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Friday, 30 May 2014

REGISTRATION OF PROPERTY

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All documents do not require registration compulsorily. The Transfer of Property Act, 1882 and the Indian Registration Act,1908 have made registration of certain documents compulsory while in respect of certain other documents it is optional. According to Section 17 of the Indian Registration Act, 1908 registration of documents is compulsory if they relate to an immovable property. Similarly, Section 54 of Transfer of Property Act 1882, stipulates that sale of immovable property the value of which is one hundred rupees or more should be registered. Since no immovable property is available for rupees one hundred or less than rupees one hundred, implicitly all sale deeds of immovable property need compulsory registration.  

Most of the instruments dealing with the immovable property for creating, declaring, assigning, limiting or extinguishing any right, title or interest in the property require compulsory registration, as enumerated under the Indian Registration Act, 1908. For executing an instrument, the first and the foremost aspect to be considered is the nature of the right intended to be transferred. If the document falls within the category of the documents which warrants compulsory registration, any avoidance of registration of such document would invalidate the document itself.  For documents which require mandatory registration certain procedures are prescribed.

Time limit for registration
Under Section 23 of the Registration Act, subject to certain exceptions, any document other than a Will has to be presented for registration within four months from the date of its execution. Execution means signing of the document. It is not uncommon that the date of execution and the date of registration may differ. For the non-testamentary documents such as Sale Deed, Gift Deed,Mortgage Deed, etc, the time limit within which the document has to be registered is four months from the date of execution. Decrees drawn in terms of Compromise Petition wherein shares of the parties are allotted by metes and bounds require registration.

Even for registration of the court decree, four months time limit is stipulated under the Act. If the document is executed by all or any of the parties residing abroad, the same can be accepted for registration within four months from the date of receipt of the document in India. In case of doubt as to the validity of registration, the document may be re-registered within four months from the date when it is noticed that the registration is invalid or of doubtful validity. Where a document is executed by several persons at different times, it should be presented within four months from the date of the latest execution for registration. If a document is not presented for registration within the prescribed period of four months and the delay in presentation of the document does not exceed a further period of four months, then the parties can apply to the Registrar for registration of the document who may direct, upon payment of fine not exceeding ten times the actual registration fees, for registration of such a document [Sec.25].

A document relating to an immovable property can be executed out of India and later it can be presented for registration in India.  As per section 26 of the Registration Act, 1908, if a document purporting to have been executed by all or any of the parties out of India is presented within the prescribed period of time for registration, the Registering Officer may, on payment of proper registration fee accept such document for registration if he is satisfied that the instrument was executed out of India and the instrument has been presented for registration within four months after its arrival in India.

Fees of Registration
Fees charged for the registration or searching the register are prescribed by State Governments through Notifications.

Testamentary instrument
In case of Testamentary instrument, that is, Will, registration is optional and time limit is not prescribed. It can be registered any time before the death of the Testator. How-ever, it is advisable to register the same as soon as possible in order to avoid disputes about the genuineness of its execution. In case of registration of Will, the same may be presented by the Testator during his life time and after his death, by the beneficiary or the administrator, for registration.

A Will may be deposited with the Sub-Registrar in a sealed cover and such deposit may be done through an agent. After the death of the Testator, the sealed envelope will be opened and the contents recorded in the relevant register maintained in the Sub-Registrar's Office. The Original copy of the 'Will' will be in the custody of the Sub-Registrar.

Jurisdictional Sub-Registrar Offices
Generally documents have to be presented for registration only at the Sub-Registrar's office within whose jurisdiction the immovable property is situated. However, in certain exceptional cases, documents may be presented for registration with the Registrar who has been conferred with the power to register the documents. In fact, Sub-Registrars have been vested with the special power to register the document at the residence or office of the executants or to accept deposit of Will.

Presentation of the document
Documents which require mandatory registration have to be presented in the concerned Sub-Registrar Office for registration by the executants or person claiming under the Decree. However, in certain cases, the representatives of the Executants, duly authorized under Power of Attorney, can also execute the same on behalf of the Executants. A power of Attorney holder can execute the document, representing the Principal only if an authority has been vested in him under Power of Attorney, which is authenticated by the Registering authority within whose jurisdiction the Principal resides. If the Principal does not reside in India, then the Power of Attorney should be executed before and authenticated by a Notary Public or any Court,Judge, Magistrate, Indian Consul or Vice-Consul or the Representative of Central Government in that country and the same is required to be presented with the concerned registrar in India with in a period of three months of its receipt in India. When a document has been executed by more than one executants and after execution of the same, one of the executants refrain from attending the concerned Sub-Registrar's Office for registration, then the remaining executants can compel attendance of the executant reluctant to be present before the registering authority through the process of law.

Enquiry by the Registering authority
The Registering Officer is empowered under sec. 34 of the Registration Act to enquire whether or not the person is the same by whom it purports to have been executed such a document.  He may insist on production of proof for his identity and in case any person is appearing as a representative or agent, the Registrar may ask for relevant documents to show that the agent or representative has the right to appear on behalf of his principal.    

Effect of non-registration
What would be the repercussion if a document which requires compulsory registration  is not registered? Section 49 of Indian Registration Act deals with this situation. It states clearly that such un-registered documents do not convey to the transferee a legally valid title and such documents are not admitted as evidence for any transaction affecting the property referred to in the document. However, there is an exception provided in the Act. The unregistered documents may be admitted as evidence in a suit for specific performance under Specific Relief Act or in any other related transaction, not required to be effected under a registered instrument.

Documents are mainly registered for conservation of evidence, assurance of title, and to help an intending purchaser to know if the title deeds of a particular property have been deposited with any financial institution or person for purpose of obtaining loan or advance against security of the property. Registration of documents acts as notice to the public and to protect oneself against the likely fraud. Therefore, it is advisable to register all documents connected with the immovable property irrespective of whether the registration is compulsory or not as it creates a permanent record of event which are reflected in encumbrance certificates.

As registered documents have higher value of evidence than unregistered documents it is always beneficial to you if you  get all your property documents registered within the stipulated period  irrespective of the fact that such registration is mandatory or not.

Endorsement
After accepting the document for registration, the Registering authority shall endorse the document regarding affixation of the signature of the Executant, payment of consideration, date and other relevant particulars. If registration is declined by either of the party, the same shall be endorsed on the document itself. Apart from this, the Registering authority shall also endorse on the Document the registration number, Book number, pages, volume or CD number and affix the seal of the office of the Sub-Registrar. Such a Certificate shall be copied in the Register meant for the purpose and copy of the map or plan, if any, shall be filed in Book No.1. Thereafter, the registered document will be returned to the person who has presented the same for registration or to his representatives.

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Thursday, 29 May 2014

SERVICE APARTMENT

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This is a new concept in India but the western countries have already welcomed it. Many corporate who travel to other states or countries find it difficult to adjust to the new culture and setting.For some short period the hotel service is welcome but not for long periods of stay. Five star hotels brought this style for dwelling in your own fashion to clients who would stay for a long period. They realized in the beginning claims, loved the luxurious service but after a month they longed for their home. Thus a service apartment would offer most of the aspects of your home.  Making you feel at ease, as though you were at home.

A service apartment is a type of furnished self-contained apartment which provide amenities for daily use. In service apartments you can cook and eat and live the style you want. You are even provided with a maid/man's servant who will get you groceries or any other requirements. Making it just the way it would be at home. The service apartment is made to look and feel exactly like a home. A service apartment generally provides you with an A.C. furnished flat, quipped kitchen, T.V. Fridge, washing machine, landline internet power back up, fire safety and security and some even provide you with a locker. Moreover, some hotels also provide you with magazine and shoe racks. Cleaning is done every day.

The tariff charges depends on how long is the stay. It is less expensive if the person has a prolonged stay. It can be bargained if the stay is for a month or even for a year. However, before booking the apartment always make sure what is inclusive and what is exclusive. For instance, it is necessary to know as to charge during this period, who will pay the electricity, maintenance. Hence make sure what are you paying for. Now-a-days Indian immigrants coming to India to settle down opt for this type of apartments.

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Wednesday, 28 May 2014

WOODEN FLOORS

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In recent times, wooden floors have caught Buyers fancy in a big way. Within homes, one can notice them in the master bedroom, the living room, the study room and the kid's room. Among the commercial establishments, the restaurants, coffee shops, and up market stores which are more in number have started installing wooden floors now.

Today,wooden floors have become more popular mainly because of their aesthetics.They look very beautiful and they also impart a natural feel to your interior. They are specially suited for households that have young children, who tend to spend a lot of time on the floor. They are very easy to maintain. All they require is regular wiping and they continue to look good for years. Wooden floors are very easy to install.

An entire High Income Group (HIG) flat can be done up in 24 to 48 hours, people who are interested, can lay these wooden floors over their existing floors. They have a tongue and can groove the mechanism. Suppose, one doesn't want to continue with the wooden floors, they can also uninstall them easily. If one is shifting from one house to another, he/she can take apart of their wooden floor along with them, without any damage either to the floor or to the house.

Wooden floors are made up of individual boards and it also works according to their advantage. If one part of the floor gets damaged, they only need to replace one or two boards. Hence, in these days, most brands offer a warranty of at least 10 years. Wooden floors are of two categories: Real wooden floors and laminate wooden floors.

While the former, as the nature implies, is made up of real wood, laminate floors are made up of high density fiber boards. The former are more expensive and would cost anything between Rs.200 and 600 per sq.ft. But, they also get damaged more easily and hence require more careful maintenance. Laminate floors, by contrast are affordable.Their price ranges from Rs.100 to 250 per sq.ft, and are more resistant to damage.The good thing is that, nowadays, even the laminate floors look good and real as real wooden floors.

Dual Width:
Today, people get wooden floors where the planks are available in two widths. Interior Designers, suggest that they should use the planks with the larger width in bigger rooms and using the narrower planks in a smaller room creates a sense of space.

Wide Variety:
Wooden floors are made from a wide variety of woods.

Precautions:
When one installs wooden floors, he/she cannot be as rough and carefree in their usage, as they would be with a tile floor. Here, are a few precautions that they must observe:When they are leaving their house, they should check and must ensure that all the taps in their home are properly closed. Suppose water leaks out and accumulates on the wooden floor for a considerable length of time, the floor might get damaged.

Another disadvantage of wooden floors is, that one heel's of his/her shoes would produce lot of noise, even though some brands have now introduced the products that absorb part of the sound. Finally, wooden floors are a category of whose time has come. If one is rebuilding a new house, or refurbishing their old one, they can think of installing wooden floors. The sheer beauty of wooden floors will enliven their home decor for years to come.

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Monday, 26 May 2014

OPTIMIZE UTILITY OF YOUR HOUSE

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As apartments are shrinking in size, the size of the rooms is getting smaller.If we clutter up the interior with objects of less utility or no utility, then it not only makes the room suffocating but also makes the place to look smaller. Therefore, it is necessary to design interiors in such a way that the limited space is made use of to the maximum extent so that the available space not only looks adequate but also has free movement of men and material. In an apartment, it is essential that the interior should have dual qualities of being efficient and good to look at. 

Before under taking the interior design of a building, the designer should consider some basic factor such as the needs of the user, living style and habits, his profession, his likes and dislikes. The interiors should disclose the personality and life style of the user.According to the needs one can have ornate, minimalist or theme based decor. After deciding the kind of decor one has to have, the storage requirements should be worked out to get the optional use of the space without it being cluttered.

All rooms are not designed for the maximum utility and sometimes rooms are small in size having too many doors and windows.Some of their shapes too are odd which bring down the utility space.There may be very many pathways and openings that placing furniture is not possible without blocking free movement. Very often there are no separate walls in the living room to place a television or a displace cabinet.A glass screen can be kept where there is no clear wall in the living room.

The glass screen not only acts as a wall but also creates a private space in the room. For an artistic appearance an artificial bamboo screen behind the glass can be placed or the glass itself can be an ornate piece.The glass screen give an open feel to the room in comparison to the wooden parties.Feasibility of placing the television or a display cabinet can be considered here. You can displace small objects of art on the space on the television cabinet.

For a small living room mirrors can be placed in the right sports to create an illusion of spaciousness.This has to be done carefully without giving the place the lock of a showroom by placing too many mirrors. Many times people leave their footwear at the entrance of the living room which ruins the atmosphere.  This problem can be solved by placing a shoe rack there. You can make it look like a displace cabinet by using the top to display items. In the small gap between the cabinet and floor a few pairs of shoes can be pushed out to sight.

It may not be feasible to down size sofas when moving to a smaller room but one can restructure existing cabinets and beds to fit in to the new dimensions. It is preferable to convert the old furniture making it suitable for the new house since most of the furniture available in the market, sofas in particular, are not made in proportion to the present dimensions of apartments, but they have been made keeping in mind the comfort of the user.The furniture that is fitted in to the rooms will have to be reduced to the required size and shaped according to the room size. It is disastrous to try and fit an odd sized or large piece of furniture in to a narrow room as it will surely seem to be unsuited and will occupy too much space.

The master bed room should have enough storage space as well as a dresser and place to move about.As bedrooms are shrinking in size there should be maximum storage capacity in the wardrobes. The unused storage can be kept on top. You can place the mirror next to the wardrobe and cosmetics can be stored on the side of the wardrobe. Glass on the wardrobes makes the room look upon and more spacious.

If the bed happens to be near the wardrobe and there is little space for a side table you can make the wardrobe into two parts and the lower part which is at the same level as the bed can be made into a tabletop with drawers being placed below. The empty space above the bed can have innovative shelves to look like an ornamental piece.

The bottom part of the cots can have large drawers for keeping linen and other things. It will be necessary to size down the cots to fit the room size. Bed and wardrobe will not be appropriate. There should be provision for free movement in the children's rooms and at the same time enough storage space for the requirements of growing children. The size and the furnishing of the room should depend on the age and gender of the children using such room; bunks beds are the best and an additional bed with wheels can be kept below the bunk bed for the guest. The space above the working table can be used to accommodate play area with steps leading to it. These steps can have storage space. The study table, ward robe and bed should be pushed in to the corners to give enough room for the children to play.

In the dining section the table that the best for its size should be accommodated. After placing the dining table there should be ample space for movement. A few choice artifacts should be displayed in the crockery cabinet.  It can be made in to two and the middle could serve as a table top.

You can design the kitchen to make the most use in the limited area.  Space between the cabinets and the kitchen counters can be used to keep gadgets, spoons etc. Space above the fridge can be used for storage. You may place an open wash area in the dining which can be changed in to a storage space along with the washbasin. You can build around the wash area and put a stainless steel or glass basin. You can have the unit at different levels.

If there is an open kitchen adjacent to the dining it will give the appearance of being open and the living room will look more spacious.This will however limit the capacity to keep cabinets. It is a challenge to work around to make the rooms space efficient, aesthetically pleasing and free of clutter.

Quite often, there is a mistaken notion that for interiors to look fabulous and arresting, they need necessarily to reflect an expensive decor.Thus, the myriad options available to exercise your creativity and at the same time have a tight rein on the purse are often overlooked.Creative decor elements wrought out of simple structures, renovated furniture, innovative arrangements and simple, yet unique representations of art are considered more as budget options.

To begin, with, your house does not have to sport expensive furniture made of leather or carved teak embellished with silk cushion to appear exotic. Your living room can have simple cane seating flanked by plenty of greenery and artistic creations that are unique but not too expensive. Here the budge look can be overcome by having the cane furniture custom-made to lend the difference. Using bright colors and prints on cushions adds to this. The walls too could sport different colors and texture to make a statement. Thus, a bright color or texture paint can be used on one of the walls to act as a highlight.Curtains in equally cheerful colors and prints would complement this.

If inexpensive fabrics are used for curtains, care should be taken to ensure that they have a good fall as curtains, since a bad fall can ruin the decor. If budget permits, it is a good idea to use silk as high light amidst affordable cotton once while designing cushion and throws for the seating arrangements. The rugs used can be synthetic or bright cotton.Durries, where the prints and colors are chosen effectively, enhance the decor. However, while choosing the colors and prints, care should be taken to choose those that blend well.Random choice of colors and prints can clash and ultimately ruin the decor.

It is also a good idea to renovate old furniture where some can be broken down and redesigned while others just need a coat of varnish.  Old furniture has the advantage of lending on expensive antique look some of them can also be indicatively used. For instance old wooden benches serve as excellent divans. Similarly, large wooden boxes used earlier can be bunched together to create excellent seating arrangements. An artistic throw and cushions would totally transform the boxes that can be masked as a single seat or bunched up as a divan.

Again, floor cushions and plain cotton mattresses too can be used to create a cozy living room. Here, the need for furniture is ruled out. The entire seating arrangement is brought to the floor with the covers and cushions lending color and art to the decor.The absence of furniture can be covered by having plenty of unique artifacts placed at floor level with a couple of large pieces placed in strategic locations to act as focal points in the room. Bringing in plenty of greenery and placing an expensive silk carpet in between draw attention away from the lack of furniture.

Similarly, the artifacts displayed too need not be expensive.Exhibitions and some small shops house extraordinary pieces of art some of which prove to be more exotic than one picked up from up market showrooms. Some of these, in metal, an old brass piece, or even terracotta, when blended right can appear stunning.

Similarly, instead of going in for original artwork which is unaffordable, prints can be used but these should be caste in a silk background in elegant frames to offset the print look. Using brass planters for greenery is a good option as it lends an expensive touch to the decor. Bonsai cacti and other miniature plants in attractive terracotta pots can add to the green selection.

Artificial plants and flowers, though they mean less maintenance, are best avoided as their artificial nature will give an ordinary look robbing the décor of the desired feel.

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Sunday, 25 May 2014

FLAT PURCHASE-By Way of Share Certificate Method

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Co-operative Societies Acts of many states provide for formation of Housing Co- operative housing societies

Karnataka Co-operative Societies Act also permit the formation of Co-operative housing societies.These societies acquire the land; construct the flats, which are allotted to its members.The society allots shares to its members. Such societies need to be registered with registrar of Co-operative societies. 

Members are of different category, the member, associate member, and nominal member.Individuals,Partnership firm, registered company, registered society local authority,State government, central government, public trust, any other corporate body registered under the relevant act, may become member of the co-operative housing society, subject to the rules governing the admission. 

A minor can also become a member of Housing Society through his guardian; Certain states have put restriction of membership of family trust, Hindu undivided family. 

There are different types of Co-operative housing societies.
1.A society purchases the land or takes on lease divide into several plots and allots to its members. The members construct houses, on such allotted lands. In such cases, the land is owned by the societies and the houses on plots to members. Such societies are caller Tenant ownership type housing societies. 

2. Societies acquire land by sale or on lease and construct the buildings; flats are allotted to the members.In such cases, both the land and building are owned by the societies.These are called tenant Co-Partnership Co- operative housing societies. 

3. Societies are also formed by the persons who purchase the flats from the builders,under agreement as per flats ownership acts of the respective states. In this case also, both the land and building belong to the society after the execution of conveyance by the builder in favor of the society.Such societies are called flat owners Co-operative housing society. 

Flat owners co-operative societies issues shares to its members by which the members gets the right to live, reside and enjoy the flat.Flat owners Co-operative society societies are of more common.These societies are very popular in Maharastra, Gujarat,and West Bengal and not so common in Karnataka. 

Flat owners Co-operative societies issues shares to its members by which the members gets to right to live, reside and enjoy the flat. It is to be remembered that the rights and interest of the member in the flat is limited only to reside and enjoy.Member can transfer only such right. He is not the absolute owner of the flat.On sale of the flat, society transfers the shares to the names of the purchaser, on purchaser complying with the formalities. After the purchaser is admitted, the purchaser becomes a member of the society and acquires right to reside and enjoy, the flat. 

4. In case of death of a member the society transfers the shares to the name of the nominee; 

In the absence of any nomination, the society may transfer the shares to anyone of legal heirs on consent given by other legal heirs. In case of any dispute, the legal heirs may have to obtain letter of administration from a competent court. 

The flats are to be required to be occupied by the owners. In case the flats are let out, the members have to pay non- occupancy charges to the society. 

In case of transfer of share to the others, the member has to give a notice to the society along with the consent of the proposed purchaser.The member may also obtain no-objective certificate from the society for transfer of share. The managing committee on considering the notice of transfer will call for the following documents:Application of the transfer of shares along with share certificate.Membership application for the purpose of transfer Resignation letter from the original member.

Prescribed transfer fee, membership fee, price of the shares premium amount, copy of the stamp duty paid agreement, declaration by both transferor/transferee under urban land (ceiling and regulation) act 1976, if applicable; various reasons for transfer declaration to use the flat for the purpose which it is brought, under taking to discharge all liabilities to the society, no objection letter from the financing agency, if the seller has availed loan, No objection letter from the district collector, if the land is allotted to the society by the government, No objection letters from any other statutory agency, which has given land to the society. On receipt of all these requirements, the application of transfer will be placed before managing committee. However, only general body has powers to admit a new member,
The affairs of the Housing Society are managed by a managing committee, elected by the member from out of the members. 

Generally, the builders/owners sell the flats to the purchasers, but will not convey the land to the societies formed by the purchasers. In such cases the title of the purchasers is not perfect, since the land stands in the name of the builder owners.

In such cases the owner will be entitled to further FSI if permitted. Many states provide in their statutes that the builder/owner should take steps for registration the Housing Co-Operative society and thereafter transfer the land to the society within a time frame. As per the sections 10, II of the Karnataka Flats Ownership act 1972 and Karnataka Flat Ownership rules 1975, Rule No.10, 11, the promoter builder shall submit an application for registration of the society within four months from the date of which minimum number of persons require to form a society have taken flats - Thereafter the promoter shall convey the land to the society within four months from the date of registration of society.

5. Another interesting aspect is the charge created on individual flats/ apartments by the members. The right of the member is limited, to reside and enjoy the flat, but they do not have any ownership right. So the members can mortgage their right to reside, hence such flats cannot be alienated, since the ownership rests with the Housing Co-Operative Society. In case of sale, only the right to reside in the flat is transferred to the purchaser, he will not acquire absolute ownership. So is the case, where the flats are mortgaged to the financial institutions by members. No objection certificate from the Co- Operative society is essential to mortgage the flat.

Generally, the builders/owners sell the flats to the purchasers, but will not convey the land, in such cases the title is not perfect.

In case of the transfer of flats by transfer of shares, the Co-Operative societies will not register the flats in individual names, and the entire property stands in the name of the Co-Operative. Societies; the property is also assessed for tax as a single entry. 

Karnataka government is of the view, that individual flats should be registered in individual names by regular conveyance deed duly registered and tax assessment should be done flat wise.Tracing the title of the flat requires verification of the society records, its byelaws and share certificates Conveyance:Essential for Co-operatives societies The purchasers must not neglect to acquire the title of the property or flat he/she purchasers on a purchase of the flat by acquiring share certificate, the purchaser gets only the right to occupy which is not title to the property. It is observed that he builders themselves do not acquire ownership of land from the landowners. They enter into development agreement and GPA with the landowners to develop and sell the flats, which is not a good practice.But some builders acquire ownership from the landowners them start construction which is in a way easier to convey title to the purchaser i.e. from the builders to the purchaser. 

Housing societies to witness freedom
The Mumbai scenario of purchasing and acquiring the flat by share certificate is slightly different. Nearly 60,000 flat owners are having only share certificates. Maharastra Govt. has made certain provisions easy for them. 

By approving the self-reliant legislation by the cabinet, co-operative societies have been made self reliant, so that there is no dual control on them. Self-reliant legislature is on the pattern of 'Atma-Nirbhar' legislation successfully implemented by Madhya Pradesh. Under the new legislation the co-operative society can opt to be administered or continue under the existing act. If they opt the self-reliant or 'Atrna-Nirbhar' law, responsibility of the co-operative department will be only to register such societies, while the rest of the affairs will be managed by the society. 'Atma-Nirbhar' law provides for setting up machinery for redressed of grievances. The societies or its members need not approach the co-operative department.

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Friday, 23 May 2014

RESTRICTION ON THE USE OF IMMOVABLE PROPERTY




The absolute owner has absolute rights over the property.He may use the property as he likes.But these are certain compulsions,which restrict his rights to use the perform as he likes.The restrictions are imposed under various levels, mostly in common interest of public in large.When any person becomes owner of property, one of his/her important right is right to use and enjoy the property in any lawful purpose and peaceful manner.The Transfer of property Act provides for certain exceptions.This is reflected in Sec 11 of transfer of property Act – 1882, which provides as follows:

Sec 11 Restriction repugnant to interest created — “Where on a transfer of property, an interest there in is created absolutely in favour of any person, but the terms of the transfer direct that such interest shall be applied or enjoyed by him in a particular manner, he shall be entitled to receive and dispose of such interest as if there no such direction”.

Sec 11  directs that there can be no restriction on the enjoyment of property which has been transferred absolutely.E.g., Where the property has passed absolutely to the purchaser, any direction contained in the sale deed which is contrary to the absolute enjoyment is void and not enforceable.

But, Section 11 Provides for an exception. Section stipulates that if any restrictions are imposed on a piece of immovable property for the purpose of securing the beneficial enjoyment of another piece of such property such directions/restrictions shall prevail over. This situation arises mostly in case, where a portion of proportion is transferred and the portion is retained by the owner.

The owner may put some restrictions on the use of the property sold for the benefit of portion of land retained by the owner.However such restrictions are not binding on third parties who are not a party to the contract.

Section 40 of the Transfer of property Act also deals with restrictions on the use of the property by its owner. In the section prescribes “Where, for more beneficial enjoyment of his own immovable property, a Third person has independently of any interest in the immovable property of another person, or any easement there on, right to restrain the enjoyment in a particulars manner of later property.This is right of a third person.Who is not a party to the contract?

This right is available against transferees. But such rights are enforceable against a transferee with notice or against a transferees got the property without consideration they are not enforceable against transferee without notice or against a transferee with consideration or against the property.

There are clear differences between section 11 and 40. The restrictions under section 11 are positive or affirmative. These restrictions are enforceable only against the parties to the contract.  But restrictions under 40 are negative in nature and are enforceable by the third parties, against transferees.

Another important section which restricts the use of property is section 17. According to this section, the transferor may direct the transferee to accumulate. The income arising from the property. The direction may to accumulate the income either in full or in part.However such directions to accumulate the income cannot be permanent. Such directions may be imposed for a period of eighteen years from the date of transfer or for the life of transferor whichever is longer. Any direction for accumulation of income arising from the property transfer for a period longer, than the periods referred are void.

For example, the grantor of the property may provide for enjoyment of the property by Mr. “A' until Mr. “B” attains 18 years of age are also direct Mr. “A” to accumulate the income from the property until “B” attains 18 years of age. But transferor can direct the transferee to accumulate the income arising from such property for indefinite period for the purpose of

· Payment of the debts of the transferor
· The provision of portions of children
· Remoter issue of the transferor
· For the preservation or maintenance of the property transferred

Section 95 of In Karnataka Land Revenue Act provides that, agricultural land cannot be used for non-agricultural purpose without the permission of the Deputy Commissioner and Section 97 provides that non-agricultural land cannot be used for agricultural purpose again without permission of the Deputy Commissioner. This is mainly to control the conversion of agricultural land and to protect agriculturists.

The Karnataka Land Reforms Act, under Section 109, allows certain category of institutions from the restrictive provisions of owning agricultural land. Such institutions may use agricultural land for non-agricultural purpose, but cannot sale such agricultural lands permitted uses are industrial development, educational institutions, places of worship, housing projects, horticulture, floriculture and agro based industries. These are restrictions on holding of the agricultural property a depending upon the nature of the use.

The Karnataka Town and country planning Act, 1961 Sec 14 (1) provides that “On and from the date on which a declaration of intention to prepare an outline is published under Sub-Section (1) of Sec – 10 every land use, change in land use and every development in the area covered by the plan shall conform to the provisions of this act the outline Development plan and the regulations as finally approved by the State Government under subsection (3) of section 13.Sec 14 (2)  provides that such change in land use or development as is referred to in sub-sec(1) shall be made except with the written permission of the planning Authority which shall be contained in a commencement certificate granted by the planning authority in the form prescribed u/s 15(1)  Sec 15(4)  says that if any person does any work on, or makes any use of any property in contravention of Sec 14(1), the planning authority may direct such person by notice in writing, to stop any such work in progress or discontinue any such use, and may after making an inquiry remove or pull down any such work and restore the land to its original condition or as the case  may be take any measure to stop such use.

Also Sec 300 of the Karnataka Municipal Corporations Act, 1976 provides that the construction or reconstruction of a building shall not be begun unless and until the commissioner has granted permission for the execution of the work, Sec 304 provides that the commissioner shall not permit the construction of any building of public entertainment or any addition thereto, if such building is:

Within a radius of 200 meters from any residential institution attached to a recognized educational institution such as, a college or High school or Girls School or Public Hospital with a large indoor patient ward or an orphanage containing one hundred or more inmates. Situated in any thickly populated residential area which is either exclusively residential or reserved or used generally for residential as distinguished from business purposes 

Located in any area reserved for residential purposes by any housing or planning scheme or otherwise under any enactment. The planning authorities and Local bodies also impose restrictions on construction, use of the land mostly to ensure orderly constructions with natural light and air and also to provide peaceful and proper ambience and atmosphere to educational institutions, hospitals.

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