Friday, 31 July 2015
Thursday, 30 July 2015
Wednesday, 29 July 2015
PROVISIONS IN BYE-LAWS FOR CREATION OF SINKING FUND
The basis on
which sinking fund contribution is fixed:
Every
building has its normal life. Its life is extended by some more years by
carrying out certain repairs. It is however risky to continue in occupation of
the building which has run its life. A Co-operative housing society has
therefore to reconstruct the building after it has run its life. As it may be
difficult for any co-operative housing society to raise the funds for
reconstructing the building from its members in a short spell of time, it
becomes necessary to establish a Sinking Fund right from the inception of
society. A provision has, therefore, been made in the bye-laws, enabling a
co-operative housing society to collect contribution towards this fund from its
members at a fixed rate per month. The rate fixed under the bye-laws is ¼ per
cent per annum of the cost (b) A flat includes a godown, showroom shop or a
garage. It may be noted that the contributions at the rate mentioned above are
to be collected only on the cost of construction and the value of the land
included in the cost of construction has to be excluded. A building sinks in
course of time due to its wear and tear but the land remains as it is even if
the building collapses.
The procedure
for ascertaining the cost
of construction of
a flat in an
flat owners' society:
In case of
an open plot type co-operative housing society (which has purchased or taken a
piece of land on lease and constructed building / buildings thereon) it is not
difficult to work out the cost of construction of a flat only. The difficulty
in working out the cost of construction of a flat arises in certain cases,
particularly the flat owner's society (in which flats are taken by purchasers
under agreements under section 4 of the Maharashtra Owners Flats (Regulation of
the Promotion of Construction, Sale, Management and Transfer) Act 1963. A
builder-promoter sells the flats on different occasions to different purchasers
for different prices, even though the flats are of identical sizes and there is
no difference in the type of construction and the amenities provided. The price
paid for a flat proportionate land also and further that the cost of
construction of a flat is not on the basis of actuals. In majority of cases the
actual price paid by a purchaser is more than that mentioned in the agreement.
It would thus be wrong to recover contribution from members at the fixed rate
towards the Sinking Fund on the basis of value shown in the agreements. The
builder may be most unwilling to give the actual cost of construction. A
Co-operative society has therefore to employ the agency of an architect or a
valuer, appointed in the general body meeting of the construction of the
building and apportion such cost amongst costs of a flat so arrived at may be
taken as the basis for fixing the amount of contribution to the sinking fund in
respect of the flat/shop/garage etc.,
Investment
of sinking fund contribution with interest earned thereon:
Investment
of Sinking Fund made
Obligatory:
The amount
in the sinking fund is required to be utilized when the reconstruction of the
building is due. This is a very long period. During this period the
contribution received from members by a society should stand invested on long
term basis so that such an investment will fetch substantial return to the
society. As per Bye-law No.15 and Section 70 of M.C.S.Act. 1960. However, the
societies which have not adopted the new provision, regarding investment of
sinking fund contribution on long term basis, need not put off the questions of
the said bye-law because it is in their own interest to ensure that the
contributions are received from members towards sinking fund on long term basis
from time to time.
The need for
investing interest on Sinking
Fund Investment:
It is
brought to the notice of the Co-operative housing societies that if they go on
investing only the contribution from members towards sinking fund at the rate
of ¼ per cent per annum of the cost of construction of the flats and utilize
the interest earned on such investments in their businesses, the total amount
to the creation of sinking fund will not be sufficient to meet the cost of
reconstruction of the building only if the sinking fund is invested on long
term basis, along with the interest earned on such investment.
A
co-operative housing society can invest its fund in the State Co-operative Bank
i.e., the Maharashtra State Co-operative Bank Ltd., Bombay or the district
Co-operative Bank i.e., the Bombay District Central Co-operative Bank Ltd., of
the securities specified under section 20 of Indian Trusts Act. Although the
Registrar can permit Co-op. Housing Societies to invest their funds in the
National banks or other commercial banks or the Urban Co-operative Banks.
This
facility is given only for facilitating day to day banking transactions. A
long-term investment has, therefore to be made by Co-operative Housing
Societies with either of the two banks named above. All Co-operative Housing Societies should therefore, note that they have to invest their sinking fund
collection is one of the above two banks. So far as securities under section 20
of the Indian Trustees Act are concerned, the list of the securities in which
Co-operative housing can invest their sinking fund is published in the new
bye-law.
More,
Tuesday, 28 July 2015
LEGAL DOCUMENTATION
No. 22, 4th 'C' Cross, Ind. Layout
5th Block, Kormangala,
Bangalore-560095,
Karnataka, India.
5th Block, Kormangala,
Bangalore-560095,
Karnataka, India.
E-mail: advocatessk@gmail.com
Monday, 27 July 2015
Real Estate and Property matters
Advocate Selvakumar
Real Estate and Property matters
Contact us at :
No. 22, 4th 'C' Cross, Ind. Layout
5th Block, Kormangala,
Bangalore-560095,
Karnataka, India.
5th Block, Kormangala,
Bangalore-560095,
Karnataka, India.
E-mail: advocatessk@gmail.com
Saturday, 25 July 2015
HOME LOAN AGREEMENT
Home Loan Agreement: With the ongoing flurry of activity and festivity
prevalent in the home loan segment of India recently, a large number of people,
in the euphoria to acquire that dream house, tend to overlook some of the most
important clauses in the home loan agreement. However, what they don’t realize
is that these clauses have a significant bearing on wide number of areas
ranging from interest rates to repayment schedules.
Some of the simple clauses of the home loan
agreement regarding to simple matters, such as how often the housing finance
company resets interest rates in a year can make a considerable impact on the
floating rate home loans. The norms in
the industry practices suggest that interest rates for home loan consumers are
reset only when the bank’s prime lending rate is changed.Therefore it is the frequency of these resets
that is really important. Some of the finance companies offer home loan
agreements wherein the interest rates are reset in each quarter. Alternatively,
there are other companies who do the revision only once a year. Sadly not many
home loan consumers are aware of the clause related to the fixed rate homeloans, which the financial companies some times insert in their home loan
agreement.
This ignorance can cause the customers unintended
losses in case of revision of the fixed rate home loan rates. Most of the customers
are not aware that this particular fixed rate clause in the home loan agreement
permits the financial institutions to change the loan’s repayment schedule and
terms and conditions.
The financial institutions
in a rising interest rate environment might exercise this option in order to
safe guard themselves and in the interest of their own company. This move is
usually not in the best interests of the customer or the home loan seeker as
the modification of the repayment schedule, terms and conditions might affect
the overall repayment of the consumer. The long list of terms and conditions of
the home loan agreement, usually contain clauses which might possibly have a
number of significant implications for the consumer and therefore it is
important that the consumer is aware and makes an informed choice accordingly.
More,
Friday, 24 July 2015
SELLING UNDIVIDED SHARE OF LAND
There are several instances wherever the promoters of an flat don't transfer the complete extent of land to the patrons of flats.
Instead, he or she tends to retain a little of the undivided share that is
after victimized resulting in varied complications.
At times, the builder or his representative contend that
they're conjointly co-owner of the flat complicated since they own a share of
the land and demand that their cars be pose or retailers be made for his or her
use.
However, the court within the case involving (writ petition
No.39468 of 2002) bank of Travancore and therefore the regime of province et al
has command that someone cannot retain ANy undivided share of the land in AN
flat complicated unless he or she is an flat owner and in possession of the
made space within the building.
In1982, the bank of Travancore purchased eight out of twelve
flats made within the initial And second floors of flat complicated and in
hand an 919/1779 undivided share of the land.
Of the remaining four flats on the third floor, 2 flats were
purchased by Ms.Bharat Earth Movers restricted and therefore the different 2 by
2 people at the side of a 446 /1779 undivided share of land. The balance
414/1779 undivided share of the land wasn't sold .
The twelve flats within the complicated were punctually
two-handed over to the individual house owners in 1982 when receiving the due
payments. after, the owner regenerate the automobile parking areas into six
retailers in violation of the sanctioned arrange and applied for regularisation
of the deviation.His application was rejected and conjointly the charm filed
against the rejection. The city Corporation was directed to require appropriate
action to get rid of unauthorised construction.
When the city Corporation didn't take away the unauthorised
construction, M/s.Bharat Earth Movers, one in all the flat house owners filed a
judicial writ petition within the Court to direct CMDA and therefore the
Corporation to demolish the deviation. The Corporation of city and CMDA gave an
enterprise to the court that the action would be taken. The deviated parts were
after destroyed and therefore the entire automobile parking was two-handed over
to the flat house owners for joint possession.
Meanwhile, the promoter of the flat died and his legal heirs
claimed that the complete automobile parking on the bottom floor was in their
exclusive possession and place up shutters.
This was challenged within the court stating that the
complete land on that the flats were made together with automobile parking
belonged to all or any the flat house owners.
The promoters argued through their counsel that solely a
little of the undivided share of land was sold
and 414/1779 undivided share were preserved by them.
Hence, the promoters claimed that they need a right within the land and therefore the entire ground floor, aside from a little that was
sold to the opposite flat house owners.
Hearing the arguments on either side, the court command that
someone cannot retain ANy undivided share within the land unless he or she is
an flat owner and in possession of the made space within the building.
States like Karanataka have created it necessary that the
undivided share of the land can't be registered in isolation and that they have
to be compelled to be registered at the side of the flats. This has helped
arranged the issues for the patrons and has conjointly helped earn additional
revenue for the State.
What to ascertain in Agreement?
When you get the property, your builder can offer you a date
after you have to be compelled to return to registration workplace and every
one the agreement work are going to be done. Most of the days, builders are
reluctant to indicate you the agreement copy. However they're going to be able
to share somebody else agreement copy at their workplace or at the most site.
Just have a glance at that agreement that is sort of a
specimen or the format, on a number of the page, you'll see “Details of
Undivided Share of Land” and it'll be mentioned in proportion terms like
“0.45%” or precise space in sqft terms. simply scan the complete factor rigorously.
Then once the particular agreement should occur, you'll be
able to then scan the agreement thoroughly and make certain you take care of
now in your agreement copy. A tiny low tip here is that once builder calls you
for registration, tell him you'd prefer to precede one hour from the regular
time and have a close check out the agreement, if potential conjointly get a
attorney with you and have him check out the agreement.
More,
Thursday, 23 July 2015
SOME COMMON LAPSES IN APARTMENT OWNERS' SOCIETY/ ASSOCIATION
The apartment Owners' Associations/Societies primarily are shaped to seem once the
common interest of their members and their common assets and work as a
non-commercial/non-profit creating body. though' it's registered as
non-commercial body, makes an attempt are created to convert the Welfare
Society/Association into business and profit creating body by endeavor or
permitting commercial activities.
Further,
though' solely the lodging house owners are eligible to become members of
lodging Owners' Society/Association, however really, in bound associations,
persons apart from the lodging house owners additionally become members of such
association or society and additionally become workplace bearers of Board of
Management.The non-owner workplace bearers might not have commitment for the
common welfare and for the event of the association and thereby lapses do occur
within the management of those welfare associations.
The
following are a number of the lapses usually detected within the lodging house
owners Welfare Association/Society:
Lapses Normally Administration
1. No basic
records are obtainable with Society / Association. Even the Register of Members
isn't unbroken updated and copies of Sale Deeds of lodging in favor of members
aren't obtainable with Society / Association.
2. There
exists no workplace area for the Society / Association. In and of itself even
the routine work of the Society / Association can't be performed in an
exceedingly scientific and orderly manner. This might have an effect on the
preparation of the documents for the periodical conferences and also the
general body meeting.
3. No
attending Register is maintained for paid workers of the Society / Association.
No paid care-taker is engaged by Society / Association to figure on full time
basis. No duty list and temporal
arrangement is per his appointment order. No down payment is taken from the
care-taker.
4.
Subscription and maintenance charges bills aren't issued monthly often, and
even though issued, these bills might not contain the penalty quantity for the
late payment of association fees.
5. Defaulter
list containing flat No., name of Defaulter and quantity due from him isn't
exhibited on bulletin board.
6. Outside
public are allowable to use bathrooms within the dwelling in cellar portion.
7. Traveler
lifts are used for carrying significant and ponderous things.
8. Visitors'
Book isn't maintained properly at the doorway of dwelling.
9. Sales person’s
are freely allowed to contact flat occupants purchasable of their product.
10. Dwelling
isn't insured against hearth, earthquake and alternative similar natural
calamities.
11.
Significant amounts are spent while not correct sanction of the final
body of the society/association
12. 'SPECIAL
PURPOSE DEPOSITS' are utilized for routine maintenance of the dwelling
13. auditing
of accounts is either avoided or delayed.
14.
Maintenance charges are charged for retailers on par with maintenance charges
for residential flats. Maintenance charges for four roomed, 3 roomed, 2 roomed
and one roomed residential flats are charged uniformly. Sharing of maintenance
charges on pro-rata basis betting on the worth of an lodging is
welcome.
15. Enterprise
like shop, Creche, Toddler, School, outlets are allowable in residential
flats.
16.
Transportable communication towers are allowable to be erected on the
terrace of dwelling.
17. Legal obligations of Society / Association like (i) Submission of Annual come of
elective member of Board of Management (ii) Submission of Annual Audited budget
to Competent Authority (iii) Submission of any modification to registered
bye-laws of Society / Association for approval and filing in records of the Competent
Authority aren't complied with.
18.
Unauthorized construction in common space and within the flats are allowable by
Society / Association with silent approval.
19. Society
/ Association permit extra floors to be made on existing building while not Municipal
Sanction.
20. Society
/ Association starts to perform once solely an area of the building is made
while not getting Occupancy Certificate from Municipal Authorities.
21. No.
surprise checks are created throughout night times to ascertain whether or not
watchmen are argus-eyed whereas on duty.
22. No
surprise checks are created for unauthorized vehicle parking within the parking
lot.
23. No
tripartile Agreement is executed between Society / Association, owner member
and also the tenant / leaseholder.
24. No copy
of registered bye laws with amendments are given to new entrants as
members.
Lapses In Safety, Security And
Maintenance
(a) Safety
1.
Inadequate hearth fighting systems are provided within the flats
buildings.
2. The
building isn't insured against loss as a result of natural calamities like
hearth, earthquake, significant rains, floods and lightening etc.
3. There's
no provision for lightening arrestor for tall buildings.
(b )
Security
1. No
correct security arrangement to ascertain intruders moving into the flats
building.
2. Bodily
weak, Semi-blind and semi-deaf security guards are announce in building for
watch and ward duty.
3. No
visitors' book is maintained at entrance of the building and it's not
rigorously examined. Sales men have free access to every flat to sell their
product.
4. 2 entries
and 2 exits in a flats building might cause significant issue from security
purpose of read.
5. Lack of
compound wall all around and / or wire fencing on high of it might once more
cause drawback from security purpose of read.
6. Absence
of written document records of normal guests to the dwelling like Maid
Servants, Dhobi, Newspaper vendors, milkmen etc. might additionally cause
drawback from security purpose of read.
7. Watch-men
aren't given list of flat Nos. and their vehicle numbers (cars, scooters, motor
bikes etc.). These lists would be helpful to watchmen to stay a watchful eye on
unauthorized vehicle mistreatment vehicle parking lot.
( c )
Maintenance
1. There's
no schedule of normal / periodical examination of flats building to spot
prevailing defects and to rectify them in time.
2.
Appropriate steps aren't taken to unravel the inadequate Municipal facility,
defective within the facility net-work, and un-uniformed facility in numerous
floors of the dwelling and to every flat of identical floor.
3. Cob-webs
and wild plants are allowed to grow and unfold everywhere building and harm the
building by making cracks.
4. Flower
plants are allowed to die as a result of lack of systematic watering of these
plants.
5. No
artificer and trained worker is acting on yearly basis to attend day to day
issues. Wherever yearly arrangement is created they're not revived once a year.
6. Vehicle
parking lot isn't washed with water for years along.
7. Overhead
water tanks and underground sumps aren't clean sporadically.
8. Open
wells aren't lined properly and that they aren't clean sporadically.
9. No
stand-by pumping arrangement is created for obtaining continuous facility.
10. There
aren't any long coming up with for maintenance of building leading to the leak
within the Cellars throughout time of year.
Reasons For Lapses
1. The
Society/Association isn't run as an establishment. It’s run during a} very
casual and informal manner.
2. Workplace
bearers of the Society/Association ordinarily work while not remuneration and
thereby they carry an impact that they're doing a favor to the Society/Association by rendering their free service and in and of itself they're not
answerable or answerable for all their actions within the society's work.
3. There's
no effective machinery from Government to observe the performance of those
Societies/Associations to form them useful as accountable establishments.
4. There
aren't any complete Bye-laws for these societies to be followed by the
workplace bearers of those societies. Thus the Society/Association runs in
associate degree pseudoscientific manner with no accountability for the lapses
committed by the workplace bearers that successively might hurt the Society/
Association.
5. Most of
the members of the Society/Association are uncaring and non-vigilant on the
lapses committed by the workplace bearers. These members don't take active half
within the functioning of the Society/Association, however permit to be managed by a few of persons that successively
would result in misdirection of the funds of the. Society, keeping transparency
in its acting at bay.
6. Content
of applicable laws and their non-application in day to day functioning of the
society would herald unskillfulness within the Society / Association.
7. Absence
of adequate and clear-cut provision within the Registered Bye-laws of the
society would provide encouragement for arbitrary unlawful choices within the
Society / Association.
More,
Wednesday, 22 July 2015
TIPS ON REAL ESTATE DEALINGS
The process of buying and selling of immovable properties has become complex and the people who make things happen have
increased. Now, you will have to deal with real estate brokers/agents,
appraisers, financiers, lawyers and other personalities that will be needed in
the process. It is better to get the right people to represent you and protect
you from possible unusual circumstances.
Availing of the services of professionals is the first
step in protecting yourself from fraud. These professionals know indicators of
bad deals and they can easily advise you on your possible next moves to avoid
negative experience.
The best person to protect you from frauds is a realestate lawyer. You have to find one who will only be loyal to you and nobody
else. He is the person to trust and he is responsible for protecting your
interest. You have to make sure that you will be hiring somebody who is
trustworthy, experienced and credible. Sometimes there is a higher price tag
for this type of advocate but it is surely worth the difference in price when you
get somebody you really do not know. In your hiring process, never trust
recommendations without doing your background check.
When you already
have a trusted property lawyer, you can avoid fraud by not signing any
document that your lawyer did not approve. There are many cases when people
sign documents without the advice of the lawyer and end up discovering that
there are stipulations in the document that were not agreed on. Always use the
services of your lawyer whatever is your concern. You have to be honest and
tell him about your observations and listen to him as he will always have
recommendations that can make you benefit even more.
The most important way to avoid fraud is to know what
the law says. You also have to do due diligence in updating yourself about the
state of the real estate industry and improve on your level of understanding in
the field. The knowledge that you gain can make you do away with suspicious and
fake dealings.
More,
Monday, 20 July 2015
HIGHER INTEREST SUBSIDIES ON FLATS FOR EWS LIKELY
 |
In a move to ensure every household has a roof over their heads by
2022, the housing ministry is likely to increase interest subsidy for flats
under economically weaker section (EWS) and low income group.
Sources said the proposal has been formulated based on the
recommendation of an informal group of ministers, which looked into the
`Housing for All' scheme. The fresh proposal would be placed before the Cabinet
for its approval. TOI has learnt that one of the ministers in the group has
suggested that there should be 0% interest for people falling under the
category of EWS. He has suggested that the cost of such flats should not be
more than Rs 5 lakh in any urban area so that people across all sections can own
a house.
One of the major components of the ambitious scheme is to construct
at least two crore affordable housing in urban areas. The cost of such flats is
estimated to be around Rs 6.5 and Rs 7.5 lakh. There are also provisions
including interest subvention scheme in the housing sector that will meet part
of the buyers' home loan burden.
More,
Saturday, 18 July 2015
REVIEW YOUR HOME LOAN OR BUY PROPERTY VERSUS RENTING IT
You should review your home loan, or your decision to buy a property versus renting it. Here are two
tools which can help you with your decision-making.
While there are several dos and don'ts around financial
decisions to keep an eye out for, here are two realty opportunities that people
should look at.
1.
Think long and hard whether in this market you want to commit to buying a
property, as rentals are typically, at less than 3% of the property value in
most cities. People moving to a new city and knowing they are going to be there
only for a few years, should rent. Calculate whether you should buy or rent a
property on the basis of your income and prevailing prices.
On
the other hand, if you can land a good purchase price and see yourself living
in this property for the next 7-10 years, then 2015 might be a great year to
buy a home.. But be warned, it could take around 8-10 years too, for this
property to appreciate meaningfully, at the current property rates. Since
buying a home is an emotional decision as much as a financial one, a one-size
fits all solution doesn't exist. We recommend that you try this Rent versus Buy
Calculator to find out what works for you.
2.
Ever since the RBI has mandated that pre-payment fees on mortgage loans cannot
be levied by banks, switching your home loan has become an attractive option.
Hence refinancing (transferring your loan) could help you in three ways:
-
Reduce your EMI outflows in these inflationary times. This might just be the
boost you needed, especially if your salary hike is less than expected.
-
Keep your EMI the same even if you get a lower interest rate. This way, the
lower rate translates into lower overall interest payments and higher savings.
-
You can also increase the EMI but for a shorter loan tenure. This also leads to
money being saved over the long term, if not immediately. Click this Refinance
Tool to see which option suits you best.
If it's
an under-construction property you are considering, then check if the per
square foot rate is low enough for you, to be able to absorb a delay in
possession. As is often the case, builders delay delivery of their projects.
You need to account for this delay, when judging whether the price you are
getting is still worth it, even with a 1-2 year delay built-in to your budget.
Since this decisions is going to
take a lot of money out of your wallet, your basic diligence is a must. Look
for builders with good street credentials and whose (reliable) reputation
precedes them.
While the realty sector is swamped
with unsold inventory around the country, (and construction firms routinely
complain about how sops are not being offered by the government to buyers), the
fact is that this sector loads a lot of margin, over and above its actual
costs. So watching out for yourself and not getting fleeced - either by banks
or realty firms - should be your motto.
More,
Friday, 17 July 2015
TOP 6 REAL ESTATE SCAMS AND HOW HOME BUYERS CAN AVOID THEM
The Indian real estate sector is growing, and so are the scams and
frauds associated with it. Consumers now-a-days are more informed, but
ironically are still susceptible to scams. Real estate scams run the entire
gamut, from legal frauds and fly-by-night operators to false promises and
untenable buy-one-get-something-free offers.
"It is a double whammy for gullible realestate investors because justice for fraud victims is long drawn and uncertain,
due to the complex nature of disputes in this sector. The absence of an
industry watchdog compounds the matter further," informs BankBazaar, a
multi-brand financial product comparison platform.Here is a rundown of scams
typically plaguing the Indian real estate market that investors need to keep an
eye out for:
False Promises:
With increasing competition in real estate,
builders are trying to lure as many buyers in the initial phase of a project to
meet their funding requirements. Advertisements with false promises are part of
it. A Gurgaon-based real estate developer was recently accused by over 700
investors of embezzling more than Rs 1,000 crore in a real estate project. The
developer had assured investors of 12% returns on the invested money until
possession, but the cheques given by the company bounced. To worsen matters,
investors faced inordinate project delays, grinding their property investment
dreams into dust.
Assured Rental Returns:
Many builders market their projects by assuring
a fixed rental income from properties. Some builders even publish fake rental
listings of various projects over the internet. If the prospective buyer does
not conduct his own research, he may actually believe that the property once
bought can be easily rented out for a fixed monthly income. But, in all
reality, once the purchase is over, rentals are hard to come by, leaving the
investor in a lurch. As for the builder, the unscrupulous variety vanishes
without leaving behind a mud trail.
Title Frauds:
This happens with both individual sellers and
developers. There have been cases where scammers have duplicated title deeds of
vacant or disputed projects and sold them to innocent buyers. "By the time
the fraud is detected, the scammer is far out of sight, counting the wads of
money he has made. A related genre of real estate fraud is where buyers
purchase their dream home only to later come to know that the project does not
include that part of land the builder had specified as theirs when they booked
it," observes BankBazaar.
Deliberate Delays:
Project delays and disappearing builders are
another common occurrence in real estate fraud. One strategy unscrupulous
builders resort to is to delay project completion deliberately until they get
requisite number of buyers. Yet others divert the money pooled from one project
to another, delaying both projects in the process. Many new and existing
builders have left a trail of gullible buyers who have just property purchase agreements
to show and are kept on wait while they pay huge rentals.
Deviation from Approved Plans:
Many projects when completed take several
deviations from the approved plan in terms of common areas. This possesses a
huge challenge for many buyers who have to compromise on common amenities,
spaces, promised luxuries and even on core project amenities like dedicated
parking space despite having made additional payments for the same.
Delayed Aprovals:
There are many cases reported where buyers are
left wringing their hands in despair even after possession, since several
sanctions for utilities like electricity connection, water connection, etc.
were pending. Issues like plot in unauthorized layout or sub-divided land,
building with land use violation, setback violations, floor area violations,
etc.detected after agreement formalities and construction have commenced could
lead to delay in other downstream approvals and title registration.
Tips for Real Estate Buyers
For property purchasers, who invest their
personal savings in any realty project, no amount of caution is too much. Here
are certain precautions you must take while purchasing property:
Hire services of a legal advisor:
It is imperative to hire the services of a legal advisor and discuss all property-related documents with him before
signing on the dotted line with the builder. "With the advisor's help,
ensure that all government approvals are in place. If the builder fails to show
you the complete set of approvals or only has partial approvals in place, think
twice before investing in such a project," advises Bank Bazaar.
Check builder's background:
Make sure you do your own background check and
research on the builder and their credibility.Use the power of the internet
and social media to your advantage. Check their completed projects list, track
records and ensure that they are members of real estate bodies like CREDAI.
More,
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