Wednesday, 29 April 2015


In recent times, Bangalore has witnessed phenomenal growth in population due to various reasons such as pleasant weather conditions, better career opportunities and the like. As a result of this, there has been a rapid increase in the demand for house and house-sites here. In order to cater to this increasing demand, a large number of Developers and Property Dealers have come into picture and have been forming private layouts without following the mandatory procedure and requirement of law making the innocent purchasers to suffer. To avert this mishap, it is necessary that the intending purchasers of immovable property in Bangalore have some knowledge about the nature of the property proposed to be purchased by them to save themselves from the risk of investing in the immovable property with no valid and marketable title.

There are only two authorities, which have been authorized to approve layouts in and around Bangalore viz., Bangalore Development Authority [B.D.A.] and Bangalore Metropolitan Rural Development Authority [B.M.R.D.A]. While the BDA approves the layout plans for formation of layouts in the lands falling within the metropolitan areas, BMRDA approves layout plans for formation of layout in the lands situated in the outskirts of Bangalore.Getting approval for the land conversion and layout formation from BMRDA is less time consuming,less expensive and easier when compared to procedure laid down by the BDA.
Comprehensive development plan: For planned development of a city, proper road network, parks, open space, civic amenities, and a proper approved layout is necessary. BDA is the authority in charge of planning and development to Bangalore Metropolitan Area. Comprehensive Development Plan [CDP] is prepared by BDA under the Karnataka Town and Country Planning Act, 1961. The last CDP was prepared and approved by Government in the year 1995, which is still in force.
Zonal Regulations: In order to promote public health, safety and the general well-being of the community, it is necessary to apply reasonable limitations on the use of land and buildings. This is ensure that the development of the city takes place in accordance with the land use plan as proposed in the CDP in a most appropriate and healthy manner. Generally, CDP is valid for a period of 20 years from the date of preparation of the plan.The following are the classification of land uses for various zones:
  1. Residential
  2. Commercial (retail and whole sale business)
  3. Industrial (light and service industries, medium industries and heavy industries)
  4. Public and Semi-public Utilities and Services.
  5. Parks and Open space and playgrounds (including public recreational area)
  6. Transportation and Communication.
  7. Green-belt area
Unauthorised Layouts: Sites formed in unauthorized layouts are called Revenue Sites. The lay-outs which are formed without following the mandatory procedure and the requirements of law are called unauthorized layouts and can be classified into two:
  1. Converted land unauthorized layout: In this type of layouts, sites are formed in the lands which are converted from agricultural to non-agricultural residential purpose after obtaining conversion order from Deputy Commissioner and in conformity with the zonal regulations but without obtaining approved layout plan from the competent authority. Village Panchayat are not competent to approve the lay-out plans.
  2. Agricultural land unauthorized layout: In these layouts, sites are formed on the agricultural lands not converted and without obtaining approved layout plan from the competent authority. Purchase of this type of site is very risky as marketable title would not be available to the purchaser. Sites formed in either of the classification referred to above are called as revenue sites. In such sites, electricity, water, sanitation and civil amenities will not be available to the site owners though providing of these facilities are the mandatory requirements as envisaged under the Karnataka Town Planning Act, 1961.
In formation of sites in these unauthorized layouts, Developers play a key role. In order to achieve maximum saleable area, the width of the road and the space allotted for providing civic amenities would not be as per law. The only intention of the developers in such unauthorized layouts would be to enrich themselves without providing even the basic amenities to the buyers.
Purchasing sites formed in the converted land unauthorized layout is comparatively better option to the one formed in the non-converted agricultural land. However, purchasing sites in unauthorized layouts will not convey valid and marketable title to the transferees. In fact, Bankers even refuse to provide loans for such sites either for the purchase or for putting up construction thereon. Thus, sites in unauthorized layouts are not recommended for purchase.
Approved Layouts:It is advised that the people who are desirous of purchasing house site may prefer to purchase sites in approved layouts for the reason that water supply, underground drainage street lights, electricity supply, civic amenities are available in these layouts. Valid and marketable title is conveyed to the purchasers. Value of sites appreciates considerably. Housing loan facilities can be availed for purchase of site and for construction and above all it is easy to dispose of these sites whenever needed. The following types of sites are suggested for purchase:
  1. Sites allotted by BDA without lease.
  2. Sites allotted by KHB without lease.
  3. Sites allotted by Co-operative societies after obtaining approval for formation of layout from BDA or BMRDA along with order of release of sites.
  4. Sites formed in the private layout, approved by BDA or BMRDA along with order of release of sites.

Tuesday, 28 April 2015


Earlier women did not have any rights in the property and they were at the mercy of the male members of the family. Joint Hindu Family, unique institution, acted as refugee home of many women and widows and with the disappearance of the Joint Hindu Family, the plight of women worsened.

Successive governments have enacted various laws aiming at improving / conferring property rights to women. Hindu Women’s Rights to the Property Act, 1937, deals with the rights of Hindu widow, on her husband dying without making any will. In such cases, the widow or widows are entitled to the share of the property as that of a son. But, her interest in the property, Hindu Women Estate, is limited interest.

Karnataka Hindu Law Women’s Rights Act, 1933, confers limited rights in the property to any women. This limited right is called limited estate, where women do not have right to disposal of the property by sale or by will. Women had full estate rights i.e. absolute power including that of disposal by sale / will in Stridhana property. Stridhana includes ornaments, apparel, gifts received and property acquired by her savings.

The Hindu Succession Act, 1956, brought out revolutionary changes in the property rights of women. Section 14 of the Hindu Succession Act confers absolute rights to a female in any property possessed by female Hindu. The rights are of full nature including unfettered rights of disposal of property.

Section14 of the Hindu Succession Act covers both movable and immovable property acquired by inheritance, devise, partition, in lieu of maintenance, arrears of maintenance, gift, property acquired by her own skill, purchase, prescription, or in any other manner and also includes Stridhana held by her before the commence of this act. This absolute right operates retrospectively, since Section14 refers to the properties acquired before or after the commencement of the act.

Another area which was improved upon was the Co parcener’s property. Co-parcener’s property is a Hindu undivided family property. The members of Hindu Undivided property are called co-parceners who are related to the head of the family and attain the right in the property by birth. The Co parceners include relatives within four degrees including Kartha. Earlier females were not members of co-parceners hence were denied succession to the ancestral property. Many States such as Karnataka, Andhra Pradesh, Maharashtra, Tamil Nadu, Kerala etc. amended the Hindu Succession Act 1956.

Amendment to Hindu Succession Act in Karnataka came into effect on 30-07-1994. This act gives equal status to women as that of a Male. She becomes a member of Co parcenary by birth in the same manner as that of a son.

On partition of the co-parcenary property women is entitled to equal share as that of a son. The property so acquired is capable of being disposed by her through will or any other testamentary disposition.

In certain cases the ancestral house may be the co-parcenary property. Such houses are generally, wholly occupied by the members of the Joint Hindu Family. In such cases, the female member cannot force a partition of such ancestral house unless other male members in occupation of the house opt for partition. But, the unmarried daughter, a married daughter deserted or separated from her husband or a widow is entitled to a right of residence therein.


Monday, 27 April 2015


The term "Insolvent", in common parlance is referred as Pauper or Bankrupt. An insolvent is not considered a legal person for the purpose of enforcement of any obligation committed by him either during the pendency of insolvency proceedings or after he is adjudged as insolvent.

Adjudication of an Insolvent
In India, jurisdiction of the courts to adjudicate a person as an insolvent has been conferred by two Acts, namely, the Presidency towns Insolvency Act, 1909, which is applicable in the Presidency towns in India and the Provincial Insolvency Act, 1920, applicable in the muffusil areas.

To adjudicate a person as an Insolvent, such a person has to be a "Debtor" and should have committed an act of insolvency. A debtor, under these Acts, includes only those who are subjected to Indian laws, either by birth or by domicile including a temporary residence. Thus, a foreigner cannot be adjudged insolvent by a court in India unless the alleged act of insolvency was committed or suffered by that person during his personal residence in India.

Minor cannot be adjudged Insolvent
Under Indian Laws, as a minor is not competent to enter into a contract he cannot be adjudged Insolvent even on his own petition. In the case of a minor being a partner in a firm consisting of adult and minor partners and if adjudication order is sought against the firm, the same shall be binding on the firm/partners except the minor.

Property of insolvent
The expression "Property of an Insolvent", has been defined as only the property of the insolvent which is divisible amongst the creditors and not otherwise. It includes any property over which or over the profits of which any person has the power of alienation which can be exercised for his own benefit.

The word 'property' includes the right in the property or things of a person. However, to constitute the property, an insolvent should have an interest in present to dispose of the same and not such an interest which may depend upon the fulfillment of certain conditions or contingencies.

Appointment of Official Assignee or Receiver
 Under section 17 of the Presidency Town Insolvency Act or section 28(2) of Provincial Insolvency Act, 1920, after the order of adjudication, the property of an insolvent vests in the Official Assignee and becomes divisible amongst the creditors, irrespective of its situation. However, when an order of adjudication has been passed under the Presidency Town Insolvency Act,1909, any order of adjudication passed against the same insolvent by the District Court of another place, at a later date under Provincial Insolvency Act will not operate since the said property is already vested in the Official Assignee under the Presidency Town Insolvency Act.

Movable and Immovable property
The order of adjudication operates as a statutory transfer to the Official Assignee of all the property of the insolvent person in India, whether movable or immovable. Similarly, the movable property of an insolvent situated in foreign country shall vest with the Official Assignee or Receiver. But, the immovable property of an insolvent situated in a foreign country, shall be governed by the law of the country within whose jurisdiction such property is situated.

Divisible and indivisible Properties
The property which is divisible amongst the creditors of the insolvent can only vest with the Official Assignee or the Receiver, which may be:
1. Property belonging to an insolvent at the time of commencement of insolvency proceedings
2. Property which may be acquired by or devolve on the insolvent after the order of adjudication and before his discharge.
3 .Goods in possession, or disposition of the insolvent.

The properties which are not divisible amongst the creditors of the insolvent falls into two classes:
1.   Property held by the insolvent in trust for any other person
2.   Tools of trade, apparel and other similar property.

Vesting of property in the Official Receiver or Assignee
Immediately upon an order of adjudication by the Court, the property of the insolvent wherever situated vests in the official assignee/receiver. Till an Official Receiver is appointed by the Court, all the rights and powers exercisable by the Receiver can be exercised by the Court itself.

Intervention of Official Assignee is must:
The right and interest of an insolvent over the property do not automatically get transferred in favor of the Official Receiver upon passing of an adjudication order by the court unless the Official Assignee intervenes on behalf of the insolvent. Where the official assignee does not intervene and the insolvent transfers the said property to another person who takes it in good faith and for value, the transferee acquires a good title to the property.

Powers of the Official Receiver or Assignee
With the order of adjudication, the property of the insolvent vests in the Official Assignee or the receiver and it is the duty of the assignee to realize such properties of the insolvent expeditiously and to distribute dividends to the creditors entitled thereto. However, before exercising the power of realization of properties of an insolvent, abundant caution has to be exercised by the assignee to avoid unnecessary litigations.

Under the aforesaid Acts, certain powers have been vested with the assignee:
1.   Power to sell: The Receiver is empowered to sell the insolvent's property without the consent of the Court. But the aforesaid Acts do not empower the receiver or the official assignee to sell anything more than the property of the insolvent which vests in him by reason of the adjudication.
2.   Power in case of mortgaged property: Where a Receiver is appointed by consent of the parties after passing of a decree in a mortgage suit for sale of such mortgaged property and it is agreed that the receiver shall recover the rents of the property for a period of one year to hand over the same to the mortgagee, the mortgagee's right to receive the rents will not be affected by insolvency of the mortgagor at any time during this period and neither the official assignee nor other decree- holders will be entitled to a rate able distribution of such rents.

Bonafide Sale
Section 53 of the Provincial Insolvency Act provides that a transfer of property not being a transfer in favor of a purchaser in good faith and for valuable consideration shall, if the transferor is adjudged insolvent within two years after the date of transfer, be voidable as against the Receiver. Further, where the debtor transfers all or substantially all the properties in consideration of the past debts, such a transfer constitutes an act of insolvency since it has the effect of withdrawing all the property from the legal process, which his creditors have a right to enforce against the insolvent.

Thus, an order of adjudication of insolvency will deprive the insolvent from dealing with his properties which shall be dealt with by the Official Assignee or Receiver when once such a person is appointed by the Court.


Saturday, 25 April 2015


After taking a decision to buy a home, the first and foremost task to be initiated is to ask yourself whether you are sure to buy a house now. In fact, purchasing a house comprise of many a step and is a process which is extensive.It is not the end-in itself after spending money and finalizing the house to be purchased.Besides making search for a suitable house while heeding to the advice of well wishers and paying attention to the several tips from family and friends, the procedure for purchasing a house involves legal and financial aspects.

To discuss on the very first point, one has to finalize whether now is it the best time to spend money for purchase of a house or not. A House can certainly assure a higher return, but all we need is to choose the right time. One has to be doubly sure as to whether we can afford to take housing loan, and if so, to verify the prevailing rate of interest with competitive Bankers/Financial Institutions and finalise the loan amount after calculating the EMIs and the repayment capacity.

The steps that are inevitably to be borne in mind, in the process of buying a house are:
1.Planning: You need act cool before taking a housing loan. First you need to be sure if you are purchasing house for your own residence or for financial objective, i.e., to lease it out, because the decision would have significant importance based on the objective of purchasing a house.

Thereafter, you have to finalize which type of property you would like to own i.e., whether a residential apartment or an individual house, because the impact on such decision will be huge with appreciation and/or depreciation on the value of such property in the subsequent period.

2.Margin Money: You must pool-up money so as to be able to contribute your margin money. Loan from Bank or Financial Institution would be to the 90% of the value only, leaving thereby to make your contribution for the balance 10% amount.  However, if you are able to pay more amount towards your margin money, then the pressure of financial loan will be comparatively less and you can acquire financial loan for a smaller period, or avail less amount as loan for a longer period, depending upon your capacity to repay either the equated monthly instalments or any other mode of repayment.

3.Know your requirements: If you are purchasing house for own residence, and then be sure of your specifications. Keep factors like neighborhood, facilities, industry value and possible value appreciation later on. Rather than purchasing a nice looking house, you should see that the location having easy connection to your office. Resell value gets a boost when you buy a house at a place where there are chances of upcoming facilities/development.

4.Location search: You may have to face unwanted attention from naughty elements of the community. You need to be careful about selecting the area of the property. Examine the cop’s history of the area and the neighborhood before determining to buy the property. Also, have a look at the structure of the property effectively so that you can be confident of the precautionary features.

5.Related costs: Paying the down payment and per month EMI are the primary prices you will have to keep in mind while purchasing a house. However, there are other relevant expenses that you must keep in thoughts while purchasing a house. These include servicing expenses, enhancement expenses, servicing price, public prices and taxation, etc. Also, broker expenses and bills like water and electric bill should also be kept in watched.

6.Verification of title deeds: Do not forget to get verified and confirm the title of the property through search of legal records, preferably by a Lawyer dealing with Retail estate property matters, before purchasing the property.  It would create factors easier for you. Verify the records given by the developer effectively, to make sure that there are no litigations involved with the property, before finalizing the deal. 


Friday, 24 April 2015


TDS (Tax Deducted at Source) on transfer of immovable property has been inserted with effect from 01st June 2013 in Finance Act 2013 by inserting a new Section called 194 IA.

1. Applicable to all the transfers of the Immovable properties except the transfer of Agricultural Land.
2. Applicable only in case the Transferor is a Resident.
3. If the Transferor is resident of India, the provisions of Sec. 194IA are applicable irrespective of the situation of the property, whether situated in India or outside. But this Section as stated above is not applicable if the property in question is Rural Agriculture Land as explained above.
4. It is not applicable in case the transfer is covered under the Sec. 194LA (TDS on Payment of compensation on compulsory acquisition of certain Immovable property).

Point of Tax Deduction:
Tax should be deducted on:
-At the time of credit of such amount to the account of the transferor, i.e., booking in the books; or
-At the time of credit of payment such sum in cash or by issue of a cheque or draft or by any other mode.
Whichever is earlier.

No TAN Required:
There is no requirement of obtaining TAN number as per Sec. 203A for person responsible for deducting tax under Sec. 194IA.

What is Immovable Property, Agricultural Land?
Immovable property means any land (other than agricultural land) or any building or part of a building.
Agricultural Land means any land situated in India but not including land situate:
   1. In any area which is comprised within the jurisdiction of a municipality or a cantonment board and which has a population not less than 10 thousand.

    2. In any area within the distance measured aerially
-Not being more than two kilometers, from the local limits of any municipality or cantonment board and which has a population of more than ten thousand but not exceeding one lakh: or
-Not being more than six kilometers, from the local limits of any municipality or cantonment board and which has a population of more than one lakh but not exceeding ten lakhs; or
-Not being more than eight kilometers, from the local limits of any municipality or cantonment board and which has a population of more than 10 lakhs.

CBDT vide its Notification No.39/2013 dated 31st May 2013 has prescribed the rules regarding mode of deduction, deposit and issuance of TDS Certificates in respect of deduction made.

Rate of TDS:
Tax should be deducted at the rate of 1% by the purchaser of the property on the value of the consideration received on transfer of immovable property.

If the seller doesn’t have a PAN, then Tax needs to be deducted at the rate of 20% as per Sec. 206AA instead of 1%.

Threshold Limit:
No TDS is required if the value of the consideration received doesn’t exceed Rs.50 Lakhs.

Time Limit for Payment:
Tax deducted as above needs to be deposited within 7 days of next month (In case of month of March due date is April 30).TDS should be deposited only through online payment.New Challan-cum-statement form framed for payment, i.e., 26QB.

Payment of Tax
-Tax so deducted should be remitted to the Government through any of the authorized bank using the e-tax payment option available at NSDL.

-PAN of Seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.

-Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors.For the purpose of rectification you are required to contact the Income Tax Department.

Issue of TDS Certificates:
The Purchaser of property who has deducted TDS as per Sec.194IA need to issue TDS Certificate in Form 16B within 15 days from due date of deposit, i.e., by 22nd of next month in which tax has been deducted.
At present there is no mechanism in place of issue of system generated TDS Certificate as we have in case of Form 16A and ?Form 16, so you need to issue TDS Certificate manually.

No TDS Return:
No need to file TDS return separately on quarterly basis as TDS Challan-cum-statement, i.e., Form 26QB shall need to use for remitting TDS amount to Government which covers all the details as requiired to furnished under TDS return.

Interest for late deduction and late payment of Tax:
Interest is payable at the rate of 1% every month of late deduction of tax and at the rate of 1.5% for every month of late payment of tax deducted
Source: Income Tax Act 1961 and Rules.


Thursday, 23 April 2015


The real estate investment has provided several investors with positive income, tax advantages and satisfaction of constructing an: investment in a very tangible plus. However, like in the other investment, there are several intricacies and trends within the market that require to be understood for peaceful possession and pleasure of the property.There are an outsized variety of investors realestate agency invest their hard-earned cash while not a radical examination of the documents and also the credibleness of the seller and thereby land themselves into issues once their investment.Therefore, it's necessary to require some precautions before investment.

Investment in property carries with it a good potential for making wealth and it needs taking some doubtless tough choices. Reinvestment within the property and time management all wants careful thought.

Property investments are the shining lights in your personal or business monetary portfolio. Most of flourishing investors have free and clear properties. You ought to aim to scale back your debt as shortly as you'll by re-investing your money back to your property mortgage payments that successively raises your internet value. Do your school assignment. Do not do something alone. Work with professionals or established flourishing investors to avoid finding yourself in control.

By positioning yourself with the correct skilled you'll avoid the probably common mistakes in order that you'll guarantee a superb come on your investment. Cash flow, capital appreciation, tax advantages, An pride of possession are some of the items that require being self-addressed before you create an investment.

An intimatewith property skilled can render terribly helpful service in evaluating your wants and in suggesting you fitly.Confirm that you just have the correct agent. Predicting constant appreciation within the worth of the property is extraordinarily tough if not not possible for the unseasoned capitalist. Properties that chuck away money each month will drain your capital. this will produce stress, frustration and become quite painful.A strain on your income might cause you to sell the investment before the advantages of possession areever accomplished.

Check everything regarding the property into consideration devolution history, rents, payment of taxes, expenses; deposits etc. raise the tenants concerning persecutor issues, structural harm or continual issues. do not overlook something. once finance your hard-earned cash make certain and use sound business judgment. Defend yourself against the risks that accompany investment property. Take insurance protect your property. The list of documents to be examined and also the statutory needs to be consummated is terribly several. they will embody getting Building permits, adherence of segmentation laws, building bye-laws, examination of rental and lease deeds, if any, examination of loan documents, scrutiny of title deeds, etc. If you're not trained to appear into these documents yourself then it's essential to have interaction professional to approve all of those for you and solely then you'll conclude the deal. However no matter it's going to be do not plan to have a go at it alone.

Do comprehensive background checks on any prospective tenants. Previous landlords,employers,monetary references, credit and judgments are all extraordinarily vital. If there areany queries do thorough analysis. Drive by their previous residence. Somewhat work direct will save tremendous issues later.

Charge truthful rents, treat your tenants with respect and respond as quickly as attainable to their wants. it is a heap more cost effective within the long haul to require care of the limited issues before they become huge issues. Get letters from tenants confirming the standing of occupancy?

Make sure their version of the rental or lease agreement corresponds with the seller’s interpretation.


Wednesday, 22 April 2015


Chennai has always been considered as a good resalemarket for residential properties. Good value for money, ready-to-occupy status and locational advantage has always attracted buyers to second-hand flats. This trend has been on the rise in recent times. This trend has also brought to light the various issues that come with buying them.

A few weeks ago a resale apartment fair was held by HDFC Ltd. The response to this resale initiative was very good and more than a thousand properties were on resale and it is reported that the realtors associated with them are busy closing the deals.

In the present market conditions, many buyers do not want to wait for construction of the house. So HDFC brought together the realtors concerned and facilitated the resale by providing loan facilities.

Most of the buyers wanted property in the city limits in the price range of Rs 50 - 70 lakhs. But properties available for resale in the city limits are in the range of Rs 1.25 to Rs 2 crores. The market slowdown has made the task of finding clients for new and upcoming apartments more difficult for many banks. Tapping the potential for resale of property has become a necessity for the banks and buyers may be able to gain from the development. The merits of buying a house on resale include lesser price and location within city limits.

The demerits of buying such houses are possible deviation from the approved plan, internal problems among the members of the residents' association, including legal proceedings and absence of opportunity for the buyer to assess the quality of construction.

Technical valuation of a property on resale normally calculates depreciation at 1.5 per cent per year. Around 75 per cent of properties on resale are 'delinquency flats. The registration charges are higher for resale apartments as it is decided on the guide- lines value of the total property whereas in a new apartment, the charge is arrived at only based on the undivided share of land. However there were no delinquency flats among the property on resale during the recent initiative of HDFC. Brokers continue to say that the market is favouring the buyers.

As market prices of new flats are gradually reducing, price of resale flats should also follow suit soon. Buyers analyse the aspects such as location, quality of construction and track record of the builder in the process of resale. The buyers not showing interest in properties on resale in outlaying areas.

The majority of buyers showing interest in properties on resale are end-users and the investors are not opting for purchase of properties on resale. Many properties on resale belong to speculators who invested in the property a few years ago and planned to sell the property at a higher price soon after the construction got over. They wanted to sell the property as quickly as possible fearing a reduction in the prices. With rentals not increasing to match the EMI, speculators are finding it difficult to maintain the property.


Tuesday, 21 April 2015


As per the CREDAI (Confederation of real estate Developers Associations of India) code of conduct, a member:

1.Shall clearly indicate in his agreements, the kind of conveyance planned to be settled i.e. whether or not undivided right or the unit as an entire or by suggests that of the other theme and conjointly mention either the extent of divided or undivided right in sqft/sqmtrs or the proportion of undivided right and in any case shall lookout to make sure that combination of divided or undivided right in land assigned to any or all the units of a project shall not be in more than the extent of land.

2.Shall allot specific interest and / or car in land for each automobile parking zone.

3.Shall build accessible the copies of title documents to the purchasers for the asking.

4.Shall incorporate a condition in his agreement to the impact that each one the covenants aside from those specific to a selected unit like rate, area etc. shall be common to any or all the purchasers of a selected project. If the developer intends to order some specific rights like allotment of ground area for garden (in the natural event area), for personal use of some units, such intention shall even be mentioned altogether the agreements relating the project.

The developer ought to guarantee timely completion, physical possession, as committed to purchaser.It shall be builder's responsibility to get completion/occupation certificate from the bureau. Developer shall incorporate in his agreements, a clause that the delivery / possession of the flat shall be to the shopper against complete settlement of the whole thought and every one different parts of sale value / quotation.

Defect Liability period
Developer shall incorporate in his agreements, a clause for defect liability for a minimum amount of twelve months or as per prevailing laws (whichever is more) from the date of redeeming of possession or intimation to their purchasers relating to the readiness handy over possession, that ever is earlier and which shall be restricted to the defects within the construction (i.e. structure) and not on the bought out materials most of that are lined underneath varied pledge periods by the makers themselves. However, within the event of continual drawback with the bought out materials, the member shall co- operate with the emptor in checking out the problem. This defect liability shall not cover calamity things like harm ensuing from war, flood, earthquakes etc.

Formation of a Society or a Body corporate
The developer ought to take steps for registration of Co-operative Housing Society or the other body company as is also set upon by the developer within the interest of the flat purchasers.

Society Account / different Deposits like stamp duty.
The developer shall maintain separate account in respect of any sums received by him from the flat purchases as Advance or Deposit, sums received on account of the capital for promotion of a Co-operative Housing Society/Apartment Association or an organization or towards the out goings, legal charges, etc., and shall utilize the said amounts just for the aim that they need been received. Such accounts ought to be to the Society/Association/Company not later than three months from redeeming the charge of building to such Society/Association / Company a amount on months from the date of ultimate conveyance, whichever is later.

Transfer Charges
If a transfer charge is to be charged it should be corn get in the agreements and will not exceed over a pair of the acquisition value for transferring the rights of the flat emptor underneath associate agreement purchasable. Any such consent by the developer to the flat emptor for transferring his rights underneath agreement of sale shouldn't be immoderately withheld, provided the flat emptor pays, and / or is prepared and willing to pay full quantity of thought underneath the agreement purchasable alongside transfer fees as aforementioned and different dues collectible.

Transfer of Title
The developer shouldn't extraordinarily delay the execution of the conveyance or the other similar instrument in favor of the common organization of the flat holder, once the event and sale of entire theme and in any case amounts collectible by the purchaser’s are paid to the developer.

1.A member might disclose in his brochures / hand-outs / advertisements or the other subject matter material that he belongs to an association that could be a member of CREDAI.

2.May incorporate a clause in his brochures and or agreements that a similar is subject to arbitration by the selected committee of Arbitrators appointed by the member Association of CREDAI.

Inspection by Client: The developers shall incorporate necessary clause within the agreement so as to modify the shopper explanation the rights to examine the premises throughout the course of construction.