An Article About "BROCHURES AS A PART OF THE AGREEMENT"

Real Estate Reporter Monthly magazine of property matter

The Bombay High Court ruling treating brochures as a part of the Agreement will bring in greater transparency in the real estate industry, reports Yogesh Sadhwani.

Developers who over-promise and under-deliver better beware.  According to a recent Bombay High Court ruling developers will now have to actually deliver on all the fancy promises they make in their marketing literature.

In his land mark judgment passed on March 16, Justice K.J. Rohee of the Bombay High Court ruled that though the brochure printed and circulated by a developer was not part of the agreement, but can be so treated Justice Rhohee was hearing two petitions one filed by the residents of Maduvihar Co-operative Housing Society (CHS) against the developers, M/s. Jayantilala Investments and BMC and another filed by the developers against the residents.  Both the cases dealt with construction of an additional building on the plot that was earlier depicted as open space and recreations area in the brochures.

While the residents contended that the additional building couldn’t come up on the plot as it was shown as open space in the brochures while selling flats in Madhuvihar, the developers said that they were within their rights to do so.

After hearing both the sides, Justice Rohee passed the Judgment in favour ofresidents.  He not only asked the developers to convey the entire property in favour of the housing society but also restrained them from constructing anything on the vacant plot.  The vacant space depicted by the developers in the brochures played a vital role.

The buyers have lauded this Judgment, while the developers say that only a small section of players who do not believe in delivering what they promise will be affected.

Advocate and Consumer activist Hemang Jariwala says, “While booking the flat, the buyers are show a rosy picture,.  It is only when they sign the agreement, by which time they have paid a huge chunk of the consideration, they come to know that several amenities shown in the brochure has been deleted.  A buyer has no way to back out.  With the HC Judgment, however, the developers will no longer be able to take unsuspecting buyers for a ride.”

Thereal estate players, however, point out that only a handful of developers would be affected by the judgment. “Many time brochures are not indicative or reflective of the reality.  This would affect only a few people.  I don’t think the majority will be affected,” says Nirajna Hiranandani, MD, Hiranandani Constructions Pvt. Ltd.

Mukesh Patel, Knowledge Worker, Neelkanth Group says, “Whether it is a promise made in a brochure or an agreement,, a commitment is commitment and all reputed developers would live by them.  But at the same there should be some flexibility, especially in terms of large layouts.”

Other believes that alterations in plans are not done deliberately. “The reason why most alterations take place is because there are changes in the FSI norms and the developers obviously want to maximise their profits.

There are times when the developers have to alter the designs of the originallyplanned buildings to cater to certain class of people. In such cases if there is additional FSI left, they construct more later,” justifies Suresh Haware, Haware Engineers and Developers Pvt. Ltd.  He quickly adds that a handful of developers however, however, blatantly abuse the trust that the buyers repose in them.

Haware says that any sensible developer who is conscious of his image and wants to remain in business, will never deviate drastically from his initial plans or break his promise.  “It is only a few who have tarnished the image of the community”, he says.

Similarly Savio D’Mello, Group Head of Ekta Supreme Housing, points out that brochures are printed on the basis of visual effect.  “The exact dimensions are never mentioned.  Moreover, all depends on sanctions from the civic body.  All genuine developers deliver what they promise and at the same time keep their own profitability in mind,” he says.

All the developers, however, admit from now on even the reputed ones, who never intend to dupe the buyers will have to exercise extra caution while designing brochures.  Giving real estate anindustry status and designing a code of conduct is another way to put an end to such problems and bring in greater transparency, concludes Haware.

Fraudulent builders soon to be blacklisted

The residents of the western suburbs in Mumbai have come forward to help the State Government in black listing the builders who have cheated citizens under the guise of providing houses under the Slum Rehabilitation Authority or SRA Scheme. The residents from Vile Parle, Santacruz and Andheri Station to the Governor S.M. Krishna’s bungalow at Malabar Hill on April 3.  Though this yatra which will traverse 25 km, the residents want the entire city to know about the builders who have cheated them by making fake promises.

Mr. Asmitbhai Muchala, a resident of Gilbert Hill said, “We have come to know through the media that the Chief Minister during the State Assembly session has said that the builders who have cheated the tenants under SRA scheme will be blacklisted.  Taking a cue from this, we have gathered residents who have been cheated by the builders and have planned to take out a rath yatra.  We want to make people aware of the fraudulent behavior of the builders in the city.

Ms. Saira Patel, a resident of Andheri said, “For the past ten years, Srirang builders had promised me and other 100 residents proper housing under the SRA scheme, but there is yet no sign of any building coming upon the plot at Andheri.” She also said, “Our complaints went unheard in the past but this time we will take out a yatra and will present a memorandum to the Governor.  We will also demand a thorough inquiry against the errant builders.”

Mr. Kantilal Maniyar, a resident of Santacruz blamed K.K. Developers of paying more attention to his private constructions which are ready for sale rather than completing SRA 

more details

Legal Query,

Bangalore property matter,

An Article About "VALID TRANSFER OF PROPERTY RIGHTS"

Real Estate Reporter Monthly magazine of property matter

Marketability of Title is the condition, precedent to sale of any immovable property. Under Section 55(1) (a) of the Transfer of Property Act, the seller is bound to disclose any material defect in the property or title and to produce all the documents of title to answer the requisitions on title made by the purchaser. Under Section 55(2) of the aforesaid Act, the Vendor is deemed to warranty the title or the right to sell.

Marketable Title

The statutory covenant of title is implied in every contract for sale of an immovable property, even if there is no express clause embodying such a warranty. The term “Marketable Title” refers to the absolute right, title, interest and ownership of the Vendor to convey the propertywithout any hindrance. In other words, the title is considered to be marketable, if the same is free from encumbrances and claims, beyond reasonable doubts. Thus, if there is any encumbrance or claim and the vendor does not discharge it, the title cannot be said as marketable. In fact, Section 55(1)(g) of the Transfer of Property Act envisages that if the property is sold subject to any encumbrances or claims, it should be clearly stated and the Vendor shall be under obligation to discharge any such encumbrances existing at the time of sale on the property. On the other hand, if any encumbrance is found to exist and the same is not revealed before completion of sale, the Vendor is bound to indemnify the purchaser in that behalf. Primary duty lies on the person intending to sell the property to prove that the title of the property is free from any defects and any subsequent transfer will not make such transaction either void or voidable.

For example, if the vendor owns a property as Karta of the Joint Hindu Family in which minor’s rights and interests are involved, the Karta is bound to prove the legal necessity for sale or to obtain an order from the competent Court seeking permission for sale of the property on behalf of the minors.

Restrictions on title

Implied warranty of title on the part of the Vendor, although absolute, will not however apply to the cases where there is a clear contract between the parties to the contrary. Such a contract can be either express or implied, but the contract must be such as would clearly negative the warranty of title. Thus, certain restrictions are imposed on the purchaser’s right to examine the title in full, which is done when the Vendor is not sure of making out a marketable title, particularly when the Vendor is not in possession of the property.

Though, the restrictions may be contrary to the provisions under Section 55 of the Transfer of Property Act, the same will be binding on both the parties by virtue of mutual agreement and understandings and even if defect is found in the title subsequently, objections in this regard cannot be raised due to such restrictions.

Where the Vendor stipulated that, the property would beconveyed as the same received from the predecessor or the title of the Vendor has to be accepted without dispute or it should not be enquired into and the Purchaser is bound to accept the title of the Vendor as it appears to be, such a stipulation would be contract to the contrary and Section 55(1) (c) and (2) of the Transfer of property Act will not apply. Further, such a condition will not relieve the Vendor from the obligation of making out the best title though the purchaser would be bound by such condition even if the title is proved defective. However, in absence of such a contract to the contrary, the Vendor is bound to remove all the defects even if the purchaser was aware of the same. Again an express covenant does not, in clear and unambiguous terms, supersede the implied covenant. Thus, by virtue of Section 55(2) of the Transfer of Property Act, the purchaser can rest the claim on the implied covenant of title contained therein.

Conditions restricting the title or proof of title to which the purchaser is entitled must neither state nor suggest things which, to the Vendor’s knowledge, are incorrect. The condition will not be binding if it requires the purchaser to assume such things which the vendor knows to be false or it affirms that the state of title is not accurately known to the vendor when, in fact, it is known.

Production and Scrutiny of Title Deeds

In order to examine the title of the Vendor, the purchaser has to examine all the relevant title deeds in the possession or power of the Vendor. Under Section 55(1)(b) of Transfer of Property Act, the Vendor is under an obligation to produce not only those documents in his possession but also in his power to produce. Thus, if the Vendor has deposited the title deeds with a mortgagee, the Vendor has to produce such documents for inspection to the purchaser through mortgagee. However, the Vendor is not under obligation to produce irrelevant documents not in his possession or power but it is the discretion of the purchaser to inspect the same at the cost of the purchaser. It is only after production of all the relevant title deeds and assistance from advocates having sufficient experience in scrutiny of the title documents, the purchaser will be able to conclude whether the Vendor has got marketable title or not.

When the property market is favorable to the Vendor, the Vendor, many a times, dictates the terms and tries to foist a title on the purchaser. Under any contract of transfer, fundamental principles of Transfer of Property Act must be strictly adhered by the parties without letting out either of the parties to escape from their respective obligations, which will reduce litigations and ensure transfer of marketable title from the vendor to the purchaser free from encumbrances, liens, claims, etc. When a faulty title is passed on to the purchaser, it is bound to result in the spate of claims and litigations.

Purchasing the property involves various steps such as scrutiny of title deeds, verification ofdocuments, examination of Agreement to sell, mode of payment as agreed between the Vendor and the Purchaser and transfer of ownership and title will be transferred in the name of the Purchaser by way of executing a Sale Deed. It is not advisable to purchase a property hastily by approaching the brokers and subsequently entangling yourselves into litigations in case of defective title. Ownership and right over the property has to be passed in compliance of the provisions envisaged under law for which service of the Advocates having sufficient experience and knowledge about property transactions is necessary in order to avoid litigations that may likely arise in future.          

An Article About "Uses of Copper"

Real Estate Reporter Monthly magazine of property matter 

Copper, the soft reddish-brown metal, finds wide application in various fields. Having an universal appeal, it has become an integral part of our everyday living. For the urban residents of India, owning a house is a lifetime dream and investment. For this reason, much planning is done, giving lot of importance to quality construction. The basic parameters for that are internal and external cosmetic appearances. The term quality, in a broader sense in the construction industry is determined only if all the criteria governing the building of that structure withstands the test of time. A building has both dynamic forces and static forces. The only two dynamic forces are the electricity and water, while all the rest of the material is static. This proves and emphasizes the point that electrical installation and plumbing are the most salient requisites for enhancement of the life of the structure.

Using Copper

With continuously increasing construction activities in the country, we are witnessing building up of apartments, malls, multiplexes and hospitals. The electrical safety awareness is extremely important.  Being public buildings, the risk to life and property of citizens is very high.  Using copper for safety should become the watchword for further aspects of safety to life, for homes and to property.

Electrolytic grade copper wiring which is of 99.9% purity is the only assurance of safety from hazardous short circuits and electric fires. Bangalore becoming a mega city, it is imperative that all safety measures are followed. New constructions and buildings must have quality copper wiring for a safe future. Copper has higher conductivity, lesser resistivity, is corrosion resistant, has a higher melting point and is more flexible than aluminium.  The conductivity of copper is about 40% more than that of aluminium. This shows that, copper has higher short circuit capacity as it can withstand overloads, therefore increasing the conductor life. In this way, the danger of fire hazard is greatly reduced.

Copper is used at homes not only for wires and cables but also as water carrying pipes. Copper plumbing is the most proven plumbing system in the world. The usage of copper dates back to over 5000 years.

Even though the initial cost is marginally higher, copper plumbing system has many unique benefits such as leak proof jointing and corrosion resistance which ensures a maintenance-free system. This actually means there are no repair costs for replacing leaking parts, repairing broken tiles, etc for the entire life of the plumbing system.  Unlike the conventional plumbing that does not last more than 15 years, the copper plumbing system has a life of over 60 years. Going for copper plumbing is definitely a wise and price-value proposition.

Leakages

In the conventional plumbing, leakages occur mainly due to the threaded joints and corrosion. With the copper plumbing's soldering process, which is fast and simple, both these problems are solved. As copper has superior strength, copper plumbing can withstand higher pressures without springing leaks.  In most of the developed Nations, copper plumbing has a high market share due to its unique features. Due to its negligible co-efficient of linear expansion and ability to withstand high temperatures, it is widely used in hot water systems. Copper pipes arrest the growth of the E. Coli bacteria, present in pipe water.

Indian homes traditionally were using copper utensils. They were aware of its medicinal value. The Vedas mention the enrichment of potable water preserved in copper pot. The Tamba-kata market in the country has been doing fairly good business because of the ethnic image of copper utensils now becoming favourites as decorative pieces among upper / middle class and fashionable hotels. Copper articles are seen at the hotels like Le Meridian, Chennai and Mumbai, Hotel Oberoi in Delhi, Taj in Bangalore, Maratha Sheraton in Mumbai, Fort Aguada in Goa, Hotel Leela, Orchid, Grand Hyatt etc.,

The International copper promotion council [India] has been pressing for copper as replacement for stainless steel in surgical equipments. Copper is the only metal which should be used in surgical applications where the chances for equipment attracting infection are more. The use of copper may prevent bacteria from dwelling on equipment and through that, entering the body.  The council is also promoting the use of copper in air conditioners, structured wiring, green building and wiring in railway coaches and also on curbing the used recycled copper in electrical applications.

Copper  Wiring  the  Best  Option

Using copper cables, wires and pipes for electrical and plumbing purposes has many added advantages.

The material copper has got many inherent and better properties than aluminium.  The main reason for opting for aluminium wiring is its comparatively lower price.

In most of the high-end projects, copper cables and wires are used. Bench marking of amenities are apparent in the branded construction houses projects. There is no compromise in quality. Among all metals copper and aluminium are used as conductor materials in cables including house wiring cables.

In India, the housing sector is making rapid strides and along with it, demand for house wiring cables in increasing. Many projects utilize copper cables and wires for copper has numerous advantageous properties. Copper has higher conductivity, lesser resistivity, is resistant to corrosion, has a higher melting point and is more flexible that aluminium.

The conductivity of copper is about 40 percent more than that of aluminium. This naturally implies that copper has higher short circuit capacity as it has got the power to withstand heavy overloads, thereby increasing the conductor life.  Due to this, the danger of fire hazard is greatly reduced.

Copper has dominated not only the domain of wires and cables, but also the water-carrying pipes are preferred in copper only. Many are opting for copper pipes and fittings instead of the conventional GI and PVC plumbing materials. Copper, comparatively lower in cost to the other metals, is now extensively used in kitchens, for bathroom fittings, and external water and drainage pipes.

Because of the non-corrosive and long-lasting nature of copper, leakage is impossible in buildings if the concealed fittings are of copper.  Biological researches have proved that copper in plumbing arrests both bacterial and fungal growth. Copper pipes and fittings could be selected from a wide range of sizes. They are available with protective plastic finishes or nickel, chromium, silver

more details

Bangalore property matter,

Monthly magazine

An Article About"Office functioning from home"

Real Estate Reporter Monthly magazine of property matter

The trend of fixed working hours, a regular working place and monotonous routine has become the thing of the past.  Nowadays, the prime aim being efficient and fast completion of the projects on hand, it becomes immaterial from where the work is done. Though not in all centres, some private concerns has offered this option to its employees of working from their homes. Many people of different professions prefer to work from home these days. It is possible to maintain a professional decor atone's home. Though the wonderful concept might have its origin from western countries, it has become a common occurrence in India. Long before also we have witnessed the front verandah of the home invariably transformed into a shop or office from where one conducted one's day-to-day activities, while simultaneously enjoying the satisfaction and comfort of spending the working hours at Home.

Today working from home is not restricted to just one section of the business class. Anyone and every one of varieties of professions from the corporate employees to lawyers to teachers to tailors carry on their daily business from home. Therefore, it is of vital importance for homes with such working people, to have exclusive office areas so that their private domestic world does not clash with the special demands of professional lives.

Work  Area

If the own individual house or flat is being built, then one of the front corner rooms along with an attached bathroom could be assigned as the work zone. If the room has large windows it will cut down the cost of the electricity bills as the windows will let in natural light and air for most of the day.

The entrance door of this room can be fixed in the outer wall of the house or it could open into the verandah of the home for increased security.

If by chance there is no other option except to use the already existing premises, then the following few alterations could be made.

   

Decor

It is best to avoid expensive artefacts or articles that have sentimental value as decor items in office rooms as it could be very upsetting when they are damaged inadvertently by a stranger. The number of lucky charms pictures or idols of Gods or holy sages and sayings that are framed could be limited, so that it need not resemble a puja room. If the décor of the room adds to the functional value then it will appear more meaningful.

The furnishings of this room should be removed from the decor of the rest of the home in terms of the colors of the walls, the carpet, the furniture andcurtains to give it that official look. For easy cleaning and regular maintenance in the long run it will be best to keep each of them simple and at the same time made up of sturdy material.

One of the walls of the room could be adorned with huge notice board on which the motto, inspirational pictures and sayings, copies of deadlines, reminders, notes or instructions to an assistant and a list of things that need to be attended to immediately, all could be displayed.

But it should be seen that the notice board does not look shabby or cluttered. Some interesting information, greeting cards sent by clients or partners or a funny joke or picture from time to time could be pinned up to attract the attention of even regular clients to the board.

If some space is available, a tiny notice board can be put up with necessary information like timings, nature of work carried out among other things.

If the room does not have in-built shelves, a couple of ready-made ones to stock the files, samples and records could be bought from the market. A water cooler or a filter in the room will take care of the thirst of the clients. If the room is large enough a single sofa or divan can be placed along with a coffee table besides housing an office table and a couple of chairs.  A flower vase with fresh flowers or some healthy indoor potted plants will add that lively green touch to the room.  A clock and calendar in the room can help in keeping track of time.

To have a perfect professional look it should be seen that the room is not cluttered with stocks or household items. The premises being small should always be kept clean.

All these arrangements will give the clients a feel of professional set up while at the same time giving the inmates of the home a sense of privacy and security. This will give job satisfaction, tension free atmosphere along with the Home comfort.

more details

Real estate news,

Legal Articles