What are the things that one should look for from legal perspective while buying a second hand apartment?

Question asked by Karthik from Bangalore, India:

I’m Karthik from Bangalore. I would like to buy a second hand 7 years old apartment. Please kindly tell me
1) What are the things I should look for from legal perspective
2) What are the other charges I will pay like, if the apartment is of 1000 Sq. ft. If he is charging 2500/per Sq. ft. it will be 25 Lakhs on top of it should I need to pay Car Parking, Electricity, water, VAT & registration. I still believe that buying a 2nd hand will be cheaper. Please advise me.
Thanks
Karthik

Vatsala Speak:

None of these charges apply for a resale of apartment. You can negotiate the entire sale price, which can include car park also, from the current owner. Be prepared for broker’s fees, lawyer’s fees and registration and stamp duty expenses. Vatsala

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What documents are needed to rewrite the plots of lands?

Question asked by Anja Kraul from Germany:

I had a plot of land in Hyderabad and Nasik inherited. My dad is dead. He had Indian nationality and I live in Germany. What can I do and what documents I need to rewrite the plots of lands?
Thank you for your help.
Anja Kraul

Vatsala Speak:

As you have inherited lands from an Indian Citizen, you should only get the supporting revenue documents called variously as Patta or Khata or by other names in different parts of India, transferred in your name. You should then pay your annual property taxes. Nothing further needs to be done, except retaining all original title documents and the death certificate of your father.Vatsala

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Question asked by Dylan J. D’Penha from India:

Request you to please give me the general procedures on allotment of car parking in the Society.
Reference to specific bye-laws / laws would be helpful.
Ours is a 9 year old society which witnesses constant quarrels on Parking.
How can parking spaces allotted by the builder (on payment of consideration) be regularized?
What is the procedure to tackle members who park in non allotted / non designated parking forcibly?
One member has occupied another’s parking on the premise that parking cannot be sold: What is the recourse to revert to the rightful occupant?
Dylan J. D’Penha

Vatsala Answers:
The byelaws of your society should be scrutinized before answering your question. Also, one has to understand how the society has allotted the parking slots and to whom. All disputes should be settled by the registrar of co-operative societies and thereafter the Co-operative Appellate Court. I am presuming that the property is in Maharashtra. Vatsala
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Tranfer Real Property by NRI in India

Question asked by Mr Nuka V. Reddy from US:
Hello Vatsala,
I am a Non resident Indian presently holding Foreign (US) citizenship. I have inherited some Agricultural land in India. Now I want to gift that to my brothers and sisters. Local attorny at my brothers village told them that my presence is required for transfer of property by registartion in Sub-registrars office. My preference is to transfer the property from abroad with out me going over there. Is it possible to do that? If so what is the proceedure. Also do I need Reserve Bank clearance for that transfer?
I appreciate if you can give me a guidance on this matter.
Sincerely,

Thanks
Nuka V. Reddy

Vatsala Answers:

As a rule Non Resident Indians cannot purchase agricultural land, but there is no bar against inheriting the same. You should therefore give a power of attorney appointing some person in India to execute the gift deed on your behalf. This power of attorney should be notarized in the U.S.A. and then sent to India, where it should be property affixed with Indian stamp within 3 months of its arrival. However, a word of caution – some Indian states have laws that income level should be below a certain level to hold agricultural land. If your land is in any of those states, it will be more prudent for you to visit India and be personally present for registration by showing an Indian address. Thus you can avoid queries on your income, which could be more than those limits as you are an NRI. Vatsala
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Can a foreigner, i.e. foreign national, purchase immovable property in India?

Question asked by Mr Roger Deakin from USA :

Vatsala,
A question asked from an American was, Can a foreigner ie foreign national, purchase immovable property in India. If your answer was yes by interfacing with RBI for funding the purchase.
Would you please explain what is required.
Regards,
Roger Deakin, USA

Vatsala Answers:

A foreign national cannot purchase property in India. The permission sought from the RBI is being routinely rejected, and therefore my advice is to treat the matter as if it is not possible. Vatsala
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Can Non-Indian buy a hotel in India?

Question asked by Mr Lise from USA :

Vatsala,
Hi !
Can Non-Indian buy a hotel in India?because I heard that if you are Non-Indian you can buy a property but only to make a business with it. Is that correct?
Thank You
Regards
Mr. Lise, USA

Vatsala Answers:

As a foreigner, you cannot purchase property in India except through a foreign company and for the purpose of conducting business in India. If you own a company, you should open a branch in India and then purchase the hotel without any difficulty by going through the automatic approval route of the RBI. (Reserve Bank of India). Vatsala
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Can I hold agricultural property if I become a citizen of another country?

Question asked by Ms. Sujata Pasala from USA:

Hi Vatsala,
This is Sujata Pasala from USA. I have a quick legal question about agricultural property. Could you please help me with this question? Can I hold AGRICULTURAL property if I become a citizen of another country? Basically I wanted to apply for dual citizenship i.e., Overseas Citizenship of India (OCI).
I will really appreciate for your help.
Thank you.
Sincerely,
Sujata Pasala, USA

Vatsala Answers:
If you have already purchased agricultural land, you should hold it quietly. There is no difference in the ban on agricultural land holding between an NRI (which you already are) and PIO (Person of Indian Origin) which you will become after becoming a U.S. citizen. Vatsala
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What is a gift deed?

Question asked by Mr Gopikrishna :

Hi,
I would like to know the details of Gift Deed.
1) What is a gift deed?
2) What is the procedure to make a gift deed?
3) Do we have to pay any amount as registration feed during this process? if so how much it is to be?
I’ll be looking for your response.

Thanks,
Gopikrishna

Vatsala Answers:

1. A gift deed is when one voluntarily transfers one’s property to one’s close relatives out of natural love and affection. No consideration changes hands. It can be done for a portion of the property or the entire property.
2. The procedure is to execute and register the deed involves payment of minimum stamp duty and requires a lawyer.
3. The stamp duty varies from state to state.
Vatsala
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Charges against open car parking

Question asked by Mr Abhay Kulkarni from Maharashtra:

Seek your urgent assistance for the following;
This is with reference to the below attached article I read in some newspaper, can I use this against a builder where he is charging me for the open parking. Is there any written directive which I can acquire from some where & keep as record with me.
QUOTE..
Although, it is a general practice adopted by the builders all over in India to sell the car parking places to the flat owners. However, by a recent judgment passed by the Co-operative Appellate Court, Mumbai it is ruled that the builder can not sell car parking places and the same can be allotted to the flat owners by the society after its formation. Within the territory of the State of Maharashtra, sale of car parking places by the builder is illegal, after the aforesaid judgment.
UNQUOTE
Awaiting your reply..
Thanks & Regards
Abhay Kulkarni.

Vatsala Answers:

This judgment will be applicable only in Maharashtra state and only if the entire land is owned by the co-operative society. It will be binding on all concerned and no copy of the same is required to be kept by you. However, you could approach a lawyer practicing in Maharashtra to source it for you and/ or send a legal notice to your builder quoting the same. Vatsala
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What Are the Rights of the Purchaser of an Apartment?

Question asked by Mr Sugato Banerjee from Bangalore:

Vatsala,
I have purchased a 2BHK apartment with covered car park at Bangalore. The registration for the same has been done in Nov 2007. Khata transfer is still not done. I have taken possession on 18 April 2008, whereas the committed possession date in the Construction Agmt is that of October 2007. There is still a whole lot of the project still undone – including lift, parking, gym, children’s play area, and a toddler’s pool. The builder has been asking for the pending amount (less than 7% of the transaction value with the builder). Now, the situation is as follows.
I had told the builder that I will pay off the remaining amount provided he exchanged the possession letter stating ‘full and final settlement’ with the remaining cheque, or a draft, whichever is acceptable to him (because he has refused to give any receipt so far, and do it this time as well). The builder kept citing varied reason – like busy with project completion work - to state that the letter will be provided only when the cheque has been encashed, and he is convinced that there is nothing pending from me to him. He also proposed doing a survey of my apartment to find out what additional expenses has been incurred, to find out the exact additional amount chargeable to me. Finally he has also done the survey of my apartment, and stated he is willing to give the letter, but wants the remaining money to be paid through unnamed cheques and the additional amount in cash, for which he will provide no receipt. He has apportioned different amount to the different buyers for this additional amount which they have to pay him. And the full and final settlement letter he will provide after a few days when the amount is credited to his account. When I insisted on exchanging the draft (which is as good as cash transaction) with the letter he refused to accept. He also refuses to state, what all are the pending works on his project which he needs to complete, in this letter. I am wary he might not give me the letter once he has received the money and might harass me for more money subsequently. Off late, he has also started fiddling with my power meter and pulling out my power connection threateningly displaying what discomfort he can cause to me. My wife is pregnant, and she and I are going through a harrowing experience through this over the last couple of weeks. Off late, he has started saying he will construct asbestos sheet cover across the side and back elevation space between the building wall and the boundary wall and provision for the car parking there. He will utilise the space in the basement (usually allocated for car parking) for constructing an apartment and sell it off. When asked of the legality of this apartment, he stated that they can do such illegal stuff. When asked who will pay up the maintenance of the asbestos sheet covered car park, he stated that this will be the onus of the society. And who pays up for legalising all the illegal construction that he has done so far – he said the society will have to bear it, because he will obviously not be around, once the society is formed.
Question:

i. Can the builder ask for more money outside of the contracted value from the purchaser? We entered the contract with the premise that he will get certain minor modifications in the kitchen area done, for which he will not charge. Now he is threatening to charge for that amount as well.

ii.Can the builder harass customers by fiddling the power meter? I have heard this is illegal. What is the procedure to ensure he does not do this in future?

iii.What are my rights at this point, and what action can I take to overcome the situation, given that Khata transfer is not completed yet?

iv.What is the procedure if he allocates inappropriate parking space to the purchasers? What compensation is he liable to pay?

v.In case I and other owners sue the builder and there is some injunction or some such thing by the court, what would be the situation and consequences faced for the owners and the builder?
Please advice at the earliest. Thank you.
Regards,
A Reader

Vatsala Answers:

1. The agreement entered into between you and the builder is sacrosanct and you are required to pay only that amount. Extra modifications, however, can be charged despite the oral agreement.
2. Regarding the power meter, you should file a suit for nuisance against him or give a police complaint. However the onus of proving the same will be on you.
3. The transfer of Khata can be done by yourself and is your right. It is not connected to the other problems mentioned by you. You can move the appropriate consumer forum for deficiency in service and damages for delay in possession, mental harassment and developer’s demand for extra payment.
4. If you file a case and lose, there is no consequence.
5. You can definitely stop all illegal construction and illegal allotment of car park by taking an injunction order. A copy of the sanctioned plan should show where the parking slots should be positioned.
Vatsala
http://www.atoneplace.com