Monday 30 June 2014

COMMENCEMENT AND OCCUPANCY CERTIFICATES

(Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore)



The Completion Certificate and Occupancy Certificate from the Planning authority are essential for any construction as per the provision of law. These certificates evidence that the Commencement and Completion of the building are as per the approved plan and in compliance of Locals laws. Everybody heard about the word Commencement Certificate and Occupancy Certificate.’ But practically, most of the persons who are the owners of the buildings have not at all seen how the Commencement Certificate and Completion Certificate will be.The Commencement certificate is one of the most essential documents for the Apartment Construction.Only a few builders who are developing the mega projects are obtaining Commencement and Completion Certificates.Generally, for small Apartment owners, getting completion certificate is not possible because of the deviation and violation in the building construction. Some of the financial institutions and MNCs tenants are insisting on the Commencement Certificate and the Completion Certificate from the owners of the building.

COMMENCEMENT CERTIFICATE:
After the approval of the building plan, the owner shall give notice to the authority of the intention to start work on building site in writing. Further, the owner shall give notice to the authority on completion of foundation or footings before erection of walls on the foundation. Within 15 days from the date of receipt of such notice, the Engineering wing/authority shall inspect the site to verify as to whether the foundation work for the building conforms to the sanction plan or not. If the foundation work is according to the sanction plan, the authority will issue commencement certificate within the prescribed period from the date of the inspection. In any case, the construction shall be proceeded according to the sanctioned plan as if the permission for the commencement of the work is deemed to have been accorded.

Further, the authority will verify as to whether the building has been constructed in all respects as per the sanctioned plan of the building, complied with Building bye-laws, including other relevant permissions or clearances obtained from the other departments. If everything is in order, Engineering Department will issue the Commencement certificate.

OCCUPANCY CERTIFICATE:
with respect to issuance of Occupancy Certificate arises on account of violation of Building laws, such is almost 95% of buildings in Bangalore facing the problem. Though common people have spent their hard earned money on the project with a dream of owning a house, they are unable to get the occupancy certificate because of the deviations in construction of the building. Whereas, the Builders having a good connection, escape through various loop holes in law and extended their salable area.

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Saturday 28 June 2014

PROCEDURE FOR THE REGISTRATION OF PROPERTY DOCUMENTS

                                              

The Indian Registration Act,The Registration (Karnataka Amendment) Act 1975,The Karnataka Registration Rules 1965, govern the registration of documents.Every person may have to visit the office of registration for registering documents at least once in his lifetime,but provisions of Registration Act remain unknown to common public.This article discusses certain provisions, rules of registration.

LANGUAGE OF THE DOCUMENT
Our country is a land of many languages and there is no restriction as to which language should be used in writing the documents. But it is also not possible for the registering officer to know all languages.Section 19 of Indian Registration Act states that if any document in a language which is not understood by the registering officer and is a language not commonly used in the registering district, the registration may be refused, unless such document is accompanied by a true translation into a language commonly used in district and also a true copy.

Karnataka Registration Rule No.11 has recognized following languages in districts and sub districts;

Kannada and English - All districts and sub districts in the State.
Telugu - Bellary district Marathi - District of Belgaum, Bijapur, Dharwad and North Karnataka and Sub-districts of Alland, Bidar, Gulbarga. Urdu - Districts of Bidar, Gulbarga, Raichur

Time for presenting the documents
The Act provides as to by which time, the documents should be presented for registration.Every document has to be presented for registration within four months from the date of execution as per section 23.The only exception is Will.

But if the document has to be executed by several persons and each person executes at different times, such document has to be presented for registration and re-registration within four month from the date of each execution.

However, the registration of documents presented after the expiry of four months is allowed on payment of fine as follows as per Section 5 of Indian Registration Act and Rule No.52 of Karnataka Registration Rules.

a) Where the delay does not exceed one week Fine equal to registration fee b) Where delay exceeds one week but does not exceed one calendar month Fine equal to twice the registration fee c) Where the delay exceeds one month but not two months Fine equal to five times of registration fee. d) Where the delay exceeds two months but does not exceed four months Fine equal to ten times of registration fee. Where delay exceeds four months from the date of execution registration is not allowed. The fine is payable is in addition to regular registration fee.

Place for registering the documents
The documents which affect immovable property have to be presented for registration at the office of the sub registrar of the district in whose jurisdiction whole or a portion of such property falls as per section 28 and other documents not affecting the immovable property or copy of decree or order may be presented in any office of sub registrar in whose sub district the document was executed or in the office of any other sub-registrar under the State Government at which all persons executing and claiming under the document prefer. The decree or order may also be presented for registration in the office of the sub-registrar in whose sub-district the original decree or order was made (Sec.28, 29).

Time from which registered document operates
A document which is registered shall be operative from the date of execution or from the date from which it was to operate as disclosed in the document and not from the date of registration (Sec 47).

All registered documents other than Will relating to movable and immovable property shall have priority over oral agreements or declaration in connection with such property. But if such oral agreement or declaration is coupled by delivery of possession of the property and such possession constitutes a valid transfer under any law for the time being in force, such oral agreement or declaration has priority over registered documents.

A Will made subsequent to earlier registered Will have priority over earlier made and registered Will.A mortgage by deposit of title deeds shall have priority over any mortgage deed subsequently executed and registered, when both relate to the same property (Sec.48).

Duties of Registering Officer
The Registering officer has to endorse the time, hour and place of registration and also the signature of the person presenting the document for registration on every document so presented and shall also be receipted. Every person who executes any document has to admit such execution at the registering office either personally or through his duly appointed agent or shall endorse such admission of execution.The endorsement shall contain the particulars such as signature and addition of the person admitting the execution, the signature and addition of any agent admitting the execution, the signature and addition of every person examined in reference to such document under any provisions of the Registration Act, payments and delivery of any goods made in the presence of the registering officer connected to the document presented for registration, admission of receipt of consideration in full or in part made in the presence or registering officer.

If any person admits the execution but refuses to endorse, the registering office shall register the document, but shall endorse the fact of refusal. The provisions of admitting the execution and endorsement does not apply to copy of decree or order and documents sent to registering officer under special provisions provided in Sec. 89 of the Act (Sec.58). All such endorsements shall be signed and dated by the registering officer.

After completion of process of registration the registering officer shall endorse a certificate on the document with the word “Registered” together with number and details of storage of the document. The certificate of registration has to be signed, dated and sealed by the registering officer (Sec. 60).

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Friday 27 June 2014

MAKE SURE YOU APPROACH THE RIGHT AUTHORITY FOR REGISTRATION



Of late, people are extremely confused about the registration of transfer of properties. The registration process which was a smooth process hither to, all of a sudden has become very tedious calling various documents, approvals, orders, which were not insisted upon earlier. A document that is considered as correct in one Sub-registrar’s office is rejected as not correct in another Sub-registrar’s office.The Revenue department, the Department of the Inspector General of Registration, the Commissioner of Stamps and all the Sub-registrars are confused themselves and seem unable to guide the public.

The two important points, that have affected registration are, the conversion of agricultural land to non-agricultural purpose and the approval of layouts.Agricultural land cannot be used for any other purpose, unless it is converted to non-agricultural purpose.Under Section 95 of the Karnataka Land Revenue Act, the Government recently introduced a ‘Single Window’ system for conversion of land.

Apart from conversion of land, the layout should be approved by the concerned authority. Thereafter the building too needs to be approved.Generally, the Urban Development Authority in the district is the approving authority for layouts.

But many layouts are approved by the city municipal councils, town municipal councils, and village panchayats, which have led to low quality development works, causing heavy financial burden on the local boards and the resultant in-convenience to the people.The conversion of land for any purpose other than agricultural should not be in violation of the approved master plan, CDP proposals.As far as Bangalore and surrounding areas are concerned, there are various planning authorities which approve layouts.Each planning authority has a specified jurisdiction.

People should understand that the Bangalore City Corporation (BCC), the various city municipal councils, TMCs or the village panchayats do not have any authority to approve layouts which vest with the Jurisdictional Planning Authorities. Many problems have risen because of the unauthorized and indiscriminate approval of layouts by these authorities, exposing the public to hardships.

Approval of plans
Before we discuss planning authorities, we must understand the powers of various local bodies like the city corporations, municipal councils, TMCs and village panchayats, to approve building plans.

Constructions are permitted only on converted lands and approved layouts.  Village Panchayats may approve building plans with ground plus one structure within their jurisdictional areas only. Gramathana sites have come under strict scrutiny and many Panchayat boards have mindlessly issued Forms 9 and 10 and any approval of building plans on such gramathana sites require extra precaution.  The gramathana sites can be identified by referring to a village map at the Department of Survey and Settlement.

According to a new circular, such sites should be certified by the village accountant enclosing a rough sketch of the gramathana site indicating the exact location in the village map along with its boundaries.

If the gramathana site satisfies all these stipulations, the Government will not insist on conversion, and the village Panchayat may approve a building plan of ground plus one floor on such sites. However, it is very difficult to identify genuine gramathana sites as a lot of bogus documents are in circulation.  City municipal councils, TMC and the BCC may approve building plans of ground plus three floors only.Any building plan in excess of ground plus one in village Panchayat areas and in excess of ground plus three floors in the areas under the city corporations and municipal council’s needs approval from the town planning authorities.

Deemed conversion
As stated earlier, layouts can be formed only on converted lands.The Karnataka High Court, in its Judgment in BDA V/s Vishwa Bharathi House Building Co-operative Society (1992(1) LJ 523B (DB) ILR 1991 KAR 440 (DB) has held that all agricultural lands within the jurisdiction of a city corporation are deemed to be converted.But the Government has clarified that there is no such deemed conversion, but that the competent authority may grant a conversion order.

It is also clarified that though the betterment charges are paid to the concerned local authority, and the Katha is issued by the local authority, if such property comes under agricultural land earlier to payment of betterment charges, conversion of land to non-agricultural purpose is necessary under the provisions of Section 95 of the Karnataka Land Revenue Act (1964).Under such circumstances payment of betterment charges and the issuance of the Katha is not a conclusive proof of conversion.

Planning authorities
There are numerous planning authorities authorized to approve layouts in and around Bangalore.  They are;
Bangalore Development Authority (BDA)
Bangalore Metropolitan Regional Development Authority (BMRDA)
Bangalore International Airport Planning Authority (BIAPA)
Ramanagarm – Channpatna Urban Development Authority (RCUDA)
Nelamangala Planning Authority
Magadi Local Planning Authority
Kanakapura Local Planning Authority
Bangalore Mysore Infrastructure Corridor Planning Authority (BMICPA)
Each planning authority has a specified jurisdiction.The jurisdiction of the BDA comprises the area under the BCC, surrounding city municipal and town municipal councils and village panchayats. All applications may be addressed to the Commissioner, Bangalore Development Authority, Kumara park, Bangalore -20.

The office of the BMRDA is located at the LRDE building, Ali Askar Road, Bangalore, and has its jurisdiction on Bangalore urban and rural districts and Malur taluk in the Kolar district, except the areas covered under the BDA, BIAPA and other local planning authorities.BIAPA also has its office at the LRDE building, Ali Askar Road, Opposite to Palace Guttahalli, Bangalore – 52, and has its jurisdiction over the proposed new airport and its environs.  BMICPA has a jurisdiction over the small area of about 65 sq.kms comprising the Bangalore-Mysore Inter Corridor Area.

Other Planning areas referred above have a jurisdiction over respective towns and environs.Planning areas under the BMRDA is very vast, but infrastructure available in the BMRDA is not enough for speedy disposal of approvals, causing much delay. In other cases, not referred above, the respective urban development authorities like the Shimoga Urban Development Authority, the Bellary Urban Development Authority etc., have the jurisdiction to approve the formation of layouts, if the lands are situated in their geographical jurisdiction. There are 27 urban development authorities in the State.

Apart from these urban planning authorities, if land is situated in the areas under other planning authorities, the applications have to be referred to the Member Secretary of the concerned planning authority. There are 42 planning authorities in the state. If properties are located outside the jurisdiction of the BDA, BMRDA, BIAPA, BMICPA, urban development authorities and the Member Secretary Planning Authority, applications have to be submitted to the Assistant Director, Town Planning.

Any development activity has to be approved by these planning authorities as per the provisions of the various laws and the local bodies have no authority to grant such permissions.

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