Even though this post is specific to Bangalore, the general principles should apply everywhere.

I have not included everything related to buying an apartment here like location, security etc. Just those things which are not so obvious to new house-hunters. Size: Do not buy a smaller unit thinking that you can always buy a bigger one later. Banish the thought forever. If you cant afford a bigger house now, you wont be able to do so after 5 years either. Property rates are doubling every two years whereas the salary is not. And once you get settled in a house, it is almost impossible to shift. Looking ahead 10 years, youd have kids who would need a room of their own. Your parents might come to stay with you. You might acquire a ton of household stuff which youd have to put somewhere. So buy the biggest house you can afford. Look for one with atleast 3 bedrooms with a total area of about 2000 sqft. It might pinch a little now but will sure come in handy later. Built-up area: The area of the apartment quoted by the builder is called super built-up area. This is the area for which you are paying the money. This super built-up area includes the area reserved for corridors, playgrounds, gardens and lift etc. The area in which you actually get to live in is called built-up area which is typically 80% of super built-up area. So if you are buying a 2000 sqft apartment, you get only 1600 sqft out of that. Some builders claim to give 85% but that is the limit. Loan: This is the one thing that causes most anxiety to new homebuyers. There are many things to be taken care of while taking a loan. 1. Pre-EMI: In a typical payment schedule, the bank releases a part of loan, say 10%, at each stage of construction. By the time you take possession, the bank would have paid the entire loan amount to the builder. If the construction takes 18 months, you have to pay the interest for 18 months on the money the bank has released. As and when the bank releases money, the amount on which you have to pay interest goes up. This interest amount is called Pre-EMI. The alternative to Pre-EMI is to ask the bank to release the full loan to the builder in the beginning itself. Then you can start paying full EMIs to the bank instead of paying Pre-EMIs. Even though paying full EMIs sounds bad when you can get away with paying much less Pre-EMIs, it is actually better and will save you as much as 5 lakhs! When you pay full money to the builder up-front, you get a discount of 4-5%. This works out to be 1.5-2 lakhs, depending upon the cost of the apartment. The Pre-EMIs that you pay do not count towards your loan. I.e. they do not bring your loan down. You are just paying a convenience fee to the bank. Most people go for this option cause they cant pay full EMI and the rent at the same time.

2. Interest rate: You can go for either fixed or floating rate of interest. Floating rates generally change every quarter but it is up to the bank. Fixed rates are of two types fixed for a term and fixed for full tenure. The fixed term is typically 3 years after which there is a revision to the rate, depending on the market condition at that time. There are very few banks which offer fixed rate for full tenure. ICICI is one such bank. Some banks like Kotak offer loan with interest rate linked to the Fixed Deposit rate. You can change your loan from fixed to floating rate later and vice-versa but banks typically charge 0.5% of outstanding principle amount for this. There is one hidden cost though here. Your interest and principle components for EMI would be calculated again and you might end up paying more. As of Feb 2006, the floating rate is 7.75%, three year fixed is 8.25%, and fixed for full tenure is 8.75%. 3. Pre-closure: Most loans last for about 6-7 years even though they were originally taken for 15-20 years. If you get some extra money and want to close off your loan, banks typically charge you 2% of the remaining loan amount. Some banks do not allow you to do this at all. In ICICI, you dont have to pay any penalty for this if you leave 12 EMIs. Also check if you can pay more than your EMI once in a while. Banks typically allow you to make excess payments once in a quarter or once in 6 months. 4. Insurance: Banks typically fund up to 85% of the apartment cost. Some banks fund up to 90% if you take loan insurance but 90% is the upper limit. The loan insurance premium is typically 8-10k per year. It covers things like disability, unemployment, death, or loss of property due to fire and theft etc. Unlike life insurance, you wont get anything back at the end of coverage term. You might be better off taking simple life insurance if you are not concerned about job security etc. 5. Tax exemption: You get tax benefits on pre-EMI and EMI only in the year in which you are taking possession. See more details here. 6. Loan disbursement: All the builders have home loan tie-ups with various banks and they also have loan agents who deal with those particular banks. After your loan has been sanctioned, it takes a lot of co-ordination between the builder and the bank to disburse the money. All this becomes much easier if you take the loan through these builder appointed agents.

Cost: Like there is an ex-showroom price for cars, apartments have an ex-builder price (I just made up that term). A typical price of, say, 2000/- per sqft quoted by the builder does not include charges for Water supply, Electricity, Car parking, Service tax, VAT, Registration, and legal expenses etc. You wont get any wardrobes or kitchen shelves either. Add 30% of the base cost for these things (total cost now = 2600/-). The builder should be able to tell you exactly how much would these things cost. Your loan eligibility is calculated on the sum total of all the above costs. Premiums: Some builders, or rather all of them, ask for a premium for corner units or upper floors. In other cities, lower level floors cost more than the higher ones but in Bangalore its the other way around. This premium rate is typically 20/- to 50/- per sqft per floor. There is no problem in paying it except that it is not shown in any of the documents. Your house would still be registered at a rate of 2000/- only. See if your builder can waive it off or reduce it; most do. Amenities: All the apartment complexes are advertised to have a club house, swimming pool, gym, garden, and playground etc. It would be a shame to call that pit a swimming pool but the point here is that you are made to pay for these things. If you are going to buy a house in one of these projects, there is nothing you can do to avoid paying for them. But what youcan do is to buy a house in a much smaller apartment complex. These complexes typically have only 12-20 units and dont have any of the above luxuries. You can see these kind of complexes everywhere in residential areas like Koramangala. The prices are about same as big complexes but then you get to live in the city and in a much better locality. Salespeople: Do NOT trust the marketing executives who take you to the site and give you a tour. They would promise anything just to sell you the damn apartment. Always call up the customer care department and verify it with them. Better still, go to their office and have a look at the papers yourself. When to buy: This one is simple. Buy it as soon as possible. Buy it now. Dont worry about leaving Bangalore and going back to your hometown. you can always sell it later. And at a profit too. The best time to buy an apartment is during the pre-launch offer. These offers run for about 2 months and the rates are up to 200/- per sqft lower. As soon as the builder gets the plans approved from the govt authorities (and the project is officially launched), the rates shoot up (and keep on shooting up). The number of units

on offer during pre-launch is very less though. Another thing to note is that builders do not release (put up for sale) all the units once they launch the project. They keep some units for selling them later at a higher price. Links: I have taken a 3BHK of TSBA of 1850 Sq ft in Koramangala 3rd block. Now this was a huge investment for me, but keeping my mind long term goals and budgets, I went ahead to take this up in a good locality. Coming to the point of Loans which I do want to share as below: 1) category-1 Banks Mostly private banks- Loans with not many features, hidden costs in pre-closure, monthly-reducing balance, no flexible EMI options and regular interest rate fluctuations with no prior notice. Now this is not the banks you should mess with. 2) category-2 Banks Private & Public Good features and Felixble options like preclosure, flexible EMI, daily-reducing balance etc. but keep an eye on the hidden costs. A good option, but dont miss out approaching the category-3 banks. 3) category-3 Banks Public + few private Transparent transactions, good features like pre-closure, flexible EMI, daily-reducing balance and something very unique like the Loan that acts as a OverDraft account which allows you to deposit surplus amounts to this loan account that reduces the Principle Outstanding thereby reducing the Interest paid on a long run. Now this account allows you to withdraw the surplus at a later stage in cases of emergency as well. Now I find this very useful as one can deposit any amount any times a year. For example, for a loan of 50 lacks, one would normally pay back to the bank an interest of 50 lacks over 20 years. By using this feature, a excess deposit of say 1 lack a year will reduce the interest paid to the bank to 25 lacks and time to 14 years. I would strongly recommend to go to the Category-3 banks I went with SBI, which gave me a good home loan covering registration costs, cost for interiors, etc with Insurance covered. HSBC, SCB also has this feature called Home Saver, keep an eye on the hidden costs. good luck, sridhar

Asking the builder % VAT and Service TAX is like asking Barber if you need a hiarcut. Guys can some one formulate the exactly how VAT and service TAX has been calculated.? The formual i was give as C = Cost of the flat P = Parking A = Animites VAT = (C+P+A)*(0.7 * 12.5) = X Service TAX = ((C+P+A)+ X) *(0.33 *10.2) = X1 X+ X1 is total tax

Excellent forum to comment and ask doubts. This is what I was looking for Here is my doubt. Any sort of advice is really appritiated. I have brought an apartment on ORR and now its the time to register it. I have two options 1) At market rate Rs.1000/sq.ft 2) Actual rate Rs. 2000/ sq ft. It seems to avoid any future notices abt under valuation from carporation and paying penatiesm one should register it on actuals. So in that case if Basic cost of the flat + car park = X and Y are the other charges for water , electricity + VAT + service tax + aminities. Should registration be 8.4% of X or (X+Y) ? Please let me know as I am totally confused. thanks in advance. Sachin. I am pasting somebodys query on Registration and VAT calculation and corresponding answer, which can be helpful for some people:-

Question : I booked a flat in Bangalore for which the construction is going on and it will take another 4-5 months for the construction to get over. The calculation for registration goes like this: Registration filtered = (Total area of the flat in sq. ft. multiplied by Government guidance value + cost of car parking area) multiplied by 9.5. Service Tax = (Total square feet of the flat multiplied by market value of the flat + car parking areas cost + amenities) multiplied by 4.04. VAT = (Total sq. ft. of the flat multiplied by market value of the flat + car parking areas cost + amenities cost) + Service Tax multiplied by 4. The cost used for registration is the government guidance value in the particular location whereas the cost used for service tax and VAT is the actual market value of the flat per sq. ft i.e. the cost I am paying for each sq. ft. My question is 1) If the guidance value is used for registration then is it not the same guidance value used for calculating service tax and VAT? When this is done, I would end up paying more money if the actual cost is based on the market value. 2) I heard from a different builder that VAT for construction is 12.5 per cent on the 70 per cent of the construction cost (calculated based on guidance value) + car parking cost + amenities cost and the 10.5 per cent of it is the service tax. Why is there a difference in percentage and method of calculation between different builders? What is the actual procedure for these calculations? Answer: It is evident from your question that the total amount payable by you for the apartment includes the price payable for the undivided share of land pertaining to your apartment and the price payable for construction cost including car parking and amenities. We wish to state as follows:

1. The guideline value used for registration of properties has no relevance for the calculation of VAT or service tax, as the charge of service tax or VAT is based on the amount charged by the builder for construction of the flat (excluding land cost). 2. Under the VAT law, a dealer (builder) can opt for the composition scheme where the VAT rate is four per cent and in such a case the dealer is not allowed to collect any VAT separately from his customers. Alternatively, the dealer may opt for the regular VAT scheme where the VAT rate is 12.5 per cent of 70 per cent of the total construction cost (which works out to effectively 8.75 per cent of the total construction cost), which can be collected from you. 3. Under the Service Tax law, the service provider (i.e. the builder in your case) has to charge 12.24 per cent of the construction cost of your apartment after reducing the cost of materials incurred for construction of your apartment, in case your builder proposes to avail the benefit for exemption on cost of materials under Notification No.12/2003-ST dated 20-06-2003. However, in case your builder is not able to identify and distinguish between the cost of material and cost of labour incurred on your apartment, then he can avail the exemption to the extent of 67 per cent of the total construction cost of your apartment and pay 12.24 per cent towards service tax on 33 per cent of the total construction cost of your apartment.
Whats Floor Space Index (FSI) in Bangalore. I ask this as I find most apartments in bangalore (even 30L ones) occupy whole land, theres absolutely no space btween flats for air & sun light. Its fine for 3040 2 storey building but not when you are building a 4 storey building. Staying on ground floor in such a building is like staying in a Cave.

For those who dont know FSI is the ratio of total floor area of a building to the total plot area. Also called Floor Area Ratio (FAR).

Dilip, The FSI in Bangalore varies from 0.75 to 2.5, in a very weird way. It is lower in the center of the city and higher in the suburbs! This is totally contrary to the rest of the world. Eg. in New York, the FSI for city center is 15 while that for suburbs is 0.5, a ration of 30. Now you know why we have such massive jams on Hosur road.

Your point about flats being close to each other applies for those buildings which fall within the city limits. There are plenty of them in Koramangala where I live. Hi, I am planning to purchase a house at BSK 3rd stage. Can anybody answer my below questions? 1. Is it neccessary to convert a land before purchasing? 2. what is exactly means acuqiring of land by govt?

Yogesh, You cant generally buy a piece of (agricultural) land before conversion. The only situations in which you can buy it before conversion are: 1. You already own agricultural land 2. You intend to become a farmer, in which case youd have to take special permission from the tehsildar and do a lot of paperwork.

Suppose you buy a piece of agricultural land and you intend to build a house on it. Since govt gives lots of subsidies to farmers on land registration fee, stamp duty, VAT etc, you are not supposed to get all those benefits. DC conversion is the mechanism which ensures that the taxes and duties you pay to the govt are in line with the land utilization purpose (among other things like building by-laws etc). I am purchasing an apartment and I got a very good insight about calculating VAT, Service Tax ,Registraion and Stamp Duty from this dicussion. Now I want to know that how Sales Tax will be calculated? My Breakup cost is: Land Value: 1249500 Construction Value: 1632500 Car Parking : 175000 Other Charges(BWSSB, BESCOM, KHATA, Legal): 150000 Total : 3207000

hi, i am planning to buy a flat in bsk 3rd stg, in the carparking+g+3 floor, he do not have plan sanctioned for our apartment. but he has separate katha, electricity, water connection separatly for each flat, ECS builder is telling all documents is enough no need for plan sanctioned, moreover is telling there wont be any thret of demolition for residential properties, and there ois govt order allowing upto 50 % deviation please tell is it safe to buy this flat, what is risk i am taking in buying this flat
Hi kumar,

Dont go for payment until he produces the approved plan for each floor. Deviation is secondary depending on whether it is vertical or horizontal deviation. If its vertical deviation, please dont take that risk. I think horizontal deviation of upto 50% or even more is OK unless your apartment is in totally residential area, away from main roads and green belt area. You can take risk. But without the sanctioned plan for each floor better not to go for it. regards, Prasad

hi, have been readign cpl queries on this site and thought id post my own. we are on the verge of finalising a second sale of an apt in rmv extn. blore. my query is that since our said apt wil be on the topmost floor does anybody have an idea as to what are teh building byelaws in case of a seepage from the terrace? are there any set rules for this?? also any site /info we can refer fr property evalutaion to ensure we are paying the right price fr the apt?? i understand that vat is charged even fr a second sale.. however the seller is asking fr a lumpsum price inclusive of vat. is this ok do we need to clarify with him as to additonal charges later?? any inputs as to best banks fr housing loans- floating??nationalised or private?? appreciate a prompt response rashmi

Hi Manish,

I booked a flat in purva venezia, yelanka. 3 Bed room flat only. Purva is Ok ? Would it be good in terms of investment ? What is your suggestion ?

Am totally confused with banks and their offers. Am afraid of floating interest rates also. Could you guide me some good banks where I can go for floating or fixed ? Fixed of 11% is good option ? or 9% of floating rate good option ? and which banks are good ? Nationalized banks are asking like salary should be credited into their bank or undertaking from my company But My working company would not agree this. Private banks offering 9% floating but am not so comfortable.

What could I do ?

Waiting for your valuable suggestions.

Thanks, Selva Mani.

Hi,

I have 2 issues that I need advice on - I have purchased a flat a year back fro 16L, now the value is around 30L. What is the service tax/sales tax I will need to pay when I sell the flat - I took a loan from a bank at a fixed interest rate for the tenure of the loan. Part payment has been made at the interest rate agreed to. Now for the 3rd part payment to the builder the bank is revising the interest rate to a higher rate based on a weighted average. I feel like accusing the bank for fraud. Can I go to consumer court and newspapers for this ?

can some one guide on how bwssb and kpct(keb) deposits are calculated for new apartment? are the builders allowed to charge exorbitanatly or is there a fixed rate ?

Hi Manish, i have learnt a lot from all the discusions in your page. I have booked a flat at whitefield. The builder (a reputed one as far as i know) says that he has submitted his plans to the bda and is expecting approval. this he is saying for the past two months. How long does the bda approval process take for an gated township project of 500 homes? Secondly, can i get a detailed plan (showing lighting points, AC points, switch points) soon after the bda approval? thanks in advance. saravana
This is truly an informative blog. I have recently bought a 3 BHK in Banashankari II stage behind Big Bazaar. I have registered the flat and have the sale deed. When and from where will I get the possession certificate and Khatha? And when should I start paying the property taxes for the same?

If a second car park is bought from the builder, does it have to be shown in the registration? The sale agreement has mention of only 1 car park by default. The builder says that buying a second car park is independent of this and doesnt have to be shown in the registration. And also that he would be giving me a seperate receipt/agreement for it. Have any of you got a second car park? If so, was there a mention of it in the registration papers?

How do we verify the sanction plan. where is the relevent office for apartment being constucted in kodihalli. Do we get authoritave sanction plan?, I mean , for my case builder gave a sanction plan and I want to verify it.

I purchased a flat which is just in the initial stages of construction. Its in ulsoor area. Since registration costs are going up upto 100%, we approached the builder to ask if the flat could be registered. The builder initially hesitated but later agreed. The flat is just in the foundation level so the actual structure is still to exist. Is this ok to be registered this way? The undivided share and the flat together are mentioned in the sale deed. I purchased a flat from Ittina mahavir and did registration. They constructed 2 more floors without approval and now BDA is not approving the new plan. There is a court case going on and if the verdict is not to appove the project, they will demolish it. What i wanted to know is in cases like this, the whole flat will be demolished or only the 2 floors for which they dont have approval will be demolished?

I have few queries reg Housing Loan

- Currently its better to go for Floating option, since Interest rates are pretty high now, isnt it?

- One should be more worried about per lac EMI & not just interest rates, no?

- Which all main Banks/Housing Finance Cos. provide a Step-up EMI option?

- Is there any interest rate diff. between Step-up & normal Floating option?

- Whats the max loan tenure for ICICI / HDFC /Nationalised Banks / LIC Housing / BHW 20 years or 25 years? (my YoB is 73 & the co-applicants DoB is 78)

- Whats the per Lac EMI at current floating rate for 20 years & for 25 years (if its available)?

- At Current rates, per Lac EMI & Loan Tenure, which Bank/Housing Finance Co. will be a better option?

- Could you pls clarify as to what are the components that come under Property Value? [ie like Tot Value for Super Built-up area, Amenities, KEB & BWSSB charges, Registration etc]

- Will the applicable Taxes (ST, VAT, Prop. Tax etc) be considered in calculating Property Value/Loan Calculation?

- Is there any thumbrule used by Banks in calculating max loan amount eligible [ Apart from the Take Home for the Co-applicants, do they incld. Incentives, TA, DA, Perf. Bonuses, LTA, Med Allowances etc? ]

Hope to get these clarified soon

Here are some tips that I want to share with PropertyPlus readers who are purchasing sites in City Municipal Council areas of Bangalore. I had to face some problems and I want to caution others. The following is the checklist one has to go through before purchasing a site in CMC areas: One should verify the land records carefully with the help of an advocate. One should know whether the layout plan is approved by the CMC and endorsed by the Bangalore Development Authority (BDA). Check the CMC records and investigate all possible angles. Lots of bogus khatas with fictitious seals of the CMC concerned are in circulation. Kindly refer to the recent news where the Supreme Court has directed the Delhi Government that the State shall not regularise unauthorised colonies which do not have basic amenities. This may apply to Bangalore also. Better take care now than repent later. Never purchase a residential site on an agricultural land or a revenue site in the Green Belt area. Many banks are not giving loans to such sites. One should know the background of the developer and the landlord. Is the landlord a principled, broadminded man? Investigate his earlier property dealings. Had he or his family members ever stopped construction on a site sold by them earlier on any ground? If so, what were the reasons? Investigate all this. Are there sufficient, wide approach roads and bylanes provided in the layout? Roads are very important. Without wide roads, it is very difficult to provide drainage, sewage and water lines. You can pay more value per sq. ft., if there are good wide roads and approach roads in the layout. Never purchase sites or flats in a layout where width of roads is less than 25 ft. Otherwise you will repent in future. A house can be constructed in any manner depending on your purse. But the location and the type of your site can hardly be changed. Hence let me repeat: the more the width of the road, the better. An approach road means "roads that are connecting the layout to the main road." In a layout there should be at least two approach roads. Ram Shanker Rao

Owning a house is an important thing in ones life. However, one needs to be careful while buying a property to avoid falling into legal hassles. Before buying a land, a number of checks need to be

done to confirm that the land has a clear and marketable title. The legal status of the land is one of the first issues that should be addressed before confirming a property. Title deeds The first step is to see the title deed of the land, which you are going to buy. * Confirm whether the land is in the name of the seller and that the full right to sell the land lies with only him and no other person. * It is better to get the original deed examined by a lawyer. This is to check details like whether the seller has permitted any entry/access to others through this land and whether any other fact has been suppressed/left undisclosed by the owner of the land. * Along with the title deed, you can also demand to see the previous deeds of the land available with the seller. * In some cases, more than one person may own the land. So before registering, check if there is more than one owner, and if there is, get release certificate from the other people involved. Conveyance Deed or Sale Deed A sale agreement is a document by which the title of property is conveyed by the seller to the purchaser. Here, conveyance is the act of transferring ownership of the property from a seller to the buyer. This document will help you ascertain whether the property, which you are buying, is on land belonging to the society/ builder/development authority in which the property is located. Tax receipt and bills Property taxes, which are due to the government or municipality, are a first charge on the property and, therefore, enquiries must next be made in government and municipal offices to ascertain whether all taxes have been paid up to date. * Inspect whether the latest tax paid receipts have been paid. * Enquire with various departments of the municipality to ascertain whether any notices or requisitions relating to the property are outstanding. * If you are buying a house along with the property, then the house tax receipt should also be checked. * Also ensure that the electricity and water bills are up-to-date and if there any is balance payment to be made, ensure that it is made by the seller. Encumbrance Certificate Before buying any land or house, it is important to confirm that the land does not have any legal dues. * Obtain a certificate called encumbrance from the sub registrar office where the deed has been registered, stating that the said land does not have any legal dues and complaints. * You can check the encumbrance certificate for the past thirteen years or could demand verify the 30 years encumbrance certificate. Pledged land Some people may have taken loan from the bank by pledging their land.

* Ensure that the seller has paid back all the amounts due. * Ask for a release certificate from the bank, which is necessary to release all the debts over the land legally. Measuring the land It is advisable to measure the land before registering the land in your name. Take the help of a recognized surveyor to ensure that the measurements of the plot and its borders are accurate. You could also take the survey sketch of the land from the survey department and compare for accuracy. Purchasing land from NRI landowners A person staying abroad can also sell his land in India by giving a Power of Attorney to a third person authorizing him the right to sell the land on his behalf. In such cases, the power of attorney should be witnessed and duly signed by an officer in the Indian embassy in his province. Power Of Attorney Power of Attorney is the power given to an agent by the principal to execute several acts and deeds for and on behalf of the principal. Stamp duty payable depends on the nature of power given. When power is given in respect of a number of acts in a number of transactions it is called General Power of Attorney. It is always advisable to hold a registered GPA while registering an immovable property in order to give better title to the property. When power is given in respect of a particular act pertaining to one transaction it is called Special Power of Attorney. Agreement Once all the matters, financial/otherwise are settled between the parties, it is better to give an advance and write an agreement. This ensures that the owner does not change his word regarding the cost as well as make a sale to someone else who offers more money. * The agreement should be written in Rs.50 stamp paper. * The agreement should state the actual cost, the advance amount, the time span within which the actual sale should take place and how to proceed in case of any default from either parties, to cover the loss. * The agreement can be prepared by a lawyer and should be signed by both the parties and two witnesses. * After signing the agreement if one of the parties makes a default, the other party can take legal action against him. Stamp Duty It is tax, similar to sales tax and income tax collected by the Government, and must be paid in full and on time. * A stamp duty paid is considered a legal document and such gets evidentiary value and is admitted as evidence

in courts. * Stamp duty is a State subject and hence would vary from state to state. * When an agreement is to be stamped, it needs to be unsigned and undated one may execute the agreement only after the Stamp Office affixes stamps on the agreement. Registration Registration is the process of recording a copy of a document, transferring the title in immovable property to the office of the Registrar. It acts as proof that a transaction has taken place. * A draft should be prepared before actually writing the document in stamp paper. Registration is done after the parties execute the document. * The agreement should be registered with the Sub-Registrar of Assurance under the provisions of the Indian Registration Act, 1908 within four months from the date of execution of the document. * Make sure all the details mentioned are accurate. * Original title deed, Previous deeds, Property/House Tax receipts, etc plus two witnesses are needed for registering the property. * The expenses involved during registration include Stamp Duty, registration fees, Document writers/ lawyers fees etc. * Make sure that the deed is registered within the time limit mentioned in the agreement. * Stamp duty should be paid prior to the Registration. Changing the title in Village office The whole legal procedure of buying the property will be complete only if the new owners name is added in the village office records. An application can be made along with the copy of the registered deed to the Village office to get this done. Purchase of property is a lifetime investment. A lot of care is needed from the beginning- right from site seeing till the registration of the land. Ensure that the documents of title are scrutinised for marketability with due care by an experienced advocate.

It is a dream of many to own a piece of land in this city. However, one needs to be careful while buying land to avoid falling into legal hassles. Says S Selva Kumar, advocate and consultant with banks, "I reject around 15 to 20 applications for loans out of 30 every day simply because the titles of properties referred to me cannot be traced at all". Today, buying a property in Bangalore, that too in the peripheral areas has become a cumbersome exercise. To begin with, the planning authority in Bangalore works on a three-circle approach. The innermost circle falls under the jurisdiction of the Bangalore City Corporation (BCC) where the Corporation is the relevant authority to permit construction of buildings except high-rise buildings for which the BDA is the sanctioning authority. Then there are the seven City Municipal Councils (CMCs) and a Town Municipal Council (TMC) that control the intermediate circle. However, it is

overseen by the BDA. The outermost circle comprising Bangalore Rural Districts is controlled by the Bangalore Metropolitan and Rural Development Authority (BMRDA). The different categories of sites fall under the BDA, BCC, housing cooperative societies, CMCs, private layouts, Grama Thana, and revenue land. BDA sites These are sites from land acquired by the BDA through a legal process and allotted to applicants. Legally, these sites are the best and have all the relevant documents. For bankers to finance the property they need not trace the property beyond acquisition by the BDA. BCC sites Generally owned by individuals through inheritance, partition, gift etc., these are sites in the jurisdiction of the BCC. You will find very few vacant sites in this category. However, while buying such sites you need to trace the origin for a period of not less than 43 years. All the documents document of transfer, revenue documents such as Khata endorsement, Khata certificate, tax paid receipt etc should be thoroughly checked. Housing cooperative society These sites may be placed on par with BDA sites. Housing societies acquire land through the government or a development agency like the BDA. They then form layouts and allot sites to members. Byelaws and registration details of the society have to be checked. The records need to be checked for any prohibition of alienation of the property and eligibility criteria for allotment. It is important to check weather the society is approved. City Municipal Council sites There are eight local bodies falling in the Bangalore district. Seven CMCs including Bommanahalli, Byatarayanapura, Yelahanka, Dasarahalli, Pattangere, Rajarajeshwari Nagar, K R Puram, and one TMC that is

Kengeri. Mostly individuals own sites in these limits. Some lands here have been notified for acquisition by statutory bodies. So insist on a recent conversion order and verify whether betterment charges are paid. Presently, CMCs have stopped collecting betterment charges and are not issuing Khatas. Owners of sites are filing SAS for paying property tax but in the absence of Khata, the building plans cannot be approved. Until the government regularises these properties and brings in some regulations to put things in order, it is better to keep off such properties. Private layouts Private bodies and developers form these layouts. Many such layouts have come up around the city. It is necessary to examine whether the layouts are approved by the BDA or the BMRDA. In case of agricultural lands, they need to be converted for non-agricultural uses and tracing of property has to be done for a minimum period of 43 years. Grama Thana sites Grama Thana sites are residential sites in village panchayat areas. While agricultural lands have survey numbers, Grama Thana sites have Khaneshumari numbers. These sites may be verified with a village map available at the Survey Department. Revenue sites These are sites formed on agricultural land. No activities other than agriculture is allowed on agricultural land unless it is converted. The Land Reforms Act prescribes certain qualifications to purchase agricultural lands. A purchaser should be an agriculturist from before July 31, 1974 and his non-agricultural income should not be more than Rs 2 lakhs per annum. Read more: Buying a site in the city - The Times of India http://timesofindia.indiatimes.com/bangalore/Buying-a-site-in-thecity/articleshow/877155.cms#ixzz17z9QdcDI

The improving infrastructure, the leading IT hub and the commercial advancements in Bangalore have made it witness a real boost in the real estate sector. The strategic location and the developing road map have seen a clear rise in the demand of purchase, selling and reselling of properties time and again. This adds to the complexity of the matter as you have to doubly ensure that you are not investing your lifetime savings into a fraudulent property. To prevent yourself from getting duped you can always take the help of a professionally qualified solicitor to get all your legal paperwork verified. For this reason, if you are planning to buy a property in Bangalore then refer to the below mentioned checklist, which should definitely come handy so that you can acquire a clear title. The paperwork required for authentication of the title varies from property to property and the region it falls in. The checklist needs to be verified before purchasing any property. Do not forget that the original documents of title like sale deed, partition deed, gift deed and will etc., are to be verified on a mandatory basis. Purchasing a Flat/an Apartment in Bangalore: As the real estate market in Bangalore has become all the more dynamic due to the purchase, sale and resale of flats/apartments, it becomes all the more crucial for the buyer to handle the entire procedure very carefully. If you aspire to own a flat or an apartment in Bangalore and wondering where to start from then have a look at the following checklist and the information you must possess from the developer/promoter before you seal the purchase. I. Purchasing a Residential Flat/Apartments:

Mother deed/ Sale deed: This is the most important document for tracing the ownership of the land. It gives details of the property as to how it was acquired at the initial stage and the subsequent series of transactions it has undergone. You should also check for the original sale agreement showing the builder/developer duly registered. Khata certificate & up-to-date tax paid receipts: In case of a joint venture, the Khata should be in the landowners name. If you purchase the property directly from the developer the Khata should be in the name of the developer/promoter. Joint Development Agreement: The agreement should be examined thoroughly if its a joint development. You must clearly understand the ratio at which the build-up area is divided between the promoter and the landowner. Encumbrance Certificate: A latest Encumbrance certificate having the details of last 30 years should be checked. It can be obtained from the sub registrar. Approved Plan: Check for a copy of the approved building plan by the respective government authority and also for the portion of the apartment being purchased. Sanction Plan: Verify whether the building plan of the apartment is sanctioned and also check the validity of the sanction plan. You must also check the commencement certificate and take a confirmation from the Municipal authorities if the building adheres to the norms of the laws. NOCs: You should obtain NOCs under the provisions of Income-Tax Act and Urban Land Ceiling and Regulation Act if required. Occupancy certificate: This is issued to the developer by the apartment corporation/BDA/CMC. A buyer should insist for this.

Besides the above steps to be followed you should also ensure that the developer has obtained approvals from the Municipal Corporation, Electricity Boards, Area Development Authorities and Water Supply and Sewage Boards. It is advisable for the apartment owners to file a joint declaration under Karnataka Apartment Ownership Act, 1972, get duly registered and attain the rights and legal safeguards. II. Purchasing a Commercial Flat: Purchasing a flat in Bangalore for commercial purpose also includes more or less the same steps as in the case of a residential flat like deeds for absolute sale and conveyance. These offer a record for absolute and exclusive property rights of the commercial flat, confirms the usage rights, amenities and infrastructure. Karnataka Ownership Flats (Regulations of the Promotion of Construction, Sale, Management and Transfer) Act, 1962 governs all the matters related to both residential and commercial flats. Purchase of agricultural land in Bangalore: If you intend to purchase any agricultural land in Bangalore for nonagricultural purpose then you

must have the approval as per the provisions and rules under Karnataka Land Reforms Act (1961) and the Karnataka Land Revenue Act of 1964. The regulating authority for approving any layouts on the outskirts on Bangalore rests with the Bangalore Metropolitan Regional development Authority or BMRDA. Before investing in any agricultural land you must adhere to the checklist which follows:

Mother deed/ Sale deed: This is the most important document for tracing the ownership of the land. It gives details of the property as to how it was acquired at the initial stage and the subsequent series of transactions it has undergone. Search Report: It provides details of the original property holder, property history, charges on the property, current property status (all dues paid or still pending) and the number of times the property has changed hands before being owned by the present seller. Your advocate will fetch you all these details and confirm whether it is a legitimate property for sale or not. Agreement: Once the property is decided, make an advance payment and get a written agreement on a stamp paper duly signed by both the owner and the buyer in the presence of two witnesses. An agreement must state: the advance paid, actual price, duration of actual sale, and legal actions to be taken in case of a default from either party. Stamp Duty: This should be paid in full and on a timely basis. To get an agreement stamped it should be without any signature or date and the agreement can be implemented only when the Stamp Office fixes stamps on it. Registration: Get the deed registration done in a sub registrar office within the timeframe mentioned in the agreement. For registering a property you need: house tax/property receipts, original title deed, and previous deeds etc., two witnesses are also required at the time of registration.

Apart from the above measures to be followed you should also get hold of an Akarbandi, an Encumberance certificate, Saguvali chit, Conversion order, Payment Challan, Up-to-date Tax-paid receipts, Land Acquisition Status, Mutation Extracts, NIL Tenancy Certificate/ Form No. 7 Endorsement, Podi Extracts, RTC (Record of Rights)/ Phani, Section 79A & B endorsement U/KLR Act, 1961, Patta Book, and Tippani. You should also have the family tree of the vendor, the comprehensive development plan or CDP and a Zonal recognition map to aid you. Another important thing to be remembered is that the property should not be located in the Green Belt Area. Purchasing Revenue Land in Bangalore: Purchase of Converted Revenue Lands requires the following documents- Conversion Order from the Deputy Commissioner, receipt for the paid conversion amount, RTCs for last 30 years issued by the village accountant, documents of ownership, Mutation Register Extracts, Akarbandi/Tippani/Podi Extracts, Tax paid receipts, boundary map, village map, Nil tenancy certificate, approved layout plan, Khata certificate issued by Revenue authority, Encumbrance certificate, Zonal regulation map, power of attorney (if any) and an evidence from the respective authority that no acquisition proceedings exist. Purchasing BDA (Bangalore Development Authority) Sites: The various documents necessary for purchasing a BDA property are- allotment letter, receipts of payment for the site, possession certificate, absolute sale deed, khata certificate from BDA, khata certificate (to be obtained from Bangalore Mahanagar Palika if the property falls under the corporation revenue jurisdiction), up-to-date income tax paid receipts, tax paid receipts from Bangalore Mahanagar Palika, Encumbrance certificate (from allotment till possession date) and a re-allotment letter or re-conveyance deed in case the property is re-conveyed by the BDA. It is highly suggested that acquiring a property through Power of Attorney should be avoided to prevent any litigation in the future. Documentation is the major step in the acquisition of an immovable property of any kind so utmost care should be taken while carrying out all the paperwork. All the agreements should be stamped according to Karnataka Stamp Act, 1957

following all the rules therein.

Frequently Asked Questions: [FAQs]

Answers to all your queries

At Lasya Developers we also furnish information and answers to all and any of your Frequently Asked Questions (FAQs) concerning about Property Registration, Stamp duty, Legal, Tax, Home Loans, Valuation etc. Whenever you would want to buy Property / Lands in India, everyone will come across many doubts / clarifications pertaining to land purchase, before & after.

We try to give below some answers to most questions any buyer or investor might be having in their minds & would be searching for answers. Hope this will be a good reference to all such dear friends.

Click here to know about BMICAPA

REGARDING REGISTRATION:

Q: What are the Registration Fees?

A: Registration Fees are charges taken by the Registration Authorities to maintain the documents.

The registration fee in case of the document pertaining to land or site in our property for sale and conveyance is Rs. 100/- per sq. ft (as per Govt. Guide line value). It comes to approximately 10.40 % (of the total plot cost @ Rs. 100/- per sq. ft as Market value).

Q: What are the pre-requisite for a document to be registered in time?

A: The following are the pre-requisites for registration of a document:-

For Lands / sites:

Stamp Duty receipt or valuation that the stamp duty has been paid according to the market value of the property Khata and up to date Tax-paid receipt Up to date Encumbrance certificate Conversion orders and NOC certificates from relevant Govt. authorities Approval from Competent Govt. Authorities Copy of Parent sale deed / prior sale deeds

Paani and RTC copies for the property Execution by the parties in front of Sub-registrar Receipt showing proper registration fees paid.

For Flats:

Stamp Duty receipt or valuation that the stamp duty has been paid according to the market value of the property Income Tax Clearance Certificate u/s 230 is to be attached where required (not necessary after 1.6.2001 N.O.C. of Appropriate Authority in Form 37-I under the Income Tax Act where applicable N.O.C. under Urban Land Ceiling Act Execution by the parties in front of Sub-registrar Receipt showing proper registration fees paid. Two copies of the on specific ledger paper with specific butter paper in between pages. Document properly filed.

If the above mentioned documents are not available or procedure not followed at the time of registration then the Registration Authorities will keep the documents pending.

Q: When should a document be registered?

A: Every document other than a Will should be presented for the registration within four months from the date of its execution. But there is no period fixed within which the registration must be completed.

Q: What are the advantages of getting a document registered?

A: People tend to avoid getting their sale-deeds registered to save money on Stamp Duty.

For years Real Estate transactions in India are like an iceberg - there is much more hidden beneath the surface than is visible above. In most property transactions that there is a difference between the total price paid while purchasing a property and the amount mentioned in the agreement in most cases is common knowledge. The price mentioned in the agreement is termed as the white portion of the transaction, the gap, which can range anywhere between 20 - 60 per cent of the total amount is popularly known as black component. While this gap has been an integral aspect of property transactions in India for years, the situation is changing in many cities, albeit gradually.

And the reasons are not difficult to understand and besides moral reasons economically it makes sense to undertake above the board transactions Firstly the Black portion decreases the buyers capacity to borrow. This is increasingly becoming important. Today the market (specially the residential market) is being driven by end users financed by housing finance companies. Thus if a property costs Rs. 10 Lakhs and if a seller insists on 30% black, the margin money buyer needs to arrange up front is Rs. 3.00 lakhs (Rs 3 lakhs being the black component) + 15% most HFCs demand the buyer put in. This in a complete white transaction it would be Rs. 3 lakhs + 15% of the property cost.

Secondly the market is increasingly becoming transparent. If a buyer is entering into a black transaction, he is assuming five years down the line when he decided to sell the property the practice will still be prevalent. If at that point of time the buyer can only undertake a white transaction he will need to pay a higher capital gain tax. Let us assume a buyer purchases a property for Rs 20 Lakhs (15 lakhs in white + 5 lakhs in black). If he sells the property for Rs 25 lakhs he will need to pay capital gains on Rs 10 lakhs.

Thirdly it is easier to reverse a white transaction should a problem arise whereby a buyer can't go ahead with the deal. While dealing in cash there will most likely be little record of the black transaction.

A huge undeclared amount can get the taxmen sniffing at your door. There have been several instances, where the Income Tax Department detected a discrepancy between the figures mentioned and the market rate prevailing in the area. In some cases where the gap was too obvious to be missed, they dealt out the worst possible penalty - taking over the property after paying the agreement price. In this situation, the buyer has the option of either admitting to having deliberately quoted a lower price in the agreement, which quite frankly is no option at all.

Q: How can a document be registered after the lapse of four months?

A: A ''Deed of confirmation'' will have to be prepared, signed and attached to the original Conveyance Deed

CHECK LIST:

Q: Legal Checklist for buying property

A: The checklist for buying property:

Finalizing terms and conditions of a particular deed. Investigation of the title deeds. Abstract of title is to be prepared on the basis of specific information and details of the property. Examination and investigation of marketability of the title. Procuring the required approvals, consents, permission, sanctions, no objection certificates etc. from various competent authorities like the local Municipality / BDA / BMRDA / BMICPA / BIAPPA etc. Providing the duration for the compliance of various terms and conditions mentioned in the contract. Ensuring payment and discharge of encumbrances that are to be cleared before sale Acquiring possession of the property and title deeds. Completion of the transaction of sale by execution and registration of the deed

Q: Legal Checklist for selling property

A: The checklist for selling property is as follows:

Finalizing the terms and conditions of the deed Providing the duration for compliance of various terms and conditions mentioned in the contract; Procuring the consent, permission, sanction, no objection certificate of: the society if applicable the income tax authority if applicable the Urban Land Ceiling authorities if applicable the Municipality if applicable any other authority, if applicable Getting it stamped by paying applicable stamp duty Not handing over the title deeds and possession until the payment of consideration. Engrossing the Deed Registering the Deed

REGARDING STAMP DUTY

Q: What is Stamp Duty?

A: It is a type of tax collected by the government. It is payable on instruments and not on transaction. Instruments include every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of exchange, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt.

Q: Who is liable to pay stamp duty?

A: Generally, the purchaser is liable to pay stamp duty. But if there is any contract to the contrary then the stamp duty will be paid according to the terms of the contract e.g. if there is a contract stating that the stamp duty will be paid by the seller or it will be divided equally then the stamp duty will be paid as per the terms of his contract.

Q: Why Stamp Duty should be paid?

A: Stamp Duty paid instrument / document is considered proper and legal instrument / document and as such gets evidentiary value and is admitted as evidence in courts. The instruments / documents not properly stamped are not admitted in evidence by the court. Instruments include every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of exchange, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt.

Q: On what value is the stamp duty payable?

A: The Stamp duty is ascertained on the market value of the property as ascertained by the stamp duty authorities. The consideration or price mentioned in the document is not relevant. The parties entering into the document will have to apply for adjudication of stamp duty. The stamp authority will ascertain the stamp duty on the basis of the market value of the property. This value is recognized on the basis of a ''Ready Recknor'', which gives the per sq. mtr. value of each zone at the concerned Sub-Registrar office. But the ready-recknor is not conclusive and it is merely a guideline for the stamp authority. The market value of the flat will depend on the location / area / locality, the amenities available etc.

Q: What are the consequences of delay in Stamp Duty?

A: If the stamp duty is not paid on time it attracts penalty at the rate of 2% per month of the stamp duty that has to be paid. But it cannot exceed twice the amount of the stamp duty that has to be paid. Besides the penalty amount the defaulter will have to pay the amount of the stamp duty.

Q: What are the precautions one should take while purchasing a property

A: A purchaser must take following precautions while purchasing a property:

Examine title of the property by investigating the source from which the seller acquired the property. This search can be conducted at the sub-registrars office. It is advisable to investigate the title for the past thirteen years or up to the original owner whichever is later. These are called "link documents".

One must check if the appropriate stamp duty has been paid on all these documents. If the property is situated in a cooperative society the original share certificate should be examined.

All documents examined, should be original to ensure that the seller has a clear title and that there are no encumbrances on the property such as lien or mortgage or any other charge. Non-availability of any original document should be taken seriously.

For flats: If the flat is in a co-operative society, it is advisable to get a No-Objection Certificate even though it is no longer mandatory. By way of the NOC it will be clear if any dues of the society are pending and the purchaser can avoid future problems. It is also advisable to see the latest society bill and the latest electricity bill; the Income Tax Certificate under section 230A is not required any more, to ensure that the seller has discharged all Income Tax liabilities; the seller should obtain the Income Tax Clearance Certificate under section 281 of the Income Tax Act, 1961

Q: What is the Stamp Duty payable in case of exchange of properties?

A: Stamp Duty is payable only on the value of that property, whose value is maximum among the two properties exchanged.

VALUATION & SALE:

Q: What is Valuation?

A: A valuation process is undertaken to ascertain the fair market value of a property. A scientific valuation goes beyond the parameters of the demand and supply forces that dominate the real estate market. Other factors that form vital inputs for a scientific valuation would be maintenance, quality of construction, location, the infrastructure of the area, the nature of the property, - whether freehold (or leasehold, if leasehold then the period of lease etc. in case of flats). A valuator would normally adopt two or three different techniques separately to determine the property value and then compare the results to arrive at the correct value.

Q: What constitutes conclusion of the sale? A: The transfer of a property is coupled when you have an agreement of sale coupled with actual possession. Generally, in all cases the entire amount is paid simultaneously with handing over of physical possession. If you give possession after having entered a sale agreement, you would be liable to be taxed even if you have not received the full consideration.

HOME LOANS:

Q: Who can apply for a Home Loan?

A: Normally Housing Finance Companies give home loans for property located in India to any Indian Resident, Non Resident Indian and a Person of Indian Origin above 21 years of age at loan origination and 65 years or below at loan maturity, who is employed or self-employed, with a regular source of income.

Q: How Do Housing Finance Companies Calculate eligibility?

A: Housing Finance Companies decides on loan eligibility on the basis of repayment capacity. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history.

Q: Who can be a co - applicant?

A: Every HFC insists on all co-owners of the property being co-applicants to the loan. In case of acceptable relationships as stipulated by the HFC, the income of the co-applicant can be included in arriving at loan eligibilities. In case of any other relative being a co-applicant to the property, the HFC would not include the income of the co-applicant for the calculation of loan eligibility.

Q: How to select a Housing Finance Company?

A: With so many banks and home finance companies competing with each other to give you loans with interest rates figures ranging from 12 to 15% per year being tossed around its easy to get confused while choosing a home Loan. The following are a few tips on how to select the home loan most suited to your need.

Minimum & Maximum Loan amount - The minimum loan amount offered by a financier is important to find out if the financier can finance the amount you are looking for. Moreover most HFCs have a upper limit on the amount that they would finance.

Interest Rates: Don't worry if you don't understand the complexities of interest rate calculation, how daily, monthly or yearly rest work. Other factors remaining the same for a given tenure the loan with the lowest EMI is the best.

Other Costs: Other than EMI, look at the administration fee, processing fee and any other costs. Other things remaining the same it makes sense to go for Housing Loan where the processing fee (or fees by other name) is lowest.

Does the HFC offer home loans without pre- payment penalty (or a penalty for repaying loan before it is due), So that you can repay your loans earlier, besides switch loans if the interest regime suits you? This is especially true if you are going for fixed rate loan as compared to a floating rate loan. A Fixed rate of interest is one where the rate charged by the HFC on the loan is constant over the tenure of the loan. The interest rate on your Floating Rate Loan is linked to Retail Prime Lending Rate.

Whether the financier is offering a loan product to suit your requirements be it for a salaried person, NRI or for the purchase of land, etc.

Does the HFC require a guarantor? Some HFCs insist on a Personal Guarantor. You need to check this out if you have any reservations about providing a guarantor. Tenor Range (Loan Period) - Whether the financier is offering the tenure of loan that you are looking out for? Normally HFCs offer loans ranging form 5-20 years, with some going up to 30 years. For NRIs the maximum tenure could be 10 years in some cases.

Requirement of Co-owner & Co-applicant - If you intend to buy your house along with a co - owner, or if you plan to co-apply for the loan you will have to check whether the HFCS accepts the relationship between you and the co - owner.

Documentation Required - The type of credit documents that HFCs insist before approving your loan would differ from one HFCS to another. Kindly go through the credit documents comparator before you decide on your HFCS.

Normally the documentation required for a salaried person include the latest salary slip showing statutory deductions, Form 16, Proof of age, Proof of residence etc. For Self-employed person these might include income proof for the previous two-three years, certified by a Chartered Accountant, audited Profit & Loss Account and Balance Sheet for the previous two-three years, besides proof of age and residence.

The above mentioned are some of the parameters that you will need consider before you zero in on the perfect home loan for your self. Getting a home loan which would offer you the best in all of the above parameters might not be possible. Thus you would need to identify which of the parameters are most important for you and take a decision accordingly.

LEGAL:

Q: Is Stamp Duty payable on transfer of flat from husband to wife or children and vice-versa?

A: Yes. Stamp Duty will be same as applicable to conveyance. However 10% rebate could be expected while valuation, at the discretion of valuation officer.

Q: Is there any way where the value of the stamp duty could be reduced for flats?

A: The deductions which can be requested are:

Up to 50% of market value in case of buildings which are 40 years old. (In practice only 30% of the deduction is given). One can also ask for such deductions (in proportion) if the building is little less older than 40 years. Non-road facing Fourth floor upwards and without lift. Slum land or Kardi land

Q: Where are documents related to immovable property registered?

A: A document is registered with a sub-registrar of a district in which the whole or some portion of the immovable property is situated. A document registered with a sub-registrar who does not have jurisdiction is null and void.

Q: What are the documents of which registration is compulsory under the Indian Registration Act, 1908?

A: The following documents are required to be registered compulsorily under the Indian Registration Act, 1908:

Instrument of gift of immovable property; Other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in future or in present, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards to or in immovable property. Non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of creation, declaration, assignment, limitation or extinction of any such right, title or interest ; Lease of immovable property from year to year or for any term exceeding one year or reserving a yearly rent. But the State Government may publish an order in official gazette exempting any district or a part of a district or a lease that does not exceed the term of five years and the annual rent of which does no exceed Rs. 50/- . Non-testamentary instruments transferring or assigning any decree or order of a court or any award when such decree or order or award purports or operates to create, declare assign, limit or extinguish, whether in future or in present, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards to or in immovable property. Authorities to adopt a son that is not conferred by a will.

The important thing that should be kept in mind is that the Registration Act deals with only the documents and not transactions. In Abdullah Sahib v. Rahamatullah Sahib, AIR 1960 Mad 274 it was held that the registration is obligatory when the transaction is reduced to writing. It was held in Rosan Singh v. Zail Singh AIR 1988 SC 881 that a bare agreement to divide properties amongst the co-sharers would not require registration, but if the writing itself effects the division, it must be registered.

Q: What property can and what property can not be transferred according to the Transfer of Property Act?

A: Section 6 of the Act provides that property of any kind may be transferred, except as otherwise provided by the Act or by any other law for the time being in force.

Thus section 6 provides that property of any kind may be transferred. However it has two exceptions i.e.

Whenever it is provided otherwise

By this Act itself or By any other Act for the time being in force

The section further expressly provides ten kinds of property, which cannot be transferred.

The chance of an heir-apparent succeeding to an estate, the chance of a relation obtaining legacy on the death of the kinsman, or any other mere possibility of a like nature, can not be transferred. A mere right of re-entry for breach of a condition subsequent can not be transferred to anyone except the owner of the property affected thereby. An easement can not be transferred apart from the dominant heritage. An interest in the property restricted in its enjoyment to the owner personally cannot be transferred. A right to future maintenance, in whatsoever manner arising, secured or determined, cannot be transferred. A mere right to sue cannot be transferred. A public office cannot be transferred, nor can the salary of the public officer. The stipends allowed to military, naval, air force and civil pensioners of the government and political pensioners could not be transferred. No transfer can be made: In so far as it is opposed to the nature of the interest affected thereby, or For an unlawful object or consideration. To a person legally disqualified to be a transferee.

The words ''Property of any kind'' appearing in the above section, indicate that transferability of the property is the general rule and the right to property includes the right to transfer the property to another person. The onus of proof is on the person alleging that any kind of property is not transferable. However there are some exceptions to the above rule.

Q: Would it be correct to say that on the default in payment on the due date, the sale becomes complete / absolute, mortgage becomes irredeemable because the contract says so?

A: No. It would be a totally wrong legal inference. A mortgage being a security for the debt, the right of redemption continues although the mortgagor fails to pay the debt by the due date. This right of redemption continues unless it has been extinguished by the act of parties or by a decree of Court. "Act of parties" refers to some transaction subsequent to the mortgage and standing apart from the mortgage transaction. In a mortgage by conditional sale the right of redemption is not extinguished at the expiry of the period. A clause in a mortgage deed that in default of payment by the stipulated date the mortgage should operate as a sale, is not the "act of parties". This is because in India, right to redeem being a statutory right continues to exist unless the mortgagee obtains a decree for foreclosure.

Q: Are there any formalities or forms to be filled/filed when either the Sale Deed or transfer documents is to be executed?

A: Yes. The following are the formalities or forms to be filled / filed:

This depends from State to State in which the Property is situated. Every State has its set forms under the Registration Rules that are required to be filled and filed along with and at the time of Registration of Sale Deed/Transfer Deed. Under the provisions of the Income Tax Act and Rules for a transaction of sale, it is now compulsory for the Purchaser and Seller to give their Permanent Account Number and in the event of either the Seller and/ or the Purchaser would be required to fill Form 60 of the Income-Tax Rules.

In case of either the Purchaser or the Seller being a Non-Resident Indian, not assessed to tax in India, such a Party would be required to file Form 60 of the Income-Tax Rules.

TAX - RELATED:

Q: Are any concessions available under the income tax laws with regard to profit on sale of residential property?

A: Concession is available by way of exemption from income tax on capital gains arising on transfer of a residential property. The exemptions are provided in Sections 54 and 54EC of the Income-tax Act (the Act). The exemption is available on reinvestment of the capital gains in specified assets by the assessee.

Q: Who is entitled to such concessions?

A: The exemption under Section 54 of the Act is available to an assessee who is either an individual or a Hindu Undivided Family (HUF). The exemption under Section 54EC is available to any assessee.

Q: Is there a minimum holding period for such property before transfer to be eligible for the concessions?

A: The residential property should be a long-term capital asset. To qualify as a long-term capital asset, the residential property should be held by the assessee for a period of 36 months, prior to the date of the transfer.

Q: What is the nature of assets in which the sale proceeds should be re-invested by the assessee to avail the exemption?

A: Under the provisions of Section 54 of the Act, the capital gains should be re-invested in the construction or purchase of another residential property. Under the provisions of Section 54EC of the Act, the capital gains should be re-invested in 'longterm specified asset'.

For the purpose of this provision, long-term specified asset means any bond redeemable after 3 years, issued on or after 1 April 2000, by National Bank for Agriculture and Rural Development or by National Highways Authority of India.

Q: Is there any time limit for such investments to be made?

A: Under the provisions of Section 54 of the Act, the assessee should, within a period of one year before or 2 years after the date on which the transfer took place, have purchased or within a period of 3 years, after the date of transfer, constructed a residential house.

Under the provisions of Section 54EC of the Act, the assessee should invest the capital gains in the specified capital asset, within a period of 6 months, after the date of such a transfer.

Q: What are the restrictions on transfer of such newly acquired or constructed property or long-term capital asset?

A: Under Section 54 of the Act, there are no restrictions on transfer of such newly acquired or constructed property.

Under Section 54EC of the Act, where the long-term capital asset is transferred or converted into money at any time, within a period of 3 years, from the date of acquisition, the exemption stands withdrawn.

Q: Are there any concessions in the income tax laws for investment of capital gains on transfer of any other capital asset if the gains are re-invested in a residential property? Is there any time limit for making such an investment?

A: Under Section 54F of the Act, capital gain arising on transfer of any long-term capital (other than a residential property), would be exempt from income tax if the capital gain is re-invested in a residential property.

Under the provisions of Section 54F of the Act, the assessee should, within a period of one year before or two years, after the date on which the transfer took place, purchased, or within a period of 3 years, after the date of transfer, constructed a residential house.

The exemption under this provision would however not be available if the assessee:

owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or constructs any residential house, other than the new asset, within a period of 3 years after the date of transfer of the original asset

GIFTING OF PROPERTY: Q: What is meant by settlement? How does it differ from gift?

A: Settlement is specie of or a type of gift only in certain circumstances. Transfer of Property Act does not define what is "settlement"? However, the law pertaining to the stamp duty defines it albeit with the object of levy of the stamp duty. For example, Section 2 (t) of the State Stamp Act defines "settlement", under which the "settlement" means any non-testamentary (testament means a will) disposition of moveable or immoveable property made:

In consideration of marriage; For the purpose of distributing property of the settler among his family or those for whom he desires to provide or for the purpose of providing for some person dependent on him; For any religious or charitable purpose

Q: Can the gift be made of the property not in existence, i.e. of the future property?

A: No. The subject matter of gift must be certain existing moveable or immoveable property. It could be anything such as, goods, any right, title or interest in any immovable property which exists or even an actionable claim. It must be transferable within the meaning of Sec.6 of the Transfer of Property Act. A gift of the right to management is valid. But a gift of the future revenue of the village is invalid. Release of a debt is not a gift; because it does not involve any transfer of property but merely a renunciation of a right of action.

Q: What is the meaning of exchange according to the transfer of property Act?

A: Section 118 of the transfer of property Act defines exchange as follows: When two persons mutually transfer the ownership of one thing for the ownership of another, neither thing or both things being money only, such a transaction is called an ''exchange''.

The definition of exchange is not limited to immovable property. Exchange is therefore not only exchanging of lands but also barter of goods. If one of the items transferred is money, the transaction is not an exchange but a sale; because the price is money only. But money in one form may be exchanged for money in another form. So also an exchange of one stamp for another is not a sale. A sale should always be for a price, but in the case of an exchange, the transfer of ownership of one thing is not one for price paid or promised, but for transfer of another thing in return. So, a transaction in which the considerations for the transfer of certain properties are shares in a limited company is an exchange.

The ownership of the one party must be exclusive of the ownership of the other, so that a partition is not an exchange. A transfer by a husband to a wife in discharge of her claim to maintenance is not an exchange, as the wife transfers no ownership in anything.

If the lessee surrenders a lease and the landlord grants him the lease of another property, the transaction is not an exchange. If both parties are not the same, there can not be an exchange.

Illustration:

A transfers to B a house worth RS. 1,500 and B transfers to A a field worth RS. 1,000 and RS. 500 cash. The transaction is an exchange.

Q: If a gift is made to two or more persons of whom one or more of them does not/do not accept the same, what is the impact of such non-acceptance on the interest of the donee/s accepting the same?

A: Under Indian Law, the presumption is that the transfer by gift to two or more persons is as the tenants-in-common i.e. each donee getting a distinct share in the property gifted. The relevant provision is contained in Section 125 of the Transfer of Property Act. Therefore, while the gift will be void only to the extent of the share of such donee who does not accept it, if the gift is made to two persons jointly and one of them does not accept it, the another one cannot take the whole. Q: What is acceptance of gift and why is it one of the essential ingredients of gift? When should the acceptance be done?

A: Donee is not bound to accept the gift although an express acceptance by the donee is not necessary to complete the gift. It has long been settled that the acceptance of the gift by the donee is to be presumed until his dissent is signified. The use of the words "accepted by or on behalf of the donee" shows that the donee might be a person unable to express acceptance when the gift is to a minor and it may be accepted by the natural guardian on his behalf. However, it is essential that the gift is accepted during the life time of the donor and while he is still capable of giving; and, also it is essential that acceptance must be made during the lifetime of the donee, for if the donee dies before acceptance, the gift is void

FLATS:

Q: What Are Carpet Area, Built-Up Area & Super Built-Up Area?

A: Generally speaking Carpet Area is the area of the apartment/building, which does not include the area of the walls. The actual used area of an apartment/office unit/showroom etc. In simple terms, it is that area within the walls where you can actually lay a carpet. It is the super built-up area minus the thickness of the walls and the proportionate share of the common areas. Built up Area includes the area of the walls also. It also includes the carpet area, the wall thickness and the balcony. Super Built up Area includes the built up area along with the area under common spaces such as the lobby, lifts, stairs, etc. This term is therefore only applicable in the case of multi-dwelling units. The plinth area along with a share of all common areas proportionately divided amongst all unit owners makes up the Super Built-up area. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc.

This break up is extremely essential as builders can place anywhere from 65 per cent to 85 per cent of the super built area as carpet area. That means, if the quote is on 1,000 sq ft, the carpet area could be anywhere from just 650 sq ft to 850 sq ft. If this break up is not mentioned in the agreement, demand that the builder mention it in the sale deed.

Q: What is Freehold Property?

A: Freehold property is property for which ownership rights of Land is given to the purchaser for a price and he is not required to pay annual Lease Charges. Freehold properties can be registered and/or transferred in part/s, which is not possible in the case of Leasehold properties.

Q: What Is Leasehold Property?

A: Leasehold Property is property leased to a lessee for a stipulated period. The Lessee pays lease premium and annual lease amount as fixed by the Lessor. In these cases the Land ownership rights remain with the Lessor and a prior salepermission is normally required if you plan to transfer the property.

Q: How do you inspect a property?

A: Before you buy a house--even if it looks perfect--it's wise to make sure everything's all right. You need to complete your home purchase with your eyes open as to the condition of the property and all its and systems. The purchase of a home is probably the largest single investment you will ever make.

You should learn as much as you can about the condition of the property and the need for any major repairs before you buy, so that you can minimize unpleasant surprises and difficulties afterwards. A close home inspection also points out the positive aspects of a home, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.

You need review the condition of the home's interior plumbing and electrical systems, the roof, walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

External Checks:

Check the life of the building. Building materials normally have a life of about 20-30 years. Reinforcement to structural supports may be required after this period has lapsed. Look for structural cracks around the foundation of the house. Proper ground slopes to carry away rainwater. Freshly painted houses may hide serious structural problems. Patches of discoloration indicate a cover up job on leaky areas. Watermarks or stains around the edges of the floor could indicate problems of water logging in the past. Watch out or poor site drainage. Homes with slopes toward the house often have more problems with water infiltration into basements. Homes on flat plates often suffer from poor site drainage, the best designs are for homes in which the water drains away in all directions

Internal Checks:

Check whether electrical circuit breakers and wires are properly matched. The service capacity of the circuit-breaker box must be large enough for the house. Check water faucets for leaks and flush all toilets to be sure of proper operation. All the electrical receptacles throughout the home need to be checked to determine whether they're wired properly. The functioning of the interior and exterior lights, ceiling fans needs to be checked too. A thorough check of all the doors and windows needs to be done to make sure they function correctly. Moreover all exterior doors should be properly sealed against weather. Above all, all locks must work properly.

Q: How to Choose an Estate Agent?

A: It is hard to convince homebuyers that they should put as much thought into choosing a real estate agent as choosing a home. Getting the best real estate agent is generally easier when you know how to be a good buyer.

Here are some things you should keep in mind:

Check his credentials. Get a reference if possible. Speak to a few of his past customers for references on his ability and reliability. It is always better to deal with a broker that some one you know has dealt with.

Most agents specialize by area within a city. It helps to go to the most visible broker and one with a long track record (5-7 years). The property owners normally approach him due to his higher visibility and his longer presence in the area. This

increase the chances of you are getting a good deal fast. More over his knowledge of the area will ensure that he can guide you through his knowledge of property history, the owner history, rates, problem properties etc.

Avoid one-man outfits. These are of ten sub-agents. It is also better to deal through a broker who has direct access to the property owner. Choose an agent who is willing to invest time & money on your search including site visits, legal due diligence and perhaps advertising on your behalf. These services can time & money savers for you. Most importantly deal through a broker you are personally most comfortable with.

Always clarify the level of brokerage that you are willing to pay before using his services. Normally brokers charge 2 percent of the transaction amount in a sale, and one months rent in a rental transaction. But these rates are flexible depending on the amount service fee involved. While it is always important to negotiate on these, it is also important to remember that there are know free lunches.

It is also important to clearly communicate to broker what you want. Help him to locate the property you want. Moreover when it doubt ASK. For first time buyers it also helps to involve a friend who has recently bought or sold a property. During site visits, point out things which you like or don't like. If possible take notes. These will be very useful while making final decisions.

Q: Can the member in a Co-operative Society transfer and/or deal with and/or dispose of in any manner as he wants his shares/interest in the Society?

A: Subject to the compliance of the provisions contained in the said Act of 1960, the said Rules of 1961 and the concerned Society's Bye-laws, a member in a Housing Society is always entitled to deal with and/or dispose off in any manner otherwise permissible in law his/her share and/or interest in the Society. However, in order to maintain the co-operative character of the Society and not to allow the concentration of control in the hands of the business rivals there are certain statutory restrictions applicable to such transfer. The said restrictions are:-

The share or interest must have been held by the Transferor for not less than one year; such transfer must be made first to a member or to a person whose application for membership has been accepted by the Society; All liabilities of the Transferor including the dues to the Society must be fully paid and discharged.

Q: What should a purchaser keep in mind while purchasing a flat? A: Some of the things a purchaser must keep in mind are: Good construction, reputed builder, sufficient water supply, car parking space, security systems, electric supply, locality, cost, local transport facilities, schools, hospitals, market, and pollution levels.

Agricultural Land / property Purchasing in Bangalore Law Information

Before purchasing any sites especially agriculture land for non agriculture purpose approval under relevant laws viz. Karnataka Land Reforms Act, 1961, the Karnataka Land Revenue Act, 1964 along rules and other provisions of law is must. And Bangalore Metropolitan Regional development Authority (BMRDA) is regulating authority to approve layouts on outskirts of Bangalore. Clear title and documentation are hard to come by with agricultural land of Bangalore (Karnataka). The following is a useful checklist of documents for review by a Bangalore law firm / lawyer before purchasing Agricultural land:

Mother deed and sale deed: It is very important document to trace the ownership of agriculture land. And it is basic document that shows how the property at the commencement was acquired there after there will be series of transactions such as sale gift law in Bangalore etc.

Akarbandi: Land topography sketch issued by State Revenue Authority viz. survey department. It establishes the survey number and to whom the particular survey number was originally allotted and the land / property revenue assessment details.

Encumbrance Certificate: Certificate from State Revenue Authority stating that there is no lien on the land / property (Has to be obtained for the last 30 years) Family Tree of the vendor: State Revenue Authority document required to ascertain whether other family members have a stake in the property Saguvali Chit: It is also called Grant Certificate. This is issued on Form No..VII in case of grant of Govt. land to the eligible persons for cultivation. This establishes title of the persons in the Saguvali Chit to the land granted. Conversion Order: Conversion certificate has to be obtained for non agriculture purpose & that has to be checked to determine whether it is DC converted or not. Khata and up to date Tax-paid receipts: Khata in Form MAR 19 (issued prior to 19. 05.2003) along up to date Tax-paid receipts. Land Acquisition Status: Endorsements from State Revenue Authority certifying the Govt. acquisition status for the property for instance Notification by B.D.A. or KIADB for acquisition. Mutation Extracts: History of changes in ownership (for 30 years) as documented in the Khatha Certificates issued by the State Revenue Authority. This is an extract from the mutation register maintained by the village property accountant. NIL Tenancy Certificate/Form No.7 Endorsement: State Revenue Authority certification stating whether the land has any tenants. This issued by the Tasildar. This endorsement certifies that there no tenancy cases pending in respect of property in question as per the KLR act 1961. Podi Extracts: Property partition document among siblings if any. Property Tax Paid Receipt: Latest tax receipt validating that the property tax status is current. RTC (Record of Rights) / Phani: This is primary record issued by the villager Accountant. It contains details of Survey number, total extent of land property, names of the owner including details as to conversion of land from agriculture to non- agriculture property. (has to be obtained for the last 30 years as per Bangalore law) Section 79A & B endorsement U/KLR Act, 1961: These are issued by Tahsildar. These endorsement certifies that there no cases pending against the person owning the agriculture land / property. Village Survey Map: Land location sketch Patta Book: This book contains information regarding the payment of land revenue and other Govt. dues & information of cultivation. And also contains a copy of the record of rights to the land / property situated in Bangalore. Tippani: This issued by the Survey Dept. It shows a sketch of the land as the records of the survey Dept. Comprehensive Development Plan (CDP), Zonal Regulation Map and Survey Map. Apart from the above property should not come within the Green Belt Area.

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lawyer specializing in Business, Commercial Law, Trademark, Copyright, Patents and other Intellectual Property laws, Real Estate Property related law, laws governing Non-Resident Indians (NRIs) and Person of Indian Origin (PIOs), Family Law, Criminal Law, Immigration laws, Taxation laws, and Litigation lawyers i

Tips to buy property in Bangalore

If plan to buy a house in Bangalore is your first initiative then, you might be in for a shock. The process will be nothing less than a nightmare. When we decided to lookout for a house in Bangalore, we contacted few real estate agents. We cleared him what we were looking for as well as the budget we could afford. He took us to few assorted properties, but none of them were even close to what we were looking for. Investment in property is definitely a good call especially in a place like Bangalore, but you need to be cautious while concluding to fetch you good Profits. First-time home property hunters commence the search long before most even realizes it. There are many important aspect to keep in mind while buying a property, below are points for your assistance, having learned them hard way.

Mind your Pocket size: This is the primary step when you go for an investment. The expected expenditure for house must be around or below 35 percent of your total income. Flexibility in your budget would definitely help during times of any unforeseen events. Find out your capability to accrued loan from any trusted housing loan institute or bank. Watch out your income and ensure how much you can pay as down payment. This will help you to ascertain and conclude your budget while hunting property in Bangalore.

Find the best Location: Location plays an important deciding factor in buying a property. Make sure you checklist few aspects before jumping into conclusion.

o o o o o o

Ensure there are proper approaching roads to the house. Ensure there are proper water & electricity connections. Ensure that well laid out drainage, sewerage and garbage disposal arrangements have been made. Is there any issues concerning to pollution due to industries etc? Level of developmental activities of the area - ensure adequate public transport facilities and other prominent amenities like educational institutions, hospitals etc. Survey the market and talk to local people and enquire about the standards.

Do a market research on the current scenario: Lots of people go by the opinion of someone they know. While trusting is good, but few important decision requires lots of facts & figures. It is advisable to visit brokers, look at websites on real estate, visit exhibitions, then shortlist properties based on your requirement.

Find the right sources: Buying a property in Bangalore is one foremost resolution taken by us, make sure you invest your hard Earned income in projects acknowledged by renowned developers or

agency having proven track record. You may rope in trustworthy real estate agent for a nominal commission.

look for resale value: Always go for a property which has a resale value. Purchase the property in a developing area. The value of land will appreciate but purchase house or flat or land that is Vaastufriendly from resale point of view. Even if you have to be more flexible with your budget, invest in a property which has resale value. Focus on property in developing area. The value of your property may appreciate in future. Investing your money in Vaastu- friendly property will boost your resale value.

Look for your lifestyle and layout: Before you search out for a property, decide on what kind of lifestyle you and your family will be comfortable. Would you like villa, apartment or individual house? Or do you need a suburb or inner city? All defines your lifestyle. Study on the layout is also very important. You don't want to buy an apartment and invest twice the amount in restoration. First of all, ensure there are enough rooms for your family. Confirm on the available space of the living, dining area and kitchen. Entire layout has to be planted in prior depending on the size of the family.

Once zeroed on a property go through ALL the papers: Once finalized on the property, the verification of all the required papers and documents becomes property. Before documenting the property in your name, ensure that the building has been raised as per the government sanctioned plan and if there is any deviation, it should be in the allowed limits. Check and recheck the documents and papers with a learned advocate. Assure that the documents of property you intend to purchase are crystal clear. Especially a) Mother Deed - can be assessed in the registrars office. Mother deed gives you an entire scenario as in the details of the holdings of the property for past 30 years. b) Sale Deed c) Conversion Documents Very important when you buy property in place like Bangalore, where property is not available in central part, most of the land outside will be meant for agriculture, so it is important to be converted. d) NOC (No Objection Certificate) - Ensure you have a NOC from BDA or the required authority, if the property is converted.

Own your Dream: You need to make sure that you repay your home loan installments periodically on time. Once you occupy your home. Ensure you maintain your property in proper condition for resale if required.

Buying a property in a place like Bangalore is dream come true. There is a need to maintain extreme caution while finalizing a property. After all its our hard earned money invested in it. Make sure you entrust your dream in a trusted hand.

Buying property is the decision of a lifetime and you need to be equipped with the right know how that will guide you through the process of buying. Decide on what you intend to buy a residential, commercial or industrial property. Buying land, shops, apartments/flats or any real estate properties in Pune requires the right insights for a wise decision.

 Establish Criteria: Establish the criteria that are most important to you in deciding on which property to buy. Doing this early on will save time on unyielding and time consuming deals for inappropriate properties. It will help you in finding real estate property faster. Decide on Property type (Residential, commercial, etc.) Accommodation Area of the Plot Preferred floor Preferred Location (park/road facing etc.) Preferred Locality Property ownership (lease/free hold) Price range Room sizes Builders/Govt. properties Parking Servant Quarter Other requirements: like distances from Office/School/Markets/Bus/Rly station/Airport,etc. Planning for the Purchase of property: A landmark decision like purchasing property needs to be well thought out. You will have to focus on factors like financing, real estate service providers, paperwork involved and other legal and regulatory issues. Planning will help you be out of the panic mode and keeps you on your toes for unplanned emergencies. If you need to shift into the property you are looking for immediately, you will have limited time to fine tune the search and would have to settle for properties which are ready to be moved into. But, if you have sufficient time, you can book a property under construction or at an early stage of construction and get the minor additions and alterations done according to your choice. Similarly, you would have time to see a number of proposals available for sale in different localities and then choose the best suitable to you. Select a land/Property Merchant: You have to find the right dealers yourself. There is information online like real estate portals to research from and a large volume of literature is published by newspapers etc on a regular basis. Also, interacting with friends and experts, looking at different properties and neighborhoods will give you ideas about properties, dealers and related information. Look at the land Location: Once you decide on a property, it is wise to look at the location first. The intended property should have basic civic amenities like educational institutions, park, police station, temples, community hall, hospitals, and auditorium within reach. Connectivity through good roads is a must. The lands proximity to the main roads, bus stops, railway lines and other transportation services decides ease of access and also the amount of pollution and noise. The property should be well ventilated with lots of natural light. Some real estate properties in Pune lack water supply, power supply, ground water and sanitary line. An educated and cultured neighborhood is a plus. Understand property Valuation: Your top reason for buying property should be the value you are getting. You need to gain personal understanding of the property value system, government rates, going rates and also focus on the long-term importance of the purchasing price.

 Financial aspects: Having a clear picture of your budget, limitations and the extent to which it can be supplemented or stretched through housing loans etc helps. After calculating the loan amount required, running a search on which banks offer favorable interest rates and EMIs will help you in partnering with a more pocket friendly bank or finance company for your property deal. The rule of the thumb while taking a home loan is The longer the tenure, the more you pay in interest and the lesser is your monthly installment. It is always advisable to select a property to suit the budget so as to avoid hefty installments and unending loan tenures. Intelligent investment lies is in purchasing a plot of land within the budget than an apartment which doesnt leave scope for future returns through add on construction. Understanding Government policy and other legalities: Knowledge of various development authority demarcations, restrictions, legalities and new regulations as well as the city development plans and proposals will be extremely handy in making an informed choice of property. Ensuring Legal Requirements: Before buying property, it is advisable to appoint a solicitor to inspect the original title documents of the property being purchased. If the title is not clear and marketable, the number of complications arising in future may be numerous. For instance, banks would be unwilling to issue a loan against a property with an unclear title and selling of property will be doubly difficult. Generally, owners of property with a complicated title will be eager to dispose it off at a cheaper rate at short notice. It is advisable not to secure any property in a hurry and without subjecting all the property documents to rigorous legal scrutiny. A safety measure against post purchase claims is to issue a public notice of purchase. Though it doesnt legally ensure ownership on the title, any claims or objections to occupation of property will come to light before it is too long to deal with them. Origin and History of property: Its important to learn of the origin of the property, continuous flow of the title and present status of the property. Also, find out any minor claims, court litigations, government acquisition proceeding, zonal regulations and other subsisting charges on the property. Verify all the original documents pertaining to the title deed to make sure that immovable property is free from mortgages through deposit of title or other charges created therein. Applicable to apartments: If you are availing a home loan, take into account the following points: 1. The bank usually dont approve full loan for a resale apartment (depends on the age of construction). 2. For valuation of property, banks apply their own terms and conditions (which may vary in a case to case basis). This valuation may not be the same as the way it is done by the seller (based on the current market value). 3. You need to use your judgment to valuate a property that you want to buy, based on the current market trends in the area where the property is located. 4. Recommended action: consult an experienced trusted advocate in this field (property registration), who can guide you to take a final decision on price factor. Who are the other flat owners in the building? (If any) What are the common areas and what is status of ownership? Permissions required from Competent Authorities?

Credentials of the Promoters? (You can check this by asking the builder about his other completed projects and you can speak to the flat owners living in those projects) Construction specifications? (You can show the property to some qualified Architect) Ask for a draft of Agreement to Sell to be signed (if you intend to enter into a transaction) once you have decided to buy a property after checking all the above details you should try to get all the terms and conditions of sale and purchase in advance before you part with any amount to the seller. You must try to reduce everything to Black and White so that there are least problems later on. And above all dont try to save a few thousand rupees on registration process of your property. Go in for proper Sale-Deed (if possible) through a reputed qualified Advocate who specializes on real estate.

If plan to buy a house in Bangalore is your first initiative then, you might be in for a shock. The process will be nothing less than a nightmare. When we decided to lookout for a house in Bangalore, we contacted few real estate agents. We cleared him what we was looking for as well as the budget we could afford. He took us to few assorted properties, but none of them were even close to what we was looking for. Investment in property is definitely a good call especially in a place like Bangalore, but you need to be cautious while concluding to fetch you good Profits. First-time home property hunters commence the search long before most even realizes it. There are many important aspect to keep in mind while buying a property, below are points for your assistance, having learned them hard way.

Mind your Pocket size: This is the primary step when you go for an investment. The expected expenditure for house must be around or below 35 percent of your total income. Flexibility in your budget would definitely help during times of any unforeseen events. Find out your capability to accrued loan from any trusted housing loan institute or bank. Watch out your income and Ensure how much you can pay as down payment. This will help you to ascertain and conclude your budget while hunting property in Bangalore.

Find the best Location: Location plays an important deciding factor in buying of property. Make sure you checklist few aspects before jumping into conclusion. Ensure there are proper approaching roads to the house. Ensure there are proper water & electricity connections. Ensure that well laid out drainage, sewerage and garbage disposal arrangements have been made. Is there any issues concerning to pollution due to industries etc? Level of developmental activities of the area - ensure adequate public transport facilities and other prominent amenities like educational institutions, hospitals etc. Survey the market and talk to local people and enquire about the standards. Do a market research on the current scenario: Lot of people go by the opinion of someone they know. While trusting is good, but view important decision requires lot of facts & figures. It is advisable to visits brokers, look at websites on real estate, visit exhibitions, then shortlist properties based on your requirement.

Find the right sources. . Buying a property in Bangalore is one foremost resolution taken by us, make sure you invest your hard Earned income in projects acknowledged by renowned developers or agency having proven track record. You may rope in trustworthy real estate agent for a nominal commission.

look for resale value: Always go for a property which has a resale value. Purchase the property in a developing area. The value of land will appreciate but purchase house or flat or land that is Vaastu-friendly from resale point of view. Even if you have to be more flexible with your budget, invest in a property which has resale value. Focus on property in developing area. The value of your property may appreciate in future. Investing your money in Vaastufriendly property will boost your resale value. Look for your lifestyle and layout: Before you search out for a property, decide on what kind of lifestyle you and your family will be comfortable. Would you like villa, apartment or individual house? Or do you need a suburb or inner city? All defines your lifestyle. Study on the layout is also very important. You dont want to buy an apartment and invest twice the amount in restoration. First of all, ensure there are enough rooms for your family. Confirm on the available space of the living, dining area and kitchen. Entire layout has to be planted in prior depending on the size of the family Once zeroed on a property go through ALL the papers: Once finalized on the property, the verification of all the required papers and documents becomes property. Before documenting the property in your name, ensure that the building has been raised as per the government sanctioned plan and if there is any deviation, it should be in the allowed limits. Check and recheck the documents and papers with a learned advocate. Assure that the documents of property you intend to purchase are crystal clear. Especially a) Mother Deed - can be assessed in the registrars office. Mother deed gives you an entire scenario as in the details of the holdings of the property for past 30 years. b) Sale Deed c) Conversion Documents Very important when you buy property in place like Bangalore, where propertyis not available in central part, most of the land outside will be meant for agriculture, so it is important to be converted. d) NOC(No Objection Certificate) - Ensure you have a NOC from BDA or the required authority, if the property is converted. Own your Dream: You need to make sure that you repay your home loan instalments periodically in time. Once you occupy your home. Ensure you maintain your property in proper condition for resale if required. Buying a property in a place like Bangalore is dream come true. There is a need to maintain extreme caution while finalizing a property. After all its our hard earned money invested in it. Make sure you entrust your dream in a trusted hand. I suggest one such company named relocateeasily.com, who takes an extra initiative in find a home for us. This is one such company which gives personal attention to all above aspects. I hope they meet their tag line - relocation was never so easy Key: property in Bangalore, house in Bangalore, property hunters, buying a property, hunting property in Bangalore, real estate, resale value ,Purchase the property, property in developing area, Vaastu- friendly property, apartment or individual house ,relocateeasily ,relocation

What is the meaning of CDP ?

CDP is the short from for Comprehensive Development Plan. This is formulated by the Government. Under this plan Bangalore Metropolitan Area has been divided into various zones, such as Residential, Commercial, Industrial, Green belt, and others.

What do you mean by Zonal Regulation ?

Any development must conform to the land use of the zone in which it is located. One cannot construct a commercial building in an area earmarked for residential purposes. The zonal Regulation Act regulated the height of the building, formation of layouts etc.

What are the classifications of Zones ?

As per the Zonal Regulation Act, 8 Zones have been created: Residential

Commercial

Industrial

Public/Semipublic

Utility/services

Park and open spaces

Transportation & Communications

Green Belt area

What is Green Belt area ?

As per the Comprehensive Development plan, certain portions on the outskirts of Bangalore are market as Green Belt area. The owner of the Green Belt area is permitted to do only agriculture activity in his land. The lists of villages with survey numbers notified by the Town Planning Committee have been gazetted.

Who can buy an agricultural land ?

In Karnataka agricultural land can be bought after fulfilling 3 requirements. They are: The annual average income of the person including agricultural income, should be less than Rs. 2 lakhs

The person must have an agricultural land in his name before the year 1974

The person should be an agriculturist or an agricultural labour by profession

Is it possible to buy agricultural land ?

Yes, it is possible to by agricultural land by special permission under the land act.

If a foreign citizen of India origin purchases an immovable property in India , in what

manner can the sale consideration price be paid ?

The sale consideration price to be paid should be either out of the inward remittance in foreign exchange made through the normal banking channels or out of the funds from NRE or CNR accounts maintained by him with the banks in India.

What is the appropriate stamp duty payable on Rental Agreement at Bangalore ?

Stamp Duty payable on Rental Agreement for a period below one year is Rs. 50/-, and above one year it will vary depending upon the number of years, as under: Above one year but not exceeding five years @ 5% on the average Annual Rental Rate

Above five years but not exceeding ten years @ conveyance on twice the Annual Rental Rate

Above ten years but not exceeding twenty years @ conveyance on thrice the average Annual Rental Rate Above twenty years but not exceeding thirty years @ conveyance on four times the average Annual Rental Rate Exceeding thirty years @ conveyance on prevailing market value

What is KAOA ?
This is Karnataka Apartment Ownership Act 1972, enacted by government of Karnataka, which has come into force from 1.4.1975. This act was enacted to provide ownership of Individual apartment in a building and to make such apartment heritable.

Is it necessary to register a General Power of Attorney (GPA) ?

It is optional. There are two types of Power of Attorneys. One is General Power of Attorney and the other Special Power of Attorney. When 'Power' is given in respect of a particular act pertaining to one transaction it is called Special Power of Attorney. When 'Power' is given in respect of a number of acts in a number of transactions it is called General Power of Attorney. However, it is always advisable to hold a registered GPA while registering an immovable property in order to give better title to the property.

Before purchasing a property is it necessary to give a public Notice in a newspaper ?

While scrutinizing the documents of the property, an eminent advocate well versed in property matters, even though can trace ninety percent title sometimes may not be able to trace encumbrances like prior agreement, simple mortgage, court litigation etc. with respect to the property, Therefore, to safeguard the interest of the purchaser , it is advisable to give a Public Notice in a leading local newspaper before purchasing the property. It is not binding on any claimants are there, they will inform about their right, title and interest in the property with documentary proof. Also such notice will inform the public at large that the purchaser is a genuine buyer of the property.

Can a foreign citizen of India origin gift away his immovable property ?
A foreign citizen of Indian origin can gift away up to two immoveable properties to his relative who may be an Indian citizen or a person of Indian origin, without any permission from RBI. However, income tax will have to be paid on such properties as per the rules for the time being in force.

How does a person of Indian origin residing residing abroad execute a general power of Attorney ?
At the time of executing General Power of Attorney if the executing is not residing in India, he may execute it in the country where he resides before a Notary Public or Indian Consul or Vice-Consul or a judge or in Court or before a representative of the Central Government.

I am a Non Resident Indian (NRI) I want to purchase a property in India in my wife's name. My wife is a Canadian and we have two children. What are the conditions to be

fulfilled ?
By marrying an Indian, a foreign national cannot be become a citizen of India. Therefore she cannot acquire, hold, transfer or sell property in India However by virtue of her marriage to an Indian and citizenship through proper channel. When she gets NRI status she can acquire properties in India, subject to certain conditions laid down by the Reserve Bank of India.