October 27, 2009 by atoneplace
Question asked by Mr. Siddharth from Mumbai, India:
Hi, I need your guidance.
I had booked a flat 2.5 years back from a reputed builder in Mumbai. Even though I have already paid all the amounts as agreed and mentioned in the registration document, the builder is not giving possession of the flat. He wants additional Rs.15000 which is a new demand from him (since May, 2008) and not a part of the registration document, even the demand note from him that I got in April 08 had any mention about it.
I have been writing letters to him for last 4 months but he doesn’t reply and their sales office says that whatever you do, you have to pay this amount without which you won’t get the possession. Those who paid that amount, they got the possession in May, 2008 itself.
My point is that I have paid everything that was part of registration document. How can you hold the possession for something which is not a legal demand? If this demand of Rs. 15000 is legal, please give this to me in writing that you won’t give possession till I pay this money. They refuse to reply to my letters in writing and also refuse to give the possession.
I am already incurring almost Rs. 35000 as interest cost per month on the flat amount. With every passing day, I am incurring additional cost but at the same time, I don’t want to agree to his unreasonable demands. I am mentally harassed as well as financially losing the money.
He doesn’t give the possession date in writing. Even in registration document, he had forced me to sign even without a possession date. I understand he did that to everyone. His point was that sign or else cancel your booking, choice is yours. I had already spend more than Rs. 5.0 Lakhs in booking this flat in 2005 itself and had lost more than 1 years because his building got stuck in environmental clearance after 26th July 2006 rain in Mumbai. So, after waiting for 1 year, I didn’t want to cancel the booking.
What is the recourse I have? I will certainly go to Consumer Court but settling the case will take more than a year or so and there is no guarantee that I will get the justice and win the case. Till that time, I can’t afford to lose the money on my flat.
Can I pay the money that he is demanding and take the possession of the flat and then file a case in Consumer forum? What should be the process? I know, if I file a complaint/case first, he won’t give me the possession at all till the case is heard & closed. In the process I may lose more than even 1 year, knowing the judiciary system of our country for a common man.
Please advice. I will be highly obliged.
Best regards,
Siddharth
Posted in Builder, Compensation, Consumer court, India, Indian Property, Indian Real Estate, Jurisdiction, Mumbai, New Construction, Possession, Property Registration, Real Estate, Real estate legal india atOnePlace.com, Registration, Residential Property, Sale Deed, Sale of Properties, citizen of India, legal | Tagged Builder, Consumer court, consumer forum, environmental clearance, flat, harassment, Indian Property, Indian Real Estate, Mumbai, property possession, Property Registration | Leave a Comment »
October 27, 2009 by atoneplace
Question asked by Mr. Vivek from USA:
Hello Vatsala,
This is Vivek from USA. I had a question regarding property registration in Bangalore city. One of my relative has a property in Bangalore. We are jointly constructing the house.
a. what is the best way to register the part of the property in my name?
b. If a building is half constructed, can such property be registered?
Thanks in advance,
Regards,
Vivek
Posted in Bangalore, Construction, India, Indian Property, Indian Real Estate, Karnataka, Khata, New Construction, Property Registration, Real Estate, Real estate legal india atOnePlace.com, Registration, Residential Property, Sale Deed, banglore | Tagged Bangalore, Indian Property, Indian Real Estate, joint owner, khata transfer, Property Registration, Residential Property, Sale Deed, title | Leave a Comment »
October 27, 2009 by atoneplace
Question asked by Narayan Aras from Karnataka, India:
BACKGROUND:
Our nearly 3 years old apartment is registered under Karnataka Apartments Ownership Act, 1972.
(available here: http://www.karnataka.gov.in/dpal/pdf_files%5CAPARTMENT%20OWNERSHIP%20ACT,%201972-new-9.pdf)
(hereinafter, called KAOA in short)
All our expenses are shared through (a) interest on the corpus collected by the builder, and (b) monthly contribution. (The interest on corpus pays for 40% of the total monthly requirement.)
PROBLEM:
Some owners are not paying their monthly dues for more than 3 months.
Because of the corpus, this amounts to non-payment of 60% of the monthly dues.
CAUSE:
There is no reason for the non-payment, as explained below:
We provide the following opportunities for anyone to raise objections about budget, accounting or management:
• We have weekly association meetings and the annual AGM.
• Our monthly financial statement is published in the Yahoo Group, for all to see and comment.
• Even the petty cash account is kept open for scrutiny in the office.
The defaulters have not used any of these mechanisms to express their objections.
Our accounts are subjected to annual audit; which have not attracted any adverse comments.
Thus the defaulters have no possible reason for withholding the payment.
They have not replied to any of the public notices, emails or Yahoo Groups posts urging them to pay up.
Our estate manager has personally visited them to get the dues, but they have not responded.
Looking at their financial status and lifestyle, lack of funds is not the reason for the non-payments.
POSSIBLE SOLUTION:
We have provision in our bye-laws to stop our own services (which we provide at our shared expenses) to such people. The intention is to force them to pay up.
Examples are :
(a) water (which is bought in tankers, treated in our own water-treatment plant and then pumped to overhead tanks)
(b) DG backup in case of power failure (each apartment gets 500 VA which is not metered)
(c) Electrician
(d) Plumber
(e) Clubhouse+swimming pool+gym
We have no intention of interrupting the services provided by third-parties (e.g. electricity, newspaper, milk, etc.). The cutting of services is not permanent (only till the dues are paid).
DOUBTS:
Some of the committee members have a doubt whether stopping of services is lawful.
They think these may be considered as “essential services”, which have to be provided even to non-payers.
But other members think that even BESCOM and BWSSB cut off electricity and water to defaulters.
Therefore, it should be OK if we cut our services too.
Personally, I think the Karnataka Essential Services Maintenance Act does not apply to our situation.
http://164.100.80.70/acts/ACTS%20E/58e.pdf
Is that correct?
KAOA does not mention what to do in case of (partial) non-payment..
So is there any state/central act that allows or prohibits this?
The BESCOM electricity comes through our own substation, for which we have to pay maintenance and inspection charges.
Considering that, can we rightfully cut electricity supply?
We do not want to take the defaulters to court for the simple reason that it would be costlier than what is due!
Is that a free/cheap alternative? (fast courts, arbitration, etc?)
Please provide reference to the applicable laws/acts.
Thanks and regards,
Narayan Aras
Posted in Builder, India, Indian Property, Indian Real Estate, Karnataka, Real Estate, Residential Property, atoneplace.com | Tagged arbitration, BESCOM, Builder, BWSSB, bye-laws, Court, defaulters, Indian Property, Indian Real Estate, Karnataka Apartments Ownership Act, Karnataka Essential Services Maintenance Act, mediation, power failure, water treatment plant | Leave a Comment »
October 27, 2009 by atoneplace
Question asked by Pratibha from India:
Hello, my husband and I are filing for divorce soon. We have an apartment and a plot in joint name which was registered under both our names. The housing loan has my husband as the primary borrower and me as the secondary borrower.
As a result of a mutual agreement the apartment will be kept by me and plot by my husband. We need to make changes in the ownership documents. Also the Bank told me that the loan can’t be shifted to my individual name until the divorce is complete.
My question is – What is the procedure for initiating the change? And can the bank change loan records only after the divorce is complete?
Regards,
Pratibha
Posted in Bank, Consumer court, India, Indian Property, Indian Real Estate, Loan, Property Registration, Real Estate, Real estate legal india atOnePlace.com, Registration, Residential Property, Sale Deed, Sale of Properties, citizen of India, legal | Tagged Apartment, Bank, co-seller, Court, decree, housing loan, Indian Property, Indian Real Estate, joint owner, plot, Property Registration, Sale Deed | Leave a Comment »
October 27, 2009 by atoneplace
Question asked by Karan Chandran from USA:
Hello, I am an NRI(Indian Citizen – US Green Card Holder) living in the United States. I am in the process of buying a flat with a builder in Bangalore. I have paid about 80% of the flat’s price so far. The price of the flat is around 58 Lakhs + Registration (around 5 lakhs) + Car Park + misc. The Builder has not registered the flat in my name yet, so I have not paid the registration fees yet. I have sent all the money for the purchase from United States through a Citibank NRE account. Here are my 3 questions:
1. Can I sell the flat to someone now without registering it? My plan is to register it in their name directly. This way I will avoid the Registration fees and can sell it for a lower price thereby both the buyer and myself will gain.
2. If I can sell it, what taxes will I have to pay to the Indian Government? Will it be a percentage of the capital gains (the difference between the sales price and the price I purchased it at)?
3. Will I be able to repatriate the money back to US in this case since I have not registered the property in my name? If so, how long can I keep the money in rupees in an account before I repatriate it? (The dollar value is pretty high now and I would like to repatriate it when it is a little lower)
I greatly appreciate any insight you can provide to my questions. Also, please let me know if there is a way for me to consult with you via phone for about 1/2 hour regarding this and what your charges would be.
Thank you
Karan
Posted in Bangalore, Builder, Buy Real Estate, Capital gains, India, Indian Property, Indian Real Estate, Karnataka, NRE account, NRI, Non Resident, Property Registration, Real Estate, Real estate legal india atOnePlace.com, Registration, Repatriate, Residential Property, Sale Deed, Sale of Properties, atoneplace.com, banglore, legal | Tagged Bangalore, Builder, Capital gains, car parking, Indian Property, Indian Real Estate, NRE account, NRI, Property Registration, repatriation, Residential Property, sale price | Leave a Comment »
October 27, 2009 by atoneplace
Question asked by Srijith Menon from Bangalore, India:
Hi, I have purchased a flat in 2006 Nov taking a loan from ICICI bank where my wife is a co-applicant. But the registration was done only on my name since my wife was traveling overseas that time. Now from your columns I understand that to avail the tax benefit the co-applicant has to be the co-owner also. Can you please tell me the formalities & normal taxation / charges included in this procedure of re registering the sale agreement to make wife as the co-owner along with me. Since the original sale agreement is with the bank how do I retrieve it, will the bank allow me to take it out for doing this transaction or with out the original sale agreement, I can get this done (I have the duplicate copy of the sale agreement duly stamped & certified by the registrar with me)
Request you to clarify this so that both of us can avail the tax benefits.
Regards
Srijith Menon
Posted in Bangalore, Bank, Buy Real Estate, Gift deed, India, Indian Property, Indian Real Estate, Karnataka, Parent deeds, Property Registration, Real Estate, Registration, Residential Property, Sale Deed, Sale of Properties, banglore | Tagged Bank, co-owner, Gift deed, Indian Property, Indian Real Estate, Loan, Property Registration, Residential Property, sale agreement, Sale Deed, tax benefit, taxation | Leave a Comment »
October 24, 2009 by atoneplace
Question asked by Mr. Shiva Badruswamy
from New York, USA:
Hello there:
Thank you for being very informative about real estate Indian laws. I am about to inherit a property in India worth roughly $1 million. I am a US Citizen of Indian Origin. I want to sell the property and bring the cash over to the US or buy another property in another country or invest in any security. What are the latest rules and what is the procedure to follow?
Best wishes,
Shiva Badruswamy
New York, NY, USA
Posted in Bank, Buy Real Estate, Capital gains, FCNR Account, Indian Property, Indian Real Estate, NRE account, NRI, NRO account, Non Resident, PIO card, Property Registration, Real Estate, Registration, Repatriate, Residential Property, Sale Deed, Service Tax | Tagged Capital gains, FCNR, immovable property, Indian Property, Indian Real Estate, NRE account, NRO account, PIO, repatriation, Residential Property, Sale Deed, tax compliance, taxation | Leave a Comment »
October 24, 2009 by atoneplace
Question asked by Anonymous:
Hi I have a question to ask. I bought a house from Builder in Hyderabad in August 2006. The agreement of sale was for 33 lakhs. The registry was done at a lower cost 18 lakhs in august 2006 itself. The flat was under construction that time. I also took a loan of 27 lakhs from the bank for it. Now I am selling the house for 62 lakhs. The buyer is taking over my loan. The bank will give me a difference between loan amount sanctioned and selling price i.e. 30 lacs (Cheque) and the buyer will give me 5 lacs. So in total I am getting 35 lakhs in my account. Now the questions are:
1. The Buyer wants to get the registry of the flat done at 25 lacs. How is that possible as he is giving everything in white? How will I explain to income tax authorities as to where this 35 lac came from when I sold the house for 25 lacs (as per the registry) and where did I get the money (27 lacs) for prepayment of loan. Will I become party to evasion of stamp duty in this case? (There are two agreements, one is agreement of sale which shows the correct price on which the bank finances and the other is the sale deed which shows the amount in the registry and is registered)
2. What documents do IT authorities refer when calculating Capital Gains?
3. The builder is the agent through which I am reselling the flat. And I am paying him a commission of 100/- sq. ft. Now, I got to know that he is fooling the new customer by collecting service tax and VAT from him which is not applicable on Resale Flat. And he will keep that amount with him. Now the question is if the new customer some day knows that Service Tax and VAT was collected from him and is not applicable then can I be in trouble as the builder is just the agent, I am the Seller of the flat? What should I do?
Thanks in advance
Posted in Bank, Builder, Buy Real Estate, Capital gains, India, Indian Property, Indian Real Estate, Loan, Possession, Premium, Property Registration, Property Tax receipt, Real Estate, Residential Property, Sale Deed, Sale of Properties, Sales Tax, Service Tax, VAT, citizen of India | Tagged Builder, car parking, income tax, Indian Property, Indian Real Estate, Loan, registry, Resale, Sale Deed, Service Tax, Stamp Duty, VAT, white money | Leave a Comment »
October 8, 2009 by atoneplace
Question asked by Mr. Sandeep Bhat:
Hi, I had earlier availed a loan from LIC Housing Finance and in addition to EMI’s I have also been regularly paying additional amounts for speedy closure of the loan.
My problem is that in their statements LIC still shows interest contributions on the EMI based expected Loan Outstanding without considering reduction on account of additional prepayments.
I am presently outside India and am not able to discuss the issue directly with them. My wife however did visit them but wasn’t able to get any resolution. The difference is building up to be considerable and as such need your guidance.
Regards,
Sandeep Bhat
Posted in Bank, EMI, Index of land, India, Indian Property, Indian Real Estate, LIC Housing Finance, Loan, atoneplace.com | Tagged bank loan, EMI, Indian Property, Indian Real Estate, LIC Housing Finance | Leave a Comment »
October 8, 2009 by atoneplace
Question asked from India:
Hello,
I have purchased a flat though loan and the loan is not yet closed. Is it possible to gift the flat to my father through gift deed and still can i pay the loan amount. Please clarify.
Regards
Posted in Gift deed, Index of land, India, Indian Property, Indian Real Estate, Loan, Real Estate, Real estate legal india atOnePlace.com, atoneplace.com, citizen of India | Tagged bank loan, Gift deed, Indian Property, Indian Real Estate, Residential Property | Leave a Comment »
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