the course of his ordinary duties, whether he communicates it to his principal or not. Notice to the active partner of a firm has the effect of notice of the firm.

Purchaser's Obligation

It is obligatory on the part of the purchaser to make sure that the vendor has a clear marketable title of the property and the property is free from encumbrance. Most of the encumbrances may be discovered by verification of records at jurisdictional sub-registrar's office and on verification of the documents. It is obligatory on the part of the purchaser to verify the title of the property as recorded in registers of jurisdictional sub-registrar's office. Registration of a document operates as notice and the actual possession of the property by a person other than the seller also operates as notice. Therefore, it would be safer that the purchaser shall visit the property to ascertain whether the property is in possession of the seller. In case the property is in possession of a person other than the vendor, it should be confirmed whether the occupant will vacate the property before registration and the vendor has every right to get the property vacated from its occupants since the Specific Relief Act 1963 recognizes the possession as a notice and there are instances where properties are leased, but lease deeds are not registered.

Though not a legal requirement, public notice regarding purchase of immovable property would immensely benefit the purchaser since the purchaser shall come to know as to whether there is any claimant over the property under consideration and if any objections to the transactions are received, the purchaser may request the vendor to sort out the issue before completing the sale transaction or in the alterna¬tive he may cancel the deal.

Property Registration

An Article about "CERSAI and its importance"

CERSAI and its importance

 The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is set up under section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). At the request of the Department of Financial Services, Ministry of Finance, the Indian Banks' Association has taken steps to obtain incorporation of the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) licensed under section 25 of the Companies Act, 1956. The said Company shall be maintaining and operating the Central Registry for and on behalf of the Central Government.

The Central Government has issued the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011 and prescribed the Forms to be used for the purpose of filing information for registration in respect of transactions of securitization, asset reconstruction of financial assets and security interest over property. The Forms prescribed by the Central Government for registration are as under:

FORM I - For Creation and modification of Charge.

FORM II - For particulars of Satisfaction of Charge.

FORM III - For Securitisation or Reconstruction of Financial Assets.

FORM IV - For Satisfaction of Securitisation or Reconstruction of Financial Assets.

It may be observed from Form I relating to creation and modification of charge that it is restricted to charge on immovable property by way of mortgage by deposit of title deeds. At present, the Government has not prescribed any forms for other categories of charges on immovable properties and movable properties. The Registration System will therefore initially operate for registration of mortgage by deposit of title deeds as also for transactions of securitization and asset reconstruction under the provisions of the SARFAESI Act. 

Attention of the banks and financial institutions as well as the borrowers of the banks is invited to sub-section (4) of section 20 of the SARFAESI Act which reads as under:

The provisions of this Act pertaining to the Central Registry shall be in addition to and not in derogation of any of the provisions contained in the Registration Act, 1908 (16of 1908), the Companies Act, 1956 (1 of 1956), the Merchant Shipping Act, 1958 (44 of 1958), the Patents Act, 1970 (39 of 1970), the Motor Vehicles Act, 1988 (59 of 1988) and the Designs Act, 2000 (16 of 2000) or any other law requiring registration of charges and shall not affect the priority of charges or validity thereof under those Acts or laws."

In view of this provision contained in sub-section (4) of section 20 of the SARFAESI Act, the validity of the charges created or the priority of various claimants in respect of the property mortgaged or charged shall not be determined by the provisions of the SARFAESI Act. It may also be noted that Registration of security interest is not a condition precedent for the purpose of exercise of rights of enforcement of securities conferred on the banks and financial institutions under section 13 of the SARFAESI Act.

The object of setting up the Registration System under Chapter IV of the SARFAESI Act is to create a public data base about encumbrances created on properties to secure loans and advances given by the banks and financial institutions, as also transactions of securitization or asset reconstruction undertaken pursuant to the provisions of the SARFAESI Act. As the provisions of SARFAESI Act now stand following transactions are not covered by the Central Registry system. 

•    Securitisation or asset reconstruction done outside the provisions of the SARFAESI Act ; or
•    Security interest created in favour of any lender not included in the definition of "bank" (section 2(1) (c) or financial institution (section 2(1)(m)) of the SARFAESI Act.

It may also be noted that the Rules notified by the Government in the Official Gazette shall be effective from the date of publication of the Rules in the Gazette. The requirement of registration under section 20 of the SARFAESI Act is therefore applicable to all mortgages of property by deposit of title deeds created on and after the date of publication of the Rules in the Official Gazette.
Pending amendments to the SARFAESI Act, extending the Registration System to existing mortgages to secure the loans mortgaged prior to the date of notification, the Registration System will cover only mortgages by deposit of title deeds created on or after the publication of notification. 

The records of the Central Registry shall be maintained in computer compact disks (CDs) or any other forms as provided under the provisions of the SARFAESI Act.

Any person interested in search of the records of the Registry shall be entitled to do so by payment of fees prescribed by the Rules through any bank or financial institution or any other intermediaries authorized by the Central Registry.

Property Registration

An Article Regarding '“BROCHURES” AS A PART OF THE AGREEMENT'

“BROCHURES” AS A PART OF THE AGREEMENT

The Bombay High Court ruling treating brochures as a part of the Agreement will bring in greater transparency in the real estate industry, reports Yogesh Sadhwani.

Developers who over-promise and under-deliver better beware.  According to a recent Bombay High Court ruling developers will now have to actually deliver on all the fancy promises they make in their marketing literature.

In his land mark judgment passed on March 16, Justice K.J. Rohee of the Bombay High Court ruled that though the brochure printed and circulated by a developer was not part of the agreement, but can be so treated Justice Rhohee was hearing two petitions one filed by the residents of Maduvihar Co-operative Housing Society (CHS) against the developers, M/s. Jayantilala Investments and BMC and another filed by the developers against the residents.  Both the cases dealt with construction of an additional building on the plot that was earlier depicted as open space and recreations area in the brochures.

While the residents contended that the additional building couldn’t come up on the plot as it was shown as open space in the brochures while selling flats in Madhuvihar, the developers said that they were within their rights to do so.

After hearing both the sides, Justice Rohee passed the Judgment in favour of residents.  He not only asked the developers to convey the entire property in favour of the housing society but also restrained them from constructing anything on the vacant plot.  The vacant space depicted by the developers in the brochures played a vital role. 

The buyers have lauded this Judgment, while the developers say that only a small section of players who do not believe in delivering what they promise will be affected.

Advocate and Consumer activist Hemang Jariwala says, “While booking the flat, the buyers are show a rosy picture,.  It is only when they sign the agreement, by which time they have paid a huge chunk of the consideration, they come to know that several amenities shown in the brochure has been deleted.  A buyer has no way to back out.  With the HC Judgment, however, the developers will no longer be able to take unsuspecting buyers for a ride.”

The real estate players, however, point out that only a handful of developers would be affected by the judgment. “Many time brochures are not indicative or reflective of the reality.  This would affect only a few people.  I don’t think the majority will be affected,” says Nirajna Hiranandani, MD, Hiranandani Constructions Pvt. Ltd.

Mukesh Patel, Knowledge Worker, Neelkanth Group says, “Whether it is a promise made in a brochure or an agreement, a commitment is commitment and all reputed developers would live by them.  But at the same there should be some flexibility, especially in terms of large layouts.”

Other believes that alterations in plans are not done deliberately. “The reason why most alterations take place is because there are changes in the FSI norms and the developers obviously want to maximise their profits.

There are times when the developers have to alter the designs of the originally planned buildings to cater to certain class of people. In such cases if there is additional FSI left, they construct more later,” justifies Suresh Haware, Haware Engineers and Developers Pvt. Ltd.  He quickly adds that a handful of developers however, however, blatantly abuse the trust that the buyers repose in them.

Haware says that any sensible developer who is conscious of his image and wants to remain in business, will never deviate drastically from his initial plans or break his promise.  “It is only a few who have tarnished the image of the community”, he says.

Similarly Savio D’Mello, Group Head of Ekta Supreme Housing, points out that brochures are printed on the basis of visual effect.  “The exact dimensions are never mentioned.  Moreover, all depends on sanctions from the civic body.  All genuine developers deliver what they promise and at the same time keep their own profitability in mind,” he says.

All the developers, however, admit from now on even the reputed ones, who never intend to dupe the buyers will have to exercise extra caution while designing brochures.  Giving real estate an industry status and designing a code of conduct is another way to put an end to such problems and bring in greater transparency, concludes Haware.

Property Registration

An Article Regarding "Agreement purchasable of stabile property"

Agreement purchasable of stabile property

Agreement purchasable could be a important document. it's a pre-requisite purchasable of stabile property. It records the understanding reached between the parties that is binding on each. the most ingredients of Agreement purchasable square measure thought, terms of sale, returning possession and rights of each the parties to enforce the agreement and penalty for not activity the contract. The agreement to sell additionally contains the acknowledgement by the vendor to the quantity that the vendee pays as advance.

The provisions of Transfer of  Property Act governs the method of sale of stabile property. when creating preliminary enquiries, the parties sit and discuss the worth and different terms and conditions and thenceforth these square measure incorporated within the Agreement purchasable. It contains clauses that protects the interest of each the parties   specially the vendee United Nations agency has compound with the cash.    

Many parties tend to avoid the agreement to sell and directly choose the sale deed however will prove terribly risky within the future. Agreement to sell is additionally needed to avail loan. while not the agreement to sell any of the parties could back out from activity their a part of the contract. {it could|it's going to|it should} happen that the seller may tend to convey the property to a different vendee with a far better sale thought even when the vendee is prepared with the sale thought and different formalities on tax and registration. equally even the vendee might also back out if he finds out  similar property for lesser price. If the agreement to sell contains any conditions that disagree from the rights and obligations of the vendor, vendee as provided within the T.P Act then , the terms that are in agreement in agreement to sell shall prevail over. If no such conditions are mentioned relating to the rights and obligation within the agreement then the provisions mentioned in T.P Act shall operate.

Having paid the advance quantity, (or) earnest, can the vendee has any charge or lien over the property for the amounts paid?

The T.P Act governs the rights and obligations of the vendor and vendee.

Rights of Associate in Nursing agreement Holder: 

Sec fifty four of the T.P Act deals with the sale of stabile property and also the vendee acquires the title and possession to the property as long as the transfer takes place in conformity with Sec fifty four.

Sec fifty four of T.P. Act states that “Sale however created  such transfer within the case of tangible stabile property of the worth of 1 hundred rupees and upwards is created solely by a registered instrument. Registration is mandatory in relation to a buying deal deed and also the vendee to amass title to the property and also the agreement to sell itself doesn't produce any charge or interest within the property.

In this reasonably scenario if the vendor refuses to transfer the property below agreement to sell then the queries that arise for thought are:

• Whether vendee below agreement to sell is entitled to solely damages or the stabile property as per agreement?

• If the vendee below agreement to sell is in possession of stabile property will he be disposed of stabile property?

Considering the primary question, Sec forty of Transfer of Property Act states that “Where a 3rd person is entitled to the good thing about an obligation arising out of contract and annexed to the possession of stabile property however not amounting to interest in that or easement on it, such right or obligation is also implemented against a transferee with notice therefrom. 

FOR EX; ‘A makes a contract with B whereby he sells a house to B. whereas the contract remains operative A sells a similar house to C United Nations agency already has the notice of the contract. during this case B will enforce the contract against C within the same method because it was enforceable against A. From this we discover that, the vendee with notice of a previous contract purchasable of a similar property is within the eye of the law could be a trustee of the potential vendee of previous agreement of the property  purchased. per the sec ninety one of the Trust Act, the following purchaser’s title with the information of the previous agreement relies upon the obligations contained within the agreement to sell. so the agreement holder has the proper to proceed against the vendee of the property United Nations agency had the information of the prevailing contract. Even below the sec 27(b) of the precise Relief Act, the vendee below agreement to sell is enabled to compel the following vendee to execute a buying deal deed in his favor.

The agreement to sell is also registered so as to induce a far better hold on the property to be purchased and a paper notification should be created to the final public to give notice a similar.

Purchaser in possession of the property:

For the second question as aforesaid earlier i.e., if the vendee below agreement to sell is in possession of the property, will he be homeless of the stabile property?

Sec fifty three of the T.P Act is applicable during this regard that provides that when:

a)    The vendor has in agreement to sell the stabile property for a thought

b)    Such agreement is in writing and signed by him.

c)    Prior to the execution and registration of sale deed the contract provides the vendee with the possession of the property

d)    in half performance of the contract, the vendor has place the vendee in possession of the property in agreement to be sold;

e)    the vendee in possession below the agreement continues to be in possession partly performance of the contract; provided the vendee has done some act in furtherance of the contract.

f)      the vendee below agreement has performed or is willing to perform his a part of the contract,

than the vendee encompasses a right to safeguard his possession of the stabile property below the agreement. the proper or title of the following vendee is subject to the previous agreement of sell United Nations agency purchased the property with notice of the previous agreement.

A person should be in possession of the property by virtue of a official document so as to avail this profit. someone should prove that he has taken the possession of the property {in half|partially|partly} performance of the contract and if he was already in possession he continues to be in such possession partly performance of the contract and had done some act in furtherance of the contract seeking protection below the ism of part performance and he should show that he's able to perform his a part of contract and in such cases the sole method for the vendor is to hunt for payment of balance of sale thought.

For Property Registration in Bangalore

An Article regarding "MAKE SURE YOU APPROUCH the proper AUTHORITY FOR REGISTRATION"

MAKE SURE YOU APPROUCH the proper AUTHORITY FOR REGISTRATION

Of late, individuals area unit very confused concerning the registration of transfer of properties. The registration method that was a sleek method heretofore, all of a fast has become terribly tedious job varied documents, approvals, orders, that weren't insisted upon earlier.  A document that's thought of as correct in one Sub-registrar’s workplace is rejected as not correct in another Sub-registrar’s workplace.  The Revenue department, the Department of the officer of Registration, the Commissioner of Stamps and every one the Sub-registrars area unit confused themselves and appear unable to guide the general public.

The state Government by notification RD/174/MUNOMV/2005 dated April twenty three, 2005 had declared the transfer of bound properties as hostile public policy and taught the registering authorities to not register the properties elaborated within the notification.  Further, the govt. of state elucidative bound points referred in its notification dated August twenty three, has solely combined the confusion, adding to the misery of the general public and also the stubborn registering authorities, resulting in the unnecessary  harassment of the general public.

The two details, that have affected registration area unit, the conversion of agricultural land to non-agricultural purpose and also the approval of layouts.  Agricultural land can't be used for the other purpose, unless it's born-again to non-agricultural purpose. underneath Section ninety five of the state Land Revenue Act, the govt. recently introduced a ‘Single Window’ system for conversion of land.

Apart from conversion of land, the layout ought to be approved by the involved authority. thenceforth the building too must be approved.  Generally, the Urban Development Authority within the district is that the approving authority for layouts.

But several layouts area unit approved by the town municipal councils, city municipal councils (TMCs), and village panchayats, that has junction rectifier to caliber development works, inflicting serious money burden on the native boards and also the resultant in-convenience to the individuals.  The conversion of land for any purpose apart from agricultural mustn't be in violation of the approved programme, CDP proposals.  As way as metropolis and surrounding area unitas are involved, there area unit varied designing authorities that approve layouts. every designing authority includes a such jurisdiction.

People ought to perceive that the metropolis town Corporation (BCC), the assorted town municipal councils, TMCs or the village panchayats don't have any authority to approve layouts that vest with the territorial designing Authorities. several issues have up due to the unauthorized and indiscriminate approval of layouts by these authorities, exposing the general public to hardships.

Approval of plans

Before we have a tendency to discuss designing authorities, we have a tendency to should perceive the powers of assorted native bodies just like the town companies, municipal councils, TMCs and village panchayats, to approve building plans.

Constructions area unit allowable solely on born-again lands and approved layouts.  Village Panchayats might approve building plans with ground and one structure among their territorial areas solely.  Gramathana sites have come back underneath strict scrutiny and plenty of council boards have senselessly issued Forms nine and ten and any approval of building plans on such gramathana sites need further precaution.  The gramathana sites will be known by touching on a village map at the Department of Survey and Settlement.

According to a replacement circular, such websites ought to be certified by the village comptroller intromission a rough sketch of the gramathana site indicating the precise location within the village map at the side of its boundaries.

If the gramathana website satisfies of these stipulations, the govt. won't enforce conversion, and also the village council might approve a building set up of ground and one floor on such sites.  However, it's terribly tough to spot real gramathana sites as lots of phony documents area unit in circulation. town municipal councils, TMC and also the BCC might approve building plans of ground - and – 3 floors solely.  Any building set up in far more than ground – and – one in village council areas and in far more than ground – and - 3 floors within the areas underneath the town companies and municipal councils desires approval from the city planning authorities.

Deemed conversion

As expressed earlier, layouts will be shaped solely on born-again lands.  The state judicature, in its Judgment in BDA V/s Vishwa Bharathi House Building Co-operative Society (1992(1) LJ 523B (DB) ILR 1991 KAR 440 (DB) has command that every one agricultural lands among the jurisdiction of a town corporation area unit deemed to be born-again.  But the

Government has processed that there's no such deemed conversion, however that the competent authority might grant a conversion order.

It is conjointly processed that although the betterment charges area unit paid to the involved federal agency, and also the Katha is issued by the federal agency, if such property comes underneath agricultural land earlier to payment of betterment charges, conversion of land to non-agricultural purpose is critical underneath the provisions of Section ninety five of the state Land Revenue Act (1964). underneath such circumstances payment of betterment charges and also the supply of the Katha isn't a conclusive proof of conversion.

Planning authorities

There area unit varied designing authorities licensed to approve layouts in and around metropolis.  They are;-> Bangalore Development Authority (BDA)-> Bangalore Metropolitan Regional Development Authority (BMRDA)-> Bangalore International airdrome designing Authority (BIAPA)-> Ramanagarm – Channpatna Urban Development Authority (RCUDA)-> Nelamangala designing Authority-> Magadi native designing Authority-> Kanakapura native designing Authority

-> Bangalore Mysore Infrastructure passageway designing Authority (BMICPA)

Each designing authority includes a such jurisdiction.  The jurisdiction of the BDA contains the realm underneath the BCC, close town municipal and city municipal councils and village panchayats.  All applications is also addressed  to the Commissioner, metropolis Development Authority, Kumarapark, metropolis -20.

The workplace of the BMRDA is found at the LRDE building, Ali Askar Road, Bangalore, and has its jurisdiction on metropolis urban and rural districts and Malur taluk within the Kolar district, except the areas lined underneath the BDA, BIAPA and alternative native designing authorities.

BIAPA conjointly has its workplace at the LRDE building, Ali Askar Road, Opposite to Palace Guttahalli, metropolis – fifty two, and has its jurisdiction over the planned new airdrome and its geographical area.  BMICPA includes a jurisdiction over the tiny space of concerning sixty five sq.kms comprising the Bangalore-Mysore lay to rest passageway space.

Other designing areas referred on top of have a jurisdiction over several cities and geographical area. designing areas underneath the BMRDA is extremely immense, however infrastructure on the market within the BMRDA isn't enough for fast disposal of approvals, inflicting a lot of delay.  In alternative cases, not referred on top of, the several urban development authorities just like the Shimoga Urban Development Authority, the Bellary Urban Development Authority etc., have the jurisdiction to approve the formation of layouts, if the lands area unit located in their geographical jurisdiction.  There area unit twenty seven urban development authorities within the State.

Apart from these urban designing authorities, if land is located within the areas underneath alternative designing authorities, the applications have to be compelled to be stated the Member Secretary of the involved designing authority.  There area unit forty two designing authorities within the state.

If properties area unit settled outside the jurisdiction of the BDA, BMRDA, BIAPA, BMICPA, urban development authorities and also the Member Secretary designing Authority, applications have to be compelled to be submitted to the Assistant Director, city planning.

Any development activity should be approved by these designing authorities as per the provisions of the assorted laws and also the native bodies don't have any authority to grant such permissions.

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Property Registration

An Article about "A GUIDE TO REGISTRATION NORMS'

A GUIDE TO REGISTRATION NORMS

Property consumers got to watch out before and once registration of property to avoid redundant hassles within the future. 

Purchase of immobile property includes varied steps, broadly speaking classified as pre-registration and post-registration activities. Post registration activities ar following the registration of Sale Deed. 

1. acquire original documents of title from the vendor and compare them with the copies, that the purchaser’s advocate ought to have scrutinized. If the advocate demand alternative original documents or certified copies, guarantee he gets such documents. it's continuously judicious to use for added copies of the Sale Deed. 

2. Register the applying for updated encumbrance certificate with the sub-registrar workplace on the day of registration itself. Such Encumbrance Certificate ought to contain the registration details of purchaser’s Sale Deed. 

3. The possession of the property is of significant importance. examine the property every day before registration. confirm that the property is as per the agreement to sell. As per the terms of the agreement, the vendor ought to fork up the vacant possession and therefore the buyer ought to receive all the keys of the property at the time of registration. 

In case of vacant sites, please place up a display with the wordings. “This property is owned  by ………………………. Trespassers are prosecuted”.  Fencing of such sites, although pricy, is preferred.  Periodical visits to the positioning ar a requirement to notice encroachment. 

The buyer ought to verify that each one the taxes, statutory payments in respect of the property as well as power and water charges ar paid up-to-date.
He should collect all the paid receipts and conjointly verify at the involved offices. Power and installation agencies collect deposits from the customers. buyer ought to collect such deposit receipts from the vendor. 

After registration of the sale deed, the buyer should make sure that the Khata within the records of the native bodies, Gram Panchayats or the town Corporation is transferred to his name.  

Both the vendor and buyer ought to sign the applying for transfer of Khata, that ought to be done at the same time whereas sign language the sale deed. this can be necessary to avoid any disputes and complications at a later date. punctually stuffed in Transfer of Khata application with a replica of the sale deed is to be filed with the Gram council / town Municipal workplace against acknowledgement. 

Local bodies transfer the Khata within the name of the buyer on collection a transfer fee, usually two %, on the taxation paid on Sale Deed and issue written confirmation of transfer within the name of the buyer. whereas transferring the Khata. native bodies, typically appraise the property and issue assessment notice within the name of the buyer. The tax paid receipt ought to be within the name of the owner. 

After the Municipal authorities transfer the Khata to the buyer, the meter and therefore the electric meter put in ar needed to be transferred. Verify the deposit and charges paid receipts rigorously, that ought to be within the name of the vendor. acquire a letter from the vendor self-addressed to the various authorities to transfer the meters, as well as the deposits paid within the name of the buyer. 

The buyer ought to, at once, apply too the power/water offer authorities to transfer the meters and therefore the deposits in his name. the first authorization letter of the vendor and a replica of the new Khata (in the name of the purchaser) ar to be boxed with the applying of transfer. The authorities can issue written confirmation of transfer and lift bills within the name of the buyer.
Obtain periodical Encumbrance Certificates a minimum of once a year, that ought to be a routine exercise. 

Power of professional

Power of professional suggests that the facility or authority given to an individual (agent) by a personal (principal) to act on his behalf or on behalf of a gaggle of people in business matters or the other matter. 

It plays an important role in transferring the lawful possession of immobile property like land, building, and water supply, from one person to a different. The one who holds the facility is named the facility of professional Holder. he's used by the principal to require care of his dealings with third persons.

    
A person competent to contract will execute an influence of professional.  He will appoint one person or many persons to act on his behalf. wherever many persons ar appointed as attorneys, it's judicious to say on however they're going to act – put together or severally. If this can be not mentioned, then they're at liberty to act put together.

Power of professional, usually speaking, is of 2 sorts.  Power of professional for one specific purpose is thought as “Special Power of Attorney” and therefore the one involving over one work or group action is named “General Power of Attorney”.

The length of special power of professional could also be for a specific amount or for associate degree indefinite amount till the task is completed.

A General Power of professional might still be in effect till it's revoked or by death of either party. A registered Power of professional are often revoked by a Cancellation Deed.

Though, in general, an influence of professional is reversible, it can not be done therefore in matters referring to debt security until the debt is cleared even supposing the somebody isn't alive. It are often revoked if the principal becomes of unsound mind or he's declared insolvent. It can not be revoked if it's created irreversible. but it ought to be registered by paying applicable taxation. Power of professional attracts varied provisions of The India Stamp Act, Powers of professional Act, Registration Act, The Indian Contract Act, and Indian partnership Act, and therefore the Indian proof Act.

A Power of professional is split into 10 classes per the taxation owed.

A Special Power of professional is given for a court case, for appointing one professional in situ of another, for assortment of debts and for admitting execution and a General Power of professional is given for marketing shares,  to execute a buying deal Deed, to arrange a layout and sell plots, to lift cash through mortgage of property, to recover rents and lots of alternative acts.

A Power of professional needn't be registered except within the case of associate degree immobile property is concerned. per the Registration Act, if an influence of professional offers power to gift documents for registration, then it should be dead before and genuine  by the Registrar or the Sub-Registrar. 

If the Registration Act isn't in effect at an area wherever the performing artist lives, then a Magistrate’s authentication is important. 

If the facility of professional is registered outside India a notary and Court choose, judge of that country, or Indian diplomat or Vice-Consul or a representative of Central Government should demonstrate it. 

A Power of professional is dead within the type of a written document usually within the person and begins either as “Know all men by these presents that I …….”  or “By the facility of professional I ……….. or “This Power of professional created and dead o this……………….”

After a short introduction, the operative half is brought in. Thereafter, the particular powers given to the person ar mentioned in separate paragraphs. once these a general clause is value-added empowering the professional to try and do such lawful acts and deeds, as he deems work and correct within the performance of his duties. 

It is the duty of the agent, the facility of professional holder, to act honestly and dependably on behalf of his principal, the giver. he's lawfully sure to perform the tasks per the needs of the principal. If the agent acts otherwise and therefore the principal suffers any loss, he should compensate the principal. he's sure to keep all accounts during a correct manner and turn out it to the principal and demand. an agent possessing authority to hold on business has authority to try and do each lawful factor necessary for the aim. Being a written document, an influence of professional should be strictly taken and understood. so special care should be taken whereas drafting General Power of professional.

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