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Tuesday, 28 April 2015

SCRUTINY OF TITLE DEEDS

SCRUTINY OF TITLE DEEDS

http://bangalore5.com/blog/category/property-legal/

The scrutiny of title deeds of a property is the first exercise a purchaser's advocate has to undertake, before the purchaser enters into an agreement with a seller.A clean and marketable title, free from all doubts and encumbrances, vested with physical possession, is very important. The ownership of the title holder can be traced from the title deeds and revenue records.

Through Title Deeds

The ownership or title to the property can be traced on scrutiny of documents, which are called title deeds. The most important document to trace the ownership is the mother deed/ Parent Deed, a basic document that shows how the property at the earliest stage was acquired. Thereafter, there will be a series of transactions, such as sale, gift, partition, will etc., where each transaction has to be supported by documents prepared on paper of requisite stamp.

Generally, all documents transferring immovable property requires to be registered and documents should bear registration details after every transaction. There should be continuity in documentation duly supported by documents. Apart from verification of documents if registered, encumbrance certificate, records each registered transaction and same to be verified. It is advisable to trace the title for a minimum of 42 years to rule out the chances of mortgage.

Through Revenue Documents

The important revenue documents for property within corporation limits are tax assessment orders, Khatha extract, Khatha endorsement/certificate and tax paid receipts. In case of agricultural lands, RTC from 1967, mutation records, and land revenue tax paid receipts are to be verified. Verification of RTC continuously without any break would reveal the flow of transactions including acquisition and conversion, possession and cultivator.

The Title of property is the prime concern of everyone at the time of purchasing of a property. Title is the evidence of the right of ownership or the ground of right of ownership. Title can be created by act of parties or by operation of law. Title is acquired by transfer or by operation of law. The law relating to transfer of immovable property is governed by the Transfer of Property Act. Two other Acts closely connected to it are the Indian Registration Act and the Indian Stamp Act. Law of Contract, and the various Statutes passed by State Legislatures from time to time have important bearing in the matter of ascertaining title to immovable property. Law relating to succession is another important area connected to investigation of title. Title to immovable property is ascertained by perusing relevant "Documents" and "Deeds" pertaining to such property.

Scrutiny and/or Investigation of title is very essential since the ownership of the property is required to be complete, fair & free from any doubts, risks & interest. To ensure this a detailed scrutiny or investigation is much needed so that a purchaser can take all necessary steps at the time of acquiring property to obtain a good & clear title of the land property.. The investigation is carried out broadly to ensure that the property is indeed in the name of the person selling, is free from liens, mortgages and encumbrances, that the property tax has been fully paid up to date and that the property is not engaged in any legal conflicts.

The object of scrutiny or title deeds is to ascertain the ownership and title of a given property. The attributes of ownership are,

(1) right to have and to get possession;

(2) right to prevent interference by others;

(3) Power of alienation;

(4) liberty of using the object according to owner's will;

(5) liberty of enjoying the fruits and to avail of the object owned;

(6) liberty of changing its form and even destroying it.

The scrutiny of title deeds and/or investigation of title is a step towards entering into an agreement of sale. An agreement of sale has three main steps preceding the completion of a transaction of sale they are: -

(1) Settlement of the terms of the deal between the parties particularly relating to the consideration & the property to be transferred,

(2) Preparation and execution of the agreement, and

(3) Investigation of title of the transfer of property.

The origin of ownership is in possession: Actual possession implies a right to retain it until the contrary is proved and to that extent possessor is presumed to be the owner. The concept of ownership give birth to "title" and the idea of title as the better right to obtain or retain possession.

There is no standard period prescribed for the flow of title. After the execution of the agreement of sale it will be the duty of the vendor's advocate to send to the purchaser’s advocate the title deeds of the property. These title deeds are sent in exchange of an accountable receipt to be signed by the purchaser’s advocate. The purchaser’s advocate signs the accountable receipt and keeps a copy thereof with him with the title deeds. Scrutiny of title deeds starts with the present owner's original title deed which will always be 'the document of title 'to the property. Once the original title deed is perused the investigator proceeds to verify the parent documents or the prior title deeds. The safest thing is to peruse the title deeds for the last 30 years. The reasons for this proposition are;

(1) the period of Limitation against Government is 30 years;

(2) Under Section 90 of the Evidence Act , a document 30 years or more are presumed to be validly executed.

(3) The contents of any document are presumed to represent the correct agreement or understanding between the parties there to.

However a search for the last 12 years is treated as normally sufficient. If the title cannot be reasonably be ascertained with in 12 years, then it is necessary to go back as much as necessary. In addition to ascertaining the owner's title, it is the duty of the investigator to rule out the possibility of any subsisting charge by way of equitable mortgage on the property under investigation. For this, perusal of all original title deeds for the last 12 years or even more may become essential.

Some transactions are un-registered, and to check such unregistered transactions it is advisable to the purchaser to Publish a PUBLIC NOTICE at least in two Local News papers and invite for objections from public or interested persons and this helps the purchaser’s advocate to satisfy himself about the title of the property. Claims are invited in the nature of mortgage, lien, charge, lease, easement, gift, trust, or any other claim against the property which is required to be notified to the buyer’s advocate within a period of 15days after which it shall be deemed to have been waived. Such Public Notice supports the buyer's contention in the case of dispute that he is a bonafide purchaser for value without notice of any claim.

For closure in a sale after all these reports purchaser's requisitions on the vendor's title to the property is to be prepared. The requisitions are of two type's general and special requisitions. Special requisitions are objections raised by the buyer on scrutiny and appraisal of the documents produced by the vendor, and relate to title or defects in conveyance. General requisitions are more or less of a routine type of inquiries. A set of general requisitions are those which one may adopt to suit a particular transaction.Thereafter arises the stage of preparing draft of the conveyance.

The following points are generally to be ensure that are covered in the conveyance deed:

Indemnity/Guarantee from the present owner about his title over property,
Indemnity/Guarantee from the present owner about his possession over property,
Point making clear that the said property does not relates with any public activity,
Point making clear that the said property is not a Trust Property,
Point making clear that said property is not a Government Granted Land,
Point making clear that no-one has any right (road/ parking) over said property,
Point about the existing structure on property (if any). because it may affect valuation of the property,
If the said property is ancestral one then it is necessary to make all members of the family as confirming parties for the deed,
Purchase price of the property is agreed mutually, with the schedule of payment,
Indemnity/Guarantee from the present owner about Non Litigant property because any transaction for a property for which litigation is pending is null and void in the eye of law,
Boundaries of the property gives clear idea about the exact location of the property. Therefore it is necessary to mention it clearly in the Title-Deed, a part from this it is advisable to attach a map showing exact location or Identification of the property.,
Witness to the deed plays very important role if the deal goes in to any Litigation, It is advisable to take one owner of adjoining property as witness as it will help to prove possession of the present owner.

All necessary registration and stamp duty must also be complied with. TDS if any to be paid.Thus Scrutiny of title deeds is a very vast procedure and it plays prime role in matters of property.

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Monday, 27 April 2015

VASTU FOR PLOTS

VASTU FOR PLOTS

Primarily, Vastu is a science, which deals with the creation of a harmonious energy field in a structure. It has nothing to do with religion, rituals or astrology. One can even call Vastu as a study of the bio energy present in a structure, which we are not aware of but can feel its existence. For example when we are in a high-energy field we can experience a feel of peace, calm and relaxed. In a structure which does not follow the tenets of Vastu and you will feel gloomy and depressed. Every structure has a subtle atmosphere, which is unique to it, but we do not know for certain what it is.

Vastu can be broadly categorized as:

Bhoomi:The earth, plot or site for the dwelling

Prasada:The structures on the Bhoomi

Yaana:Movable objects like Vehicles placed on the Bhoomi

Sayana:Furniture placed inside the Prasada

The above suggest that the principles of Vastu Shastra extend from the macro level to the micro level such as site selection, site planning and orientation, zoning and disposition of rooms, proportional relationships between the various parts of buildings and the character of buildings. Vastu essentially deals with two energy sources the solar energy flux and the geomagnetic energy flux. The science of vastu aims at controlling the flow of these energies in a vastu by selecting proper directions and alignments for the vastu.

By listening to the earth, we become attuned to the energy of the universe, for this energy is manifested on the air as wind, on the earth as water and land, and in the sky as stars. The earth is an entity animated by energy, energy flows in it, through it, and around it.

Energy III flat open space is different from energy in mountainous areas similarly energy in a valley is different from energy on a plateau. This means that each type of a landform has a specific type of energy associated with it.Vastu advice for plot selection is based on the study of multiple factors like direction of the site, type of soil on the site and the slope of the plot.

Primarily relax and walk on the plot you intend to buy, close your eyes and take a deep breath how do you feel? If you feel nice while walking and relaxed the plot surely emits a positive energy, if you feel sick soon after stepping onto the plot or drained, then don't invest on such a property.

You need to avoid land, which is too wet, to the extent that the place is prone to getting waterlogged. On the other hand also avoid land which is too dry to the extent that vegetation getting starved of water and burnt by the sun. In other words it must be balanced with regard to the quality of the soil. Check the quality of the soil by looking at the color, soil with shades of red or yellow tinge are considered good and it should not be grayish and extremely loosely packed. Remove the top soil and check the smell of the soil beneath, if it smells decomposed it's a bad plot, the soil should smell sweet and this constitutes a good plot.

What is Group Housing?

Lands which are located at dead ends, especially if the plot itself stands at the very end of the road are considered bad vastu. Theoretically the land faces a road coming straight at it, and symbolically represents the inmates of the house being put in a tight corner. In addition to natural structures of one's building, it is equally important to be very observant of other manmade structures, which can also bring inauspicious luck or bad energy.

Structures like transmission towers and large crisis cross beams of structures also direct negative energy towards the plots. Apart from the above, lands close to graveyards, cemeteries, crematoriums and hospitals are also a taboo as they places, which emanate strong negative vibrations that are supposed to overwhelm the breath of life.

A shape of the plot is quite important in ensuring proper flow of energy both in vastu and in Feng Shui. An irregular plot can affect the house, which is constructed on it. In a city where locating and buying a plot to fit one's budget is a nightmare we generally land up settling for a plot of any shape without looking into its cause and effect. I could be difficult at times to find a land, which is regular in shape and is either a square or rectangle, but it is advisable to look for such plots. Regular shaped plots have a steady and good flow of energy levels traveling diagonal across the meridians.

Irregular shaped plots forming, triangles, trapezoids and even parallelograms are considered less auspicious with regard to energy flow due to their shape. If the plots are "L" or "T" shaped it can be simply subdivided into two regular shaped plots so it is easier to handle such plots. Well if you own an irregular shaped plot and subdividing is also impossible then you need to look into the possibilities of shaping the plot by using plants or trees to camouflage the irregularity. The most preferred shape in the vastu is square as it does justice to all the eight directions. The square symbolizes order, stability, and the final state of evolving life. It is perfection beyond life and death.

More,

What is A-Khatha and B-Khatha?

Whitefield

Saturday, 25 April 2015

PROPOSED CONCESSION IN REALESTATE BILL - BOOST-UP REALTORS

PROPOSED CONCESSION IN REALESTATE BILL - BOOST-UP REALTORS

The proposed concession in the Realestate bill wherein the Builders will be allowed to divert up to 50% of the amount collected from their buyers for a specific project, to their other projects, as against the earlier mandated share of 70% of the amount collected, will not only settle the long pending claim, but also will boost-up the Real Estate Sector.

As a matter of fact, the much awaited entry of large international suppliers like Wal-Mart into the country is desperately anticipated by many in the realty market, where contractors and designers hope to benefit from an increased need for retail areas. Experts hope that there shall certainly be a development in the Real estate sector once international multibrand suppliers enter the market. According to Mr. Mehta, Director for real estate business, Motilal Oswal Personal Value Consultants “For the time being there will be a spurt in need as suppliers need to set up test stores immediately.”However, whether this will convert into sustainable need in the long run or not depends upon whether these companies are able to get over infrastructural difficulties and stand up well in the local Indian market.

As regards the position in Bangalore, Amplus Realty Finance (Fund-I),the first SEBI-registered household residence fund,hither to focused on Gujarat,propose to invest in Bangalore real estate project, and declared its first financial investment in Bangalore real estate venture.The fund while expecting around 25 per cent profits on their investment, in three years, is additionally looking for financial investment proposals in prime high-end and mid-market residential projects in Ahmedabad, Surat, Vadodara and a few other locations at Mumbai, Bangalore including the NCR.

Joint Venture

The Confederation of real estate developers association of Indian (CREDAI) has time and again approaching the Government and requesting the Ministry to consider changes in the real estate market to boost development.In a letter to MPs, CREDAI’s National President Mr. Lalit Kumar Jain opined that even though the government is taking all factors into consideration and showing its inclination to take effective steps which would certainly boost-up the Real estate sector. However, he felt that much more can be done without any debate or running into additional cost just by concentrating on the real estate market. The Confederation added that there are some disadvantages in the suggested Land Purchase and Actual Property Regulating Bills which hopefully would be sorted out in the ongoing session of Parliament, and before final approval of the proposed Bill.

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What Is Floor Area Ratio (FAR)?

Whitefield

Friday, 24 April 2015

BUILDING VIOLATIONS

BUILDING VIOLATIONS

In the recent months, we've seen that many buildings folded in city together with the apartment house in Someshwaranagar throughout August, 2013. the bottom and seven floors building below construction folded owing to poor quality of labor. to cut back price of construction and to induce additional returns, specifications of building materials and style isn't adhered to by the builders. The result's terrible loss on investment created and also the amounts advanced by several patrons of flats. during this case the failure was additionally to poor quality of labor, four unauthorized floors designed on the sanctioned ground and 3 floor building. The project has 3 blocks all with such poor quality of labor.

Very high land values are ascertained in city that is undergoing speedy development owing to migration from alternative elements of the State also as alternative elements of the country. The population at the moment is 10 million that is anticipated to extend to 13 million by the year 2021. The steerage values for registration of properties are being inflated by the government currently then to boost its money resources. The patrons ar forced to remit the inflated stamp values. Such patrons recover the extra quantity spent on stamp worth after they sell the area within the new building or sell the property later.

Reasons for buildings collapse:

1) Poor soil conditions:- once the soil conditions don't seem to be smart, soil take a look at is to be conducted to understand the utmost load that it will carry per sq ft. Normally, soil capability of one.50 tons / Sqft is found to be satisfactory. If the soil conditions ar poor, sand piles to consolidate the soil ar provided. For larger structures, concrete piles / concrete rafts ar provided at the bottom of the muse per load projected within the style of the structure. additionally, engineers offer an element of safety to require care of any deficiency within the quality of building materials or the development.

2) designed up space of the building:- Floor space quantitative relation (FAR) is prescribed within the partitioning / Building laws per the land use zone, space of the positioning, location, road width, etc.Some builders increase the designed up space quite the sanctioned decide to get additional returns. Normally, extra support space, extra floors just like the Someshwaranagar living accommodations and conversion of automobile parking space, etc. ar ascertained to extend the designed up space.

3) Earth tremors: it's necessary to style high-rise buildings for resistance to Earth tremors to stop collapse and avoid disaster.

Enforcement of building regulations:

Hundreds of engineers are utilized in BBMP from the amount of junior engineers to superintending engineers to enforce building laws in their jurisdiction additionally to their engineering works.the world junior engineers and assistant govt engineers are responsive to all the buildings bobbing up in their jurisdiction. Action isn't taken in most of the cases of violation within which builder/owner is co-operating with their demands. In cases wherever complaints ar created and there's pressure to require action they advise the house owners to get keep orders from Court, once that the builders happily proceed with the development and the BBMP is generally isn't keen to induce the keep orders vacated..The case can proceed with the plaintiff and also the builder following the case within the court. it's going to or might not be a real grievance. it's going to be to extract cash from the builder and in some cases from the engineer involved to avoid message.

Procedure for action to be taken on violations/ unauthorized construction:

The Karnataka Municipal Corporations (KMC Act), 1976, has the subsequent provisions for sanction of buildings and also the social control of building laws.

1. once a grievance is received or violations are ascertained by the officers, a provisionary order (PO) below Section 321(1(iii) of the Karnataka Municipal Corporations (KMC) Act, 1976 is issued to the owner/builder to demolish the work unlawfully dead or create such alterations to bring the work into conformity with the Act, rules, byelaws or conditions in sanction and to not proceed with the work. PO notice issued is to indicate cause why the PO shouldn't be confirmed.

2. If the owner or builder fails to indicate cause to the satisfaction of the Commissioner/authorized officer, the PO order could also be confirmed. This order is termed Confirmation Order (CO) Notice.

3. In cases of urgency, a notice not but twenty four hours is given to demolish/alter the work unlawfully done.

4. below Section 462 of the Act, if the owner /builder haven't complied with the orders, the Commissioner might order such work of removing desecrated parts or demolition to be dead by BBMP.

5. below Section 463, the expenses incurred for execution of the order could also be recovered from the owner/builder.

Verification by buyers:

Buyers investment their hard-earned cash or loan taken from the banks ought to verify whether or not the property projected to shop for is allowed and there's no risk for the money.

A)Title documents:

It is necessary to verify whether or not the vendor is that the approved owner of the property by confirmatory the documents together with the most recent BBMP khatha, land tax receipt, and also the latest encumbrance certificate. If the property is below joint possession, all the involved need to sign the sale document, or power of professional obtained and verified.

b)Master set up provisions:

The approved program is to be verified to ascertain whether or not the property is within the involved land use zone or permissible uses. just in case of amendment in land use, it's to be verified, whether or not the order is from the government.

c) Land acquisition:

It is necessary to verify whether or not the property is noninheritable or notified for acquisition by BDA, Karnataka Industrial Area Development Board (KIADB) or alternative public agency by confirmatory the operative, if any, is issued by that agency.

d)Sanctioned plan:

The set up Sanctioned by BBMP is to be verified to understand whether or not the projected building is sanctioned, the aim that it's sanctioned, the quantity of floors, the set backs, parking areas, designed up space etc. whether or not the look of the flat/commercial unit projected to be purchased is shown within the actual construction plan, and whether or not it's in conformity with the sanctioned set up.

e)Violations of the set up Provisions:

On verification if it's found, that there are violations from the sanctioned set up, the customer might drop the concept of shopping for the property no matter be the reassurance of the builder/property owner that they'll regularize the building from BBMP by paying the penalty.

f)Structural safety:

If it's a multi-storied building, whether or not a professional structural engineer has designed the building needs to be verified.

g)Occupation certificate:

Before creating balance payment, the customer needs to verify whether or not occupation certificate from the BBMP is obtained for completion of the building all told respects.

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