An article about " LAND CONVERSION "

LAND CONVERSION

Purchasing house site is the dream of a Middle class person family Unprecedented growth of urban areas, due to Industrialization and consequent unending migration of rural folk, agricultural labour for employment opportunities and professionally qualified persons in search of greener pastures, migrate to metros, or mega cities A case in point is Bangalore. It was at one time aptly called as 'Pensioner's Paradise'. It was a pleasure to see elders slowly walking, chanting, Sri Vishnusahasranamam, in today's commercial hub of the city like, Seshadripuram, Malleswaram, and Basavanagudi. Youngsters used to play cricket on the roadsides, footpaths were so large which could be used for learning cycling by children. Nowadays one has to walk holding one's breath not sure whether he can reach home safe.

This unbridled growth of Bangalore with comparatively better income for most of the people has made demands on housing very great. This has led to many ways, legal, illegal, dubious, ethical or otherwise to own a piece of land and to have a shelter/roof over one's head. Bangalore basically was a small town surrounded by number of villages. Land Developers, who landed in Bangalore, started converting agricultural land into residential pockets. In villages, a small residential area will be there, where houses of the farmers are situated; the houses there are given Khaneshmari No. And the residential pocket in a Village is called Gramathana, as distinct from village as such where agricultural land is surveyed and given Survey No. for each piece of land. Thus, every piece of land is assigned a Survey No. (except Kharab lands) which are classified into class 'A' and 'B', depending whether it can be made arable / cultivable, by making certain improvements and others whose nature cannot be changed. A legal procedure has been laid down for change of use of the land from agricultural purpose to non-agricultural residential purpose. This requires an order from the Deputy Commissioner. Purchase and possession, use of agricultural land by Non Agriculturalists, for purposes other than agricultural farming is prohibited in the State of Karnataka, by law. However, land duly converted by the Competent Authority can be purchased for development as Residential lay-outs. Hence, the question what is conversion of land. In simple terms, it is the permission granted by Revenue Authorities to change the usage pattern of land from Agricultural to Non Agricultural - Residential or Industrial use. In and around cities and towns and especially on the outskirts of Bangalore, this is going on in a rapid phase. The Government had by its various Comprehensive Development plans, shrinking the size of agricultural land to almost 'Nil' around Bangalore.

The Official Procedure of Conversion is detailed below:

A conversion Order passed by the Deputy Commissioner is a serious exercise scrupulously followed by the Revenue Authorities, after verifying the fact that there is no contravention of the provisions of the Karnataka Land Laws relating to the provisions of the Karnataka Land Revenue Act, 1961, Karnataka Land Grant Rules, KPTCL Act, and the Land Revenue Rules relating to Green belt. Likewise verification is also done in respect of acquisition of any scheme of the Government and the Bangalore Development Authority.

Thus, permission accorded by the Deputy Commissioner, for change of land use deems that there is no violation of any of the revenue rules prohibiting conversion of agricultural land. It is also relevant to ring forth that the burden of verification regarding the above laws lies only on the Tahsildar, and an applicant shall not be asked to provide any documents for the same. The said report prepared by the Tahsildar is then forwarded to the Deputy Commissioner, with his opinion; it is only on the receipt of the opinion that the Deputy Commissioner accords permission as mentioned above.

The Deputy Commissioner shall also verify and satisfy himself that the change of use does not cause any public nuisance and that the land sought to be converted are not inconsistent with the purpose specified in the Comprehensive Development Plan and the Outline Development Plans. Cumulatively it appears that the land on which permission is sought is clear as far as satisfying the requirements of law governing conversion and revenue. On going through the conditions enumerated in the said Official Memorandum, certain duties and obligations are cast on the applicant namely the necessity for having the Layout Plan approved by the BDA/Local Authorities like the Panchayat, Pollution Control Board, etc., which on necessary applications clear the development of Layout as per the respective provisions contained in the Act.'

Any prudent buyer of land should think twice before investing his hard earned money in land. Revenue lands are sometimes regularized, in Schemes like 'Akrama-Sakrama' and approved by the Revenue Authorities, However, if it is not regularized, a Damocles' sword hangs on the head, any time the title held on such 'Revenue site' is not absolute, free, marketable. In simple terms it is illegal and the buyer of such lands will be in jeopardy of losing the land, money, and cannot hope for any legal remedy, like compensation. As the famous Doctrine 'caveat emptor' - 'Letthe Buyer Beware' goes to say, any buyer interested in investing in land should thoroughly examine the titles, preferably by a qualified Advocate/ Attorney, who can do a methodical investigation of title.

An article about " Jail term for errant Real Estate developer "

Jail term for errant Real Estate developer

In what may bring relief to housing aspirants across the country, chances of home buyers being cheated by reality companies might be minimized as the proposed real estate regulator will not only be empowered to penalize errant developers by imposing fines but also recommend imprisonment upto three years if they are found guilty. The information, to be posted on the regulator's website, will also mention the names of blacklisted developers.

For any housing project exceeding 1,000 square meters or four apartments, the builder will have to procure a registration certificate from the regulator after furnishing all relevant project details and permissions from the competent authorities. This includes the number and size of plots, layout plan, carpet area and plinth area of the flats or apartments and the facilities provided. A project cannot be marketed or advertised without the registration certificate. The government has prepared a draft of the model Real Estate Bill, and has invited views of all stakeholders by November ahead of giving it a final shape.

Safeguarding the interests of buyers, the regulator makes it mandatory for the developer to enter into a sales agreement ahead of taking the deposit from a potential buyer and to provide stand-in warranty for the project for two years after handing over the possession for any construction related problems. Any buyer wishing to quit the project due to delays or false promises shall be returned the entire investment along with interest at the existing rate. Briefly, the Real Estate Regulator can 

[i] penalize errant developers by imposing fines if they are found guilty 

[ii] recommend imprisonment of up to 3 years, 

[iii] post names of blacklisted developers on its website; and 

[iv] order return of the entire investment along with interest at the existing rate if a buyer quits the project due to delays or false promises.

The builder or promoter of the project will have to submit a timeline for providing various civic services like supply for electricity and water, sewerage and drainage systems, lifts and fire-fighting equipment. Value of cost escalation in projects, if any, will have to be arrived at by mutual consent between promoter and buyer. The names and addresses of all middlemen or brokers will have to be maintained on the website. In case the developer fails to provide any of the services listed at the time of purchase, he will be asked to compensate the buyer. The builder shall furnish a bank guarantee equal to five per cent of the estimated cost of the development works to a competent authority, which may discharge it on recommendation of the regulator. The promoter will have to obtain an insurance policy for at least five years after the construction activity is complete for apartments against loss or damage by natural calamities for the cost of replacement of such property and loss of life and bodily injuries suffered bypersons occupying the apartments.

An article about " BUILDERS CAN'T ESCALATE PRICE TO DENY COMPENSATION FOR DELAY "

BUILDERS CAN'T ESCALATE PRICE TO DENY COMPENSATION FOR DELAY

On the question whether a builder after agreeing to deliver possession within a stipulated time, raise a contention that as the price of a flat or property has gone up, it should not be directed to pay any compensation for delay in delivering possession of the property, the National Consumer Disputes Redressal Commission (NCDRC) has held that such a contention of any

builder is unjustified and unreasonable, because after sale of the property all the benefits accrue to the purchaser and not to the vendor. In any case, if such contention is accepted it would earn crores of rupees to the developers or the delay in delivery of possession of the flat or property for months together on one pretext or the other.

In the instant case the complainant Kunj Behari Mehta had approached NCDRC on May, 2000 with a prayer that the opposite party Ansal Properties and Industries Ltd., be directed to delivery possession of his apartment and also to pay interest 24 per cent per annum on Rs.26,26,790/- i.e., the amount deposited by him with the builder with effect from October 10, 1998 Contd. from p.14 purchase these flats and occupy them immediately. In other words, there is a good market for low cost ready to occupy flats with good infrastructure.

Still the date of delivery of possession or refund the amount deposited with 24 per cent interest.

The agreement between parties was signed in March, 1995 and builder was to construct flat within 42 months i.e., October 1997, subject to force majeure circumstances and on receipt of all payments punctually. As some extra construction was made, the complainant was required to pay a higher basic sale price.

The NCDRC had directed the builder to deliver possession in December, 2007 and consequently, possession of the apartment was delivered on December 20, 2007 i.e., 10 years after agreed date.

Developers have therefore to develop the properties keeping in mind these factors before they undertake any project for this segment of people. This particular class in the city is so high that any The builder questioned the logic of claiming interest on the amount deposited since the value of the said flat had increased due to the increase in the price of the property. However, the CDRC rejected this contention stating "If the price on an immovable property increases, it cannot be said that the parties are not required to abide by their contractual obligations. In any case, it is the luck of the complainant that the price of the property has increased and it cannot be said that it is for the benefit of the vendor.

The builder/vendor of the property cannot claim advantage on account of increase in price after sale. The NCDRC awarded compensation for unjustifiably not delivering possession of the flat as per the agreement in October 1998 till December, 2008 and directed the builder to pay 12 per cent interest per annum from 1st November, 1998 till December 2008 on the amount deposited by the purchaser project with reasonable price would attract market which is otherwise is dull since a readily available flat is what a middle class customer looks for and if gets one he feels that his dream is fulfilled.

An article about Union Housing Ministry unveils Model Real Estate Regulation Act "

Union Housing Ministry unveils Model Real Estate Regulation Act

To prevent unscrupulous real estate developers from deceiving gullible buyers, the Union Ministry of Housing and Urban Poverty Alleviation has proposed a bill Real Estate (regulation of development) Act. No buildings or townships meant for sale, in future, can be undertaken, without registering them with the Real Estate Regulatory Authority to be set up in each State.

The Union Ministry of Housing and Urban Poverty Alleviation has published the draft Model Real Estate (Regulation of Development) Act to control and promote construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties through a regulatory authority which will protect public interest "in relation to the conduct and integrity" of realty firms developing housing colonies and facilitate "smooth and speedy construction and maintenance" of colonies. The Act makes it mandatory for all promoters to submit details of the approved plans of projects along with a bank guarantee equivalent to 5 per cent of the estimated cost of construction to the authority. Besides, the promoter will also give an undertaking to complete the work in accordance with the conditions of registration. Without registration, reality firms are not authorized to sell property. After verifying the authenticity of the approved plan, the title of the property and other relevant details, the authority will register the project.

This registration will be valid for three years and has to be renewed after that. The details of the projects will be made public through the authority's website. Also, documents relating to permission from the local authority as well as building plans will be made available to public. The model Act also prevents the promoters from advertising the project before it is registered with the authority.

When violations of rules, failure to provide essential services to the developed plots are noticed or complained about, the registration will be cancelled after due verification. Failure to comply with the provisions of the Act will attract imprisonment for a term extending up to three years or a penalty. The bank guarantee provided will be forfeited, and the names of the promoters will be included in the defaulters' list and published on the authority's website. The act also provides for appeal and setting up of appellate tribunal.

This draft Act has been published for soliciting stakeholders' opinion and the Ministry expects the State governments to pass their respective Acts, based on this model Acts, after it is finalized.

An article about " HOW TO SELECT THE PROPERTY "

 HOWTO SELECT THE PROPERTY

The registration has commenced pertaining to all the properties consequent to the relaxation of the ban imposed on the registration of certain properties. The ban on the registration has created awareness to the public not to invest on the property which is improper.  On the other hand, the recent demolition drive undertaken by BMP in Koramangala has created a sense of fear among the public to invest on the property in and around Bangalore. Walking on the road involves risk; nevertheless we cannot sit at home. Likewise, investing in the property also involves certain risk, but we have to take certain calculative risks which will help us to live in a dream house and also appreciation on our investment.

Unknown Area

No advocate can give clear cut assurance on the properties. There may be few transactions which cannot be traced from the documents produced for scrutiny, such as previous agreement entered into with somebody, pending court litigation between the family members or outsider, etc, which are the risky area that cannot be traced by seeing the property documents. However, advertising publicnotice in the leading daily, having wide circulation in the area where the property is situated, will help to trace certain adverse claim, if any, before purchasing such property. However, such Public notice is only a precautionary measure and may not be binding on any one having interest in the property if the same is ignored or may have not seen the notice at all. If the same is noticed by anyone having any kind of interest over such property, then opportunity will be given to them to file the objection before the purchase of the property and subsequently, issues cropped pursuant to such objections could be sorted out by the Vendor. The purchaser can also back out from such transaction.

I here with give certain guidelines as to where to invest and how to select the property in order to overcome any kind of ambiguity regarding purchase of any property.

Registration and Title

Even though all the properties can be registered by the concerned Sub-Registrar, mere registration, it would not convey title. Registering officer will act only in the ministerial capacity and do not have power to asses the genuiness and marketable title of the property. Infact, the Sub-Registrars are more concerned with the stamp duty and registration charges. No one can give better title than what they themselves have, is the basic principle of the Transfer of Property Act. A vendor having marketable title can lawfully convey the property and  register in the concerned Sub-Registrar in favour of the purchaser and if the vendor has defective title, conveying the same and getting it registered will not perfect his title over Public is having lot of confusion whether the property is legally valid or not.

Clear Marketable title

Before purchasing the property, marketable title, genuiness of the document, enforceability of the title has to be scrutinized along with the thorough verification as to whether the relevant provision of the laws and other rules and regulations of the revenue authorities has been duly complied. Origin of the property, flow of the title and present status has to be verified with the help of an advocate, who is having experience on such matters.

B.D.A.Sites

Bangalore Development Authority, erstwhile known as City Improvement Trust Board, allotted sites having the perfect title, compared with another title. BDA, being a statutory body, has got its own procedure envisaged in the BDA act in acquiring the lands from the private parties, formation of layouts along with all infrastructure like power, water and roads. Generally, impetus is given for providing civil amenities and width of the roads as per the town planning act. Layouts already developed has been provided all the facilities immediately, for which will have to pay moderate rate. Likewise, Co-operative societies layout, private layouts approved by BDA are governed by the rules and regulations of the BDA only. However, purchasing such property is advisable after scrutiny of the title thoroughly.

BMP Sites

A property falling under the BMP Area are generally old properties. Vacant properties are very few. Only ready built houses or old houses are available for sale. Title of the property is required to be traced from the origin with successive deeds of transfer, computerized Khata and computerized Khata extract to be checked up. If required, city survey map and Building sanction plan has to be verified.  Sometimes, larger extent of properties would be divided into smaller portions and in such case, only certified copies of the title deeds would be available.

CMC Sites

Thereare 7 CMC and one Town MC surrounding the Bangalore City. Government is proposing to merge the CMC Sites with BMP Area, which is yet to be implemented, which we have to wait and see. Infact, CMC has stopped collection of the Betterment charges since from 29/05/2003 and subsequently stopped issuing Khata Form No.19. Now a days, Form No.3 Khata under the SAS scheme, are being issued and that too on the temporary basis as Holder Khata. However, form NO.19 Khata, is being accepted by CMC for sanctioning the Building Plan. Basically, CMC sites are the revenue sites, which would be regularized by collecting Betterment charges and other means. The CMC properties converted for the residential purpose, having CMC Khata, Betterment Charges paid receipt and building sanction plan is considered to be marketable property, however subject to the tracing of the marketable title. Unfortunately, infrastructure facilities provided by the Government and CMC in the CMC Areas is very poor and the development activities are implemented in a very slow manner.

BMRDA Approved Sites

Recently, lot of layouts approved by BMRDA coming up in the outskirts of Bangalore, with the proper planning and development very recently. This is due to the recent ban on registration of such properties without BMRDA Release Letter. Recently, BMRDA has changed its rules and regulations, wherein only 60% of the sites would be released at the time of approving layout plan, while remaining 40% of the sites will be released after completion of the entire layout. Accordingly, Sub-Registrar refuses to register such sites without the release letter. So it became mandatory on the part of the developers to develop the entire layout and get the release order of the balance 40% of the sites. After the relaxation of the ban on registration, Sub-Registrar is registering BMRDA sites without release order, which, infact has affected the developmental activities of such layouts. Few of the promoters are selling the sites without providing basic facilities with an assurance to develop the same, but fail to do the same. The government has to take initiative and should make it mandatory to submit order of release of sites at the time of registering BMRDA approved sites, in order to safe guard the interest of such purchasers.

Gramathana Sites

These are gramathana sites, which were originally available in Village Panchayat areas, which are few in number. They can be distinguished from Kaneshumari number, assigned to them. The agricultural lands have survey numbers. In such properties, it is necessary to examine village records along with Form No.9, and 10.Form, which confirm that the particular property is original Gramathana site or not. But many village Panchayat issue form No.9 and 10, though they are not Gramathana sites. Many such sites fall in green area belt, where construction of residential buildings is restricted. Extra caution is necessary while buying Gramathana Sites.

Revenue Sites

These are the sites formed in an agricultural land. Unless it is converted for non-agricultural residential purpose it remains as agricultural land. Formation of layouts is not permitted on agricultural land. Further layouts needs approval from BDA or BMRDA. The revenue records such as Pahani and mutations of these lands remain in the name of the original owner even after it is purchased by others. It is not advisable to purchase the Gramathana sites.

Advent of Apartments

The rapid growth of demand for Apartments in Bangalore, within a year, has totally changed, wherein, average rate of a standard apartment per sqft of  Rs.1,500/- has now enhanced to present rate of an average standard apartment attaching to the city area at nearly 2500/- per sqft. Now a days people prefer to live in the apartment concept because of the safety, social life and facilities available in the apartments. Increase in the land cost, increase in the construction material and construction labour cost, government levies like service tax, sales tax, stamp duty and registration charge have also contributed for the tremendous growth of the apartments in the recent times.

Infact, reputed builders are developing the border of the city, taking sufficient care of the title along with common facilities, which are most important now a days. On the other hand, small builders are not concentrating on the clarity of the title. It is advisable for the flat purchaser to clarifying from their own advocates regarding marketable title of the property not to depend upon the opinion of the Promoter’s advocate or financial institution advocates not. Further, purchaser should take abundant caution before entering into the agreement with the promoters regarding the terms and conditions of the agreement, which, if neglected, would lead to legal complications in the due course. Some of the leading builders have refused to give their title documents pertaining to the property and they are insisting to go with their financial institutions to avail a loan without providing title documents, which is dangerous practice, putting the purchaser under tremendous risks.

Now a days, tremendous development is witnessed, especially in the in outskirts ofthe Bangalore, adjacent to BMP areas, such as, Sarjapur road, Hosur road, Bannerghata road, Whitefield road, Mysore-Corridor road, Devanahalli road, etc. However, before investing on any of the properties, in any place, thorough verification is necessary pertaining to the title, Zonal regulations, and other revenue documents.

An article about " Southern cities most attractive for infra projects "

Southern cities most attractive for infra projects

Infrastructure projects in south Indian cities have attracted 70 percent of the private sector investment in the last four years due to better state policies and faster rising per capita income, a study has said. Around 12 real estate firms including Tata Housing Development Company,Golden Gate Properties and Puravankara Projects have announced their projects worth Rs 12,990 crores of which Bangalore got the maximum of six realty projects, while Hyderabad and Chennai got five and one respectively. Also with the increase in business travel, southern India is considered as prime tourists' destination and thereby the hospitality projects have attracted a considerable sum of investment. Three hotel projects are being planned by hotel industry majors in the tier- I cities in South India, amounting Rs 5,375 crores. Southern cities like

Hyderabad, Bangalore and Chennai have accounted for 70 percent of the total private investment in infrastructure projects, out of the six metro cities in India while Kolkata, Mumbai and Delhi, account for the remaining 30 per cent.

In the past four years, private sector has invested Rs 33,161 crore in three metros of South India compared to Rs 14,240 crore of infrastructure investments in other tier-I citiesr' According to the industry body, better state policies, availability of talent due to engineering and business institutes, high literacy rates, and faster rising per capita income in southern states, are the primary attraction for the private sector to pump their funds here. After infrastructure projects, SEZs attract the most funding in these cities. The investments in SEZ projects had the share of 36 per centin total private infrastructure investment.

An article about " Factors which affect Real Estate in India "

Factors which affect Real Estate in India

A number of small players have customarily dominated the Indian real estate sector and the levels of transparency have been low. There has been a limit on inflow of institutional capital in the sector which has used financing by high net-worth individuals as the main source of capital. As the country is being integrated with the world economy this situation has changed very fast as it is seeing much higher growth rates and genuinely enhanced quality expectations.

Some of the main qualities of the Indian real estate sector are as follows:

Having local know-how is crucial for its success in the phase of development. Local leaders have emerged out of the crucial nature of local know-how and relationships that ensure success and timely growth. Every development depends on many local clearances, e.g.municipal, water, electricity, corporation that needs robust relationships. The market is greatly disjointed and governed by regional players.

Speedy growth during the past decade has witnessed 'larger players' emerging who have distinguished themselves by superior execution and branding. They are operating in local or regional markets. For instance DLF and Uni tech in Delhi and Gurgaon as well as Hiranandani and Raheja in Mumbai have come up as leaders.

Residential development is financed mostly via mortgage loans as the majority of developers utilize mortgage money for their residential projects. Besides that the other chief source of finance is by large property brokers.

The sector has been encumbered by high transaction costs such as stamp duty which varies state wise. Poor liquidity in the market has been the consequence of these transaction costs. They have also caused important cash transactions to lessen the stamp duty burden that is high, being 9% in some states.

Although the unorganized sector makes up nearly 70% of the housing units built, organized players like large builders and government bodies are there mainly in the major metros and urban markets.

The chief segments of this sector consist of residential, commercial and retail. The hotel segment is looked upon as a part of the real estate sector sometimes. Here we are considering only the residential, commercial and retail segments.

The largest segment in the real estate sector is the residential segment and after it come commercial and then retail segments. It is estimated by industry sources that around 80% of the real estate sector is composed of the residential segment.

As the economy was liberalized the real estate sector in India became important. Increased business opportunities and migration of the labor force has also enhanced the demand for commercial and housing space particularly rentals. These developments are being impacted by developments in the hospitality and entertainment (hotels, resorts, cinema theatres) industries, economic services such as hospitals and information technology-enabled services such as call centers and the other way around.

An article about " AVOID CRACKS IN BUILDINGS "

AVOID CRACKS IN BUILDINGS

Often people complain of cracks on walls after plastering works. Plastering plays an important role in the construction of a building. Just as skin gives shape and texture to the body and protects it from the harmful environment, plaster protects the building from damage caused by salts, acid and rain in the external environment. It also makes the building look beautiful and attractive.

Defect free durable plaster, free from cracks or other defects can be achieved by diligently following the correct construction practices.

One of the reasons cited for cracks is lack of proper cement sand ratio. Normally, for outside plaster, the cement-sand ratio can be from 1:4 to 1:5, for internal plaster from 1:5 to 1:6 and for roof plaster from 1:3 to 1:4.

For better results, check that the mason uses a 1:4 rations mortar of cement and fine sand. For coarse sand, the ratio can be changed to 1:6. However 1:4 mixes is preferred for best results. Make sure that the mason has not prepared the mix all together for the whole day. The mix must be prepared only in small quantities so that it is used within an hour. If excess mortar is prepared, it dries up due to evaporation and remixing deteriorates strength and increases porosity.

The risk of crazing cracks may be minimized by the use of relatively weak mix for finishing coat, avoiding excessive proportion of very fine material in the finish coat and avoiding excessive toweling so as to prevent the excess of laitance drawing to the surface. A major precautionary measure to be under taken prior to plastering is remove loose mortar and grease from joints. All joints in the masonry should be raked out to a depth of a least 12 mm with a hooked tool made for the purpose while the mortar is still green and not later than 48 hours of the time of laying. Another important task is that the wall should be wetted for a few hours. The walls should not be soaked but only dampened evenly. Plastering on wet walls is seldom satisfactory because key is not formed between the plaster and the background surface. A good key is essential for successful rendering and for avoiding cracking and crazing. In an ideal state the background should be in saturated surface dry condition.

Addition of water should be carefully monitored. Excess water will cause shrinkage as well as low strength of plaster. Waterproof compounds if used should be uniformly dispersed and mixed properly.

When plastering is done in two coats, the first coat should be left rough and open from edge of the laying trowel and after it has been left long enough to set firm, the surface should be combed or scratched to form a key for the second coat. The first coat should be allowed to dry for three to five days before subsequent coats are applied.

Use a chicken wire mesh while plastering joints between the concrete work and brick-work. Plaster should be finished with a wood felt. A steel trowel shall not be used. Ensure continuous curing for 10 to 14 days. You may keep in mind that the need for repairs arises due to negligence, use of unsuitable materials and improper construction practices. Therefore, to save your buildings from cracking adopt proper construction practices.

An article about " Builders seek green ratings from international and national agencies "

Builders seek green ratings from international and national agencies

After years of haphazard development that has turned a lot of the metropolis town into Associate in Nursing ugliness for greens, developers square measure currently watching obtaining Associate in Nursing environmentally friendly tag for his or her comes. Associate in Nursing increasing range of developers square measure seeking inexperienced ratings from international and national agencies together with from the Indian Bureau of Energy potency (BEE) and also the US-based Leadership in Energy & Environmental style (LEED).

Green parameters are getting a feature of sprawling residential and business comes turning out in metropolis and also the suburbs. Be it water utilization plants, fresh water gathering, eco-friendly sun struck design, endemic trees or star lighting, developers square measure planning even residential buildings that promise to regulate the carbon footprint and reduce the adverse impact of greenhouse emission emissions.

According to Shri Vicky Oberoi of the Oberoi cluster if developers arrange comes beforehand, prices haven't got to rise. Most of their new comes have inexperienced norms and a few even have BEE ratings. The perception that eco-friendly comes square measure costlier could be a story. per him customers square measure still unaware concerning eco-friendly norms, therefore developers cannot sell flats supported this feature. Oberoi aforesaid that they're seeking LEED certification for 2 future residential comes in Goregaon, Exquisite and Commerz.

The under-construction 320- metre Palais Royale, slated to be one in all the tallest residential buildings in India, got pre-certification for the celebrated atomic number 78 rating from LEED in September 2009. this suggests the globe building can be after to own high-quality energy savings, water potency, C02 emission reduction and alternative options.

According to Shri Niranjan Hiranandani of Hiranandani Constructions Pvt. Ltd. in most of their residential comes they need initiated inexperienced norms which they need planted four large integer trees and water is recycled in their comes.

Abhishek Lodha, of the Lodha cluster, afore said they need enclosed inexperienced norms in residential comes in areas like Dombivili. Our entire complicated in Dombivili is lit with alternative energy. we have a tendency to even have battery back-up to store the therefore lar energy and even throughout the rains we have a tendency to use this facility, he said, adding that twenty five Lodha comes currently have inexperienced norms.

An article about " Your home loan and financier "

Your home loan and financier

Selecting a house to suit one's needs and taste is a difficult task. After moving into newly constructed or purchased house, residents complain of various shortcomings, and often feel that previous house was more convenient.

Choosing a suitable home financier is even more difficult, it requires lot of study of various schemes, interaction with the present borrowers. Market is flooded with financiers, offering different schemes supposed to suit borrowers' needs, glossy advertisement proclaiming to save a lot of interest as though financial institutions are charitable institutions doling out money for acquisition of house. The borrower needs to be very selective and careful while choosing the financier.

Your Banker

Generally every individual will have a bank account: and have personal relations with the bank. The bank having dealt with the account for many years will have adequate knowledge of financial position of its client and many a times will be a family friend.

Housing finance is of a long duration, generally with a minimum of 15 years and a maximum of 25 years. It is but natural to have ups and downs during their long period with fluctuation in income, may be owing to illness, expenditure on marriages, mishaps in the family leading to temporary cessation of payment of equated monthly installments. Your banker should be able to understand your difficulties and co-operate with you during those difficult days. With the enactment of SRAFESI Act, the banker may take possession of your house with a notice of 60 days and thereafter may sell it. So it is always preferable to choose your long time banker, for financing of acquisition of house, who will not resort to aggressive measures in the event of default/delay in repayment of loan.

Amount of loan

Many new era bankers sell their products, home loans by adopting aggressive methods and also lure you to borrow big loans, which in future may become difficult to service. Borrower's failure to repay the loan as agreed would be a boon to such bankers, who may take possession of the property and sell it and add various expenses to borrower's liability.

One should not always anticipate that income will regularly increase until retirement. Inflation frequently erodes savings. Prepare cash flow statements by taking into consideration the probable expenditure on providing education of children, marriages, illness and unforeseen expenditure. Correctly arrive at your wise surplus funds, portion of which may be directed towards equated monthly installments, based on which the loan amount may be arrived. Please avoid directing entire surplus to repayment. It is advisable to seek the help of financial consultants.

Repayment period

Though the loans are available within repayment period of25 years or more it is viable to repay the loan in 10 to 15 years so that interest burden is not too much. Repayments in five years or less may be feasible for small loans for a couple of lakhs. EM! for one lakh of rupees alone at 7.5% will be Rs. 2000/-. Do not stretch the repayment until retirement, but ensure that loan is closed at least a couple years before retirement. One should not expect that his terminal benefits to take care of repayment. Terminal benefits are meant for future unencumbered happy living. Choose step-up or step-down repayment depending upon your needs.

Interest rates

There are two different types of interest rates viz., floating and fixed. Some institutions offer different types of fixed rates, semi fixed, fixed for certain period, a combination of fixed and floating.

Floating rates are related to market condition and may increase or decrease. Fixed rates are supposed to be fixed for entire period of loans, but loan agreements of many financial institutions have conditions where fixed rates are also revised under certain circumstances.

Floating rates are preferable where the interest rates are going down and the repayment period is small.

Fixed rates have to be opted where interest rates are going up and repayment period is long. At present interest rates are at lowest, fixed rates are preferable.

Card Rates

Though financial institutions advertise their lending rates, the advertised rates are called card rates. But actual lending rates depend on the income of the borrower and his negotiating skills. This also is related to risk involved, higher the risk, lower the income, interest rates will be more. Many banks reduce their card rates in case of borrowers with good income and lower risk.

Documentation

Borrowers have very little choice in documentation. Each financier has his own set of documents and will be made available to the borrower at the last minute. They are predominantly one sided in favour of financiers. But borrowers should study each and every clause, conditions, and seek clarification wherever required. They should obtain a copy of all documents executed.

Uninvited Borrowers

Every financial institution has its own list of category of people to whom finance is advanced. It is based on the experience of the institution, and category of people whose income is not assured, litigant minded people and the people who may influence the repayment. Politicians, advocates, film and TV. artists, Journalists, Police, are among a few who are on negative list. Such borrowers may approach their regular bankers.

Direct Selling Agents

Of recent times, direct selling agents are very active in the field. They are just agents of the financial institution to procure business. They have a sweet tongue, work for commission and will be in touch with you, until the loan is disbursed. You cannot get any service from them once your loan is sanctioned by the bank. The borrower should develop personal rapport with manager of the financial institution to have better after sales service.

An article about " Search Report in property transactions "

Search Report in property transactions

Investing in land and buildings require huge sums of money. Therefore, every purchaser of immovable property has to be very careful and take all precautions to protect his interest and to make doubly sure that the vendor has good and marketable title and the property is free from encumbrance.

There are various documents which would provide vital information as to whether a property in question is free from encumbrance and the vendor has good and marketable title. Upon going through these public documents available in the Sub-registrar's office, search reports are prepared and such search reports contain information as to whether the property in question is encumbered or not and the vendor possesses a clear and marketable title or not. Search reports are prepared by advocates upon verification and confirmation from the concerned authorities as to genuineness of the documents.

Search report gives a summary of the ownership details of a property and changes in ownership that have occurred from time to time including existing or not of any charge or encumbrance over the property. The search report discloses if there is any existing mortgage, litigation, or claim which may adversely affect the title of the property. Search reports are prepared upon verification of the property documents for the last 30 years. It would be in the interest of the buyers that they insist on production of search report before executing the 'agreement to sell' with the property developers or with the owners of the property.

The search report does not display the defects in the title to the property or any transactions that have not been recorded in the Sub registrar's office. If any document is not registered with the sub-registrar's office it cannot be mentioned in the search report.

Commercial banks do insist on production of search report before granting any advance or loan for purchase of any property. For availing a housing loan from a banking institution, it is a pre-requirement that the title of the property of the present owner should be clear and marketable. Usually banks do not finance any encumbered property or if the property is under legal dispute, as it would reduce their security and increase their exposure to risk. This means the seller should be genuine and the actual owner of the property. The property should not be under any dispute or litigation. The charges for search report is nominal and is included in theprocessing and administration charges by the bank to sanction and disburse the loan.

This process of obtaining the search report gives security to the buyer. It assures the purchaser that the title of the property which he plans to buy is good and there won't be any problems at a later stage because of any pre-existing charges, encumbrances or legal contentions on the property.

An article about " SLASH GUIDE LINES VALUE "

SLASH GUIDE LINES VALUE

Guide Lines Value are the estimated minimum value fixed by the Government for a property In a specified area for purposes of registration of sale deed on which stamp duty and registration charges are payable. These are the values fixed by the Department of Registration & Stamps for purposes of registration of documents. It is needless to say that the guidelines value would vary from one area to another. This is also different from the prevailing market value of the property.

If the purchase value of a property is more than the guide lines value, the stamp duty and registration charges are to be paid on the purchase value. The guidelines value would change as and when the value of properties would go up or down at the discretion of the Government. The present guidelines value in Karnataka has been force with effect from 19- April, 2007.

Vicious circle

When the Government increases the guide lines value, the price of properties begins to soar, when the market value increases, the government enhances the guide lines value and thereby the guide line value and the market value are trying to catch each other in the race.

For many owning a house has become a day dream in view of high cost of land and buildings and with the reduction of their purchasing power due to under- employment and unemployment. At the same time, the property developers are finding it difficult to get buyers for their properties despite their voluntary reduction in the value of properties due to market crash on account of global recession. The rise and fall of rates are natural phenomena in any business and the Government should allow sector to have its natural course of settlement.

Social obligation

Government has a social obligation to cater to the housing needs of the public. Such affordable houses need not be small hutment, but should at least have minimum requirements like bedroom, kitchen, toilet, hall etc, with sufficient ventilation. By frequent abnormal increase in Guide lines value, the poor and the middle class people are finding it difficult to purchase the houses. Real estate investment is becoming the exclusive domain of rich and influential. The government has a duty to not to fuel the price rise. The Government itself is subverting its social obligations.

Stamp duty and Registration Charges

Stamp duty and registration charges are very high in Karnataka. As and when the guidelinesvalue increases, payment of stamp duty and registration charges also increases and thereby there is an additional burden on the purchaser of a property. Apart from these charges, the purchaser has to pay sales tax, service tax and charges for transfer of Khatha, power and water connection deposits, etc., and whereas the seller has to pay capital gains tax' in respect of the gain he made in the sale transaction.

Formation of black money

Due to the increase in stamp duty and registration charges naturally, the parties to a sale transaction prefer to disclose the deflated value of the property in the conveyance deed and avoid payment of higher stamp duty and registration charges. This, in turn, has lead to accumulation and circulation of black money in the country. Some people may even opt for holding the property by way of General Power of Attorney and by executing an affidavit declaring delivery of possession of the property to the purchaser. Through this method, the people avoid execution and registration of sale document which in turn leads to reduction in the collection of revenue to the State exchequer. State Government should adopt the well established principle that lower the stamp duty and registration charges higher the revenue collection for the State exchequer.

With the increase in the rate of the Guide lines value of a property in a particular locality, the property owner's liability of municipal tax also goes up and thereby an additional burden is cast on the citizen. Home loans Banks and Financial institutions were very liberal in extending home loans till recently.

Providing housing loan to people was considered as a national cause in fulfillment of the obligation of providing shelter to a large number of people. However, the quantum of housing loan granted to the borrowers would depend upon their repaying capacity. As the price of the properties increase on account of revised guideline values, the borrowers of housing loan may require higher amounts to purchase the properties and their regular income do not match with the requirement of the bank and thereby the borrowers have to curtail their actual housing requirement and may have to be content with a small or substandard property.

Capital Gains

The tax on profit earned on transfer of an immovable property has to be paid by the seller. It may be kept in mind that if the value of the property disclosed in the sale deed is lesser than the guide lines value, capital gains tax is payable on the basis of guide lines value. In some cases, the market value of the property is less than guide lines value and the seller may incur loss. Even in such cases, the guide lines value will be taken as the basis for calculating the capital gains tax and the seller has to pay the tax accordingly. In cases where the declared value of a property in the sale deed is more than the guide lines value, the declared value shall be taken as the basis for calculating the capital gains tax.

User friendly measures

The general public has no clear cut guidelines as to the documents which are required to be submitted at the time of registration along with the sale deed. This should be made known to the public by giving wide publicity through and electronic media. Not only may this, the address, telephone number of the sub-registrar offices and their jurisdiction be displayed at prominent public places for information of the public. The Government should implement user friendly measures; reduce the stamp duty and registration charges to come within the reach of poor and middle class. Introduction of the online registration system will also be useful to the public.

Since there is global recession presently, the State Governments should fall in line with the property developers and commercial banks and without delay reduce the guidelines value which were fixed. when the property values were at their peak since there is considerable slash in the value of properties and the property developers are offering discounts and free-bees to market their unsold properties while at the same time the purchasing power of the people has come down. When all the concerned are trying to lift the real estate sector from collapse, the State Governments' delaying in reducing the guidelines value is unfair and can be termed as a failure of social obligation cast on them.