Wednesday, 23 July 2014

An article about " HOW TO SELECT THE PROPERTY "


how-to-select-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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.

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