Mal-practice in EC

On applying for the Encumbrance certificate, the mid men intentionally change the directions of the boundary. By this, the EC may reveal that NO transaction had been done on the property. Actually, the property might be already sold or encumbered and the cheater may try to sell it hiding the fact.

Scrutinising of documents of larger layouts

The general power of attorney documents are terminable on death of the executant and the property shall devolve as per the procedure laid down in the Succession Act

ULC Act Lands

The lands attracted by any provisions of Urban land ceiling Act might have originally been owned by individual and transferred to other persons. The transfer shall be reflected in Encumbrance certificate. By quoting the reflection, somebody may try to sell. The property consultant must satisfy himself about the type of land with the public records and its marketability.

Unapproved plots

The property consultant may ensure that there is no bar on registration of sale of unapproved residential plots, and guide his clients accordingly

Approved plots

The solicitor is requested to see the usage of  land and to check whether the bar,  if any laid over the usage of land as residential, is lifted and saleable now as residential.

Ready built house

The purchasers' solicitors must insist to prepare one combined and comprehensive agreement and make all the responsibilities lie with the builders or vendor himself This shall reduce or prevent the ill effect of deviation.

Flats and Apartments

The purchaser’s consultant to explore the possibilities of cheating, preventing it and guide the clients to get extreme comfortness while enjoying the property and insist the developer to reveal the following in the agreement or other documents:

       ☻  Common area and its extents, particularly the OTS
       ☻  Car park in a schedule.
       ☻  Septic tank, Water tank capacity
       ☻  Electric facility, its detailed specification
       ☻  Finishing type and specification

Transactions through Power agents

The validity and currency of the general power of attorney is to be ensured.

Transactions through Specific Power agents

For some properties, an agent may be appointed and empowered to exercise limited activities only. In these cases, the agent is not entitled to effect any sale or encumbrance of the property. As an Advocate, find these discrepancies and guide the clients suitably.

Transactions through Agreement holder

There are possibilities for cancellation of agreement for any reason. Hiding the fact the realtors may try to sell the property and may get the money in advance.

Drafting is an art and science which includes law, effect and language and shall have a well established architecture to define and convey the system. It requires skill of solicitor. 
The recital shall start from the root document of the title and reflect all transactions which affects the ownership.

A property business man acts as both purchaser and seller and also developer. Hence he has to be keen on all the activities as the liabilities are more. To keep in mind, he has certain duties and liabilities to observe to ensure ethical and undisputed sale of property.  These duties are very simple, normally we follow naturally, but even a slight deviation may welcome a great dispute and the allied mental unrest ness. While working in joint venture, his obligations are more. Here are some tips:

       ☻  Your expectation, your responsibility, obligations, etc
       ☻  The appurtenant facilities, its specification, schedule of rates, etc
       ☻  Get authorization to include covenant by the owner in the sale deed
       ☻  While constructing, don’t give room for ambiguity in common facilities, car park, etc
       ☻  Service tax: The promoter is liable for service tax

Joint Venture

While doing this type of venture, many problems and disputes may arise mainly due to misapprehension of facts. The land owners may not have business experience whereas the business men, not only realtors, have to change their decisions frequently according to the need and trend of the market. The owners may not like this type of habit and think that the realtor provocates the things and hence naturally misunderstanding develops and some times may lead to disputes. Hence it is advised to have a frank and open talk and clear views on every party’s duty and rights.

Here in joint venture, the land owner is selling the Un-Divided Share (UDS) of his plot/ land to the purchaser and put him in possession. The purchasers are nominated by the promoter and hence the land owner does not get any money from purchaser or promoter and after this transaction, the purchaser becomes the absolute owner of UDS of plot. In this situation, if the project of construction by joint venture fails or any purchaser fails to cope up with the agreed payment term, the land owner shall be the looser. In the sale deed also, no claim or charge can be created as it is not permitted by Transfer of property Act. To avoid this situation, evolution of concept of joint venture and the details on the roles, duties, responsibilities, obligations and limitations of all the parties concerned (land owner, promoter, purchaser, registering official, bank official, etc) are to be clearly discussed and written in the JV agreement itself and to be reflected in all the further and consequent documents and deeds wherever necessary.

The sale deed by the land owner also to be executed stating that the UDS of the land is transferred to the buyer on promise by the promoter implying that he has not received the amount of sale consideration and this shall be called as part performance.

Property crimes, cheating, offences have emerged in an extra ordinary degree with exponential rise of land price and euphoria of last three years, offences raised upto cheating the bank officials for getting property loan.

All these show that Bank officers are working under tension of target leading to inadequate verification of title deeds and related documents and cut shorting the detailed procedure of loan sanctioning resulting in disbursal of loan to wrong hands. This behavior of bankers helped the cheaters to a considerable degree to cheat the banks unethically resulting in huge loss to the banks and arresting of bank officers.

To avoid these types of cheatings, here are a few general tips:

       ☻   Follow the detailed procedure on disbursal of loan do not short it
       ☻   Verify the stamp vendor’s endorsement
       ☻   Compare the stamp duty with property
       ☻   Verify the Date, time and place of execution and registration with the SRO
       ☻   Confirm  the reflection of documents in the encumbrance certificate
       ☻   Verify the details of witnesses, both attesting and identifying.

If you are an owner of property (particularly vacant plot) decided to retain and not to sell, we give you a few tips to maintain your property and to prevent from encroachers.

To avoid these problems, erect any building there or put a sign board

If you are a having a property, decided to sell and try for the same. Please keep in your mind that you have certain duties and liabilities to observe to ensure ethical and undisputed sale of property.  These duties are very simple but even a slight deviation may welcome a great dispute and the allied mental unrest. Particularly when you are trying to sell through any un-organised realtors you have to be very careful, here are the few tips to guide you.

       ☻   Clearly tell about your property, responsibility, obligations and payment terms
       ☻   If you are not a regular seller describe the reasons for sale
       ☻   Clearly mention the obligations of property buyer
       ☻   If a portion alone is to be sold, indicate your requirements after sales, the area to be sold and not being sold. Many cases, of this                    type, came to us for conciliation
       ☻   While appointing a third party as your attorney, study his character and appoint.
       ☻   While appointing the agent, declare covenant clauses in the power of attorney deed
       ☻   Produce the documents related to the purchaser’s solicitor as it is duty under ToP Act         

The ownership and management of immovable property by non- resident are regulated by Reserve Bank of India [RBI]. Under the powers conferred by the Foreign Exchange Management Act 1999 FEMA, the RBI framed the FEM (Acquisition and Transfer of immovable property in India) Regulations 2000. The Foreign Exchange Regulation Act 1973 FERA also regulates the transactions.

Non Resident Indians

NRI holding Indian passport do not require permission and can purchase any number of  properties for his bonafide residential usage, other than agricultural property in India. He does not require permission to transfer to resident Indian.

NRI holding foreign passport or Foreign citizens of Indian origin have to declare the transactions to RBI within 90 days. He has to get permission from RBI to sell a property and buy a new one from the sale proceeds or out of funds from NRO account. He does not require any permission to transfer any property, other than agricultural, to any NRI.

Letting out