Wednesday, 30 October 2013


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Smt. Yeshawant Nayak responded to an advertisement of Mis Srisairaghava builders and Developers. They had advertised about forming sites at Raghavendra Nagar in Anekal Taluk. Ms Nayak paid Rs.52,3001- for the site. With fond hope of finding her site in a well developed layout, she visited the area and was shell shocked to find the entire area was under cultivation and she was unable to locate the site which she had bought. She made enquiries with the villagers and with the panchayats office and learnt that there is no proposal of such a layout. Promptly she served a legal notice to use toilets envisaged in the City thefirm. The firm did offer her an alternative site which was not accepted by MsNayak. 

She complained to IV Additional Consumer Disputes redressal forum, Bangaloe UrbanDistrict. The Forum found that the copies of sale deed produced by the firm were not pertaining to the Survey No.36/2 given to Mrs Nyayak. Further details of village, district, where the said Survey No. located were not clear. The consumer Forum found the firm Sri Sairaghava Buildrs & Developers guilty of deficient service and ordered the firm to repay Rs.52300 to Ms Nayak with 15% interest from 7.5.2000 till date of realization and the forum also ordered the firm to pay Rs.2000 as costs.

Mr. Jairaj said the BATF had not been able to accomplish certain objectives, including the creation of a comprehensi ve geographical information system (GIS) database of all the 100 wards which was planned at the outset but is still not available. Similarly, there has been a lack of enforcement by civic agencies against infringement of laws like converting residential plots for commercial use and violation of floor area ratio.
Meanwhile, Mr.Nilekani, who presided over the meeting to discuss replication of the BATF model in 30 other cities I towns in State, lauded the 'outcome based performance' of the BATF and agencies associated with it. "Since the setting up of the BATF, studies have shown that 94 percent of Bangaloreans believe that things have improved," he said. The average property tax collection has gone up from Rs. 36.1crore in 1991- 92 to Rs. 195 crore in 2002-03.

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National Consumer Forum Decision Against BDA

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Here is a story of a common man who successfully fought against the whims of Bangalore Development Authority. Sri. Godapal Babu was excited, when he received a site allotment letter from BDA. At last after six attempt he had his dream realized. He had applied for an allotment of site on six occasions, under state government employee category as well as general public category. But his happiness was shortlived as the BDA send a cancellation letter that too without assigning any reason. Many trips to BDA office proved futile to know the reason for cancellation. Sri. Godapal Babu approached district consumer forum which passed orders in favour of complainant. District consumer forum held that sum of total of all attempts made under all and every category under BDA (allotment of sites) rules 1984 should be treated as attempt for arriving at allotting the sites. As usual BDA challenged the order and approached state commission where the verdict went in favour of Godapal Babu. BDA a went in appeal to national commission. The allotment of sites is guided by four parameters prescribed in BDA (allotment of sites) rules 1984, martial status of the applicant, income of the applicant, number of attempts made, and whether any land of the applicant is acquired by BDA. Both the district forum and state commission felt that all attempts, irrespective of the category should form the basis for allotment, whereas BDA maintained that the number of attempts in each category should be the basis of allotment of sites. 

National commission has to decide whether the total number of attempts in all categories are attempts under each category separately should form the basis of allotment. Relying on judgement of Hon. Supreme Court, in case of Lucnow Development Authority VS MK Guptha, in national commission held that more liberal interpretation of rules need to be given by statutory authorities, while dealing with common man.
Upholding the decision of the lower forums the NC has said that a plain reading of the BDA ules makes it clear that at best it is silent on the point that number of attempts to be read in each category separately or altogether. So when the law is silent on a point, the benefit will go to the complainant. Further the NC has held that cancelation of allotment with-out sufficient ground is certainly a deficiency.

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Investing in India

Investing in India: The tax-effective way

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The recent restructuring of the UAE-India DTA has once again brought into focus the issue of tax planning with regard to investments made in India. Under the amended DTA, capital gains earned from the sale of investments in shares of Indian companies in India, will be taxed (except where exemptions are provided under the domestic tax laws in India). This amendment will directly affect individual investors and companies investing in India through companies in UAE. Besides, there has not been any grandfathering for UAE investments already made in India. In short, you need to restructure and restructure fast as the amendments are already enforced.
India is a hot destination at present, and is attracting an increasing inflow of capital and investment. In an earlier article (Morison Menon Newsletter: Jan-Mar 2007) I had explained the policies and procedures concerned with investing in India, and the extent to which foreign participation is allowed in vanous sectors. This piece shall touch upon one of the most effective routes for investing into India, the Mauritius route.
Did you know who leads the pack of FDI investors into India? It's none other than the tiny island of Mauritius at around 40%, with the mighty United States corning a distant second. While my intention is not to undermine the economy of Mauritius, it is obvious that the funds are being channeled from elsewhere. Why is Mauritius the preferred destination? The answer lies in the existing DTA between India and Mauritius.
Presently, in India there is no capital gains tax (CGT) on the sales of shares of an Indian company held over a year and sold through a stock exchange. Neither is there a 10% capital gains tax on such sales if the shares in an Indian company are held for less than a year. Sales of shares in a private company are taxed at a 20% rate on shares held for more than a year and at 40% on shares held for less than a year.
Under the DTA, India shall not charge CGT assuming that the same shall be charged in Mauritius. Mauritius, on the other hand, has no CGT and hence the gains are realized to the investor without any sort of withholding. Do note that the Mauritius entity should not a Permanent Establishment (PE) in India, else the income attribu5table to the PE shall be subject to taxation in India.
 The viable alternative would be that the Mauritius Company holds the shares in an Indian company, which in turn holds the property has to be disposed, the Mauritius company can sell the shares of the Indian company and claim relief from CGT under the DTA. As mentioned before, the realized gains are not subject to CGT in Mauritius.
Funds can operate in a similar way. The main fund domiciled in Cayman Islands, Bermuda or any other competent jurisdiction, can have feeder funds located in Mauritius, so as to invest in Indian entities and take advantage of the DTA. So what's the catch? For a Mauritius company (Global Business Company 1 or GBCl) to claim advantages under the DTA, it has to be tax-resident in Mauritius. This means that in effect, the GBCl shall have to demonstrate that it is managed and controlled in Mauritius. This is achieved by:
• Having the registered office in Mauritius
• Having resident directors in Mauritius.
• Owning a local bank account with all funds actually routed through Mauritius
• Producing annual audited financial statements and filing the same with the Financial Services Commission or FSC The GBC 1 shall then be eligible to obtain a tax- residency certificate that can  be produced to Indian tax authorities to claim relief under the DTA.

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Documents required in connection with the purchase of property will vary from case to case. In general the following documents are required to be verified before purchase of any property to ascertain the valid title of the vendor. In certain cases, a need may arise for verification of additional documents, in addition to the above, to finally conclude the valid title of the vendor.

(A) For purchase of BDA property (formerly CITB)
1. Allotment Letter.
2. Receipts for payment of site value.
3. Lease-cum-Sale Agreement.
4. Possession Certificate.
5. Absolute Sale Deed
6. Khatha certificate from the BDA
7. Tax paid receipts from the Bangalore Development Authority.
8. Khatha Certificate from Bruhat Bangalore Mahanagara Palike (if it comes under Corporation Revenue Jurisdiction)/Tax paid receipts from Bruhat Bangalore Mahanagara Palike.
9. Encumbrance Certificate from the date of allotment to the date of possession.
10. Re-allotment Letter / Re-conveyance Deed if property re-conveyed by the BDA.
(B) For purchase of site within jurisdiction of BMRDA/Private Layout
1. Valid Conversion Order issued by the Deputy Commissioner.
2. Conversion amount paid Receipt.
3. RTCs for 30 years issued by the Village Accountant
4. Tax Paid Receipts issued by the Village Accountant
5. Documents of ownership
6. Mutation Register Extracts
7. Akarband/Tippani/Podi Extracts
8. Surveys/Boundary Map
9. Village Map
10. Nil Tenancy Certificate
11. Confirmation from the competent authority that there are no acquisition proceedings.
12. Lay-out Plan Approval by the competent authority.
13. Release of site order
14. Khatha Certificate issued by the Revenue authority wherever applicable.
15. Latest Tax Paid Receipts
16. Encumbrances for the last 30 years
17. Validity of the Power of Attorney
(C) For purchase of Agricultural Land1. Origin of the Property2. Flow of Title3. Mother / Parental Deeds4. Index of Land and Records of Rights5. Grant Certificate if any / Saguvali chit6. RTC/Phani extracts from 1967 onwards or for the last 30 years7. Relevant Mutations Extract8. Endorsement from competent Authority confirming that there are no acquisition proceedings. 9. Village Map10. Survey map11. Akarband, Tippani, Podi Extracts12. Relevant Sale Deeds. 13. C.D.P. pertaining to the area. 14. 79 A & B Certificate under Land Reforms Act. 15. Land Tribunal Order, if any. 16. Certificate for change of survey number, if any17. Nil Tenancy Certificate18. Latest Tax Paid receipts. 19. Encumbrance Certificate for the last 30 years. 20. Family Tree of the Vendor21. Phani of the vendor22. Endorsement from Tahsildar that the land does not fall under “ S.T. & S.C. Grant ” or “ Inam ” category.
(D) For purchase of an apartment/flat:
1. Mother deed to trace the origin of property including all other relevant conveyance deeds to trace the flow of title. Normally, a title documents for a minimum period of 30 years is required. In certain cases, the title deeds for a longer period may be required.
2. Betterment charges paid receipt wherever applicable
3. Khata Certificate and Khata Extract wherever applicable. In BBMP area, computerized Khata Certificate and Khata Extract are required.
4. Sanction building plan from the competent authority
5. Latest tax paid receipt
6. Encumbrance Certificate for the relevant period [upto date]
7. If it is basically converted land, then Conversion order, Zonal Regulation Map, RTC from 1967 to till date, mutation records, I.L. and R.R. records, Nil tenancy certificate, Nil acquisition certificate from the competent authority, endorsement from the Tahsildar confirming that there are no pending cases under Sec. 79-A and 79-B of Karnataka Land Revenue Act, Village Map, Survey Map, Tippany, Akhar Band, Atlas, Approved Layout plan and the sketch indicating the particular site on the survey map.
8. In case of high rise building, permission obtained from Airport authority of India, BWSSB, BESCOM, Telecom, Fire Force, Pollution Board
9. Commencement and occupancy certificates.
In addition to the above documents, if the property is held by a company, partnership firm or trust, the following documents also are required for scrutiny:

1) COMPANY: Memorandum of and Articles of Association of the company, Incorporation certificate, resolution passed by the company for purchase/sale of property2) PARTNERSHIP FIRM: Partnership deed, authorization letter of the partners authorizing certain partner/s for purchase / sale of property and acknowledgement of registration of firm3) TRUST: Registered Trust Deed and the resolution authorizing the members for sale or purchase of the trust property.
Registration of the documents opposed to the public policy

The Government of Karnataka has declared that registration of certain documents is opposed to the public policy, which are listed below:

Agreement to sell, sale, gift, exchange, mortgage lease or assignment of which occupancy rights have been granted under Chapter III of Karnataka Land Reforms Act 1961, in contravention of restrictions imposed under Section 61 of the said act and relevant rules.

1. Any agreement to sell, sale, gift, exchange or otherwise of land in excess of ceiling limits prescribed under Section 63 or 64 of Karnataka Land Reforms Act and in contravention of Section 74 of the said Act and relevant rules

2. Agreement to sell, sale, lease, mortgage with possession or otherwise of any agricultural land to a person, family, joint family with an assured annual income of Rs.2 lakhs or more from non agricultural source in contravention of section 74 of Karnataka land Reforms Act and relevant rules.

3. Agreement to sell, sale, lease, mortgage with possession or otherwise of any agricultural land to educational, religious, charitable institutions, society, trust, company, association other body of individuals, cooperative society other than cooperative farming society in contravention of section 79B of Karnataka land reforms Act subject to exceptions provided.

4. Agreement to sell, sale, gift, lease, mortgage with possession or otherwise of any agricultural land granted under Karnataka land grant rules subject to restriction imposed on sale, transfer and specific use imposed thereunder.

Scanning of Documents After Telgi Scam, in Karnataka Rs. 2.00 Document sheet is made available to the public by the Government, on which documents can be typed or white paper can also be used for the purpose. At the time of presenting such document for registration before the Sub-Registrar, details about the Vendor/s, Seller/s, stamp duty and registration charges required to be paid will be recorded in the computer along with the photos of the Vendor/s, Seller/s and Consenting Witness/s, if any. Further, name of the person identifying the Vendor/s will also be recorded in the computer. Subsequently, print out of all the details of the Vendor/s, Seller/s and Consenting Witness/s, if any recorded in the computer, along with their signatures, will be taken on the back side of the Sale Deed and after the Sub-Registrar signs on such sale deeds, details about the document number, CD No and other relevant details will be stored in the Sub-Registrar’s Office. 

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It is the general trend in a civilized society that people do earmark a portion of their income for meeting unforeseen circumstances and for meeting the future needs of self and family during the lean period including old age. Financial management if adopted in a scientific way would bring in attractive returns on the investments made. The investor should be prudent enough to select a proper scheme from out of various options keeping in mind the safety for his investment with assured good return.

Till recently, bank deposits, stocks, mutual fund, insurance policies and bullion were the most opted options by the people. Presently, Bank deposits, insurance policies, mutual funds have become unattractive because of low returns while the stock market is unpredictable and volatile. Moreover, the investment avenues in stock market need close monitoring. With the globalization of the business, many more options for investment have unfolded and the investment strategies have become very complex. This has led to the emergent of specialized investment advisers. According to many investment advisers, investment in real estate is safe and high yielding. But, the investment in real estate is a long-term investment needing considerable capital.

The liberalized scheme adopted by the Government of India has awakened the hitherto dormant Indian economy and many multinational companies have set up their offices providing employment to a large number of people. The Foreign Direct Investment in real estate and the creation of Special Economic Zones have also given a fillip to the real estate sector.

Reverse MortgageAs a welfare measure, Government is considering introduction of a new banking system called Reverse Mortgage system to facilitate the elderly persons to get housing loan upon mortgage of their immovable property to meet expenses of certain specified categories such as medical expenses, repairs to the dwelling house etc. on the security of his dwelling house. The borrower can repay the money borrowed along with interest during his life time in installments or allow the debt to accumulate to be realized on the death of the borrower. The amounts outstanding will be a charge on the property. Thus, investment in immovable property would not only help the investor to have shelter over his head till death, but also get financial assistance without any commitment of repayment of amount borrowed during his life time. The manifold increase in the pay packets of the staff of multi-national companies and the migration of rural people to urban centers in search of assured income jobs and the desire to have shelter of their own have given a boost up to the real estate market. It is now the desire of every young person to have a house of his own in metropolis like Bangalore as a matter of pride and also to avail I.T. rebate available on investment in immovable properties. Since investment in property is huge, the investor should be cautious and consider various factors before making any investment in real estate.

Determining Factors The yield in the realty market has to be calculated on the capital invested and the annual rental returns less property tax, income tax and annual maintenance charges. This return varies according to the type of property: residential, commercial or office space. In Bangalore the returns are about 6% for residential, 12% for office and commercial space.

Selection of a proper location is a primary determining factor in property investment. There is equal demand for all types of space in metropolitan cities. The demand and supply position of each sector such as residential, commercial and office space need to be carefully examined. Residential property calls for smaller investment. Commercial and office space need higher investment. In metropolitan cities the market trends are transparent on account of competition and frequent dealings. In smaller towns there could be higher returns because of shortage of accommodation with limited transactions. Local Government politics also plays a role in determining the returns from the investment in properties.

The investment in agriculture properties other than the city area and farm houses are not remunerative. The income from the Agricultural property, is seasonal and depends upon weather and climatic conditions. Further, the sale and purchase of agricultural lands has many statutory restrictions and cannot be purchased by everybody. The farm house demands good maintenance which proves costly and at many times the income there from may not meet the maintenance charge even.

The real estate investment involves complicated process like title verification, land use according to local laws, floor area ratio, restriction on sale for certain period and certain type of lands, compliance with the rules, regulations and laws made thereunder. Property laws are very complex and varies from State to State. Tracing of title of the property is the most important and specialized job in property matters. To trace the title of the property, examination of age-old records may be necessary and in many cases, these records may not be available with the parties or even in jurisdictional Sub-registrar’s offices making the tracing of title difficult. Further legal scrutiny is based on the documents produced for verification and therefore, the honesty and integrity of the seller should be above board since certain hidden facts like pending cases, prior agreements and government notification of the property cannot be traced easily by verification of the documents. However, paper notification about purchase of property would help to a certain extent.

Type of returns:
Real estate investment offers two types of returns to the investor: [a] recurring and [b] capital gains on sale of property. Monthly return in the form of rentals or the returns on the lease amount invested in bank securities or in business can be considered as recurring income or return while the profit on sale property after lapse of a period can be considered as capital gain attracting capital gains tax under the I.T. law.

The rental income from the properties is in the range of 0.5% to 1% p.m. on the investment. Apart from this income, the value of the property appreciates regularly. Whereas in the case of bank deposits, the value of the money deposited gets eroded on account of inflation.
The amount to be invested in a property also depends on the mode of returns expected. Generally, leasing of property is attractive only for business people. Lease amount does not attract interest. Commercial property and office space yield high returns to the extent of 15% whereas the residential property yield about 6% per annum.

Rise in property value
The value of immovable properties are always on upward trend and hence any investment in immovable property would not only give the investor the recurring return by way of rental income, but also gets him the higher value for his property whenever sold and thereby he would get capital gains over his investment. Further, the investment in house property do get the investor income-tax rebate both in respect of repayment of the principal amount borrowed and also the interest paid on the amount borrowed up to a certain limit.

[a] Liquidity:
Unlike in stocks and shares and bank deposits, the capital invested in property cannot be encashed quickly. It requires searching for an intending purchaser, discussions and negotiations, settlement, arrangement for finance by the intending purchaser, preparation of sale agreement and sale deed, registration of document and handing over the property on receipt of sale consideration. All these steps consume considerable time. Further, the appreciation of value of the property is normally slow but it is certain and stable unlike in stocks and shares.

[b] Government Policies
The major source of revenue to the Government is from the transactions of immovable properties in the form of stamp duty, registration charges, VAT, service tax, property tax etc. It has become the practice for the Government to revise at frequent intervals the tax structures on immovable property leading to speculations in property transactions.

[c] Other adversaries
There are several other adversaries which play a crucial role in determining the value of the property. For example, introduction of one-way traffic and construction of flyovers near the property would decrease the value of the property. Similarly, the property not conforming to the Vaastu specifications would have limited buyers of such property.

A critical analysis of the advantages vis-à-vis disadvantages in investment in real estate and other securities would go to show that investment in real estate would score more than the other type of securities and the investor in immovable property would be a gainer inasmuch as he would get the recurring rental income, tax exemption on the amount borrowed and the interest paid thereon and the higher resale value when the property is sold at a later date

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People with different culture, taste and habits living in separate dwelling units situateD within a compound is not new to the country as it was prevalent in the past under the name and style as Vatara houses wherein small dwelling units were constructed within a compound for occupation and used by different families as their residence. Vatarah houses were constructed in horizontal or in L shape rows with single storey structures unlike the present day multiple storey vertical apartments.

Apartment culture:

Apartment culture, though of recent origin, has gained tremendous acceptance by the people in a very short time. Generally, it is seen that in apartments different backgrounds, origin and culture live in good harmony and brotherhood. Shalimar Apartment, built in early seventies was probably the first Apartment that was constructed in Bangalore. Apartment culture further gained acceptance in early eighties when several apartments were built in Malleshwaram and other places. Since-then construction of apartments is in full swing in Bangalore and a large number of reputed builders and Promoters are busily engaged in the development of different Apartment Projects in and around Bangalore to meet the ever increasing demand for commercial and residential apartments.

Merits of apartments:

Apartments have certain advantages in comparison with the independent houses. The first and foremost advantage the purchaser of an apartment do enjoy is that he need not have to worry about the issues like obtaining plan sanctions, finding a building contractor, supervising the construction work, obtaining basic amenities such as water, power, sewerage facilities for the building and so on which is taken care of by the Developer. The purchaser of apartment need not have to worry about any civic problems which he may encounter after his occupation of the apartment, since these problems are tackled by the Apartment Owners Association/Builder for which a nominal charges are levied.

The next advantage an apartment owner gets would be the social harmony he would get due to community living. A sort of bondage is developed amongst the residents of apartments.

Further, for the exclusive use of apartment owners/occupants almost all the apartments now-a-days, do have facilities like gym, health-club, recreational center, sports club, swimming pool, private security system within the premises for which again a nominal fee is charged.
Demerits of Apartments:

Even though living in apartments do have many advantages, they are not totally free from disadvantages. A Person who lives in an apartment generally is deprived of his privacy. Further, the apartment owner is prevented from carrying out any major addition, alteration or modification to his apartment to suit his needs. All such repairs, alterations and modifications are to be carried out with least inconvenience to other apartment owners and any damage or loss caused to the other apartment owners and any damage or loss caused to the other apartment owners are to be compensated. The amount collected by the Apartment Owners Association to meet the expenses for general maintenance and upkeep may be more than what a person would have spent had he owned an independent house and could be much more than what is required for such maintenance. There is every likelihood of such common fund being misused by the office bearers of the Association or over which there could be some misunderstanding amongst the apartment owners leading to unsavory situation.

Apartments would fetch a much less price compared to an independent house during its second sale. Further, any dilapidated single apartment would fetch no buyers since the land on which such apartment is built is owned by all the apartment owners and the seller does not have the exclusive ownership right over the land on which such apartment is situated. On the contrary, a dilapidated independent house would generally get prospective buyers irrespective of the condition of the structure since new structures could be put on such sites after demolishing the existing ones and the seller of such a dilapidated house will transfer his right, title and ownership of the land as well.

How to proceed?

As in the case of purchase of any other property, verification of ownership title is one of the pre-requisites for purchase of an apartment also. Though the builder of apartments provides legal opinion given by his advocate regarding subsistence of marketable and valid title of the vendors, it is always better that the intending purchaser of an apartment gets the title report of the property scrutinized form an advocate of his choice having vas knowledge and experience in property dealings. The legal scrutiny report shall contain detailed information regarding the origin, flow of title, present status of the owner, validity of the GPA, Joint Venture, if any, entered into between the owner and the Developer.

Another very important aspect which requires consideration is to ascertain whether the approval for construction of apartments and the plan has been obtained form the competent authority and to find out whether commencement and completion certificates have been issued by such an authority.

Location of the building is another important aspect which one has to consider before purchasing an apartment. This is mainly because any building which has no proper access to main roads with insufficient public transport and other civic amenities such as water, electricity supply, proper sanitation, parks, market place, hospitals, schools, etc. would pu8t the purchaser of flat to a great hardship and inconvenience.

Apart from all these, the previous history and record of the Builder is necessary to be verified for which purpose, it is always advisable to visit some of the4 projects executed by the builder in advance.

Powers of the Sanctioning Authority:

For grant of approval for building co0nstruction and the plans, different authorities are delegated with this power under different statutes. While, the village Panchayats are empowered to give licence for construction of building consisting of ground and first floor, the City Municipal Corporation can approve plans for ground plus three upper floors. The BMP or BDA can approve building plans of land for construction of multistoried buildings apart from constructing and independent house. In the case of high rise buildings consisting of more than four floors, No Objection Certificates form BWSSB, BESCOM, Fire force authority, BSNL, Airport Authority of India and Karnataka State Pollution Control Board are to be compulsorily obtained.

It must be kept in mind that anyone who violates the building bye-laws and zonal regulations would expose himself to the risk of demolition of such structure any time in the future.

Conveyance/Sale Deed

Normally, before purchase of an apartment, a sale agreement is executed by the Owner, [represented by the GPA Holder where there exists a GPA holder] and the Builder, agreeing to sell an undivided share in the land in favour of the intending purchaser. While at the same time, a construction agreement is also executed by the Builder in favour of the intending purchaser agreeing to construct an apartment for him. Once construction of apartment is complete, a sale deed is executed jointly by the vendor of the land and the builder/Promoter in accordance with the terms and conditions of the Joint Development Agreement, if any, in favour of the purchaser. The sale deed specifically recites the duties and responsibilities of the buyer and the seller. As regards sale consideration, it is arrived at upon consideration of the various aspects such as location, specification of the work, carpet area and percentage of Carpet area to Super Built up Area and as agreed to between the parties.

Undivided Share of Land

Undivided share is the percentage of share conveyed in the total land along with the apartment to the purchaser. This percentage depends upon the built up area of an apartment and the actual extent of land upon which the apartments are constructed. As the built up area increase the undivided share over the land also increases.

Super Built-Up Area Super built up area is the saleable area generally applicable to apartments. Super built up area consists of actual flat area plus proportionate common areas like staircase cum verandah, balcony, lift area and other common areas etc. Since the price of an apartment depends upon the super built up area, it is advisable for the purchaser to have some knowledge about Carpet area, plinth area and super built up area before purchase of an apartment. Generally super built up area should not be more than 25% of the carpet area.


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Before Starting any work, generally, the process of cleaning occupies, the priority. Similarly, before starting construction, the construction site should be thoroughly cleaned and prepared for construction. This is called purging of the site from evil effects.
This process requires a well experienced mason, who is as important as engineer. An inexperienced mason with his inefficiency may mar the fortunes of the residents of the proposed house. Many masons have correct understanding of Vaastu, brought by generations. The masons should possess accurate tools to mark the directions and to measure the site. Their important tools, setsquare to fix, correct corners, intermediate directions, and plumb line to ensure perpendicular accuracy of the walls, should be used with diligence. The same tools should be used until the construction is completed, otherwise, there may be differences in areas of the rooms and place in between parallel walls.
Marking directions:
First the mason should identify all the eight directions correctly, which is followed by cleaning, and preparation of plot. The directions, south, west, and southwest must be elevated than east, north, and northeast. Any pits, shallow places, wells in weak or unfavourable positions should be filled up. The surface of the site should be levelled with raise in the directions of south, west and southwest. Avoid sites with anthills.
Levelling and reforming, raising in the site must be done before starting construction, but not after, to avoid evil effects of Vaastu. A well or bore well must be sunk in north east, east or north after the foundation is laid and only its water must be used for construction. At least, a sump must be laid in any of these directions. Do not store, the construction materials like bricks, tiles, wood, steel, stones, lime in north, east or northeast use south, west or southwest for storing them.
Starting of work: Work should ensure that the excavation starts from northeast and proceeds towards north west. Repeat the same process from northeast to southeast and from northwest to southwest. This process should end by excavating the southern side from southeast to southwest. The work of foundation must start from southwest to southeast, southwest to northwest; southeast to northeast and end from northwest to northeast. Similar process is required for wall constructions. Importantly, at the end of any day, the walls at southern and western sides should be higher than the walls at north and eastern sides. The temperature in the locality determines the height of walls; prefer high ceiling if the temperature is high and low ceiling if temperature is low.
Pillars: Pillars should square or cylindrical in shape but pillars at southeast must be invariably square in shape. Main entrance should not face the edge of any wall, pillar, or compound wall. Likewise there should not be any tree, well, sump, pit in front of the main door. The northeast corner of the outer walls, compound wall should never be rounded off, where as it is permitted in other comers. Do not have arches of semicircular shape on gates located on eastern and northern sides, but such semicircular arches are permitted on gates located in south and west.