An article about " HOUSING BILL COULD TURN MIXED BAG FOR DEVELOPERS AND BUYERS "

HOUSING BILL COULD TURN MIXED BAG FOR DEVELOPERS AND BUYERS

The final version of the much-awaited Maharashtra Housing Bill may turn out to be a mixed bag for Developers as well as Home Buyers.

Five years after the idea was first floated only to be canned, revived and tweaked, the State Legislature at last approved the Maharashtra Housing (Regulation and Development) Bill in 2012, which paves way for setting up of a Housing Regulatory Authority and a Housing Appellate Tribunal. Every building construction project will have to be registered on the Authority’s Website followed by full disclosure on Land Title, Layout Plan, Carpet and Common Area and all other Amenities. Only after this the Developers can advertise or sell flats in the new project. Recently a selected Joint Committee of the Maharashtra Legislature introduced over a dozen changes to the earlier version of the bill drafted by the State Housing Department.

The changes meant as a relief to Home Buyers, they have evoked strong responses from both Developers as well as Consumers for different reasons. The panel has added a provision that allows 60 percent of the Flat Buyers to be appointed as an Escrow Agent in case the Promoter fails to complete the project. The Flat Buyers can then go on to appoint Contractors to complete the construction and obtain Occupation Certificate.

They have also extended the number of years for which the Builders are required to provide for maintenance of the building from three to five years. In addition to this, they have increased the penalty in case of violations up to Rs. One Crore including a provision for up to six months imprisonment.

While Paras Gundecha, President of the Developers’ body MCHI-CREDAI lauded the bill for promoting transparency, he attacked it for its approach towards Developers as why Developers alone should be held responsible and not other Stakeholders such as the Contractor, Consumer or Government bodies?  Most delays occur due to the time taken in getting approvals from the Civic body or State Government. He also strongly objected to the clause allowing the Authority to prosecute Developers. This power should vest with the Judiciary alone.

Housing Society Associations however, have termed the bill as Lackluster. It is basically old wine in a new bottle. Already the Maharashtra Ownership of Flats Act (MOFA) has provisions that can make it mandatory for Developers to ensure transparency in all their dealing with Buyers but it was never implemented. Critics have pointed out that the State Bill is a severely watered down version of the Central Government’s Real Estate Regulatory Bill which comes down more heavily against errant Developers. Once such lacuna in the State Bill is that unlike the Central Bill, it doesn’t allow the Housing Regulatory Authority to put on hold all the projects by a Developer in case of violations.

With a measly budget of Rs. 5 Crores the Regulatory Authority may just turn out to be a toothless body with complaints piling up before using it.

Even the revised bill fails to crack down on several important issues such as charging Buyers for Car Parking Spare or selling flats on Super-Built up Area.

An article about " Builders and Developers are struggling for the VAT recovery by the Buyers "

Builders and Developers are struggling for the VAT recovery by the Buyers

Burdened by the Value-Added Tax (VAT) demanded by Maharashtra’s Sales Tax Department on all property deals, Developers are struggling to recover the amount from flat Buyers to minimize their tax load.

Some Developers appear to have given up trying to recover the amount from people who have already taken possession of flats, but they are hoping to be able to get this payment from Buyers who have yet to take possession.

According to the President of Maharashtra Chamber of Housing Industry (Navi Mumbai Unit) Arvind Goel stated, “God knows whether they will be able to collect the VAT amount or not. If a Developer tries to recover an amount of Rs.50, 000 by any way of VAT from an individual flat Buyer, he may have to spend as much in litigation. Even after that they are not sure whether they will be able to recover the money.

Goel has VAT dues totalling about Rs. 25 Crore that he is seeking to recover from Buyers who have already occupied flats. Most of these flats are resold and he doesn’t have the facilities to track down these defaulters, send notices, or pursue legal cases.

According to Anand Patvardhan, who has conducted seminars on this matter says, however, Tax Experts are still questioning the reasonableness of enforcement of VAT. It is a violation of the constitution. A flat is an immovable property, so VAT cannot be imposed. This anomaly should be challenged in Court.

Patvardhan had advised flat Buyers to make Right to Information (RTI) applications to get details about the VAT paid by the Developers and also seek a breakup. If the Developer has not paid the amount, one should demand an inquiry, because the Government is responsible for the mess.

Other Tax Experts inform that a petition has been made to the State Chief Minister to rationalize the charge to 1% instead of 5%, but they are disappointed that they have not heard anything yet from the Government.

According to the Managing Director of Puranik Developers, his Office was sending out demand letters to defaulters. They will pursue the matter. Those who have got the possession of the flat will have to pay before getting possession of the flat will have to pay before getting possession. But, in the case of those who have already got possession it will be difficult. I hope they will understand and pay the VAT amount.

Developers are sending these VAT demand letters by registered post with an aim that if the matter goes to Court the registered notices will have a Legal basis.

An article about " Home decor within your budget "

Home decor within your budget

People get bored of the same decor over a period of time. In order to give a refreshing new look to the rooms it is necessary to make changes in the decor of the interiors.

Attractive interiors do not need large floor spaces or elaborate furnishings if one is a little innovative. It is possible to change the look of your interiors without bringing in expensive objects of décor or going through elaborate renovations. All you need is some basic reorientation to the scheme, and you have another dimension to your décor. Interior décor also lies in presentation.  It is a matter of displaying artifacts and objects of utility, and changing the display can bring in a new look.

Living  Room

The living room is normally furnished with basic furniture, showcase holding artifacts, a cabinet for books, and the TV too. You would also have a center and corner table to complement the seating arrangement. Here, you could experiment with the layout of the seating. This, most often, is the most flexible part of the living room. All you need to  do is move it to another part of the living room to bring in some change. While doing so, you need to ensure the comfort of those using them. It is easier to bring in some change using the corner and center tables. Get a new set of table top figurines in terracotta or even wood for them. Keep at least four different-coloured table cloths to change every few months. This will see your interiors constantly changing.

Another option is to create a decor scheme using wall hangings. You can create an ethnic ambience using wall hangings made of fabrics. These are easy to maintain and can be changed often. A collection of wall hangings can create a theme and changing them will see another dimension to your interior decor.

Bedroom

The bed room furniture-the bed, wardrobe and dressing table will be difficult to move. The key to changing bedroom décor is in fabrics. If you have brightly-coloured fabrics for the bed, use similar bright fabrics for curtains. Also, arrange a group of pictures and curios on the dressing table. Bring change through colour of fabrics and objects of décor you use on the dressing table. The more the number of décor objects you display, the more noticeable the change when you bring in different ones. Get a couple of large scenic picture prints framed for this space.  Place one each on opposite walls. Scenes of pretty landscapes are relaxing and go well in a bedroom. Changing the scene brings about a new look  almost like you are in a new place. Such prints are not too expensive and you can change them every few months.

Outdoors

The outdoors is easy to manage. This space does not require as many objects of decor as the indoors do. All you need is a couple of large objects  in relation to the dimension of space there  to bring about a change. Use earthen or terracotta objects here. Ideally, you should have portable rather than fixed objects in this space. It is easier and less expensive to change a moveable object.

A small water body could do wonders for your patio or garden. You could experiment with a small fountain with some landscaping around. A change in the landscaping design will make the space and fountain look different. Another option would be to get a new look using potted plants.  Groups of potted plants re-arranged give the garden a new look.

Colours and decor

Colours have a bearing on the decor of your home. You can bring in variety by changing colours  furnishings, fabrics or even of décor objects. However, while you go about changing colours, you need to ensure they blend with the rest of the objects in the room. When you change your furnishings, you should ensure the new colour goes well with the colour of the walls and wood work too. With some simple changes, you can give your interiors anew look.

An article about " Getting Occupancy Certificate is builders’ duty - Consumer Court "

Getting Occupancy Certificate is builders’ duty - Consumer Court

Before taking possession of the flats purchased by any individual, obtaining Occupation Certificate (OC) is a “must have document”. If you are denied of the same, then the consumer court can come to your rescue.

The Bandra Consumer Disputes Redressal Forum noting that the Occupancy Certificate is an essential requirement for a flat-buyer, has ordered Dharia Developers to give the purchaser, the  Occupancy Certificate  within a specified time.

As per an agreement dated September 26, 2006,  Mr. Mehul Thakkar bought two flats on the sixth floor (601 and 602) of an apartment building by paying Rs 40.25 lakh for each of the flats, the remaining one lakh per flat was agreed to be paid at the time of delivery of  possession. It appears that M/s. Dharia Developers had promised to give the possession of the flats within 12 months from the date of agreement. However, Thakkar is yet to obtain the Occupancy Certificate  or the Completion Certificate for these flats. Hence, Thakkar sent a notice to the builder demanding the same. When the builder didn't respond, Thakkar filed a complaint before the Forum and also an application seeking interim relief.

In their defence, Dharia Developers argued that Thakkar wanted to merge both theflats into a single unit, as per his letter in September 2006. The builder claimed that though this was against the building's approved plan, they permitted Thakkar to do so at his own expense after getting an approval from the sanctioning authorities. The builder stated that since Thakkar couldn't complete the work in time, the Occupancy Certificate couldn't be obtained from the authorities. Hence, they are not responsible for the delay in handing over the possession and the Occupancy Certificate to Thakkar.

In their interim order, which is common for both of Thakkar's flats, the BandraConsumer Disputes Redressal Forum has held the builder as having committed deficiency of service. The forum observed, “These explanations are hardly satisfactory, because it was an obligation incurred by Thakkar. If Thakkar had not carried out the modifications that he had suggested, the builder could have completed the construction disregarding Thakkar's suggestions.” The forum noted that though Thakkar had given the letter informing of the modifications to the builder in September 2006, the flat's construction is incomplete even after three years. “The builder should have completed the constructions, internal as well as external, as per the original plan, since the modifications were at Thakkar's instance. The builder was not required to wait till the modifications were completed. This shows that the builder has put forward a lame excuse for not completing the construction and for not obtaining the Occupancy Certificate. The builder received almost the entire consideration of the flat, more than Rs 40 lakh in 2006. He has retained the amount and utilized the same, but has not collected the Occupancy Certificate.”     
The Forum also held, “Obtaining OC is an essential requirement under the MOFA (Maharashtra Ownership Flat Act) and the flat purchased cannot be legally occupied, unless the Occupancy Certificate is obtained by the builder. The builder has not produced a single piece of paper to show that he has taken effective steps with the competent authority for obtaining Occupancy Certificate.”

An article about " Litigation in property matters "

Litigation in property matters

Scrutiny of property documents is a very technical job which only experts in the matter can correctly carry out. If scrutiny of property documents is not carried out in a scientific way there is every likelihood of the purchaser being trapped into litigation.

The first and foremost thing to be considered by a prospective buyer of an immovable property before finalization of any deal is to get scrutinized the property documents to know about the marketable title of the property, genuineness of the document, enforceability of the title and whether the provisions of the laws, rules and regulations of the revenue authorities are complied with. Origin of the property, flow of title and present status of the property are to be verified in a systematic manner.

On being satisfied with the title of the property, the purchaser can enter into a sale agreement with the vendor. It may be noted that the property transactions are not executed through oral agreements or understandings. These transactions are executed underwritten documents which require compulsory registration. While drafting property documents, be it a sale agreement, sale deed, gift deed, mortgage deed, will, etc., every minute care is to be taken to protect the interests of the parties which in turn requires considering and dealing with the various aspects of the matter to bring out all the relevant information leaving no scope for ambiguity leading to interpretation and disputing. Failure to adhere to this golden principle would lead to misunderstanding between the parties. The fact that a large number of cases relating to property matters are filed for adjudication of the courts would itself go to show that there is a great scope for improvement in the scrutiny and drafting of property documents.

Disputable Issues

Precisely, it is not possible to categorically state as to the type of disputes which could arise from out of a property transaction - It may relate to the valid title of the vendor, time schedule for payment of sale consideration, handing over possession of the property, non - compliance of the conditions detailed in the agreement to sell by either of the parties to the transaction, share of a coparcener on partition of HUF, interpretation of the recitals of a will, and the like. Failure on your part to take care of tracing the title of the property in a proper way will lead to various types of litigation.

When disputes arise, at the first instance people try to resolve their disputes amicably and when they fail to reach an amicable settlement they knock the doors of the competent court for resolving the disputes.

Readers may kindly note that when once the matter becomes sub judice, it will take very long period to get the disputes resolved by the courts and the litigants are generally prevented to deal with the property without the permission of the concerned court when the matter is sub judice.

There could be different type of relief sought from a court of law. The relief may be for specific performance, restraining the opposite party from interfering with the peaceful possession and enjoyment of the property, compensation for the loss, recovery suits, eviction suits, interpretation of a Will, declaratory suits, partition of joint family property and so on.

Types of suits / action

When the vendor of a property though initially has agreed to sell his property to the purchaser at an agreed sale consideration backs out of his commitment, the purchaser can file a suit against the vendor for specific performance of the agreement and the court on being satisfied with your claim, as a purchaser, may adjudicate and pass an order for execution of the sale deed in your favour. On failure of the vendor to transfer the property in your name despite the court's order, you may file an execution petition. On the basis of the execution petition, the court will take necessary steps to get the property registered in your name as per court's order.

Declaratory suits

Under certain circumstances, when your title to the property is challenged or found to be doubtful or defective, it is necessary for you to get an order from the court on your title for which purpose you may need to file a declaratory suit in a court of law.

Injunction

Filing suit for permanent injunction restraining the opposite party from interfering with your peaceful possession and enjoyment of the property may be necessary when your property is under the threat of interference by some third party.

Partition Suit

Similarly, when you are a co-owner of a property and when you desire to get your share in the property to be enjoyed by you separately and independently, you may have to file a suit for partition.

Money Suit

For realization of the money lent on the security of an immovable property by way of mortgage, you may have to file a suit for recovery of the money due from the Mortgagor and on his failure you may have to proceed, according to law, for realization of the money due by selling the property mortgaged.

Disputes before quasi-judicial authorities

Different types of litigations concerning the land revenue, land acquisitions, title documents etc., are heard and disposed of by several quasi judicial authorities such as Tahsildars, Assistant Commissioners, Deputy Commissioners, Survey Settlement Commissioners. Therefore, knowledge of authority of these officers would help you a lot in your property matters.

Disputes concerning stamp duty and under valuation

District registrars of Registration and the Inspector General of Registration adjudicate the disputes concerning the stamp duty payable and under valuation of property. In case you have any grievance with regard to the valuation and the payment of stamp duty on your property transfer, you may approach these authorities for remedy to your grievance.

Landlord and Tenant disputes

In respect of disputes between the landlord and tenant falling within the jurisdiction of the Rent Controller, you may have to file petition only before the Rent Controller for relief. The disputes may relate to non-payment of rent, enhancement of rent, fixation of fair rent, eviction of the tenant, etc.

Criminal cases

To initiate cause of action for forgery and fraud in property transactions, you may have to file at the first instance a police complaint or file a complaint before the Magistrate. Criminal courts have a different structure and if you lodge a complaint, the State will prosecute the matter. In criminal matters, there is no suit valuation.

Writ jurisdiction

You may invoke writ jurisdiction against the decisions of the Government affecting your property rights by filing writ petition in the concerned High Court or in the Supreme Court for appropriate relief.

The type of legal remedy explained above is only illustrative and not exhaustive. In addition to these remedies, there are other relief/remedies available to a party. The relief is to be sought from a court of competent jurisdiction and for this purpose having knowledge of the jurisdiction of various courts is necessary. An experienced advocate dealing with property matters could render very useful service in the matter who may guide you properly and protect you from unnecessary litigations.

An article about " Renovation "

How to Renovate Your House?

It is relatively a lot easier to design a new building in an empty plot rather than renovating an existing building to suit newer and modern requirements. For various reasons including budget, one may want to redo the existing building with additions and alterations instead of demolishing the existing building completely. Many will think renovating the building will be cheaper. But usually, it is only after commencement of work that one will realise the intricacies and expenses involved.

Before starting the work, one has to do a careful planning and be doubly sure about what exactly one wants from the building. Otherwise, one will end up spending more than what they have planned for or may end up getting a poor building in many ways.

Renovation can be broadly classified as:

 Touch up works which involve some minor repairs and finishes. This may be redoing a minor work on wiring, plumbing, sanitary or arresting leakages in the water tank or filling the wall cracks and having it repainted. Leveling of the pavements, repairing the doors and windows or combination of all the above.

 Minor renovation may involve redoing the flooring, altering the entire bathroom by replacing the entire wall and floor tiles, plumbing and sanitary lines, shifting and adding electrical points, minor additional civil works, removing and redoing the weathering course and roof tiles.

 Major renovation may involve redoing the floor plans, complete electrical works, sanitary, plumbing, flooring, doors, windows, grills, gates, painting, interior and exterior finish and elevation modifications. Only exemption could be basic structural system.

Clear Plan, imperative

Today let us talk about some finer points with regard to additions and alterations:

  Step by step process and study are needed in understanding the nature and the requirement of additions and alterations of the building. One has to clearly plan on the need and make the best use of the available building.

 One has to completely study the structural system of the existing building so as to modify the floor plans without much of structural complications.

If any part of the building is damaged extensively, one should not hesitate to demolish that part and redo it.

 If any part of the building is not going to be really in use and also going to hinder in fitting in the newer requirements, do not hesitate to demolish it. After all, redoing work is for convenience and comfort only. No point in retaining the portion of the building just for the sake of it.

   When you alter the building, see to it that it meets the local Government body rules and requirements.

Apply for the fresh plan and get the sanction before starting the construction.

Seek professional help

Do not think it is only additions and alterations and one can manage without discussing with Architects and Interior Consultants. It is much more necessary to discuss with them to get an effective result.

Any structural alterations have to be done with extra care and supervision. If more floors are to be added, check the existing foundations by an Expert. Even if it is a minor or major alteration, do not extend the existing wiring lines. Instead, remove the old wiring and go for the newer ones and the same thing holds good for plumbing and sanitary lines too.

Necessary precautions have to be taken to rework the dampness on the roof and the wall completely.

One can go for a totally fresh concept and look. It is not necessary to carry on the previous image of the building. But at the same time, it is worth retaining the image of the building, if it is reflecting the local culture and architecture even in a very small way.

An article about " NO PREPAYMENT LEVY ON FORECLOSURE OF HOME LOAN: R.B.I. "

NO PREPAYMENT LEVY ON FORECLOSURE OF HOME LOAN: R.B.I.  

The Committee on Customer Service in Banks Chairman, M.Damodaran had observed that foreclosure charges levied by Banks on prepayment of home loans are resented upon by home loan borrowers across the board especially since banks were found to be hesitant in passing on the benefits of lower interest rates to the existing borrowers in a falling interest rates scenario.  As such, foreclosure charges are seen as a restrictive practice deterring the borrowers from switching over to cheaper available source.

The removal of foreclosure charges/prepayment penalty on home loans will lead to reduction in the discrimination between existing and new borrowers and competition among the banks will result in finer pricing of the floating rate home loans.

Though many banks have in the recent past voluntarily abolished prepayment penalties on floating rates home loans, there is a need to ensure uniformity across the banking system.

It has, therefore, been decided that banks will not be permitted to charge foreclosure charges/pre-payment penalties on home loans on floating interest rate basis, with immediate effect.

For example a borrower has a loan of Rs. 40 lakhs. The principle still outstanding as on date is Rs. 38 lakhs.  In case he prepays, he had to shell out around Rs.76,000/- in addition to the principle loan amount as a prepayment penalty.

It is felt that the removal of foreclosure charges/ Prepayment penalty on home loans will lead to a reduction in the discrimination between existing and new borrowers and the competition among banks will result in finer pricing of home loans with the floating rate.

Though many banks have, in the recent past, voluntarily abolished the prepayment penalties on their floating rate home loans, there is a need for ensuring uniformity across the banking system in this regard. Accordingly, it is proved not to permit banks to levy foreclosure charges/prepayment penalties on home loans on a floating interest rate basis. 

An article about " Will or Testamentary Succession "

Will or Testamentary Succession

What is testamentary succession ?

Succession to the self acquired assets of the deceased as per his declaration is Testamentary succession. The declaration of the deceased is called WILL, and the person (deceased) is called Testator. The Indian succession Act 1925 deals with the testamentary succession and is applicable to wills made after 1st January 1866 but not to wills made by Mohammadans.

Can a will be revoked ?

The Will operates only after the death of the Testator, but not from the date of execution. It can be revoked at any time by the testator during his life time. Though the word irrevocable is used in the wills, it does not prohibit the will being revoked.

What are the kinds of wills ?

There are two kinds of wills, privileged will and unprivileged will.  Privileged will is made by soldier, airmen, employed in expedition, or actual warfare and a mariner in sea.  All other wills are called unprivileged wills.

Only a major, the person who has completed the age of eighteen may make a will, isthere any exception ?

The general rule is that the testator should not be a minor. But in case of father, irrespective of his age, may appoint a guardian for his minor children, who is called Testamentary guardian.

Whether the signature of the testator and attestation is necessary for unprivileged wills ?

Signature or mark of the testator is necessary for unprivileged will. In certain cases, it may be signed by some other person in the presence of testator and under testator's direction.  But it is always advisabe to have will signed by the testator to avoid any disputes later. Every unprivileged will should be attested by atleast two witnesses, who have seen the testator or his agent sign the will. Each witness must sign the will in the presence of the testator. But it is not necessary that each witness sign at the presence of other witness.

Whether stamp duty is payable on will ?

No stamp duty is payable on will, hence need not be written on stamp papers.

Can a attesting witness be a beneficiary of the will ?

As per the Indian succession act, if the testator makes any gift to the attesting witness, wife or husband of the attesting witness, such gift becomes void, the will be deemed valid. But this clause does not apply to Hindu, Budhists, Sikhs, Jains etc., so a legatee under the will of a Hindu will not lose his legacy only because he has attested the will.

What is probate ?

Copy of the will duly, certified under the seal of a competent Court, with grant of administration to the estate of the deceased is called probate.

What is a duplicate will ?

A duplicate will is one of which two or more copies are made. If such a copy is signed by the testator, it can operate as the original will. Here a will is executed in duplicate, one of which the testator retains, while the other is deposited in the custody of another, then the destruction of the duplicate, which was in the testator's possession, revokes the will.

Who is capable of making a will ?

Every person (a) who is of sound mind and (b) who is not a minor, can dispose of his property by will. A married woman can dispose of by will any property which she could alienate by her own act during her life-time. Persons who are deaf or dumb or blind can make a will, if they are able to know what they do by it.  A person who is ordinary insane may make a will during an interval during which he is of sound mind. However, no person can make a will while he is in such a state of mind that he does not know what he is doing.

Is there any provision for safe custody of will?

Yes, there is provision for safe custody of will as detailed in Indian Registration Act, 1908.  The testator, that is the person who makes the will or his duly authorized agent may deposit the sealed cover containing the will with any registrar for safe custody. The cover should be superscribed with the name of the testator or his agent with a statement of the nature of the document. An amount of Rs.1,000/- will be charged as fee.

The deposited cover may be withdrawn by the testator or his agent on payment of prescribed fee of Rs.200/-.

An article about " Corrections in the Property Documents "

Corrections in the Property Documents

Documents are the record of various transactions ; they contain certain terms, conditions, consideration amount, 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.

At times, some additions, alterations, cancellations are inevitable, which are noticed at the time of execution. Any such alterations, cancellations, additions have to be done before presenting the document for registration. All such modifications should be authenticated by full signature of all the parties to the documents. But signature of witness is not necessary for such modifications. Only full signatures and not initials or short signature should be insisted. For cancellations, the original words should be neatly struck off, it should be signed by 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 modifications done after registration is not valid and does not form a 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 under the full signatures of all the parties to the transac­tions. 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. The details of 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 under 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 Sri/Smt…………………    " 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.

Thus, the transfern or assignment of right, title and interest over the properly, irrespective of the nature of transfer, entirely depends upon the deed of conveyance. Any ambiguity, inadvertent addition or deletion in the deed may give rise to disputes. Therefore, to avoid any unsavory situations care should be taken while drafting the property documents.

Possession of property

It is very important that the transfer or transfers possession of the property in favour of the transferee. It is not necessary that actual physical possession has to be handed over to the transferee, but even grant of constructive possession will transfer and create right and interest over the property in favour of thetransferee

An article about " Builder booked for Cheating "

Builder booked for Cheating

The Tilak Nagar police have registered an FIR against Builder E.V. Chinnaya Gauda and his aides under Sections 420 (cheating) and 34 (common intention). According to the Tilak Nagar police station report, he was booked on the complaints from an aggrieved person to whom, Gauda fraudently sold a flat. Presently, Gauda is on anticipatory bail in the case.

It is alleged that Chinnaya Guada of Shrishtiraj Enterprises is close to an MLA in the eastern suburb with whom, he has a partnership. He has several building development projects under his belt at RCEF, Tilak Nagar and Nehru Nagar in eastern suburb. According to a source, by using his political clout he was selling flats without even receiving ’ Letter of Intent ’ from the Authorities. Not only that, he even sells one flat to 2-3 gullible Buyers at different intervals.

Another source revealed that, in another case, he had sold a flat to a lady, who paid Rs. 38 lakh. Actually, the cost of the flat is Rs. 43 lakh. Later, it turned out that he had already sold the same flat to another Buyer. Similarly, in mid-September, Preeti Garg had filed a complaint against him for duping her. The flat that she bought from Guada’s project in Tilak Nagar was earlier sold to someone else.

According to the Sources, in 2008, an FIR was registered against Gauda and slain gangster Bharat Nepali at Chembur police station for giving threatening calls to Tilak Nagar Builder Bipin Patel. Gauda intimidated Patel through Nepali in the case to usurp Patel’s building project in Tilak Nagar it was alleged.

An FIR under Section 326 was also registered against Gauda in Chembur police station in 2010 for causing grievous injury to one Deshpal Singh Bhullar. In the same year Gauda was booked for giving threatening calls to Assistant Municipal Commissioner Mr. Narendra Barde of M-West ward.

The Bombay High Court in a criminal write petition has directed the DCP (Zone-VI) to investigate the involvement of Gauda in the case of committing organised crime related to the murder of Jaywant Salunkhe and with further directions to comply with Section 23 of MCOCA Act 1999.

Two to three police enquiries at various levels are going on against Chinnaya Gauda related to cheating complaints. Shortly, (the police) they should be in a point to verify the problem and arrive at a decision.

An article about " Housing Finance/News Line "

Housing Finance/News Line

It is not interest rates reduction; it is under cutting for housing Financiers. On the pretext of reducing the interest rates on home loans, Teaser Rates are back. Housing Financiers follow their own Prime Lending Rates (PLR) and for this, the Reserve Bank of India (RBI) has already released the Banks from following the PLR. The RBI announces PLR just as an indicative level only. Hence, every Bank has its own PLR. According to Union Budge proposals, the interest rates on home comes under the priority sector upto Rs.25 lakhs, for which the Government gives subsidy of 1% through National Hosing Bank refinancing schemes. For this, the Government had given funds to National housing Bank and allowed it to raise funds through Capital Gain Tax exemption bonds.

Now, under these circumstances, the Act of Banks in reducing the rates is sheer market forces pressures and nothing to do with the RBI policies and various credit rates by which the RBI controls the inflation and other currency related issues. DSA’s and Agents of Banks are now cutting under each other’s Clients because, Real Estate Industry is going through its worst phase and nothing is moving. Volumes have declined and New Clients are not entering into it.

To survive in the Housing Finance Market, the Players are now under-cutting in the name of Teaser Rates. The new reduced rates are not for existing Clients. Under floating rate options, the Borrower must get the advantage of reducing the interest rate but unfortunately, these reduced rates are not for existing Customers of the Banks, but for the Customers from either other banks or to the new Customers.

The Foreign Banks are more aggressively luring the under-cutting by not announcing in the Public. But, their Agents are active in the market. The first two to three years, leverages are been given and then again the same old bad practice prevails as to not to give advantage of interest rate reduction to the Borrower of floating rate housing finance.

An article about " Court rules against Builder who sold house to two Buyers "

Court rules against Builder who sold house to two Buyers

A Panvel Resident, whose Pent House in Panvel was about to be attached by a Bank, has managed to retain the 1,687 sq.ft. accommodation, thanks to an order by the State Consumer Court. The Maharashtra State Consumer Commission has now, directed the Builder to repay the loan of around Rs.12 lakh which had been taken by the previous Owner of the house.

The Owner and Occupier of the Pent House, Makrand Bharambe bought the Pent House from the Builder, Jagannath Deshpande of Ashirwad Developers, in June 2008, for around Rs.19 lakh. About nine months later, he was in for a rude shock when officers of Central Bank of India told him that the Pent House was mortgaged to them. The Bank Officials told Bharambe that they wanted to seize the Pent House which had been purchased by a certain Ketan Shah, who had bought it in 2006 from Deshpande for Rs.12.5 lakh, for which he (Shah) had availed of a loan and defaulted on its repayment.

At this stage, while Shah occupied the Pent House, it was the Bank which was its rightful Owner.

With his inability to repay, Shah handed over possession of the house to the Builder, who in turn sold it to Bharambe without informing the new Buyer about the loan that Shah had availed of and defaulted on.

The Consumer body has held the Builder guilty of deficiency in services. So, besides repaying the loan amount to the Bank, the Builder has also been directed to pay an additional Rs.1 lakh for having caused mental harassment to Bharambe and Rs.50,000 towards litigation cost.

When the Bank Officials wanted to seize the Pent House, Bharambe had confronted the Builder who shifted the onus on the loan default on the previous Owner. The Builder told Bharambe that he had cancelled the previous Sale Agreement and had it surrendered from Shah by repaying him the initial amount that he had paid. The Builder’s defence was that Shah had not intimated the Bankers about the cancellation of the Sale Agreement.

However, the two-member bench of the commission comprising P.N. Kashalkar and Dhanraj Khamatkar directed the Builder to bear the loan burden. The Commission observed that, the Builder had cheated Bharambe by selling the same flat twice–first to Shah and then to Bharambe.

The Builder had remained absent during the proceedings before the Consumer commission inspite of being issued notices by the Consumer Court.