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.

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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

An Article about "Franking of Stamp Papers"

Franking of Stamp Papers

Common man needs small denomination of the stamp papers for various purposes like affidavit, Rental agreements, agreements, undertaking, power of attorney, bonds, memorandum of understanding etc. Public needs stamp duty of the denomination of  Rs20, 50,100 & 200 for  executing  affidavits, rental agreement,  Indemnity Bonds and Sale  Agreement  respectively . These are all the common requirement of stamp duties for giving legal sanction to any kind of documents. Now-a-days  the government departments are insisting for obtaining affidavits and indemnity bond  for various purposes.

Non-availability

Previously, department of stamp duty was appointing the authorized stamp vendors to sell the stamp papers for the above said documentation purpose. It was like a public fare price shops, wherein such stamp papers were easily available not only in all the important places but also in a very remote and interior villages. Infact, Stamp papers were available even in the late night also. Any understanding between the parties will be reduced in writing on the stamp paper and would be signed on that, as the same will be binding on both the parties. After the Telgi scam, from 01/04/2003, using stamp papers for the purpose of any documentation has been totally prohibited in Karnataka.

S.B.M.paper

After the amendment of Section 10A of the Karnataka Stamp Act, 1957, provision has been made for payment of stamp duty by DD/Pay Order or Bankers Cheque, drawn in favour of the concerned Sub-Registrar office for sale deeds and other documents. Obtaining stamp papers of  small denomination, only two option are available. One is, franking the stamp paper  in the concerned sub-registrar office and another one is purchasing the document  sheet from the state bank of Mysore. Unfortunately, both the modes of obtaining stamp papers are very tedious since it involves lot of  procedure and formalities. Further, the said facility is avaible to the public only for  5 to 6 hours every day.  Infact only in few  branches of State bank of Mysore the facility of  issuing stamp papers are available. In such case, public has  to fill up the challan and  mention the denomination for which stamp paper is required and accordingly  has to pay the requisite commission charges on such amount and later has to stand on a very long queue. So getting a stamp paper in SBM is a time consuming process. Again, such authorized branches of State bank of Mysore are not much interested in issuing this stamp paper rather they are concentrating more on their banking business. Infact, among those authorised branches also, only one or two banks only will issue the stamp paper on that particular date and priority will be given   for their regular customers of the said Bank.

Franking procedure

The matter has to be typed in the white paper or document sheet and has to be submitted for franking along with the application, but without date and signature of the parties to the said document. This facility is available in certain particular sub registrar offices only such as Jayanagar, Gandhinagar, Basavanagudi, Shivajinagar, Rajajinagar, Kengari, Anekal Sub registrar offices, this facility is available and the franking time is only  between 10:30 A.M. to 3:30 P.M, excluding the lunch hour. Rules and regulations varies from one sub-registrar office to the other. If the party produces the documents for franking, the concerned sub-registrar may refuse by various reasons. For example, if a person made a lease agreement more than 11 months, or that the agreement involves advance amount or if GPA is executed in favour of person other than his/her family member then it may be refused due to insufficient stamp duty. However, it is not a duty of the sub-registrar where the franking of the stamp duty is done to ascertain the stamp duty, but it is by the District Registrar or the Court which should decide the requisite stamp duty on any document at the time of presenting the documents.

Fake Papers

For the past two years, small denomination stamp papers were available easily everywhere. After abolition of the stamp papers, government has not taken any initiative to get the small denomination of the small papers by easy method, which has forced the public to buy the paper in the easiest way in the Taluk office and sub registrar offices entrance, which has resulted in the creation of lot of (small Telgis). Infact, two months ago, City Crime Branch (CCB) raided few of the Sub-registrar offices and Taluk Office and have booked 38 illegal franking, out of which 21 cases in City Civil Court premises and the rest at Mayo Hall, Yelahanka, Peenya, Yeshwanthpur, Koramangala and Jayanagar and arrested nearly 47 agents for having involved in the circulation of fake stamp papers and franking ink and pads, seals and franked blank sheets were also seized . These fake papers are either franked from their own franking machineries or from the original stamp papers, they are using color zerox. People should approach the  authorised Sub Registrar offices to get the stamp paper  embossed on the typed text before signature.

Franking machine 

The Franking Machines shall be used for franking impression of Stamps on all kinds of instruments on which Stamp duty is payable under the provisions of Indian Stamps Act 1899 and the Karnataka Stamp Act, 1957 and the rules made there under.

Usage of Franking Machine by the Proper Officer

•    Franking Machines shall be installed before the Proper Officer, at the office of the Superintendent of Stamps, Bangalore, Offices of the District Registrar and Offices of the Sub-Registrars at Gandhi Nagar, Jayanagar, Shivajinagar, Basavanagude, Rajajinagar and Kengeri or  in any other offices as may be authorized by the Chief Controlling Revenue Authority in Karnataka for impressing Stamps indicating the payment of stamps duty on the instrument chargeable with duty and the operation of the same shall be under strict vigilance and supervision of the Proper Officer.

•    Before the machine is put to use, the same shall be authorized loaded and sealed by Superintendent of Stamps or District Registrar, Assistant Commissioner of Stamps or such other officer authorized by Chief Controlling Revenue Authority and shall maintain Register in Form No.1 regarding loading and reloading and Form No.2 regarding return of the same and shall be scrutinized every month. In case of  periodical loading of the machine, sanction from District Registrar is necessary if the same is being carried out by the officer other that those authorized to do such act, which shall be entered in Form No.3.

•   The access code to the numeric of the Franking Machines shall be exclusively with the Superintendent of Stamps or District Registrar who shall be responsible for non disclosure, thereof to any person and who shall maintain a separate register in respect of each loading / reloading / incrementing of the amount.

•    The Proper Officer shall ensure that the seals are not tampered with, in any way by any person or that machine is not handled by any un-authorized persons.

•    The Proper Officer shall be responsible for the custody of the machine.  A register in Form No.4, shall be maintained in which the meter reading are recorded separately, both at the commencement of the day and at the close of the day.  The difference between the said readings shall be the total amount collected in respect of impressions franked.

•    The parties desirous of having stamps impressed on all kinds of instruments  shall make an application in Form No.5 along with the instrument and value of Stamps to be impressed, by Challan or Cash or Pay Order or Bankers Cheque or Demand Draft to the Proper Officer and on the receipt of the same, requisite amount of stamp duty will be embossed on the instrument and thereafter the Proper Officer shall affix his signature in the space provided on the impressed stamps, which shall be serially numbered and the particulars are to be entered in Form No.6.

•    The authorized user shall at all reasonable times allow authorized office or the authorizing authority or the District Registrar to inspect the machine and collect records without notice.

•    Franking or impressing of Stamp may be allowed up to any amount and such amount, as far as possible, has to be made on the right top corner of the first page of the instrument itself and has to be clear and in bright red colour only. Incase of any mistake or wrong in the amount impressed then that impression shall be torn from the instrument and pasted in the register of daily posting and shall be authenticated by the authorized user or proper officer.  At the time of resetting, set off equal to the amount of wrong impression shall be given.

Thus, non-availability of small denomination stamp papers has forced the public either to approach the agents near court complex or sub-registrar office entrance or to enter into agreements in white paper, without paying requisite stamp duty, which, in turn, leads to lot of litigations. In order to solve this problem, the Department of Stamps and Registration has to provide sufficient modes for availing stamp papers of small denominations, which also generates more income for the Government.

Property Advocates in Bangalore

An Article Regarding "DIVISION OF JOINT HINDU FAMILY PROPERTY"

DIVISION OF JOINT HINDU FAMILY PROPERTY

Hindu Joint Family most frequently referred in property matters, as Hindu Undivided Family (H.U.F) is a unique institution of Hindus more particularly of Mithakshara school.  The ancient Hindu Law was not codified but practice was handed over from generation to generation and Manu Smrithi is the most ancient codified law available. The origin of Hindu law may be traced to Sruthi which consists of four Vedas and commentaries, Smrithi's, Customs as practiced for long period, case laws, and later on various legislative enactments.

The Hindu law has two major schools of thought 1.Mithakshara 2.Dayabhaga.  Mithakshara law is practised through out India except West Bengal and some parts of eastern India.  Under Mithakshara law the members of the Hindu Joint family acquires interest in the family property by birth which has led to formation of Joint Hindu Family.

In Dayabhaga the right to family property is acquired only through surviorship. 

Originally Hindu Succession Act 1956 did not recognise and grant full property rights to female members of joint family or co-parcenary property.  Various amendments were brought by the different states to the Hindu Succession Act; Andhra Pradesh, Tamilnadu, Maharashtra, Kerala, and Karnataka. The amendment which grants equal property rights to female members of Coparcenary property in Karnataka has come into effect from 30.07.1994.

Hindu Joint Families are gradually becoming obsolete and Government   of Kerala, by amendment dated 01.12.1976 has abolished the Joint Hindu Family.  The institution of Hindu Joint Family, though they are obsolete, the devolution of property mostly have their origin in joint families as such it is necessary to understand what constitutes a Joint Hindu Family.

Joint Hindu Family

A Joint Hindu Family has a common male ancestor and consists of lineal male descendants includes wife or wives, widows and unmarried daughters of such common male descendants.  Thus a single member cannot constitute a Hindu Joint Family.  Joint Hindu Families may be big which contains many small families of different branches, but with a common male ancestor.  It may also contain a single male member and his wife and daughters. Though a single male member cannot constitute a joint family he may on marriage both husband and wife constitutes the Joint family.

Co-parcenary

Co-parcenary is different from Joint Hindu Family, which is much narrower than joint family.  Joint family may consist of any number of generations but co-parcenary is limited to the father and three lineal descendants children, grand children and great grand children.  These generations acquire the interest in the family property by birth.

The property owned by Joint Hindu Family is a co-parcenary property.  The properties inherited from father, grandfather and great grand father also constitutes co-parcenary property.  But a property inherited from maternal grandfather is held not to be a ancestral / co-parcenary property.  A distinction has to be made between co-parcenary property and self acquired property.  Property may be acquired through inheritance, partition, gift and other modes.  The nature of the title depends upon how the property was acquired.  

Partition : The ancient inherited property may be shared among legal heirs on partition.  Such acquired property will be a joint family property to his lineal descendents like his children, grand children, great grand children, but in case of other relations it will be his separate self acquired property.

Jointly acquired property

The members of coparcenary may jointly acquire the property.  The devolution of such property depends upon the intention of the purchasers.  Generally it will be a joint family property unless contrary intention of owning it as co-owners or partners is intended and explicitly mentioned in documents.

Exchange

If a joint family property is exchanged to acquire another property, such acquired property is joint family property.

Gift

Gift is recognised mode of acquiring the property and the property acquired through gift is the separate property of the donee and does not constitute a part of Joint Hindu Property.

Self acquired property thrown into Joint Family Property

The co-parcener might have acquired properties out of his own income which is his separate property.  Such coparcener may throw his separate self acquired property into joint stock of joint family property, which becomes the property of Joint Hindu Family.  But the intention must be clear.  The mere intention that the numbers of Joint Hindu Family are entitled to enjoy the benefits of separate property may not be enough evidence to include the separate property in Joint Hindu Family properties.

Income from joint family property

All the incomes arising from the joint family properties are joint family property income.  Any properties purchased from the income of joint families is also joint family property.

Separate property

Any co-parcener, member of Joint Hindu family may acquire property out of his own self earned funds without any detriment to Joint Family Property and such property is a separate property different from Joint family property. 

Rights of Co-parceners

Every co-parcenary has right to seek partition of the Joint Hindu Property and assert his rights on his share.  The legal heirs like son, daughters have equal share in the property.  If any of the sons has predeceased, his children jointly acquire the share of predeceased son.

Every member of coparcenary has right to be maintained by Joint family funds.

As already stated co-parcenary is different and much narrower than Joint Hindu Family.  Members of Joint Hindu Family other than co-parceners do not have any rights in the co-parcenary property, but have rights of maintenance only.  On the death of any member of co-parcenary, next degree of generation becomes member of co-parcenary.

Property Advocates in Bangalore

An Article Regarding "REAL ESTATE is still preferred AS a good INVESTMENT option"

REAL ESTATE is still preferred AS a good INVESTMENT option

 

The real estate sector plays a big role in India's economy. virtually five-hitter of the country's gross domestic product (GDP) is contributed by the housing sector. realty in Asian nation has been characterised by an increasing presence of an oversized range of public corporations, at the side of the gap from this sector to foreign direct investment (FDI) and personal equity corporations. This has magnified the discipline and responsibility of companies homes enterprise large-scale realty developments. Indians have an innate propensity to possess homes. This, with rising financial gain levels following India's rising, has resulted in an exceedingly extraordinary increase within the demand for homes.

The country has started viewing property as a most popular investment choice, as long as returns ar pegged between St Martin's Day and V-J Day, compared with bank deposits, that rarely provide returns over 100% a year. costs of homes, therefore, have magnified at a gentle pace within the past decade.

According to Dun and Bradstreet corporation., a supplier of credit data on businesses and companies, the full worth of realty development in Asian nation was calculable to be around Rs.67,480/- crores, growing at an annual pace of30%. This growth is fuelled by the expansion in real property development in organized retail, followed by housing and knowledge technology and knowledge technology-enabled services.

In recent times, realty has been seeing a plunge in demand with retail shying faraway from usuriously priced areas or paying high rentals. Reduced client defrayal has additionally translated into a retail holdup. several corporations have additionally determined to relocate from high to lower value locations, resulting in vacancies growing in retail and workplace house.

Interestingly, a careful check out the performance of the world reveals that the pace of activity has been shifting to smaller cities. many reasons might cause this shift. First, speculative investments in realestate, that are for the most part confined to the metros, resulted in larger value volatility in these cities.

Secondly, the high value of realty in giant cities has caused variety of offshore corporations fixing operations in Asian nation to expand into smaller cities, leading to a considerable increase in demand.

Thirdly, builders and developers have chiefly targeted on high-end housing comes in giant cities. The recent economic holdup has meant giant stock of unsold inventory. They have, therefore, shifted specialize in developing comes aimed toward medium-income, lower-middle-class households. Lastly, the special economic zone policy has additionally resulted in an exceedingly shift of activity from giant to smaller cities.

So, wherever ar we tend to heading? the arrival of the personal sector in realty and therefore the government's proposal to supply financial  concessions and making an facultative surroundings for development have LED to rising in camera investment in housing, with the emergence of developers chiefly in metropolitan centres and alternative aggressive cities.

The growth has been fuelled by rising business opportunities in new and rising enterprises, increasing financial gain levels, low interest rates, employment generation and demographic changes.

The real estate market has additionally been boosted by a proposal to allow 100% FDI within the sector. Also, a big issue that drove the expansion of the housing market was simple availableness of bank finance at reasonable interest rates.

Finally, it's vital for policymakers to be open-eyed and track the pace and political economy driving the evolution of the world. There ought to be adequate superintendence to stop reckless credit growth to fund its growth.

India's favourable sociology, low mortgage penetration, falling interest rates and current infrastructure demand can keep the retail realty downswing from being extended. the basics of {the sector|the world|the arna} are smart and its growth ought to continue within the predictable future.

Property Advocates in Bangalore