Friday, 24 April 2015

Know this before planning property transactions

An analysis of the queries across Open House, reveals lack of awareness of certain key aspects when buying property.

In our endeavor to help the consumer make intelligent and knowledgeable choices, here are a few facts that the prospective buyer needs to know when planning to make a property-related transaction.

Did you know?

  1. There is something called an Open Space Reservation. A layout that has been allotted OSR area status is marked for temple/ school/ park/ shop. To convert the owner has to pay 10 per cent of the land value to the Government for approval, and check that the OSR Area has been surrendered to the CMDA, Pantachayat or to the concerned department through an executing a gift deed called Dhaana Patharam.

  2. When buying property you must ensure the plot is minimum of 500 meter away from, national highway, sewage canal, sea shore, river, pond, lakes, dam, airport, bus stand, railway station, railway lane, cantonment area, nuclear power station.

  3. Before buying property you can apply for a copy of the approval layout in the relevant (CMDA/MMDA/DTCP) office and compare the layout plan with the one provided by the developer. In some cities the provision to check the CMDA/MMDA/DTCP approval is possible on the internet.

  4. Discrepancy in survey number & sub-division numbers in property documents: If the main survey number remains the same and there is a difference in sub-division numbers, it could be because of bifurcation of land over a period of time and consequent revision of the field map. If the primary survey number is wrongly stated in a document which was registered as early as in the year 1961, it may not be practically possible to do a rectification.

In the above case you must consult a lawyer and explore the possibility of doing an internal transfer within the family by way of a Settlement Deed wherein the discrepancy can be clarified in the preamble part and correct description of property can be given in the Schedule portion. If this can be done, dealing with the property thereafter, will not be a problem.

  1. A property cannot be sold simply with a will written for a person. The `will’ needs to be registered and the property must be transferred to the person mentioned in the will. Also the will must be registered before the original owner’s death.

  2. In the absence of a will, a Letter of Administration will be the primary document through which the heirs can stake a claim to the immovable assets of a deceased relative. Letter of Administration is issued by a competent authority (eg a court) which appoints an Administrator to dispose-off the property of a person suitably. For obtaining a letter of administration the beneficiary has to apply to the court.

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