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Monday 31 August 2015

REPATRIATION OF SALE OF IMMOVABLE PROPERTY

A person referred to in sub-section (5) of Section 6 of the Act, or his successor shall not, except with the prior permission of the Reserve Bank, repatriate outside India the sale proceeds of any immovable property referred to in that sub-section
In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a person resident outside India who is a citizen of India (NRI) or a person of Indian origin (PIO), the authorised dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are satisfied, namely
- The immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations
- The amount to be repatriated does not exceed
  - The amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in Foreign Currency Non-Resident Account or
  - The foreign currency equivalent ,as on the date of payment, of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property.
In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
In the case of the sale of an immovable property, other than an agricultural land/farm house/ plantation property in India by an NRI or PIO, repatriation of the sale proceeds outside India (including credit to RFC, NRE or FCNR Accounts), is allowed.
Sale proceeds of any immovable property inherited by NRI/PIO from a person resident in India may be remitted abroad but the amount not to exceed USD one million, per calendar year subject to production of documentary evidence in support of inheritance and Tax clearance certificate/no objection certificate from Income Tax authority to authorized dealer for remittances.
The RBI has also now permitted authorized dealers to allow the facility of repatriation of funds by NRI/PIO in their Non-resident Ordinary Rupee (NRO) Account up to US $ 1,00,000 per year representing the sale proceeds of the immovable property held by them for a period of not less than 10 years subject to payment of the applicable taxes.

Prohibition on acquisition or transfer of immovable property in India by citizens of certain countries.

No person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan without prior permission of the Reserve Bank shall acquire or transfer immovable property in India, other than lease, not exceeding five years.

General information regarding real estate:

NRIs and PIOs may acquire any immovable property for residential/commercial purposes in India, other than agricultural/plantation/farm house, without the permission of Reserve Bank of India.
No declaration is required to be made to the RBI. Only information regarding details of the property and costs incurred should be given to the RBI. This will help at the time of repatriation.
No permission from the RBI is required to transfer any immovable property other than the agricultural land or plantation property or a farm house in India by way of sale to a person resident in India.
The lock-in period of 3 years has been done away with.
If property has been acquired through NRE account then repatriation is allowed only for 2 residential properties.
NRI/PIO is permitted to transfer by way of mortgage his residential commercial property in India to an authorized dealer/housing finance institution in India.
NRI/PIO can avail housing loan in rupees from an authorized dealer or housing finance institution in India approved by the National Housing Finance Bank for purchase of residential accommodation or for the purpose of repairs/renovation/improvement of residential accommodation, subject to certain terms and conditions.
Sale proceeds of residential/commercial property received by way of gift by NRI/PIO can only be credited to NRO account.
Sale proceeds of any immovable property in India inherited, by a person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin resident outside India), from a person resident outside India cannot be repatriated by him or his successor without prior permission of the RBI.
NRI/PIO can rent out the residential/commercial property purchased out of foreign exchange/rupee funds.
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.
The non-resident Indians who are staying abroad may enter into an agreement through their relatives and/or by executing the Power of Attorney in their favour as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possession, etc.) These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.
Residential property can be given on rent if not required for immediate residential use. Rental income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property.

Tax rules

No taxes to be paid while purchasing property.
Certain taxes to be paid when selling property. If NRI/PIO has held property for less than 3 years then he would have to pay 30% tax. If property has been held for more than 3 years then tax payable is 20%. Tax is payable on rental income too.At the time of renting out property or repatriation PAN card is required.

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Saturday 29 August 2015

Prabhavathi Bliss-II - bangalore5.com

Prabhavathi Bliss-II

Apartment

Area Range 685-1329 Sq.ft

Price : Call For Price

Location Begur Road,Bangalore

Bed Rooms 1BHK,2BHK,3BHK

Thursday 27 August 2015

HOW TO EFFECT CHANGES IN PROPERTY DOCUMENTS

Documents are the record of various transactions; they contain certain terms, conditions, consideration amount, and names of the parties to the transaction, date of the transaction, clear and complete description of the subject of transaction, so as to make them easily identified. For example, sale deed of a property contains the origin, flow of the title, present status, names of seller and purchaser, consideration amount, easementary right and brief description of the property with measurement, construction and boundaries. They are the permanent records, which are relied on for generations. Such documents must be legible, clear, readable, free of error and should not create any doubts or disputes. They reflect the terms of transaction for which both the parties have freely consented.

It is always advisable to prepare draft copies of the document for verification by both the parties in case of agreements and understanding. However, the sale deed should be in favour of purchaser since the vendor receives the consideration. He has to safe guard the purchaser’s interest in the property to be purchased. Any additions, deletions, alterations in the draft copies should be discussed by both the parties and another draft copy as agreed by both the parties is to be prepared.

The second draft copy has to be vetted by legal advisers to ensure that it complies with legal, statutory requirements. Thereafter only the final deeds are to be prepared. As far as possible, additions, alterations, cancellations should be avoided.

Additions and Cancellations

But at times, some additions, alterations, cancellations are inevitable which are discovered at the time of execution. All such alterations, cancellations, additions are to be done before presenting the document for registration. All such modifications should be authenticated by full signature of all the parties to the document. But signature of witness is not necessary for such modifications. Only full signature and not initials or short signature should be affixed. For cancellation, the original words should be neatly struck off. It should be signed by the parties to the document. Erasing fluid should not be used. Registering authority records such additions, alterations, cancellations page-wise on the document itself. This validates the additions, alterations, cancellation etc. Any modification done after registration is not valid and does not form part of the document. More over the document itself becomes invalid. Copies of the registered documents are maintained at registering offices and certified copies issued by such authorities also record on certified copies the number of cancellations, additions and alterations done before registration. They do not contain anything added deleted, modified after registration. So proper care should be taken so that all modifications are done before registration and full signature of all the parties are obtained to the transaction. If anything has to be changed after registration a separate rectification deed has to be executed.

Filling up blanks

Some documents may have blanks as the required information will be available only at the time of execution. Often, date of execution is left blank, until the date is finalised. Details of the demand drafts, cheques like number, name of Bank, Branch are also left blank. All such blanks have to be filled up before presenting the document for registration and should be authenticated by all the parties to the document or executor with full signature.

Attestation

Attestation means witnessing the documents. Certain documents like will, agreement to sale, sale deed require attestation. Execution of the documents should be witnessed by two persons, who are major and of sound mind. Both the witnesses should affix their full signature and should furnish their address. Attestation is not necessary in case of certain documents.

Thumb Impression

There are many people who cannot sign. Thumb impression of such people are taken for execution of documents instead of signature. Left hand thumb impression (LTM) in case of males and Right hand Thumb Impressions (RTM) in case of females have to be obtained on documents for execution. Brief description “LTM or RTM of ———————— has to be written immediately below the thumb impression. As the persons who affix thumb impression are illiterate, who cannot read or write, the entire contents of the documents should be read over and explained to them and a separate note to that effect has to be annexed to the document preferably signed by an Advocate.

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Prabhavathi Lotus II - bangalore5.com

Prabhavathi Lotus II

Apartment

Area Range 969-1106 Sq.ft

Price : Call For Price

Location Bannerghatta Road,Bangalore

Wednesday 26 August 2015

LEGAL RESTRICTIONS ON TRANSFER OF PROPERTY

Among various types of ownerships, ownership of immovable property is very important. Ownership of immovable property is classified into freehold and leasehold. Freehold rights would provide the owner an absolute ownership of such property.This means that the owner has full freedom to deal with the property as he likes without any restrictions. Under leasehold right, the lessee does not get any right of ownership, but only a right of possession and enjoyment subject to the restrictions imposed by the lessor.

The three important rights enjoyed by the owner of property are:

1) Right to use

2) Right to destroy and

3) Right to transfer

Right to transfer

This is the most important right enjoyed by the owner. It may be noted that the right to transfer is not an absolute right enjoyed by the owner, but it is subject to the restrictions imposed by the law. In this regard the first and foremost important restriction flows from the Constitution of India. Before the 44th amendment to the Indian Constitution, Right to property was a fundamental right under article 31 dealing with Right to own property and under article 19 (1) (f) dealing with Right to dispose and enjoy property. These two rights were protected by Art 13 (1) (2) in the Indian Constitution, which provided that any law including rules, regulations, notifications, ordinance etc. to the extent they violate fundamental rights are void. This protection has come to an end by the 44th Amendment, deleting Right to property in the chapter of Fundamental rights and placing it in the ordinary rights chapter i.e. Art 300 A. Thus, the right to property, more so of immovable property, is no more a fundamental right.

Different States have enacted laws, imposing restrictions on the rights of the owner of the property.The Government of Karnataka has prescribed certain ceiling on holding of the agricultural property by persons, companies, societies etc. under the Karnataka Land Reforms Act, 1961. The limit prescribed depends upon the type of land. If the holdings are in excess of prescribed limits, excess of the holdings will vest with the Government of Karnataka. The Karnataka Land Reforms Act generally prohibits transfer of agricultural property to non-agriculturists and persons having source of income more than Rs. 2 lakhs (average for last 5 year income) from non-agricultural sources. Though agricultural property cannot be transferred to non-agriculturists, Karnataka Land Revenue Act provides for conversion of agricultural land to non-agricultural land and such converted land can be transferred to non-agriculturists.

Land acquisition

There is another important legislation i.e. Land Acquisition Act, 1898, which provides for acquisition of property for public purpose.Once the government issues preliminary notification for the acquisition of such land, whether agricultural or non-agricultural, such property cannot be transferred to any other person. Here again, authorities competent to acquire the property are the Central or State Government and other government agencies like BDA, KIADB, KHB etc.

Zonal regulation

The Comprehensive Development Plan has categorized the areas into various zones like residential, commercial, industrial, green belt area etc. and has also prescribed the various activities which can be carried on in such zones. In green belt area, only agricultural and allied activities are permitted.Permission from planning authorities is required for any change in the land use.

PTCL Act

The important social welfare Act with regard to Transfer of property is “The Karnataka SC & ST (PTCL) Act, 1978. The preamble of the Act reads that “An Act to provide for the prohibition of transfer of certain lands granted by the government to persons belonging to the scheduled castes and scheduled tribes in the state, which means any land granted to the landless agricultural labourers belonging to scheduled castes and scheduled tribes cannot be purchased without the permission of the Government. Any one who purchases such a property will not get clear and marketable title; such property will be eventually acquired by Government and returned to the original owner without any compensation to the purchaser.”

These restrictions on the transfer of property are social in nature i.e. to give effect to the Directive Principles of State policy provided U/A 39(b) & 48 A of the Indian Constitution. Art 39(b) of the Indian Constitution provides that the ownership and control of the material resources of the community are so distributed as best to sub-serve the common good. Article 48 A in the Indian Constitution provides that the state shall endeavor to protect and improve the environment and to safeguard the forests and wildlife of the country.

Transfer of Property Act

In the Transfer of Property Act, there are certain restrictions on the transfer of property. The purposes of imposing restrictions on transfer of property in the Transfer of Property Act, 1882 are to protect the interests of creditors and persons having better title to the property and to prevent property being removed from trade and commerce. There are two kinds of restrictions on the transfer of property. They are: 1) Restrictions to protect the society as a whole, and (2) Restrictions to protect the interest of transferor creditors and people having better title.

According to sec.5, transfer of property could be effected only between living persons and hence no property can be transferred to an unborn person. However, Sec 13 provides for transfer of property to any living person to be held for the benefit of such unborn person.

Sec. 10 of the Transfer of Property Act provides that any condition imposed by transferor to transferee absolutely from parting with or disposing of his interest in the property is void. This provision facilitates transfer of property by transfer without any restrictions. However, the Act allows temporary restrictions.Various development authorities and societies restrict alienation for some period. This freedom of transferee can be curtailed in case of lease for the benefit of lessor, property transferred to woman, for the benefit of woman not being a Hindu, Mohammedan or Buddhist, so that she shall not have power during her marriage to transfer or charge the same or her beneficial interest thereon.

Doctrine of Lis pendens : Sec. 52 provides that if any suit relating to immovable property is pending in a competent court of law and during such pendency, if property is transferred, such transfer is subject to decision given by the court.

Fraudulent transfer : Sec. 53 prohibits transfer of property if the purpose and intention behind such transfer is to defraud or delay payment to the creditors of the transferor.

Other restrictions : The restrictions which have a bearing on the possession, enjoyment and transfer of immovable property are (1) Occupant of land under Karnataka Land Reforms Act, 1961 [Sec. 48], (2) Grantee of land under Karnataka Land Reforms Act, 1961 [Sec. 77], (3) Occupancy not transferable without sanction of prescribed authority, Karnataka Land Revenue Act 1964 [Sec. 100].

Purchase of property by NRI / POI : Foreign nationals of non-Indian origin residing outside India cannot purchase any immovable property in India. Persons of Indian origin means persons who held an Indian Passport any time earlier or whose father or grandfather was a citizen of India. Non-resident Indians can purchase residential and commercial properties upon fulfillment of necessary requirement. There is a blanket restriction upon the non-resident Indians to the effect that they cannot purchase agricultural, farm / plantation property.

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BMRDA Approved Layouts

Anekal
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Devanahalli Road
Electronic City
Hosur Road
Indira Nagar
Kanakapura Road
Koramangala
Sarjapur Road
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Whitefield

Prabhavathi Sri Krishna - bangalore5.com

Prabhavathi Sri Krishna

Apartment

Area Range 1000-1430 Sq.ft

Price : Call For Price

Location J P Nagar,Bangalore

Bed Rooms 2BHK,3BHK

Tuesday 25 August 2015

PROVISIONS IN BYE-LAWS FOR CREATION OF SINKING FUND

The basis on which sinking fund contribution is fixed:

Every building has its normal life. Its life is extended by some more years by carrying out certain repairs. It is however risky to continue in occupation of the building which has run its life. A Co-operative housing society has therefore to reconstruct the building after it has run its life. As it may be difficult for any co-operative housing society to raise the funds for reconstructing the building from its members in a short spell of time, it becomes necessary to establish a Sinking Fund right from the inception of society. A provision has, therefore, been made in the bye-laws, enabling a co-operative housing society to collect contribution towards this fund from its members at a fixed rate per month. The rate fixed under the bye-laws is ¼ per cent per annum of the cost (b) A flat includes a godown, showroom shop or a garage. It may be noted that the contributions at the rate mentioned above are to be collected only on the cost of construction and the value of the land included in the cost of construction has to be excluded. A building sinks in course of time due to its wear and tear but the land remains as it is even if the building collapses.

The procedure for ascertaining the cost of construction of a flat in an flat owners' society:

In case of an open plot type co-operative housing society (which has purchased or taken a piece of land on lease and constructed building / buildings thereon) it is not difficult to work out the cost of construction of a flat only. The difficulty in working out the cost of construction of a flat arises in certain cases, particularly the flat owner's society (in which flats are taken by purchasers under agreements under section 4 of the Maharashtra Owners Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act 1963. A builder-promoter sells the flats on different occasions to different purchasers for different prices, even though the flats are of identical sizes and there is no difference in the type of construction and the amenities provided. The price paid for a flat proportionate land also and further that the cost of construction of a flat is not on the basis of actuals. In majority of cases the actual price paid by a purchaser is more than that mentioned in the agreement. It would thus be wrong to recover contribution from members at the fixed rate towards the Sinking Fund on the basis of value shown in the agreements. The builder may be most unwilling to give the actual cost of construction. A Co-operative society has therefore to employ the agency of an architect or a valuer, appointed in the general body meeting of the construction of the building and apportion such cost amongst costs of a flat so arrived at may be taken as the basis for fixing the amount of contribution to the sinking fund in respect of the flat/shop/garage etc.,

Investment of sinking fund contribution with interest earned thereon:

Investment of Sinking Fund made Obligatory:

The amount in the sinking fund is required to be utilized when the reconstruction of the building is due. This is a very long period. During this period the contribution received from members by a society should stand invested on long term basis so that such an investment will fetch substantial return to the society. As per Bye-law No.15 and Section 70 of M.C.S.Act. 1960. However, the societies which have not adopted the new provision, regarding investment of sinking fund contribution on long term basis, need not put off the questions of the said bye-law because it is in their own interest to ensure that the contributions are received from members towards sinking fund on long term basis from time to time.

The need for investing interest on Sinking Fund Investment:

It is brought to the notice of the Co-operative housing societies that if they go on investing only the contribution from members towards sinking fund at the rate of ¼ per cent per annum of the cost of construction of the flats and utilize the interest earned on such investments in their businesses, the total amount to the creation of sinking fund will not be sufficient to meet the cost of reconstruction of the building only if the sinking fund is invested on long term basis, along with the interest earned on such investment.

Modes of investment of Sinking Fund:

A co-operative housing society can invest its fund in the State Co-operative Bank i.e., the Maharashtra State Co-operative Bank Ltd., Bombay or the district Co-operative Bank i.e., the Bombay District Central Co-operative Bank Ltd., of the securities specified under section 20 of Indian Trusts Act. Although the Registrar can permit Co-op. Housing Societies to invest their funds in the National banks or other commercial banks or the Urban Co-operative Banks.

This facility is given only for facilitating day to day banking transactions. A long-term investment has, therefore to be made by Co-operative Housing Societies with either of the two banks named above. All Co-operative Housing Societies should therefore, note that they have to invest their sinking fund collection is one of the above two banks. So far as securities under section 20 of the Indian Trustees Act are concerned, the list of the securities in which Co-operative housing can invest their sinking fund is published in the new bye-law.

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Apartments for rent in Bangalore
BMRDA Approved Layouts

Anekal
Bannerghatta Road
Devanahalli Road
Electronic City
Hosur Road
Indira Nagar
Kanakapura Road
Koramangala
Sarjapur Road
Vijayanagar
Whitefield

Prabhavathi Royal Gardenia - bangalore5.com

Prabhavathi Royal Gardenia

Apartment

Area Range 1030-1940 Sq.ft

Price : Call For Price

Location Sarjapur Road,Bangalore

Bed Rooms 2BHK,3BHK

Monday 24 August 2015

HOME LOAN AGREEMENT

Home Loan Agreement: With the ongoing flurry of activity and festivity prevalent in the home loan segment of India recently, a large number of people, in the euphoria to acquire that dream house, tend to overlook some of the most important clauses in the home loan agreement. However, what they don’t realize is that these clauses have a significant bearing on wide number of areas ranging from interest rates to repayment schedules.

Some of the simple clauses of the home loan agreement regarding to simple matters, such as how often the housing finance company resets interest rates in a year can make a considerable impact on the floating rate home loans. The norms in the industry practices suggest that interest rates for home loan consumers are reset only when the bank’s prime lending rate is changed.Therefore it is the frequency of these resets that is really important. Some of the finance companies offer home loan agreements wherein the interest rates are reset in each quarter. Alternatively, there are other companies who do the revision only once a year. Sadly not many home loan consumers are aware of the clause related to the fixed rate homeloans, which the financial companies some times insert in their home loan agreement.

This ignorance can cause the customers unintended losses in case of revision of the fixed rate home loan rates. Most of the customers are not aware that this particular fixed rate clause in the home loan agreement permits the financial institutions to change the loan’s repayment schedule and terms and conditions.

The financial institutions in a rising interest rate environment might exercise this option in order to safe guard themselves and in the interest of their own company. This move is usually not in the best interests of the customer or the housing loan seeker as the modification of the repayment schedule, terms and conditions might affect the overall repayment of the consumer. The long list of terms and conditions of the home loan agreement, usually contain clauses which might possibly have a number of significant implications for the consumer and therefore it is important that the consumer is aware and makes an informed choice accordingly.

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Site at Bangalore

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House for rent in Bangalore

Apartments for rent in Bangalore

BMRDA Approved Layouts

Anekal