An article about " TAX ADVANTAGE ON HOME LOANS "

TAX ADVANTAGE ON HOME LOANS

Q.  Can I TAKE ADVANTAGE OF TAX BENEFIT FROM A HOME LOAN AS WELL AS CLAIM House rent allowance (HRA) ?

A.  If you took a home loan and are still living in a rented place, you will be entitled to :
          Tax benefit on principal repayment under Section 80 C
          Tax benefit on interest payment under Sec. 24
          HRA Benefit.
Of course, you can claim tax benefits on the home loan only if your home is ready to live in during that financial year. Once the construction on your home is complete, the HRA benefit stops. If you took a home loan, got possession of the house, having rented it out and stay in a rented accommodation, you will be entitled to all the three benefits mentioned above. However, in this case, the rent you received would be considered as your taxable income.

Q.  I HAVE A Home loan in which I am a co applicant. However, the total E.M.I. amount is paid by me.  What is the total income tax exemption that I can avail of?

A.  Yes, you can claim income tax exemption if you are a c applicant in a housing loan as long as you are also the owner of co owner of the property in question. If you are only person repaying the loan, you can claim the entire tax benefit for yourself (provided you are an owner or co owner). You should enter in to a simple agreement with the other borrowers stating that you will be repaying the entire loan. If you are paying part of the EMI, you will get tax benefit in the proportion to your share in the loan.

Q.  I have two housing loan on two different properties. can i get tax rebate under Sec 80 c of both the loans.

A.  Yes, you can get the 80 C benefit on both loans. However, the total amount that you will be entitled to will be a total Rs. 100,000 across both the homes.
The interest paid on a home loan is not directly deductible from your salary income for either of your flat loans. Income from house property will be calculated for each flat you own. If either of theses calculations shows a loss , this loss can be set off against your income from other heads.
As for section 24 deduction, on your self acquired house you can take advantage of interest payment upto Rs. 1,50,000/0  For the other property, you can claim actual interest repaid, there is no limit for the same.

Q.  I live in Delhi in my own house. In 2007, I took a housing loan to fund the purchase of an under construction flat in another city( Faridabad which comes under national Capital Region of Delhi but otherwise fall in Haryana) It is expected to be completed in FY 13. I have not claimed any tax benefit so far. What happens to the loan installments I have paid so far? Can they also be claimed for tax benefit.

A.  According to the Income tax Act 1961 where the property has been acquired or constructed with borrowed capital, the interest payable on such capital for the period prior to the year in which the property has been acquired shall be allowed as deduction in five equal installments beginning from the year in which the property is acquired. Thus, the interest included in the loan installment paid by you during the construction period shall be eligible for deduction from the year the which the flat is acquired/construction is completed.
The principal amount of the loan repaid till date shall not be available as a deduction under section 80 C till the time the construction of the flat gets completed. Once the flat is completed and the possession is handed over to you, you will be eligible to claim deduction for interest paid on the loan under sec. 24 (b) and principal amount of loan under sec. 80 C The total amount of deduction available under Section 80 C shall be limited to Rs. 1. Lakh. Thus as of now, you are not eligible for any tax benefit on such loan repayment.

An article about " Property Protection - How to protect your property "

Property Protection - How to protect your property

One has to spend a great amount of time and money in owning a dream house. If one is living in a rental house then you have got to shed money as much as demanded to reside in apartments.

Unwrap the newspaper or turn the news channel on; one can witness the increasing number of crimes in the City and strange forms of robbery that has left many of us with the feeling of insecurity.

Many of those living in independent houses, especially those in remote places feel they are the primary target of the offenders. In cruel cases the housebreaker goes to the extreme of killing innocent old people, women or kids just for the sake of money and materials. So, the immediate question rising in one’s mind is: ‘are we safe in this civilized Society’?

On the other hand people residing in apartments are timid. Despite employing vigilant safeguards, some of the minor but life risking mistakes we tend to overlook are unlocking the upstairs gate or leaving no information to security guards about what has to be done in the absence of the Owner.

No definite remedy can be sought to curb robbery completely in this Country, but one can be assured of his or her safety by following few guidelines set by our City police Officials. Police force strongly recommends employing efficient and skilled safety guards. One must devote some time and money to mould these Security Guards according to the current needs of Society.

It is advisable to spend money for employing two trained guards and make them work in two shifts a day. Don’t ask the watchman to do your daily chores because professional offenders will be biding their time. When you’re away from your house instruct your watchman to keep tab on every Visitor since burglars disguise themselves as Visitors. One has to make sure that the entrance to the house is inaccessible to burglars.

But what exactly is happening in our Society is that every day there are crimes such as abduction, robbery and other social evils. It is better not to risk your life by paying less and employing incapable persons, instead pay little more and employ capable persons.

An article about " Day Care Centre at Workplace "

Day Care Centre at Workplace

A crèche established at the work place is a wise investment. Management could retain the skilled work force which, if stress-free could give its undivided attention to the job.

The last few decades had witnessed a rapid increase in the numbers of career -oriented women.  They constitute a sizeable chunk of the total workforce. Economic considerations so as to lead an independent life, break-down of the joint family system which forces the parents to seek employment to make both ends meet and in some cases being a single parent with the onerous burden of looking after herself and the children are some of the compelling forces making women go for jobs. These along with problems like families relocating to different places looking for better prospects and job transfers out of one's home towns are instrumental in creatingthe concept of a day care facility at workplaces. This is definitely an unique brand of niche marketing targeted at lessening child-related stress of employees to enhance their productivity.

Observing the practical reality IT ventures and MNCs had taken the lead and initiative. Being ever progressive organizations with a distant and futuristic vision, they are intent on tapping and retaining talented workforce by keeping them more focused, more satisfied and in return as a natural result, more productive. They feel that investing in the facility is a utilitarian business strategy with tangible economic returns from negligible child-related absenteeism. From the employees' point of view, raising an emotionally secure child does not mean it's curtains for that challenging and lucrative job.

A crèche at the workplace is the perfect compromise in having to manage both business dynamics and child care simultaneously.

In a typical example, geared to accommodate 18 to 20 pre-schoolers in the age group of 4 months to 6 years, from 9 am to 6 pm, a space of around 1800  to  2000 sqft, including approximately 700 sqft of outdoor space will be most comfortable. The ideal location will be the ground floor within a dedicated entrance and exit. A building that incorporates a provision for such a facility at the planning stage adds greater value to its rental prospects. The unavailability of such a provision need not deter the Management from acquiring a three - bed room house rented alittle distance away from the main building, and parents and children alike feel reassured of this proximity.

The management, maintenance and staff of the crèche are outsourced from accredited maintenance agencies. A team of specially trained caretakers, and a couple of cleaning attendants are supervised by an experienced crèche supervisor. The viable ratio of caretaker to child is 1:3, while one caretaker for every two babies ensures maximum personal attention.

So as to stimulate the mood of children to inspire imaginative play, it would be better if the main indoor area be in bright colours. Miniature plastic tables and chairs are lightweight and attractive to the kids.

Music system and TV ensure ample and pleasant entertainment. Vinyl flooring is a safe way to cushion the baby falls that is bound to occur. The toddlers' bedroom could have about 6 to 7 scaled down bunk-beds lined against the wall. These are space-saving and functional for midday naps.

The babies' cribs should be located in a separate room, as far removed as possible from the entrance and noisy play areas. A changing table and a few chairs for nursing mothers are the other essential furnitures required here. Adjoining the bedrooms, a storage area with wall cupboards is necessary to hold toiletries, clothes, linen, feeding bottles and the like. In addition to a hot plate or hole, refrigerator and storage cabinets, a microwave oven in the kitchen is a must to heat up milk and home-cooked food. For reasons of safety no food is cooked here.

Outside, in the play yard, a slide, seesaw and a swing will keep them in buoyant spirits  and the presence of a sand pit in the middle is a fun way to be creative.

The initial furnishing investment and regular running cost per month, including rentals will be relatively normal. And an effective company strategy for creating and sustaining a crucial advantage, where the child is in safe hands and the parent is allowed to compartmentalize parenthood and work not only mutually benefiting the employer and the employee but also eventually the Nation.

An article about " Your Queries on Property Matters "

Your Queries on Property Matters

Q. My uncle has given Power of Attorney to his friend to develop certain properties, negotiate and sell them. He has also received the consideration. The stamp duty paid on Power of Attorney is Rupees One Thousand only and the Power of Attorney is not registered. The Attorney holder has developed the property and has sold to various purchasers. But now uncle wants to gift some portion of the said property to his sister. Since the stamp duty paid on Power of Attorney is only Rupees One Thousand and not as per sale deed and as it is not registered, can my uncle claim that the sale deeds executed by his friend, Power of Attorney holder as irregular and not enforceable and gift the property to his sister. 

A. The stamp duty payable on Power of Attorney given to a promoter to develop the property and to sell the property is only Rupees One Thousand and not as payable on sale deed. As such the Power of Attorney given by your uncle to his friend is properly stamped. The Registration of such Power of Attorney is also not mandatory as per Indian Registration Act. If the person other than the executor of the sale deed presents the document for registration as a Power of Attorney holder and admits the execution; such Power of Attorney requires registration. But if the person who is signing the documents and the person who presents the sale deed for registration an admits the execution are one and the same, such Power of Attorneys need not be registered. In the instant case, the Power of Attorney holder himself has executed the sale deed and has admitted the execution.

Further your uncle has received the consideration, and his friend has developed and sold the property in furtherance of powers given to him.

As such your uncle cannot claim that the sale deeds are irregular not enforceable and also cannot revoke the Power of Attorney. He has no right to gift a portion of the said property to his sister.

Q. I am founder of an educational institution situated on the outskirts of Mysore. The institutions is fast developing and needs expansion. There are various agricultural lands surrounding the institution. But sale and purchase of Agricultural lands is restricted in Karnataka. Though the owners are willing to convert the land and then sell it is costly, which our institution cannot afford. Please advise how can I acquire additional land for the educational institution.

A. There is provision under Karnataka Land Reforms Act. Section 109 of the act empowers the government exempt any land in any area, from the provisions of the sections 63, 79-A, 79-B or 80 to be used by educational institutions recognised by state or central government for non-agricultural purpose. The limit is four units of land; you may approach the District Revenue Authorities, for exemption of the restrictive provisions of sale/purchase of agricultural land, which you want topurchase.

An article about " Part Performance of contract "

Part Performance of contract

Sale of immovable property is an act of contract between the parties, wherein each party to the contract has got definite duties to be performed, such as, the vendor has to establish the clear and marketable title to the property and at the time of registration, has to handover the title deeds along with vacant possession of the property. On the other hand, the purchaser has to pay the sale consideration as agreed and co-operate in completing the registration formalities.

It is very important for the seller and the buyer to enter into an Agreement to sell before executing the Sale Deed. The reason is that such agreement will bind both the parties to the agreement and make it obligatory to perform their duties as envisaged in the agreement.

The seller and the buyer will be on the disadvantageous position if the agreement is not executed because the purchaser may not co-operate in paying consideration as agreed by both of them and on the other hand, the seller may avoid or delay from proceeding to convey the property at the time of registration, leading to misunderstanding and disputes between the parties. So it is advisable to execute agreement to sell prior to executing the sale deed.

Generally, vacant possession of the property is handed over to the purchaser at the time of registration, but in certain cases, the vendor will handover vacant possession of the property to the purchaser before the registration of the sale deed. This act of the parties to the contract is called part performance.

Rights of the Purchaser: 

Section 53-A of Transfer of Property Act recognizes part performance. The purchaser, who gets possession of the property under terms of contracts, pending registration of sale deed, gets equitable rights.

The seller cannot enforce eviction against the purchaser once he has parted with possession of the property as per the agreed terms of contract. The purchaser can enjoy peaceful possession of the property even before the sale deed is executed and registered. Section 29 of Registration Act also recognizes the part performance.

Mandatory Conditions: Section 53-A of Transfer of property Act stipulates certain mandatory conditions to establish part performance of the contract, as discussed below:

1. The transaction must be a contract for transfer of immovable property for consideration.

2. The contract must be III writing.

3. It must have been signed by the seller or his authorized agent.

4. The terms of contract should be clear, unambiguous and certain, wherein the act of part performance should also be part of the contract. 

5. The vendor, in pursuance of the contract should put the purchaser in vacant possession of the property. The purchaser should take the possession and if already in possession shall continue to be in possession.

6. The purchaser must have made part payment of the sale consideration and should be willing to perform his part of terms and conditions agreed upon.

The equitable right bestowed on the purchaser can be enforced by the purchaser against the seller or anybody claiming under him. It cannot be enforced against party who has purchased the property for consideration without the knowledge of contract of part performance. As regards the right of the seller is concerned, the only remedy available for the seller is to initiate civil suit against the purchaser, seeking recovery of the balance of sale consideration.

Non-applicability:

The applicability of part performance has two important ingredients, firstly, the existence of written contract and secondly payment of consideration. The transfer should involve the element of consideration to be paid by the transferee.

Gifts:

The concept of Part Performance is not applicable in the case of gifts since the essence of the gift is transfer of property without consideration and existence of consideration is mandatory to  ascertain as to v. hether the contract involves part performance or not.

Co-Owners: 

The doctrine of Part Performance will not be available against other Co-Owners who are neither the signatories nor have signed such an agreement as consenting witnesses. Thus, even the agreement is valid to the extent of the seller's share, the same cannot be enforced against the other co-owners since there is not privity of contract between the purchaser and the other Co-owners.

Minors:

The doctrine of Part Performance cannot be invoked in case of property involving minor's share and though the Guardian of the minor enters into the contract on behalf of the minor, the same is not valid since minor is not competent to enter into contract and enforcement of the contract by the minor is not valid.

Thus, it may be said that the doctrine of Part Performance, as envisaged under the TP Act, confers only an equitable right over the purchaser in order to defend his possession, but cannot be enforced against those to whom the property is conveyed legally and as required under law. Thus, Part performance is only a weapon to defend possession having acquired under a legally valid agreement and it does not validate the agreement or contract which is, prima-facie, illegal.

At the time of entering into the agreement, both the seller and the purchaser should incorporate a clause which would clearly depict the concept of part performance, by virtue of which the purchaser will be handed over possession of the property.

However, if possession of the same is agreed to be parted by the seller to the purchaser, then the stamp duty will have to be paid on such agreement, which will be equivalent to the stamp duty required to be paid on conveyance deed or sale deed. 

An article about " Reverse Mortgage Loan: A Benefactor "

Reverse Mortgage Loan: A Benefactor

 

Getting into old age without proper financial support can be a very bad experience. The rising cost of living, healthcare, other amenities compound the problem significantly. No regular incomes, a dwindling capacity to work and earn livelihood at this age can make life miserable. A constant inflow of income, without any work would be an ideal solution, which can put an end to all such sufferings. But how is it possible?

That is where Reverse Mortgage Loan (RML) comes into picture. Most of the people in the senior age groups, either by inheritance or by virtue of building assets have properties in names, but they were not able to convert it into instant and regular income stream due to its illiquid nature. The Union Budget 2007-2008 had a great proposal which introduced the ‘Reverse Mortgage’ scheme.

What is a Reverse Mortgage Loan?

A Reverse Mortgage Loan is a loan that enables Senior Home Owners aged above 60 years to convert part of their home equity into income without having to sell their home, give up their title to it or make monthly mortgage payments. The National Housing Bank, a subsidiary of the RBI, and a facilitator for home loan finance in India has set some guidelines.

Reverse mortgage as a product is fairly new to India. Dewan Housing Finance was the first institution in the Country to come up with its reverse mortgage product-Saksham. Since then, most leading lending Institutions have come up with their own reverse mortgage products.

Some of these are State Bank of India, Punjab National Bank, Bank of Baroda, Central Bank of India, Union Bank of India, LIC Housing Finance,Indian Bank, Andhra Bank, Corporation Bank and Canara Bank.

Things to be kept in mind before taking a Reverse Mortgage Loan:

·   The Borrower should be the Owner of the property with a clear title of the self occupied, self acquired residential property located in India. The residual life of the property should be at least 20 years. He should use the residential property as a permanent primary residence. Reverse mortgage is not available for commercial property.

·   The loan amount is based on the market value of the property, age of the Borrowers and the prevailing interest rate. The quantum of loan may be between 40 percent of the assessed market value of the property for Borrowers in the age group of 60-65 years and 60% of the assessed market value of the property if the age of the Borrower is above 75 years.

·   The Lender, apart from checking the property papers, will ensure that the Borrower pays all the taxes and charges towards the property up to date and also ensures that the property is maintained in the saleable condition and also checks that the property is insured against fire and other perils.

·  Both reverse and home equity loan differ in that, as with respect to home equity loan, the Borrower needs to pay through monthly payments, whereas in reverse mortgage he need not pay monthly payments as long as he lives in the house. There are no income qualifications to avail reverse mortgage unlike regular mortgages as Borrowers are not needed to pay monthly payments.

·  When availing reverse mortgage loan, the Borrowers should remain independent as reverse mortgage allows them to remain in the house and also retain their Ownership. The money they get from reverse mortgage can be utilised for anything they choose, say like for meeting day to day expenses or for paying for home improvements or for health care expenses or for repaying any existing debts.

·    In a reverse mortgage, the Borrower can choose to receive the money in one lump sum or by way ofmonthly/quarterly/bi-annual payments.

·   As per the present requirement, the property in question would be revalued once in five years. The fall in property price would affect the Borrower. Every five years, Bank may even readjust the loan installments, if it is needed, depending on the market conditions and the loan status.

·   If the Borrower does not stay for a period of 12 months in his house, or if the Borrower fails to keep proper maintenance of the property or if the taxes for the property are not paid, then the money may become due and must be paid in full.

·    After the time of loan is over,the Bank may either acquire the property and give the remainder to the Customer’s heirs or they can pay back and keep the property.

·   The reversed mortgaged property can be Willed and the legal representative should be willing to take the responsibility of paying the entire loan amount with interest on the death of the Borrower.

·   But if the legal heir or representative does not wish to do so, the Lender may sell the property mortgaged and recover the loan amount and give the surplus, if any, to the legal heir.

·   The scheme is ideal for some people looking for additional money to support their varied needs in their old age.

·  However, there are still some grey areas under the Indian context with respect to reverse mortgage and which act as a deterrent for the Banks to market the variant very aggressively.

Despite, being such a lucrative and beneficial scheme, not many Senior Citizens have opted for RML in India. The reasons for the model not taking off include emotional attachment with one’s house, real estate price correction, absence of clear guidance against legal complications and inadequate marketing by the PLIs. With the increasing need of post retirement liquid compensation in India, RML can be viewed as a potential alternative as the scheme is beneficial to both the Borrowers and Lender simultaneously. It is being projected that, RML is expected to gain popularity with the changing mindset of Indian Citizens and increasing need of cash flows in old age. Needless to say, if more awareness is actually created about thescheme and more robust marketing of the product undertaken by PLIs, this schemecan ameliorate the rundown condition of elderly people in India.

An article about " Redemption and fore-Closure "

Redemption and fore-Closure

What is right of redemption?

This is a very important right of the mortgagor, which the law protects. Generally law stands in favour of the weaker party and mortgagor being debtor; law safe guards his right. Section 60 of Transfer of Property act deals with Right of Redemption which is a right available to mortgagor to get back the (redeem) the property mortgaged that is after any time, the principal amount has become due, on payment of all the dues. The mortgager may demand from the mortgagee, the mortgage deed, all the documents, and if the property had been delivered, to deliver the possession of the property. The entire cost of this process to be borne by the mortgagor. He may also direct the mortgagee to deliver the deed; documents, possession of the property so any third person. If the mortgage has been effected by registered document, the redemption or re-conveyance deed also need to be registered. This right of redemption is available before the mortgagee files a suit for enforcement of mortgage.

Whether partial redemption is allowed?

The mortgage is indivisible Section 60 of the Transfer of property act does not allow partial redemption, one of  the mortgagors cannot redeem part of the mortgaged property by paying the proportionate amount. If redeemed, the entire property has to redeemed. The only exception is that if the mortgagee is a creditor himself and is responsible for breaking the integrity of the mortgage by allowing the co-mortgagor to redeem partially or when he acquires the interest of one of the co-mortgagors.

What is clog on redemption?

Clog means obstruction. A mortgagor has the right to enjoy hold of the property as he was entitled before the mortgage. If that right is prevented/restricted, such conditions are called clogs. A term/condition in a mortgage transaction is treated as clog, if it is unreasonable.

What is Foreclosure?

This is a right available to the mortgagee. The relevant section is 67 of Transfer of property act. This right can be exercised if there are no contrary conditions in the mortgage deed and after the mortgaged money has become due and before the mortgagor gets decree of redemption, or mortgaged money has been paid, deposited. In simple terms the right can be enforced on failure of the mortgagor to repay the money borrowed on due date. The mortgagee may obtain a decree from the court, that the mortgagor is prohibited from right to redeem the property or property be sold. This is suit for foreclosure. However the remedy depends upon the nature of the mortgage.

In the simple mortgage the foreclosure is not available. Remedy is either proceed against the mortgagor personally or per sale of the property mortgaged, so also in care of Usufructuary mortgage, where the mortgagee is in possession of the property and continues to be so until the debris repaid on full.  In case of conditional sale, the mortgagee matures into sale on the failure of the payment of the debt, so the mortgage may foreclosure depriving the right of redemption. In English mortgage they may bring a suit for sale of the property. In case of mortgage by deposit of titles deeds. The remedy is sue for personal decrees or for sale of the property. In anomalous mortgage, the remedy depends upon the terms of mortgage.

An article about " NEW CONCEPTS IN BUILDING TECHNOLOGY PAVE THE WAY "

NEW CONCEPTS IN BUILDING TECHNOLOGY PAVE THE WAY

 

In the high-tech age of the twenty-first century ,builders and building technology developers in India no longer talk about the cost of building large structures. They are more concerned about their life-cycle cost and environmental sustainability. They emphasize the aesthetic aspect as can be seen from some of the structures which dot the skyline of our metropolitan cities. The growth in knowledge oriented sectors has led to the increase in the economy so that developers are investing huge sums in the infrastructure.

The cost to the environment of materials used is of utmost importance. Pre-engineered buildings are an example in which the construction cost includes environmental cleanup cost. We are familiar with the mess created by energy production facilities. One way to overcome this is through the use of more fly ash for roads and buildings. This can be mixed in ready mixed concrete to reduce waste on site mixing. This also leads to quick settling concrete so that scaffoldings can be quickly stripped for the next operation.

According to the seismic rezoning of the country, a city such as Chennai would be in Zone 3 seismic region. This leads to congestion of reinforcement in the joints, and in order to overcome this, self-compacted concrete with special admixtures are being used. Rebarring technologies are improving so that walls are now stronger. New curing compounds are being utilized to reduce water use.

It is a commonly heard complaint about the big noise pollution at construction sites. To negate this, pre-case in piles are being used by builders for pile driving work.

Corrosion too is a great hazard. All new technologies do not make for seismic safety. The use of high-strength rebars for example may be harmful from the point of view of seismic safety.

Newer technologies are emerging in the use of high tensile steel and post-tensioning technologies are gaining importance. The post-tensioning technology is applied to get over the problem of the sagging of load bearing beams and structures on account of excess weight. VSL India is using it for large slab structures, bridges, stadia and dams. With this the steel reinforcement is lighter and the foundation load is less. This technology which popularizes the most tensioned slab saves both cost and time for the client.

Although high-tensile steel should definitely be used in modern construction of tall buildings and bridges, it is not as ductile as mild steel. Therefore it should be appropriately designed. The key is to use high strength steel which has good ductility. This is possible today with rapid advancement in the manufacture of rebars. Steel which has an adequate uniform elongation for protection against seismic and other dynamic loads is ideal.

These new concepts in building technology are incorporated into the system for economy and affordability as well as seismic safety. They are setting the trend for future construction.

An article about " NON ADHERENCE OF SANCTION PLAN RESTRICTIONS AND SET BACK "

NON ADHERENCE OF SANCTION PLAN RESTRICTIONS AND SET BACK:

The building bye-laws prescribe for certain set backs on sides of the building to facilitate the people to have proper light, ventilation, privacy and to save them from dust and traffic noise. While framing the building bye-laws, the civic authorities also keep in mind the future land requirements for broadening roads. It is noticed that people violate building bye laws by way of additional floor construction, site set back construction, providing staircase on the site set back are, balcony area to be converted in to living room. 

LAND USE :

The Zonal Regulations of the Comprehensive Development Plan of Bangalore prescribe e different land use like; residential, commercial, land for civic amenities etc., for systematic development of the locality.But, it is noticed that the residential buildings situated along the main roads and the roads nearer to commercial area are developed and utilized as commercial property. Even several industries also do crop up in these localities in gross violation of zonal regulations. Similarly, residential or commercial buildings do crop up in civil amenities sites meant for parks, play grounds, schools, green belt areas etc. 

SANCTION PLAN FOR ADDITIONAL CONSTRUCTIONS : 

It a part of the building is constructed with deviations, the owners of such property hesitate to approach the plan sanctioning authorities whenever they intended to put up further construction on the property for approval of sanction plans for the reason that deviations will be noticed during inspection by these authorities and thereby proceeded to make further construction without the sanction plan. Such people try to develop rapport with the concerned municipal authorities and put up additional constructions without sanction plan.

The reasons of violation of building byelaws and sanction plans by the people is that most of the land owners/builders want to exploit their land to an optimum extent because the residential and commercial properties do fetch high return. Presently, in Bangalore there is a steep rise in land value say Rs. 5,000/- per Sq.Ft on a average. In a large number of cases, deviations and violation take place with the active support of the officials and the local politicians. Only in rare cases when it is brought to the notice of the competent authority of deviations, action would be initiated by the concerned authorities is against which action the land owners knock the doors of the courts and in many such cases courts do grant stay. Thereupon, the building owners do enjoy the property for long period despite violation of the byelaws since it would take long time for the court to dispose of the matter. 

MEDEDIES: 

Violation of bylaws deviation of sanction plan, zonal regulations etc. cannot be allowed to be continued for long since it is an unhealthy trend. Therefore, the following suggestions may help in curbing violation of the bye-laws etc. 

USER FRIENDLY BYELAWS: 

The building byelaw and zonal regulations of the comprehensive development Plan should be user friendly and acceptable to the majority of the public. Further, the byelaws should not consist of too many technical jargons but should be simple to enable the common man to understand and follow. Byelaw should be suitable to the local conditions failing which there would be violation of such laws. 

ACCOUNT ABILITY OF ENGINEERS: 

Construction of a building generally takes snot less than a year. During this time, frequent visit by the concerned area engineer and supervisor to find out whether the construction is according to sanction plan etc., would prevent violations of the regulations by the land owners. Instead of this, the municipal authorities conduct raids after several years of such construction putting the people to a great hardship and embarrassment. To avoid such a situation, strict enforcement of visit by the concerned engineer must be introduced and if any deviations are noticed later on, the concerned engineer should be made accountable for allowing such deviations and action initiated against him for dereliction of his official duty. 

IMPOSITION OF HEAVY PENALTY FOR DEVIATIONS: 

As a onetime relief, for the existing building, all deviation is in building bye law plants, and zonal regulations could be permitted with different slabs of penalty for such violations. The higher the violation, more the penalty. When once user friendly bye laws are introduced, there should be no leniency what so ever and every deviation should be punished with severe penalty. 

The building byelaws need revision whenever there is change in the C.D.P. of the city. The Committee constituted to prepare the byelaws should comprise of not only the experts in the field but also the different sections of the public so that the matter could get debated from different section of the public so that the matter could get debated from different angles before arriving at a conclusion. Thereupon, the draft byelaws should be circulated amongst the public to solicit the view and suggestions from people of different walks of life. The print and visual media can play a greater role in this regard. A team of technical officials consisting of town, planners architects, and civil engineers can be formed to educate the people on the need for adherence of the byelaws while at the same enlightening the public of the punishment for violations. Similarly, area committees consisting of revered citizens and the representative of the residents’ welfare associations may be constituted to monitor violations. 

An article about " INSURE YOUR HOME LOANS "

INSURE YOUR HOME LOANS

Insurance is a method of mitigating risk. And the same logic applies to housing insurance as well. There are two aspects of housing insurance. First insurance is for housing loans and second insurance is for the house property per se.

A major deterrent for housing loans is the risk involved. Some people are reluctant to take a housing loan because of the risk involved. The loan amounts are large with tenures ranging from 5-30 years. There is a risk of not being able to repay the loan because of some unforeseen event happening in the life of the Borrower. 

The question that bothers some is, ‘what happens in case the sole earning member meets with a mishap? How would the housing loan get repaid by the surviving members of the family of the Borrower?’

At the same time, a Bank is also concerned about recovery of its dues in a simple a manner as possible, without having to go through the long and tedious process of enforcing the mortgage. With changing times, Banks have come out with new and innovative schemes. This has been complemented by an upsurge of insurance companies. They provide security for repayment of loan in case of untimely demise of the Borrower. Private players are entering the insurance market, and many new products have been launched. These give a wide variety of options to protect a home loan. Many products are flexible and suit the requirements of the Borrower.

The premium can be for pure risk cover or they may cover both risk and investment objectives. Many variants of the insurance schemes are available in the market depending on the requirements. The insurance cover can be for a pure insurance purpose or for insurance and investment. The premium payable and the returns vary accordingly.

Various optional add-ons can be combined, including critical illness cover, term rider cover etc., on payment of extra premiums. These optional benefits are to suit the specific needs of the individual.

The second aspect related to housing insurance pertains to insurance for the house property per se. This applies to constructed property. The insurance company covers risks of damage to property by earthquake, flood, lightening or other specified risks. In case of such damages, the insurance company makes good the loss suffered by the insured.

In case, one opts for the pure insurance product, only the risk is covered, i.e., the risk of non-payment due to demise of the Borrower. The premium is low in such a case. This is a term insurance. After the repayment of the loan, the Borrower does not get anything. The insurance cover comes to an end on completion of loan repayment.

In non-participating, pure risks cover plans, no benefits are payable on survival at the end of the policy term. The sum assured under the level term assurance plan is paid to the beneficiary. There are no maturity benefits on survival till maturity.

In case of insurance plus investment products, the product covers the risk and also promises a return on the expiry of the loan period. The Borrower gets back the sum assured along with the accumulated bonus on the expiry of the loan period. The premium payable is higher in such a case.

Some Banks give free or concessional cover. In some cases, the entire premium for the tenure is collected in advance on the basis of the rate applicable to the particular age group. The premium depends on the loan amount, sum assured, and the age of the Borrower. The sum assured is equal to the outstanding loan amount. In addition, in some cases, the property itself is insured for the loan amount to prevent any loss on account of damage to it.