BENEFITS OF SWITCH OVER OF HOUSING FINANCE

(Bangalore property, 2 bhk apartments, flats, lands,studio for sale in Bangalore)

In the present competitive world nobody is exception and in tune with this concept even the financial institutions which have been running after "further improvement of bottom line" of their financial statements also adopting every technique to lure the valued clientele including welcoming takeover of loans from its competitors.

Naturally, when there are signs of "even a small element of benefit" on switch over to other financier, the consumer/client will not have any sort of hesitation in grabbing the opportunity. The analysis also show that at times switching over from one lender to another, certainly there exists some sort of benefit and even at times may be a most economical loan option.

A study on "home loans" reveal that, the tenure of repayment being long, in as much as ranging from 5 years to 20 years, it is certain that the market conditions are likely to fluctuate leaving impact on the consumer on certain areas like -interest rates, repayment options, penal charges etc. Hence, the prudent customer after taking into consideration these factors shall avail the opportunity of switch over to such financier, in order to reap the benefits.

Broadly, switching denotes changing in terms & conditions of the loan by either opting for another scheme or changing the financier itself. While doing so, one should bear in mind that it entails some sort of expenses to be borne which one should weigh against the benefits that may accrue on such switch

Applicability of interest rate:

Broadly the interest rates are of two types i.e., "Fixed" or "Floating". The customer has to choose either of the above at the time of a ailment of housing loan itself, which shall remain for the entire tenure of repayment. In the process, if the interest rates are decreased, the customer who opted for "fixed" rate of interest may tend to start thinking of availing the other method of "floating" rate of interest. On the other hand, the customer who opted for "floating" rate of interest shall be worried on every occasion whenever there is an increase in rate of interest and start thinking about "fixed" interest scheme. So, ultimate weighing of benefit should be worked out in the backdrop of fact that there remains a certain cost benefit in switch over, if not immediately but at least in long run.

In order to ensure that customers shall remain with them, many financial institutions are allowing their customers to switch schemes on the payment of a processing fee of half to one percent of the outstanding principal. Anyhow while some lenders do not allow switches from variable to fixed rate schemes, some others restrict the number of switches over the tenure of the loan. In such cases, the option open is considering switch over to another lender, especially when the prevailing market rate is more than two percent lower than the rate on the housing loan. However, it should also be considered whether it is a long term trend or a short term phenomenon before going in for the switch over.

Suitable repayment options:

More beneficial and innovative schemes are appearing in the housing loan market, as it grows and develops. To benefit and suit various classes of borrowers, the repayment options are being customized. The stepped up repayment plans allow one to start with lower EMI payments and increase them as one's income increases over the years. In stepped down repayment schemes, one pays larger EMIs at the beginning of the term, decreasing the payments as the financial burdens increase. Hybrid loans partially hedge against market rate fluctuations by dividing the principal into fixed and variable rate portions. Account linked loans permit one to benefit from regular credits into the account by linking the principal to the balance to the account. Better schemes make one consider switching across schemes or across lenders. In some of the above cases, the quantitative benefits may be smaller or difficult to judge, but one may be more with hedging one's risks or taking a stepped down repayment plan. In such cases, taking a wise decision based on personal requirements would be very prudent.

Overhead expenses:

When one decided on switching between lenders, it naturally entails closing the loan with the current lender and approaching a new lender for a fresh loan. But this attracts foreclosure charges (anything between 1 to 4 percent of outstanding principal) levied by the current lender and processing fees (between 0.50 to 1.00 percent) levied by the new lender. These costs must be weighed against the savings in EMI payments resulting from switching before going for the switch. This could be easily worked out by the lender, based on the outstanding principal and remaining term.

In addition to this, all the paper work with the new lender has to be completed, and the property documents have to be transferred. Though it is a procedure which demands planning and working out, it is well worth the additional effort.

Before switching, the market outlook and personal circumstances also need to be considered elaborately. For instance, one may be attracted towards switching to a fixed rate, if rates have been increasing in the short term and if the long-term trend is a decrease in market rates one may wish to reconsider.

Hence, so many factors are in for consideration before one decided for switching. But, it is absolutely important to monitor and manage the loan during its tenure to ensure that one avails the benefits accruing out from interest rate fluctuations or market developments.

For more details,

http://bangalore5.com

http://bangalore5.com/project_directory.php

HANDING OVER CHARGE OF A NEW PROJECT

(Bangalore property, 2 bhk apartments, flats, lands,studio for sale in Bangalore)

MODE OF CONVEYANCE

As per the CREDAI (Confederation of Real Estate Developers Associations of India) code of conduct, a member

1. Shall clearly indicate in his agreements, the type of conveyance proposed to be effected i.e. whether undivided interest or the unit as a whole or by means of any other scheme and also mention either the extent of divided or undivided interest in sqft/sqmtrs or the percentage of undivided interest and in any case shall take care to ensure that aggregate of divided or undivided interest in land allotted to all the units of a project shall not be in excess of the extent of land.
2. Shall allot specific interest and / or entitlement in land for every car parking space.
3. Shall make available the copies of title documents to the purchasers on request.
4. Shall incorporate a condition in his agreement to the effect that all the covenants other than those specific to a particular unit such as rate, area etc. shall be common to all the purchasers of a particular project. If the developer intends to reserve some specific rights such as allotment of ground space for garden (in the setback area), for private use of some units, such intention shall also be mentioned in all the agreements pertaining to the project.

Possession

The developer should ensure timely completion, physical possession, as committed to buyer.It shall be builder's responsibility to obtain completion/occupation certificate from the local authority. Developer shall incorporate in his agreements, a clause that the delivery / possession of the flat shall be given to the client against complete settlement of the entire consideration and all other components of sale price / quotation.

Defect Liability Period

Developer shall incorporate in his agreements, a clause for defect liability for a minimum period of 12 months or as per prevailing laws (whichever is more) from the date of handing over of possession or intimation to their clients regarding the readiness to hand over possession, whichever is earlier and which shall be limited to the defects in the construction (i.e. structure) and not on the bought out materials most of which are covered under varied warranty periods by the manufacturers themselves.However,in the event of recurring problem with the bought out materials, the member shall co-operate with the purchaser in sorting out the issue.This defect liability shall not cover force majeure situations such as damage resulting from war, flood, earthquakes etc.

Formation of a Society or a Body Corporate

The developer should take steps for registration of Co-operative Housing Society or any other body corporate as may be decided upon by the developer in the interest of the flat purchasers.

Society Account / Other Deposits like Stamp Duty.

The developer shall maintain separate account in respect of any sums received by him from the flat purchases as Advance or Deposit, sums received on account of the capital for promotion of a Co-operative Housing Society/ Apartment Association or a company or towards the out goings, legal charges, etc., and shall utilize the said amounts only for the purpose for which they have been received. Such accounts should be given to the Society/Association /Company not later than 3 months from handing over the charge of the building to such Society / Association / Company a period on months from the date of final conveyance, whichever is later.

Transfer Charges

If a transfer charge is to be charged it must be spelt out in the agreements and should not exceed more than 2% of the purchase price for transferring the rights of the flat purchaser under an agreement for sale. Any such consent by the developer to the flat purchaser for transferring his rights under agreement of sale should not be unreasonably withheld, provided the flat purchaser pays, and/is ready and willing to pay full amount of consideration under the agreement for sale together with transfer fees as aforesaid and other dues payable.

Transfer of Title

The developer should not inordinately delay the execution of the conveyance or any other similar instrument in favor of the common organization of the flat holder, after the development and sale of entire scheme and after all amounts payable by the purchasers are paid to the developer.

Disclosure

1. A member may disclose in his brochures / hand-outs / advertisements or any other publicity material that he belongs to an association which is a member of CREDAI.
2. May incorporate a clause in his brochures and or agreements that the same is subject to arbitration by the designated committee of Arbitrators appointed by the member Association of CREDAI.

Inspection by Client:

The developers shall incorporate necessary clause in the agreement in order to enable the client deriving the rights to inspect the premises during the course of construction.

For more details,

http://bangalore5.com/

http://bangalore5.com/project_directory.php

POSITION OF INSOLVENT'S PROPERTY

(Bangalore property, 2 bhk apartments, flats, lands,studio for sale in Bangalore)

The term "Insolvent",in common parlance is referred as Pauper or Bankrupt. An insolvent is not considered a legal person for the purpose of enforcement of any obligation committed by him either during the pendency of insolvency proceedings or after he is adjudged as insolvent.

Adjudication of an Insolvent

In India, jurisdiction of the courts to adjudicate a person as an insolvent has been conferred by two Acts, namely, the Presidency towns Insolvency Act, 1909,which is applicable in the Presidency towns in India and the Provincial Insolvency Act, 1920, applicable in the muffusil areas.

To adjudicate a person as an Insolvent, such a person has to be a "Debtor" and should have committed an act of insolvency.A debtor,under these Acts, includes only those who are subjected to Indian laws,either by birth or by domicile including a temporary residence.Thus,a foreigner cannot be adjudged insolvent by a court in India unless the alleged act of insolvency was committed or suffered by that person during his personal residence in India.

Minor cannot be adjudged Insolvent

Under Indian Laws, as a minor is not competent to enter into a contract he cannot be adjudged Insolvent even on his own petition.In the case of a minor being a partner in a firm consisting of adult and minor partners and if adjudication order is sought against the firm, the same shall be binding on the firm/partners except the minor.

Property of insolvent

The expression "Property of an Insolvent", has been defined as only the property of the insolvent which is divisible amongst the creditors and not otherwise. It includes any property over which or over the profits of which any person has the power of alienation which can be exercised for his own benefit.

The word 'property' includes the right in the property or things of a person. However, to constitute the property, an insolvent should have an interest in present to dispose of the same and not such an interest which may depend upon the fulfillment of certain conditions or contingencies.

Appointment of Official Assignee or Receiver

Under section 17 of the Presidency Town Insolvency Act or section 28(2) of Provincial Insolvency Act, 1920, after the order of adjudication, the property of an insolvent vests in the Official Assignee and becomes divisible amongst the creditors, irrespective of its situation. However, when an order of adjudication has been passed under the Presidency Town Insolvency Act,1909, any order of adjudication passed against the same insolvent by the District Court of another place, at a later date under Provincial Insolvency Act will not operate since the said property is already vested in the Official Assignee under the Presidency Town Insolvency Act.

Movable and Immovable property

The order of adjudication operates as a statutory transfer to the Official Assignee of all the property of the insolvent person in India, whether movable or immovable.Similarly,the movable property of an insolvent situated in foreign country shall vest with the Official Assignee or Receiver.But,the immovable property of an insolvent situated in a foreign country,shall be governed by the law of the country within whose jurisdiction such property is situated.

Divisible and indivisible Properties

The property which is divisible amongst the creditors of the insolvent can only vest with the Official Assignee or the Receiver, which may be:

1.Property belonging to an insolvent at the time of commencement of insolvency proceedings

2.Property which may be acquired by or devolve on the insolvent after the order of adjudication and before his discharge.

3.Goods in possession, or disposition of the insolvent.

The properties which are not divisible amongst the creditors of the insolvent falls into two classes:

1.Property held by the insolvent in trust for any other person

2.Tools of trade, apparel and other similar property.

Vesting of property in the Official Receiver or Assignee

Immediately upon an order of adjudication by the Court, the property of the insolvent wherever situated vests in the official assignee/receiver.Till an Official Receiver is appointed by the Court, all the rights and powers exercisable by the Receiver can be exercised by the Court itself.

Intervention of Official Assignee is must:

The right and interest of an insolvent over the property do not automatically get transferred in favor of the Official Receiver upon passing of an adjudication order by the court unless the Official Assignee intervenes on behalf of the insolvent. Where the official assignee does not intervene and the insolvent transfers the said property to another person who takes it in good faith and for value, the transferee acquires a good title to the property.

Powers of the Official Receiver or Assignee

With the order of adjudication, the property of the insolvent vests in the Official Assignee or the receiver and it is the duty of the assignee to realize such properties of the insolvent expeditiously and to distribute dividends to the creditors entitled thereto.However, before exercising the power of realization of properties of an insolvent, abundant caution has to be exercised by the assignee to avoid unnecessary litigations.

Under the aforesaid Acts, certain powers have been vested with the assignee:

1.Power to sell: The Receiver is empowered to sell the insolvent's property without the consent of the Court. But the aforesaid Acts do not empower the receiver or the official assignee to sell anything more than the property of the insolvent which vests in him by reason of the adjudication.

2.Power in case of mortgaged property: Where a Receiver is appointed by consent of the parties after passing of a decree in a mortgage suit for sale of such mortgaged property and it is agreed that the receiver shall recover the rents of the property for a period of one year to hand over the same to the mortgagee, the mortgagee's right to receive the rents will not be affected by insolvency of the mortgagor at any time during this period and neither the official assignee nor other decree- holders will be entitled to a rate able distribution of such rents.

Bonafide Sale

Section 53 of the Provincial Insolvency Act provides that a transfer of property not being a transfer in favor of a purchaser in good faith and for valuable consideration shall,if the transferor is adjudged insolvent within two years after the date of transfer, be voidable as against the Receiver.Further,where the debtor transfers all or substantially all the properties in consideration of the past debts, such a transfer constitutes an act of insolvency since it has the effect of withdrawing all the property from the legal process,which his creditors have a right to enforce against the insolvent.

Thus,an order of adjudication of insolvency will deprive the insolvent from dealing with his properties which shall be dealt with by the Official Assignee or Receiver when once such a person is appointed by the Court.

For more details,

http://bangalore5.com/

http://bangalore5.com/project_directory.php

SELECT A FINANCIER TO FINANCE THE PURCHASE OF YOUR PROPERTY

(Bangalore property, 2 bhk apartments, flats, lands,studio for sale in Bangalore)

You need to bear in mind certain parameters while selecting a financier and then take a decision accordingly.It is certainly difficult to get the best in each of the following parameters and therefore some sort of compromise needs to be done on the basis of your priori ties.

The parameters are mentioned below:

Type and Tenor: Whether the financier is offering a loan product to suit your requirements.Whether the financier is offering the tenure of loan that you are looking for.

Rate of Interest: This would depend on the type of Rate of interest that you are looking for i.e. fixed or variable rates of interest.You must always compare the effective interest rate after taking into account all upfront fees etc. and the manner of interest calculation. i.e. monthly reducing,annual reducing etc.

Minimum and Maximum Loan Amount: The minimum loan amount offered by a financier is important to find out if the financier can finance the amount you are looking for.Most HFIs have a upper limit on the amount that they would finance. If you are looking for a very huge amount, this could be a factor that needs to be considered.

Minimum and Maximum Age of Customer: You will have to consider this factor to see if you fit into the age norms laid down by the HFI.This would also form a parameter in your decision on deciding a HFI to finance the purchase of your house.

Maximum Permissible LTV Ratio: The maximum loan that you would get as regards the value of your house needs to be looked at. THE Components of the value would also be important.

Minimum Income: The income norms of the HFI will be a relevant parameter that would affect your decision.

Requirement of Personal Guarantors: Some HFIs insist on a Personal Guarantor.You need to check this out if you have any reservations about providing a guarantor.

Requirement of Co-owners: If you intend to buy your house along with a co-owner, you will have to check whether the HFI accepts the relationship between you and the co- owner.

Requirement of Co-applicant: As mentioned for co-owners, the HFI may also insist on only certain relationships as joining your application as a co-applicant. This needs to be checked out while deciding on a financier.

Pre-Payment Charges: Some HFIs charge certain prepayment charges when you decide to prepay your loan either in part or in full.

Processing Fees: HFIs charge certain fees as processing fees that you will need to pay at the time of submission of application.

Administrative Fees: As mentioned above, HFIs also charge administrative fees on the loan amount that has been approved by the HFI. This would vary from one HFI to another.

Credit Documents: The type of credit documents that HFIs insist on before approving your loan would differ from one HFI to another.

Maximum age of property at the time of application: If you are buying a property on resale, this parameter would be an important one as HFIs may have a limit on the age of the property at the time of disbursing the loan.

Pre-approved property list: Most HFls have a pre-approved list of properties available for which the documentation would be simpler.

Pre-approved list of employers: HFIs may have special rate if you are an employee of one of its preferred list of employers.

Pre-approved builders and projects list: HFIs may also have different norms of documentation if you are buying a property in any of their pre-approved list of builders. HFIs, as mentioned above for builders, may also have separate schemes for certain projects.

Pre-approved Professionals list: HFIs may have certain schemes to suit customers of certain professions.

The above mentioned are some of the parameters that you will need to look at before deciding on your financier.Getting a financier who would offer you the best in all of the above parameters is virtually impossible.You would, therefore, need to identify your priorities and check out on which financier would give you the best option.

For more details,

http://bangalore5.com/

http://bangalore5.com/project_directory.php

ROLE OF PLANNERS IN TOWN PLANNING

(Bangalore property, 2 bhk apartments, flats, lands,studio for sale in Bangalore)

The goal of city and regional planning is to further the welfare of people and their communities by creating convenient,equitable,healthy,efficient,and attractive environments for present and future generations. Plans are required at different levels of government.Plans can take several shapes,from comprehensive plans to historic preservation plans.Plans are presented to community officials, who review,revise and adopt them for action.

Once the plan is adopted, the planner's job becomes very imperative in the implementation of the plan and in coordinating among many groups. The tools of planning implementation include land use controls and economic development strategies.Through an analytical planning process,planners consider the physical,social and economic aspects of communities and examine the connections between them.Professionally trained planners also analyze issues such as transportation, land use, housing, recreation and open space, natural and cultural resources,community services,population,and economic development based on the established goals.

Planners plan with a highly collaborative process.Through this collaborative process they help to define the community's vision for itself. Planners work with many types of communities-small villages, large cities, sub-urban towns, etc.This vision is created not only from what the community members want, but is based on an understanding of the problems and resources at hand.The planners provide this analysis and help the community to look at the options it has for development and change. Planners must be technically competent and creative and show both hardheaded pragmatism and an ability to envision alternatives to the physical and social environment in which we live.

The planning process typically involves performance of a number of roles. The town planners normally keep in mind the following aspects while formulating their planning strategy:

1.Physical design and the way in which the cities work.

2.Data on present and future trends in population, employment and health.

3.Plans and the process by which they are developed.

4.Techniques for involving a wide range of people in making decisions.

5.Programs of the local, state and federal governments

6.Legal foundation and techniques for land use regulation.

7.Interaction between the economy, transportation, health and human services, and land use regulation.

Some planners function primarily as technical analysts or researchers, others as designers or program developers,others as agents of social change, and still others as mangers or educators. Some planners will make a career in only one of these roles. In short, the following are the functions which the planners do perform invariably:

1.Planners formulate plans and policies to meet the social, economic, and physical needs of communities, and they develop the strategies to make these plans work.

2.Planners develop plans for land use patterns,housing needs, parks and recreation opportunities, highways and transportation systems, economic development, and other aspects of the future.

3.Planners work with the public to develop a vision of the future and to build on that vision.

4.Planners often function as mediators among conflicting community interests.They may also become facilitators in their professional judgment to help to identify the best resolutions to the issues creating conflicts.

5.Planners analyze problems, visualize futures, compare alternatives, and describe implications, in stimulating and thought-provoking ways.

For more details,

http://bangalore5.com/

http://bangalore5.com/project_directory.php

BANGALORE REAL ESTATE MARKET IS STEADY AND INVESTOR FRIENDLY

(Bangalore property, 2 bhk apartments, flats, lands,studio for sale in Bangalore)

Property market saw a boom all over the country during the last few years, and the prices of properties made it impossible for a common man to think of buying any property in Bangalore during this period.Seeing this sudden boom in the real estate market,many developers entered into the real estate market in Bangalore,since Bangalore was considered to be the fastest growing city in the country.

No doubt, Bangalore is one of the fastest growing cities of the country as could be seen from the launch of major infrastructure projects, like construction of flyovers,widening of major and primary roads, construction of grade separators, under passes, Metro rail, Mono rail etc.The city has grown not only in area but also in population. Bruhat Bangalore Municipal Corporation now has within its jurisdiction 110 villages, seven city municipalities and one town municipality surrounding Bangalore and thereby the area which was just 250sqkms is now almost 900sqkms.

The population which was about 40lakhs is now about 80lakhs. The entry of a number of multinational and IT,BT companies has also contributed to the growth of the city in the past two decades. The growth has not only attracted the young job seekers, but many educational institutions have been established in and around the city of Bangalore wherein students hailing from various parts of the country and abroad seek admission in various technical and managerial academic courses..

As the Bangalore city is now considered to be the destination for investment in trade and industry and the increase in population has automatically created a greater demand for accommodation both in commercial and residential sectors.Most of the owners of residential/commercial properties in Bangalore are expanding their built up area by constructing many upper floors to meet this greater demand.To some extent this step may meet the demand for accommodation in the city.

When this upward trend in the real estate sector was in full swing, then the came the global recession and the recession has greatly affected the real estate industry, particularly the construction sector.Buyers were forced to defer their investments strategies for various reasons.As a consequence thereof,there remained a large number of flats vacant awaiting the prospective purchasers.This trend continued till recently and the property developers were under great strain.However,the situation is now slowly improving. The demand for accommodation,both for commercial and residential,is now much improved.Developers, who have developed the properties and were not able to sell their end products, will now be able to dispose them off.

To off load their finished products, the developers who are ready with their completed projects are offering various incentives like concessions in prices, provision of  swimming pools,clubs,gyms,small markets,gardens, playgrounds, easy payment schedules, etc within their project area. With these incentives and facilities it is expected that the buyers will now get motivated to  invest their money in real estate market.The present situation seems to be quite favorable for middle and higher middle class people for investment. The demand for residential accommodation being very high the developers hope to sell their properties.In addition to this, the authorities, though late, have realized that the needs for basic infrastructure in all the localities have to be met expeditiously and are now responding favorably to such demands of the people.

Now that the infrastructure development activities are in full swing and the property developers too are providing some of the basic infrastructure needed within their project areas, banks are offering required funds in the form of long term housing loans,it is hoped, the prospective investor in real estate would come forward to invest their money on the immovable property to own property of his in the city of Bangalore.The real estate pundits also feel that it is the appropriate time for investment in the real estate since the real estate market seems to be steady and investor friendly.

For more details,

http://bangalore5.com/

http://bangalore5.com/project_directory.php  

STRUCTURAL STABILITY OF BUILDINGS

(Bangalore property, 2 bhk apartments, flats, lands,studio for sale in Bangalore)

All buildings have to serve two important functions.They have to carry the loads(structural requirement) and provide livable environment to the occupants to enable them to be comfortable in the use of the building (functional requirement).

The building has to carry its own weight and external occupancy loads and those caused by the environment such as those caused due to wind or earthquake.The elements that bear these loads and transmit them to the foundation are termed as "structural elements".

A good performance of the structural elements such as beams and columns is of vital importance from the safety and stability points of view. Hence, they are designed and constructed with prescribed safety margins as per requirements specified in the Bureau of Indian Standard specifications. Their failure will cause cracking, yielding of steel and even ultimate collapse of the building.

The serviceability of a building depends on the good performance of the structural and the functional elements such as flooring, doors and windows, glass panels and partition walls.The functional elements are generally not intended to carry structural loads. Their failure to perform will only affect the use of the building and not its strength or stability. Their good performance is also equally important.

In a metropolitan city such as Chennai, most apartment buildings are made of reinforced concrete frames. In this type of construction,the structural elements comprise beams and columns which carry the loads. The partition walls and infill walls in these buildings are treated as non-structural and hence are not generally designed and constructed to carry structural loads. In such buildings, for good  performance it is necessary to detail the junction structural and non-structural members with proper care.The defonnation of the structural members under load should not be restricted by non-structural partitions or in-fills.

For good performance of both beams and partitions, a proper sequence of construction is essential. First building the infill or partition and that casting the concrete beam on top will make the dead weight of the concrete beam load the partition which is not correct.The partition is not supposed to carry the weight of the beam.Moreover, when the additional live load comes on the floor the deflection of the beam will crack the brick infill or partition. To avoid this problem, first the frame should be completed.This should be followed by the erection of partitions and in-fills.Care should be taken to see that a structural gap exists between the frame and the in-fill.For functional convenience this gap can be filled by inert flexible material such as thermocol or pith.

Under no circumstance a structural member should be cut or chased or damaged in any way for any purpose including for taking services like electrical conduits, concealed wiring etc.This will weaken the element and may cause its collapse leading to the collapse of the whole building.However the services may be taken through the non-structural partitions or infill.

Bearing walls: This type of construction is undertaken in semi-urban and rural areas. All the main walls carry loads and also serve to provide functional requirement.In these buildings, though the partition walls do not carry structural loads, they cannot be either built or demolished without due consideration for overall stability of the building. Some times their weight may be required to provide stability against overturning failure. The main walls invariably provide the structural stability and carry loads. Hence, they cannot be damaged or dismantled for carrying conduits for electricity, etc.

Bearing wall buildings though safe for vertical loads are weak under lateral loads.They are vulnerable for failure under out of plane bending during lateral loading. Therefore, to make the building act as one integral unit, they should be constructed with continuous plinth and continuous lintel beams. No brick pillar should be less than 600 mm in width. All openings should be reinforced on all sides.These simple precautions will ensure good performance of bearing wall buildings under lateral loads caused by wind or earthquakes.

Construction defects

In many sites the brick wall is first raised and then used as shuttering to cast the column or beam adjoining it.This will make the column or beam weak because the pores in brickwork will absorb the moisture from wet concrete making the wlc ration in the beam and column uncertain. The weakness will manifest in the cover concrete of the beam or column, leading to early onset of corrosion in the rebars.

The cracking in the walls of the buildings are many times attributed to following wrong constructions practices. It is important to pay attention to the details at the site of construction to ensure long and trouble free service of the infrastructure created. A conscious distinction should be made between the structural and non-structural items in a building and their requirements and performance. These defects when permitted during construction are difficult and costly to rectify later.

For more details,

http://bangalore5.com/

http://bangalore5.com/project_directory.php 

TRUST PROPERTY AND LEGAL IMPLICATIONS

(Bangalore property, 2 bhk apartments, flats, lands,studio for sale in Bangalore)

Holding of property by a trustee involves various obligations and duties on the parties to a trust deed and these are enumerated in the Indian Trust Act 1882, which regulates the formation, and function of the trusts, powers and duties of trusties in dealing with trust properties.

Parties to a Trust

Trust is an obligation attached to the property thereby indicating how the property is to be used and who are the beneficiaries of the trust Property. It is an agreement between the author of the trust and the trustee i.e. the manager of the trust property and the owner of the trust property.A trust may be formed by any person Competent to contract, or with the permission of the court by a minor or on behalf of minor.A trust consists of more than one person. The person that is the owner of the property, who reposes confidence in another to manage the property is called author of the trust or the settler.

The person who manages the property as per the directions of the author of the trust is a trustee. Both the author of the trust and the trustee are parties to the document called trust deed which defines the objectives and functions of the trust.The institution is called the trust. Apart from the author of the trust and the trustee/s, the party who is entitled to the benefits of the trust is called the beneficiary, who is not a party to the trust deed.The beneficiary has the right to insist that the trust property is to be used for their benefits although they are not a party to the trust deed.Any person capable of holding the property can be trustee but not the Government of India.Likewise a government servant cannot be a trustee of mosque, temple, church or other religious institutions.

Ingredients of a Trust:

The important ingredients of a trust are:

 (1) The objectives must be certain,

 (2) The beneficiaries must be certain and clear and

 (3) Definition of the trust property must be clear and identifiable. 

The trust cannot be created orally and it must be in writing duly signed by the author of the trust. Trusts are of many types. A private trust is a trust where the beneficiaries are the legal heirs of the author, or a group of individual. A public trust is one where the beneficiaries are whole lot of public. The trust may be partly public and partly private. A charitable trust is created for relief, advancement of education, religion and other purposes beneficial to the community at large.

A trust cannot be created for the following purposes

1.   Any purpose which is forbidden by law.

2.   Any purpose if permitted would defeat the provisions of law.

3.   Fraudulent purpose.

4.   The trust which involves or implies anyinjury to the person, property of another.

5.  The court regards the purpose as immoral or opposed to the public policy.

Creation of Trust

A trust may be created by way of a document called the Trust Deed. The Trust Deed is compulsorily registerable under section l7(b) of Indian Registration Act 1908.The stamp duty payable on the trust deed is governed by the Indian Stamp Act 1899, and falls within the powers of the State Governments.Hence the stamp duty varies from State to State.The Indian Trust Act, 1882, does not apply to public or private religions endowments. Section 18 of Transfer of Property Act 1882 relaxes all restrictions, in case of properties transferred for benefit of public like advancement of knowledge, religion,commerce, health and other allied objectives.A trustee cannot delegate his duties to another, except clerical duties and must have the final control over such delegation.

Bailment and Trust

Often bailment and trust are confused. In bailment, there is delivery of goods from one person to another person for some purpose and on completion of such purpose; the goods have to be returned.In case of trust, the property is transferred in favor of trustee for the benefit of another person. In bailment, the person who received the goods is not the legal owner, but the trustee is a legal owner of the property.

Rights and obligations of Trustee

The duties of the Trustee shall have to be clearly defined; he should comply with the terms of the trust deed, as per the directions of the author of the trust. He has to get acquainted with the property of the trust and take required care about the genuineness and recoverability of the investments of the trust money. The trustee should, protect the title of the trust property, if necessary, by instituting legal proceedings. He should not set up any title adverse to the beneficiary. He has to exercise proper care and be impartial and should prevent wastage and convert any perishable property to permanent or profitable in nature.He has to maintain proper accounts and adopt proper investment strategies. 

The trustees cannot commit any breach of trust, cannot set off the loss occurred because of breach of trust in one portion of the trust property against profit of another portion of trust property. When a breach of trust is committed by one of the trustees, all the other trustees are liable to the beneficiary for the total loss sustained. The trustees have certain rights, like possession of the trust deed, title deeds of the trust property, reimbursement of expenses, right to settlement of accounts, right to seek the opinion of the court.

Maintenance of Trust Properties

The trustee may lease the trust property for a period not exceeding 21 years without the permission of the court, may sell the property in lots, by public auction, or by a private contract. He may also sell under special conditions and buy and resell. He has powers to make the investment of the trust property, which must be in securities listed in Trust Act. Any investment other than in the listed securities must be with the written consent of the beneficiary. He may apply the property of the minor for maintenance of minor with proper care and discretion.After a person accepts to manage a trust he cannot renounce it except with the permission of the court, or with the consent of all the beneficiaries.

Trust property cannot be used by the trustee for his own benefit, and any benefit derived from out of the trust property must be transferred to the trust. It is to be noted that the trustee cannot purchase the trust property of which he is trustee. Even his agents cannot buy the same.Further, trustee or his agent cannot buy the beneficiaries interest and cannot be a mortgagee, lessee of the trust property without the permission of the court. Similarly co-trustees cannot lend among themselves.

If a trustee wrongfully sells the trust property, the beneficiaries have a right to follow the trust property so long it is traced notwithstanding the intermediate ownership except in case of bonfide sale for value without the notice of the trust.

For more details,

http://bangalore5.com/

http://bangalore5.com/project_directory.php