An Article Regarding "Gifting of Properties"

Gifting of Properties

 

Gifting of Properties to the beloved ones on different occasions is a way of expression of love and affection . Gifts are made even for other purposes including philanthropic, religious or charitable purposes. When such gifts are made and accepted, According to Law, there is transfer of property in favour of the Donees from the Donors. Transfer of property can be both movable and immovable. Whereas this Article, deals with gifts of immovable property.

‘Gift’, is defined in section 122 of the Transfer of Property Act, 1882, as a transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the Donor, to another, called the Donee and accepted by or on behalf of the donee. Section 123 of the Act stipulates the procedure as to how transfers of immovable properties are affected.

Characteristics:

For a valid  Gift, it  must have the following essential characteristics; (1) Donor must be a competent person, (2) it must be made voluntarily, (3) it should be without consideration,(4) there must be an offer by the Donor, (5) there must be an acceptance by the donee or on his behalf, (6) acceptance  must be done during the life time of the Donor and the donee; and (7) must be an existing property and not a future one.

A gift is essentially a gratuitous transfer. In other words, non-acceptance of monetary consideration in return from the donee by the Donor is the hallmark of a gift. Even an undertaking by the donee to pay a token sum would tantamount to consideration and the transaction would not qualify to be treated as a gift. A gift cannot be made with an intention of placing the donee under a legal obligation. Section 123 of the Transfer of Property Act, postulates that an immovable property requires registration and for want of registration oral gift is not admissible in view of Section 17 of the Registration Act. Therefore, gift of immovable property can be effected only through a registered instrument. The Donor must sign a deed of Gift and atleast two witnesses must attest his signature. A deed of gift needs the donee’s acceptance and therefore the general practice is that donee, is made a party to the deed and also to be made an executing party. If the donee does not accept the gift, the mere fact of registration will not make the gift legal. A gift is complete upon the execution of the deed of gift and its delivery to the donee, which constitutes his acceptance of the gift.

Contents:

A gift deed must contain a brief narration as to how the Donor got possession of the property; whether it is his self-acquired property or his share of ancestral property, whether the property is encumbered or not and if encumbered, how he will indemnify the Donee against any monetary loss, whether the Donor is competent to deal with the property and whether the donee is competent to accept the gift.

If the gift is to a Public trust or a charitable institution, it is always advisable to follow the procedure adopted for affecting the sale of an immovable property by scrutinising the title as to its ownership, marketability and encumbrance. It must be in writing.

Intention of maker:

The donee obtains his interest in the property immediately on execution of the gift deed by the Donor. Hence, even if there exists a recital in the gift deed that the gift is revocable, in effect it is irrevocable. It is the intention of the maker and not the nomenclature of the document, which requires consideration to find out as to whether a document is a gift deed or not and the document must be read as a whole. Further, Donor can gift to the donee only an existing property and not the future property. The Donor must ensure that, the donee is competent enough to accept the gift. Only a major can make a gift and not a minor unless the guardian of the minor is empowered to do so. A minor can accept a gift, if he is capable of understanding the transaction. Otherwise, he can accept it through his Guardian. Indian Registration Act requires that all non-testamentary gifts if reduced into writing require registration with an exception as provided in sec.129 of the Transfer of Property (T.P.) Act dealing with the gifts of Mohammedans.

Acceptance and delivery:

Acceptance of the gift must be given by the Donee or on his behalf during the lifetime of the Donor and if the donee dies before acceptance, the gift becomes void. The Donee is not bound to accept the gift in the same form, in which it is offered to him. Mere dedication of some land for the purpose of a temple will not qualify to be considered as a gift in the absence of acceptance by the donee. Post-acceptance by the donee of the gift also is impermissible. A gift is not valid unless it is accompanied by delivery of possession of the subject of the gift from the Donor to the Donee. But, where from the nature of the case physical possession cannot be delivered the Donor must do all the Acts so as to entitle the donee to obtain possession.

Undue influence:

While effecting any gift, the Donor should not be under pressure or under undue influence of the Donee and the gift should emanate from a free will and at the discretion of the Donor. Suppose, X, the Donor, has been looked after by Y, the Donee during the last phase of his life and thereby X develops love and affection towards Y leading to execution of the deed of gift. This circumstance cannot be considered to be a circumstance of undue influence. If a gift is not spontaneous and independent, there may be a case of undue influence against the Donor. 

Separate Property of Co-Parcener:

The Karta of a Hindu family has the power to make a gift within reasonable limits of the ancestral immovable property for pious purposes. A Co-Parcener, throwing his separate property into common stock makes no gift. It has been held by the Supreme Court in the Mallesappa Bandappa Desai vs.Desai Mallappa [1961 (3) SCR 779] case; that the doctrine of throwing into common stock inevitably postulates, that the Owner of a separate property is a Co-Parcener, who has an interest in the Co-Parcenary property and desires to blend his separate property with the Co-Parcenary property. The Act by which the Co-Parcener throws his separate property to the common stock is a Unilateral Act. By his individual volition he renounces his individual rights in that property and treats it as a property of the family. When a Co-Parcener throws his separate property into the common stock, he makes no gift under the Transfer of Property Act.

A minor can accept a gift and the minority by itself is not a bar to his acceptance of the gift. A gift can be made to a class of persons provided the members there of, are existing at the time of gift. Where a gift is made to two Donees and the gift to one of them is invalid, the other would take the whole estate. Acceptance of gift may be either express or implied. Even silence on the part of the Donee is sufficient to infer that the Donee accepted the gift.

Differs from Sale:

A gift is distinguishable from a Grant, Sale and Will.

In the case of grant, neither acceptance nor delivery of possession of the property is necessary. A gift is voluntary and without consideration while a grant may lack both. A gift conveys the corpus while a grant may convey only the right of enjoyment of property without conveying any interest in the corpus. A gift must be unconditional, but a grant need not be so. Property acquired by gift is transferable, but one obtained by grant is not necessarily so and the grant depends upon its subject, purpose and terms. A grant may be revocable at the Will of the grantor, while a gift is irrevocable at the will of the Donor.

In the case of sale, consideration in money or money’s worth is a must while a gift is a voluntary transfer of property without any consideration. In sale of property, unlawfulness of consideration would render the whole transaction void since consideration is an essential element of sale. But, in the case of a gift, as consideration is of no consequence, unlawfulness of consideration would not invalidate the gift.

The criteria to be adopted for ascertaining whether an instrument is a Will or not is by examining whether the disposition takes effect during the life time of the Executant of the instrument or whether it takes place after his demise and whether it is revocable or not since in the case of gift, the transfer of property takes place immediately upon execution and delivery of the gift deed. In the case of a Will, the Donor must reserve to himself the power of revocation, the Will must not be expressed and intended to operate in praesenti but only in future on the death of the Donor and regard must be had to the intention of the Donor and the language used by him.

When invalid:

A gift is considered as invalid; (a) if the property gifted is not in praesenti, (b) if one of the Donees refuses to accept his share (in respect of that Donee), when the gift is made jointly to the Donees, (c) if it is a revocable gift, (d) if it is an illegal transfer and (e) if it is transferred by an incompetent person.

Stamp Duty:

If the Gift is given to the family members, Stamp Duty is applicable as per Karnataka Stamp Act. The family members in relation to the Donor for the said purpose means; husband, wife, son, daughter, daughter-in-law, grand children etc.

If it is other than the family members, that is any trust, charitable institutions etc., Stamp Duty is payable as a Conveyance as per the market value.

Property Advocates in Bangalore

An Article about "Legalising building fraud will lead to disaster- High Court"

Legalising building fraud will lead to disaster- High Court

The Bombay high court, while hearing petitions seeking to legalise illegal structures in various parts of town, has ruled that Regularization of unauthorized constructions will need to be permitted on a case-to-case basis and may not be granted as a matter in fact.

A division bench of the high court command that the design authority had to contemplate numerous factors like infrastructure, congestion, water provide, and roads before regularizing extrajudicial constructions against payment of a penalty.  If there is an increasing pressure and burden on the existing facilities and amenities then the whole system would collapse ensuing in large-scale inconvenience, it had been observed.

The cases before the Hon'ble Court pertained to regularization of assorted structures in Bandra, Goregaon, Boriveli, and Pydhonie aside from the highest seventeen floors of Gaurav Gagan, a 24-storeyed building in Kandiveli (West).

The Hon'ble judicature additional dominated that it can't be same as a matter of general rule that unauthorized constructions should be regular if the ground house index (FSI) is on the market or are often generated within the style of transfer of development rights (TDR) from different sources by the builder. though section 53(1) of the geographic area Regional urban planning Act provides for regularization of unauthorized structures, the indiscriminate regularization through TDR or FSI can have disastrous consequences. Before the authorities take any call regarding regularization they need to not solely contemplate the alleged hardship to individual flat purchasers however conjointly the interest of these living within the neighbourhood and also the public at giant.


Tips on real estate dealings

The process of shopping for and commerce of unmovable properties has become advanced and also the folks that build things happen have magnified. Now, you'll need to modify land brokers/agents, appraisers, financiers, lawyers and other personalities that will be needed in the process. it's higher to induce the proper folks to represent you and defend you from attainable uncommon circumstances.

Availing of the services of execs is that the opening move in protective yourself from fraud. These professionals recognize indicators of dangerous deals and that they will simply advise you on your attainable next moves to avoid negative expertise. 

The best person to safeguard you from frauds may be a land professional person. you've got to seek out one World Health Organization can solely be loyal to you and no-one else. he's the person to trust and he's chargeable for protective your interest. you've got to create certain that you just are going to be hiring someone World Health Organization is trustworthy, old and credible. typically there's a better tag for this sort of lawyer however it's sure as shooting well worth the distinction in worth once you get someone you actually don't recognize. In your hiring method, ne'er trust recommendations while not doing all of your background check.

When you have already got a trusty land professional person, you'll avoid fraud by not sign language any document that your professional person failed to approve. There ar several cases once folks sign documents while not the recommendation of the professional person and find yourself discovering that there ar stipulations within the document that weren't in agreement on. continually use the services of your professional person no matter is your concern. you've got to be honest and tell him regarding your observations and hear him as he can continually have recommendations that may cause you to profit even a lot of.

The most vital thanks to avoid fraud is to grasp what the law says. you furthermore may need to do due diligence in change yourself regarding the state of the real estate business and improve on your level of understanding within the field. The knowledge that you gain can make you do away with suspicious and fake dealings.

Property Advocates in bangalore

An Article about "Corrections in the Property Documents"

Corrections in the Property Documents

Documents are the record of varied transactions; they contain bound terms, conditions, thought quantity, names of the parties to the dealing, date of the dealing, clear and complete description of the topic of dealing, thus on build them simply known. as an example, sale deed of a property contains the origin, flow of the title, gift standing, names of vendor and buyer, thought quantity, easementary right and temporary description of the property with measuring, construction and bounds. they're the permanent records, that area unit relied on for generations. Such documents should be clear, clear, readable, freed from error and will not produce any doubts or disputes. They replicate the terms of dealing that each the parties have freely consented.

At times, some additions, alterations, cancellations are inevitable, that area unit detected at the time of execution. Any such alterations, cancellations, additions need to be done before presenting the document for registration. All such modifications should be authenticated by full signature of all the parties to the documents. But signature of witness isn't necessary for such modifications.

solely full signatures and not initials or short signature ought to be insisted. For cancellations, the first words ought to be showing neatness stricken off, it ought to be signed by parties to the document. Erasing fluid mustn't be used. Registering authority records such additions, alterations, cancellations page wise on the document itself. This validates the additions, alterations, cancellation etc. Any modifications done once registration isn't valid and doesn't kind a region of the document. additional over the document itself becomes invalid. 

Copies of the registered documents are maintained at registering offices and licensed copies issued by such authorities additionally record on certified copies the quantity of cancellations, additions and alterations done before registration. they are doing not contain something more, deleted, changed once registration. thus correct care ought to be taken so all modifications area unit done before registration below the total signatures of all the parties to the transactions. If something needs to be modified once registration a separate rectification deed needs to be dead.

Filling up blanks

Some documents might have blanks because the needed data are on the market solely at the time of execution. typically date of execution is left blank, until the date is finalised. The details of demand drafts, cheques like number, name of Bank, Branch are left blank. All such blanks need to be stuffed up before presenting the document for registration and will be echt by all the parties to the document or fiduciary below full signature.

Attestation

Attestation means that witnessing the documents. Certain documents like will, agreement to sale, sale deed need attestation. Execution of the documents should be witnessed by two persons, UN agency are major and of sound mind. each the witnesses ought to affix their full signature and will furnish their address. Attestation isn't necessary just in case of bound documents.

Thumb Impression

There are many folks UN agency cannot sign. Thumb impression of such individuals are taken for execution of documents rather than signature. hand thumb impression (LTM) {in case|just just in case} of males and manus Thumb Impressions (RTM) in case of females need to be obtained on documents for execution. temporary description   "LTM   or   RTM   of Sri/Smt…………………    " needs to be written now below the thumb impression. because the persons UN agency affix thumb impression are illiterate, UN agency cannot scan or write, the complete contents of the documents ought to be scan over and explained to them and a separate note thereto result needs to be annexed to the document ideally signed by an Advocate.

Thus, the transfer or assignment of right, title and interest over the properly, regardless of the character of transfer, entirely depends upon the deed of conveyance. Any ambiguity, unintended addition or deletion within the deed might make to disputes. Therefore, to avoid any unsavory things care ought to be taken whereas drafting the property documents.

Possession of property

It is vital that the transferer transfers possession of the property in favour of the transferee. it's not necessary that actual physical possession needs to be bimanual over to the transferee, however even grant of possession can transfer and make right and interest over the property in favour of the transferee

Property Advocates in Bangalore

An Article about "ALL ABOUT DIVIDING FAMILY PROPERTY"

ALL ABOUT DIVIDING FAMILY PROPERTY

Properties and human beings are inseparable. With progress and social change over the ages the urge to own property, wealth has acquired demonic proportions. In the present day world, immovable properties are the most valued assets one can possess.

The desire to own material possessions reared its head in the inquisitive mind of the Stone Age man. Thus women, children came to be his first personal assets, followed by immovable properties. While literacy and social outlook have elevated the status of women and children, there has been no change worth the name as to the status of immovable property as the personal asset of the human being. So long this state of affairs continues problems relating to property transfer will persist. From Stone Age to cement age, it has been a long haul.

What is Partition? 

Partition is division of property held jointly by co-owners. When a property is divided each member becomes sole owner of his portion of the property. Each divided property gets a new title and each sharer gives up his or her interest in the estate in favour of other sharers. Therefore, partition is a combination of release and transfer of certain rights in the estate except those, which are easements in nature.

Partition is neither a gift nor a transfer of property. It merely breaks a joint right into several rights. It is not acquisition of property or exchange of property. It is a combination of release and conveyance of the rights of the property in favour of individuals. And therefore it can be effected orally. Partition is not transfer but when it assumes the form of transfer, the intention may be to hoodwink the creditors.

The basic character of joint Hindu family is that each member has inherited title to the property by birth. Each member has joint title to the entire property and that joint enjoyment of the title is converted by partition into separate title of the individual co-owner for his enjoyment. Therefore, it is now an established fact that partition is not transfer, but transformation of joint property.

There are some properties, which cannot be divided physically. If physical division is not possible, partition can still be effected by paying cash or other assets to a sharer in lieu of his or her share in the property. Such situation arises when the division of an estate is considered to be dangerous and unreasonable, and when such division dilutes the inherent value of the property, or when the immovable property is too small for division.

The instrument of partition is a document by which the co-owners of a property agree to divide the property among themselves by oral agreement or written agreement or by arbitration or through court. If a document of release shows that the executants are to get cash or other assets, the document is an instrument of partition. The basis of partition is equality. The parties shall share the property equally.

If there is no agreement among the co-owners for amicable division of the property, the only alternative is to sell the property by mutual consent or by court decree and distribute the sale proceeds among the co-owners. Any of the co-owners may also enforce partition through Court.

In a partition suit a court may have decreed partition of the property in the interest of the co-owners. But if it is found that the sale of the property and distribution of the proceeds to the co-owners is more beneficial, the court can at the request of the shareholders direct sale of the property and distribution of the proceeds to the co-sharers.

There are three types of co-owners: Joint tenants or tenants-in-common; Hindu Joint Family owners or coparceners; partners of a partnership firm.

Under the Hindu Law in general everyone being a co-owner in a joint ownership has a right to claim his share and such right cannot be denied to him if the property is held as joint tenants. Since joint tenancy is unknown to Indian law, there is not much difference between joint tenancy owners and tenants-in-common.

Christians and Muslims hold properties as tenants-in-common or as joint tenants and partition of such immovable property can happen by mutual consent or by partition deed or by court decree or arbitration.

Partition in Hindu law covers two aspects. One is the division of the status of the members and the other is the division of the joint family property. In the former case, the members are divided according to heir standing in the joint family and in the latter case division of joint family property into separate shares. Share of a member depends on the status he enjoys in the family. These are interlinked.
Partition must be according to law. If a minor gets less shares than he is entitled to in law, the partition is defective and he can re-open the same when he attains majority. If a member gets more than his share in a property, the excess received will be treated as a gift.

 It is not necessary that all co-owners agree to partition. When a member desires partition, the property is divided into two portions one for the separating one according to his status and share and the rest jointly for the others. Though oral partition is allowed under Hindu Law, it is not preferable as it may give rise to disputes particularly with respect to immovable properties. It is advisable oral partition should be reduced in writing (palu patti). Also, the Income Tax Act does not recognize oral partition of a Hindu Family property unless the Income Tax Officer is satisfied with the facts and this is possible only when it is recorded in partition deed.

Effects of Partition:

When a property is divided into more than two parts, the co-owners of the different portions shall agree to hold their portions separately as absolute owners and each of them shall make a grant to release his share from portions give to others.

Necessary covenants in a partition deed are about encumbrances on the property, quiet enjoyment, custody and production of title deeds, easements of necessity payment of rent and taxes and performance of other conditions of lease, if any, etc.

Partition of joint property is not an exchange. If it is reduced into writing, it must be registered in case of immovable properties. Deed of partition requires registration. Mere writing of previous partition does not require registration. Mere list of properties allotted to different co-owners does not require registration.

Unregistered deed of partition though not admissible in evidence to prove the fact of partition, cannot be used to prove that a particular property was allotted to a particular co-owner as his share.

Partition means collapse of joint ownership. It destroys the harmony of joint ownership and of possession. A large property falls into pieces over a generation or two. The land is very much there in bits and pieces in the name of different owners.

Stamp duty:

The Stamp Duty payable on partition varies from state to state. In Karnataka, it depends on nature of property.  

In case of partition of movable property, it is Rupees Two Hundred and Fifty for each share. 

If the property is converted for non-agricultural purpose or meant for non-agricultural use, it is Rupees One Thousand for each share in jurisdiction of Municipal Corporation, Urban Development Authority, Municipal Councils or Town Panchayats and Rupees Five Hundred per share in other areas. 

The partition of agricultural land attracts stamp duty of Rs.Two Hundred Fifty for each share. If the property involved in partition is combination of any categories mentioned above, the stamp duty is maximum of the duties prescribed. 

In case an agreement of partition is executed and the partition follows in pursuance of such agreement, the stamp duty payable on partition deed is reduced to the extent of duty paid on agreement; but shall not be less than Rupees Fifty. 

The partition should not be mistaken with partnership. Partnership is coming together of persons, whereas partition is parting of persons. 

Property Advocates in Bangalore

An Article about "ABNORMAL UPWARD REVISION OF STAMP DUTY FOR AGREEMENTS TO SELL IN KARNATAKA"

ABNORMAL UPWARD REVISION OF STAMP DUTY FOR AGREEMENTS TO SELL IN KARNATAKA

Recently, the Government of Karnataka has imposed stamp duty on agreements to sell at 0.25 [point two five] per cent. The revised rates are effective from 1st April, 2009. Thus, with this revision, the stamp duty payable for an agreement to sell of the value of the property of Rs.50,00,000/- would be s.12,500/- whereas before this revision the optimum stamp duty payable was only Rs.200/-.

The present rate of stamp duty would heavily burden the purchasers of properties which is considered to be abnormal and unfair when compared to the stamp duty levied for such instruments in the neighboring States. In the State of Tamil Nadu, the stamp duty payable on agreement to sell is only Rs. 10/- irrespective of the amount of sale consideration. Therefore, the Government of Karnataka may reconsider this matter keeping in mind the sufferings encountered by the purchasers on account of global economic recession and revert back to the pre-revised pattern of levy of stamp duty on slab system with optimum levy of Rs.200/-.

The important amendments introduced under the Karnataka Act No.9 of2009 are as under:

(i) Agreement 

Art. 5(e) - If the Agreement or Memorandum of an Agreement relating to sale of immovable property wherein part performance of the contract and possession of the property is not delivered stamp duty payable will be at 0.25 [ point two five] rupees for every one hundred rupees or part thereof on the market value equal to the amount of consideration.

(ii) Development agreement 

Art. 5(t) - If the Agreement or Memorandum of an Agreement is relating to construction or development or sale of immovable property including a multi unit house or building or unit of apartment or flat etc., by a person having a stipulation that after construction or develop- ment, such property shall be held jointly or severally by that person and the owner or lessee, as the case may be, of such property, or that it shall be sold jointly or severally by them or that a part of it shall be held jointly or severally by them and the remaining portion part thereof shall be sold jointly or severally by them, the stamp duty payable in such cases will be at One rupee for every one hundred rupees or part thereof on the market value of the property or the estimated cost of construction or proposed construction or development or proposed development of property as the case may be, or on the consideration for such transfer whichever is higher, provided that if proper stamp duty is paid on a power of attorney executed between the same parties in respect of the same property under Article 41(e), (ea) and (eb), then stamp duty under this article shall be rupees two hundred.

Award 

Art.11 - In respect of any decision in writing by an arbitrator or umpire, not being an award directing a partition, on a reference made otherwise than by an order of the Court in the course of a suit, the stamp duty payable shall be as are levied for a deed of conveyance under article 20(1) on the amount or market value of the property which is the subject matter of award, whichever is higher.

Sale Deed 

Art.20 In respect of deed of conveyance, the stamp duty payable will be 6 per cent instead of7 112 per cent. In addition to this, the purchaser shall have to pay surcharge and cess on the amount of stamp duty.

Duplicate copy 

Art.22 In respect of counterpart or duplicate of any instruments, chargeable with duty and in respect of which the proper stamp duty has been paid (i) if the stamp duty with which the original instrument is chargeable does not exceed five hundred rupees, the stamp duty payable shall be same as payable on the original and in other cases the stamp duty payable shall be rupees five hundred.
Thus, the maximum stamp duty payable in respect of counterpart or duplicate of any instrument will be five hundred only.

Gift 

Art.28 In respect of Instrument of gift not being settlement or will or transfer where the donee is not a family member of the donor the Stamp duty payable shall be same as are payable to a conveyance deed. Where the donee is a member of the family of the donor the Stamp Duty payable shall be Rupees one thousand.

The term 'family' includes husband, wife, son, daughter, daughter in law, brother in law, grand children, father and mother.

Rental agreement 

Art.30 In respect of Lease of immovable property including under lease, sub lease or agreement to let or sub let whereby such lease, the rent is fixed or fine or premium or money advanced or security deposit is paid or delivered.

(i) Where the lease is for a term not exceeding five years - the stamp duty payable shall be one rupee for every one hundred rupees or part thereof on the total amount of average annual rent and fine or premium or money advanced or security deposit payable under such lease 

(ii) Where the lease is for a term exceeding five years but not more than 10 years the stamp duty payable shall be two rupees for every hundred rupees or part thereof on the total amount of average annual rent and fine or premium or money advanced or security deposited.

(iii) Where the lease is for a term exceeding 10 years but not more than 30 years the stamp duty payable shall be four rupees for every hundred rupees or part thereof on the total amount of average annual rent and fine or premium or money advanced or security deposited.

(iv) Where the lease is for a term exceeding 30 years or does not purport to be for any definite term, the stamp duty payable shall be same as are payable for a conveyance deed under art.20( I).

(v) Where the lease is in favour of family members the stamp duty payable is Rs.1,000/-.

Power of attorney 

Art.41 (e) - when power of attorney is given for consideration and or when coupled with interest and authorizing the attorney to sell any immovable property the stamp duty payable shall be same as are payable to a conveyance deed under article 20(1) on consideration or on market value of the property whichever is higher.

Art. 41(ea) - when given to a promoter or developer for construc- tion or development or sale of immovable property including a multi unit house or building or unit of apartment or flat etc., by a person having a stipulation that after construction or development, such property shall be held jointly or severally by that person and the owner or lessee, as the case may be, of such property, or that it shall be sold jointly or severally by them or that a part of it shall be held jointly or severally by them and the remaining portion part thereof shall be sold jointly or severally by them, in such cases stamp duty payable will be at One rupee for every one hundred rupees or part thereof on the market value of the property or the estimated cost of construc- tion or proposed construction or development or proposed development of property as the case may be or on the consideration for such transfer whichever is higher.

Release deeds

ArtA5 (a) Where the release is not between the family members-
The stamp duty payable shall be as are payable for a conveyance deed under Article 20(1) on the market value of the property or on the amount or the value of the claim renounced or consideration for such release whichever is higher.

Property Advoctaes in Bangalore

An Article Regarding "SOME TIPS ON REAL ESTATE INVESTMENTS"

SOME TIPS ON REAL ESTATE INVESTMENTS

The real estate investment has provided many investors with positive cash flow, tax benefits and satisfaction of making an: investment in a tangible asset. However, like in any other investment, there are many intricacies and trends in the market that need to be understood for peaceful possession and enjoyment of the property.

There are a large number of investors who invest their hard earned money without a thorough examination of the documents and the credibility of the vendor and thereby land themselves into problems after their investment. Therefore, it is necessary to take some precautions before investment.

Investment in property carries with it a great potential for creating wealth and it requires taking some potentially difficult decisions. Reinvestment in the property and time management all needs careful consideration. 

Property investments can be the shining lights in your personal or business financial portfolio. Most of successful investors have free and clear properties. You should aim to reduce your debt as soon as you can by re-investing your cash back into your property mortgage payments which in turn raises your net worth. Do your homework. Don't do anything alone. Work with professionals or proven successful investors to avoid finding yourself in damage control.

By aligning yourself with the right professional you can avoid the likely common mistakes so that you can ensure an excellent return on your investment. Cash flow, capital appreciation, tax benefits, and pride of ownership are just some of the things that need to be addressed before you make an investment. 

An experienced real estate professional will render very useful service in evaluating your needs and in suggesting you suitably. Make sure that you have the right agent.

Predicting constant appreciation in the value of the property is extremely difficult if not impossible for the unseasoned investor. Property which eats away cash every month can drain your working capital. This can create stress, frustration and become quite painful. A strain on your cash flow may cause you to sell the investment before the benefits of ownership are ever realized.

Check everything concerning the property under consideration devolution history, rents, payment of taxes, expenses, deposits etc. Ask the tenants about pest problems, structural damage or recurring problems. Don't overlook anything. When investing your hard earned money be sure and use sound business judgment. Protect yourself against the risks that come with investment property. Take insurance cover for your property. The list of documents to be examined and the statutory requirements to be fulfilled can be very many. They may include obtaining Building permits, adherence of zoning laws, building bye-laws, examination of rental and lease deeds, if any, examination of loan documents, scrutiny of title deeds, etc. If you are not trained to look into these documents yourself then it is essential to engage a qualified professional to approve all of these for you and only then you may conclude the deal. But whatever it may be don't attempt to do it alone.

Do comprehensive background checks on any prospective tenants. Previous landlords, employers, financial references, credit and judgments are all extremely important. If there are any questions do thorough research. Drive by their previous residence. A little work upfront can save tremendous problems later.

Charge fair rents, treat your tenants with respect and respond as quickly as possible to their needs. It's a lot less costly in the long run to take care of the little problems before they become big problems. Get letters from tenants confirming the status of tenancy.

Make sure their version of the rental or lease agreement corresponds with the sellers interpretation.

For More:

Property Advocates in Bangalore

An Articles About Advantage of buying an under construction property

An Articles About Advantage of buying an under construction property

Many home seekers are skeptical about buying under construction flats as the transaction comes with an element of uncertainty. Ready for possession apartments, which do not pose such problems, always command premium. However, carrying out the requisite due diligence and taking some precautions could help you land in an attractive deal, mainly in terms of the discount in price and certain other benefits. 

For those buying a property from an investment perspective, an under construction flat could offer good returns. Such investors can consider investing their money in a project when it has just been launched. Many developers offer to take the soft launch route  where the project details are circulated among a select few prospective buyers, with a discount on offer   before making a public announcement. 

The investor can sell the apartment to a third party and benefit from the appreciation. The only point to bear in mind in such transactions is that they are done on the basis of the allotment letter alone the agreement is not registered and the stamp duty is not paid. However, it is a perfectly legal transaction. 

The other advantage of buying an under construction property is, obviously, the discounted price per sq.ft. The price of the property increases in line with the stage of completion. If a developer has launched a project before excavation, the discount could be in the region of 25%. It could shrink to 20% once the which the construction is completed. 

Pre construction phase is defined as the period starting from the date of borrowing and ending on March 31 immediately preceding the year in which construction is completed. For instance, if you have taken a loan in June 2008 and the construction is completed in May 2010, the period from June 2008 to March 31, 2010 will be deemed to be the pre construction period. 

Now, let's assume the total loan amount is Rs. 40 lakh, borrowed at the rate of 10% per annum. If the total interest payable for the pre period is Rs. 5 lakh, 20% of the amount  Rs. 1 lakh  can be added to the interest component of each of the five years, starting from the year in which the construction is completed. If your house is self occupied, the deduction on interest payable would be restricted to Rs.1,50,000 per financial year. 

Also, it needs to be noted that deduction of repayment of principal amount can be claimed under section 80C only from the financial year in which construction is completed. While taking the decision on the purchase of under construction flat, keep in mind the developments likely to take place in and around the area, in terms of infrastructure projects as well as other amenities like malls, schools and healthcare facilities expected to come up in and around the area. Most important is to verify the track record, previous performance of the promoter before entering into the agreement.

Property Advocates in Bangalore