DOCUMENTS AND TAXES – GENERAL LIST FOR THE PURCHASE OF PROPERTIES


Transactions in immovable property are carried out by parties in properties containing the following elements:

GENERAL REQUIREMENTS

(All approvals, NOC, Licenses, Documents, Provisions, Rules, Regulations, Laws, Taxes, Charges, Fees, and Regulations are not applicable to all the properties.  Specific Requirements or eligibility or statutory documents for specific properties.)

Generic list

OWNERSHIP

Original owner.

Intermediary owners.

Promoter.

Developer.

Contractor.

Investor.

Marketing agency.

Prospective buyer.

Lending institutions.

Association of Owners.

Agreement Holder.

GPA Holder.

NATURE OF PROPERTIES

The following are the nature of properties:

Land.

Houses.

Flats/apartments.

Infrastructure.

Special amenities and facilities.

Sites.

Industrial Sheds and Lands.

Commercial Complexes.

RIGHTS

The following are the nature of rights:

Ownership.

Possession.

Leasehold rights.

Rights under a mortgage.

Easement.

License.

Lien.

SUCCESSION

There are two types of inheritance and succession:

Intestate succession i.e. by operation of personal laws.

Testamentary succession i.e. through wills.

TITLE

Three-tier legal scrutiny of titles is essential:

In the hands of the present owner.

In the hands of the prospective buyer for his benefits.

For the benefit of the lending institutions.

Issuing public notice in leading English and vernacular newspapers, inviting objections or claims, is recommended in all cases.

CHARGES AND OTHER LEVIES

1). Betterment Charges or Improvement Charges.

2). Lake Development Charges.

3). Solid Waste Charges (Municipal Area)

4). BWSSB charges or cell or penalty on buildings without OC.

TAXES

Properties attract the following taxation:

1) Gift Tax, Wealth Tax or any prevailing or applicable taxes.

2) GST (on the transfer of goods in contracts).

3) Income tax on income and capital gains.

4) Tax exemptions and deductions under special schemes for housing, economic zones etc.

5). Municipal Taxes or Property Taxes.

TAXES AND DUTIES AT THE TIME OF REGISTRATION

1). Stamp Duty.

2). Registration Fee.

MODES OF CONVEYANCE OR TRANSFER

The following are various modes by means of which any person can acquire any type of right, title, and interest in an immovable property:

  1. Direct purchase/transfer.
  2. Gift/settlement.
  3. Will/probate/succession certificate.
  4. Intestate succession and inheritance.
  5. Partition, release, family settlement, reunion.
  6. Family Arrangement.
  7. Partition among co-owners.
  8. Property as a capital contribution in a firm.
  9. Distribution of assets in a firm on reconstitution and on the dissolution of a firm.
  10. Private trust.
  11. Amalgamation, merger, de-merger and liquidation of companies.
  12. Rights and interests held through shares in companies, cooperative society etc.
  13. Adverse possession.
  14. Awards in arbitration proceedings.
  15. Orders and decrees of courts of law and other statutory authorities including Lok Adalats.
  16. By operation of various provisions of personal laws relating to Hindus, Mohammedans, Christians, Sikhs, Parsis, Jews etc.
  17. By operation of law under laws relating to other persons and legal entities including cooperative societies, other societies including mutual benefit societies and other Association of Persons.
  18. BDA sites.
  19. Land acquisition.

20.By grants were given or orders passed by Governments and statutory authorities.

  1. By a Conciliation, Order passed under section 19(v) (i) and (ii) read with Section 21 of the Legal Services Authority Act, 1977. Such an order can be passed by a High Court Judge and other competent authorities by which rights and interests between contending parties can be settled and established.

TRACING OF TITLES

The tracing of titles should begin with the tracing of the earliest documents available pertaining to the property which, probably, will pertain to the documents obtained by the first owner.

First owner: The earliest original documents, records, the order of a court or government or a statutory authority by which the rights to an immovable property is vested with the first owner.

Intermediary parties: The subsequent documents, records or orders of the type mentioned above, duly recording in a chronological unbroken sequence of legal acts, events, identifying and tracing the title in the hands of the various intermediate owners till the last owner i.e., the transferor.

Current owner: The documents of title with the current owner i.e., transferor, including the document by means of which he has acquired title and other documents like the Khatha, Encumbrance Certificate, and tax paid receipts up-to-date.

An investigation of these records must be made before a certification of these records by an advocate. The investigation is the verification of the actual existence of these records in the books/registers of the various departments mentioned above. Certification, on the other hand, is done only on the basis of records produced before an advocate on an apparent examination of the same by him.

CHARGES AND ENCUMBRANCE OF THE PROPERTY

Encumbrance Certificate

Various kinds of transactions and matters mentioned below will not be entered in Book-I maintained by Sub-Registrars and hence will not appear in an encumbrance certificate furnished either in Form 15 or in Form 16 by the Sub-Registrar exercising relevant jurisdiction. Hence, other modes of evidence and documentation are required to confirm the title. The following are the transactions and matters not included in the encumbrance certificate:

  1. Oral tenancy.
  2. Litigation in courts (Lis Pendens).
  3. Tax liabilities
  4. Unregistered mortgage by deposit of title deeds.
  5. Prior unregistered agreement
  6. 6.Oral Partition/Family Arrangement.
  1. Oral gift under Mohammedan Law.
  2. Unregistered will.
  3. Rights and interests held through partnership firms, Association of Persons, societies including cooperative societies, companies etc.
  4. Unregistered agreements, MOUs, the general power of attorney etc.
  5. Rights of third parties not directly recorded in documents.
  6. Orders and decrees of courts, statutory and tax authorities.
  7. Rights through possession, part performance, the equitable title under Section 53-A of the Transfer of Property Act, 1882.
  8. Physical Possession of the property and grounds or claims of possession.

SAFEGUARDS

Many safeguards must be taken to ensure the vesting of a clear, absolute and marketable title in the hands of the purchaser or any person acquiring any interest in the property in question in any manner whatsoever. Some of the safeguards are mentioned below:

  1. Obtain court permission for sale of minor’s share.
  2. Make all major co-parceners parties in case of Hindu Undivided Family.
  3. Ensure compliance with legal formalities by companies, other persons, and legal entities.
  4. Examine Government records, documents, and papers.
  5. Verify original documents of title and lodge the same with a common custodian in Escrow.
  6. Issue public notice through newspapers.
  7. Verify marketability of title.
  8. Make all other interested parties as parties in the transaction.
  9. Obtain confirmations and affirmations through affidavits.
  10. Obtain possession in part performance.
  11. Appropriate court action for injunctions, specific performance etc.,
  12. Resolve disputes through arbitration or through the family arrangement.
  13. Avail the benefit of other legal remedies and reliefs as provided under different transactions, different laws apply.
  14. Obtain the general power of attorney to derive powers and authority to carry out all acts in general and certain specified acts, deeds and things in relation to the immovable properties and the rights, interests, and title relating thereto.
  15. Register agreements and get attestation by Notary Public on documents.
  16. Obtain Encumbrance Certificates, tax paid receipts and certified copies of other papers and records held by statutory authorities.
  17. Verify if there are any restrictions relating to land granted including restrictions in respect of land of Scheduled Castes and Scheduled Tribes.
  18. Protect the rights or possession under section 145 of the Criminal Procedure Code from statutory authorities.
  19. Obtain Succession Certificate from the Jurisdictional Court, in case of intestate succession.
  20. Obtain Family Tree from the jurisdictional revenue authority appointed by the State Governments with powers delegated to issue the same.

* * *

Vital documents for acquiring BMP, BDA property

The following are the documents of title with respect to properties located within the jurisdiction of the Bangalore Mahanagara Palike which are to be obtained from the present owners and verified before purchase/acquisition by lease, mortgage:

Primary documents

1) Parent Deed by means of which the present owner/owners acquired title to the property.

2) Building sanction plan issued by the Chief Executive Engineer, BBMP, BDA, BMRDA or local planning authority, in case of a building constructed on the property.

Secondary documents

1) Khatha Certificate issued by the BBMP, BDA, GP in the name of the present owner/owners.

2) Khatha Extract issued by the BBMP, BDA, and GP.

3) Tax paid receipts issued by the BBMP/BDA/GP evidencing payment of taxes in respect of the property.

4) P.T. Sheet and Chalta issued by the City Survey Department containing the sketch of the property in question and its measurements.

5) Encumbrance Certificate (preferably in Form 15) issued by the Sub-Registrar exercising relevant jurisdiction over the property for a period of not less than 30 years.

6) Copy of the plan sanction issued by the BBMP/BDA/Local Planning Authority/BMRDA for the construction of a house or residential or commercial multi-storeyed building.

7) Copy of the Commencement Certificate of the BBMP/BDA/BMRDA issuing permission to commence construction of a multi-storeyed building.

8) Copy of the occupancy certificate issued by the Palike certifying that the building constructed on the schedule property is in accordance with the sanctioned plan.

9) Copy of the receipt evidencing payment of compounding fees to the BBMP or Revenue Authorities or Municipal Corporation or Town Municipal Council for regularising the deviation, if any, made from the building sanction plan.

10) Copy of the No Objection Certificate from the Fire and Emergency Services, HAL, AAI, KSPCB, BESCOM or other electricity suppliers, Water Supply (rural) or BWSSB, Coastal Area Authority(if applicable) Department.

11) Copy of the clearance to operate lifts in the building issued by the Chief Executive Engineer, BBMP, and Electrical Inspectorate.

12) Copy of the NOC/CFE/CFO/Clearance Certificate issued by the Pollution Control Board.

13) Copy of the Endorsement issued by the Director, Fire Services Department, by means of letter addressed by him to the BBMP/BMRDA/BDA or LPA stating that he has no objection to the  issuing an occupancy certificate in respect of building constructed on the property.

14) No Objection Certificate from the Airport Authority of India.

The documents mentioned in (6), (7), (8), (9), (10), (11), (12), (13) and (14) usually arise in the case of multi-storeyed buildings and large layouts.

BDA jurisdiction

The following are the documents of title with respect to properties allotted and/or sold by the Bangalore Development Authority to the present owner/owners which need to be obtained by every prospective purchaser:

PRIMARY DOCUMENTS

Allotment letter issued by the Bangalore Development Authority in favour of the present owner in respect of the property.

Possession letter issued by the Bangalore Development Authority in favour of the present owner in respect of the property, recording handing over of possession of the property to the present owner.

Absolute Sale Deed executed and registered in favour of the present owner by the Bangalore Development Authority in respect of the property after the expiry of 10 years from the date of allotment.

Building sanction plan issued by the Bangalore Development Authority where a building has been constructed on the property.

Secondary documents

Khatha Certificate issued by the Bangalore Development Authority in the name of the present owner/owners.

Tax paid receipts issued by the Bangalore Development Authority evidencing payment of taxes in respect of the property up-to-date.

Encumbrance Certificate (preferably in Form 15) issued by the Sub-Registrar exercising relevant jurisdiction from the date of allotment up-to-date.

APPROVALS/LICENSES/PERMISSION/CONSENTS/ORDERS/NOC

1). DC Conversion Order for the change of land use.

2). Change of Land Use from BDA, MUDA/BMRDA or Any other LPA.

3). Developmentpment Plan from BDA/BMRDA/LPA.

4). Sanctioned Building Plan from Municipal Corporations or TMC or GP as applicable.

5). NOC from BESCOM ( in case of Bangalore), BWSSB ( in case of Bangalore) AAI, HAL, GSI, Fire and Emergency Services, LDA, CFE and CFO from KSPCB.

6). In case of Coastal Areas, appropriate orders from Local Bodies.

7). NOC from KIADB, KHB, LAO, NH and BDA.

8). NOC Under Sec 79A and 79B, 7 and 7A and PTCL Acts. (specifically for agricultural lands)

9). RERA APPROVAL.

 

 

BANGALORE – SMART CITY – GETS RS.2,219.32 CRORES


Bangalore-The Smart City will get funds for the development
The BBMP has drawn up several projects that would help the city stand on a par with other global cities and the work may start from the end of this year, if everything is NORMAL. (Politics)

Of the Rs 2,219.32 crore earmarked for the Smart City project, Centre and Karnataka will each contribute Rs 500 crore; the remaining will come through the PPP mode, and from other agencies like BBMP, BMTC and BMRCL.

127 BBMP WARD COMMITTEES NOTIFIED


The BBMP has notified 127 ward committees, the hearing in the High Court was scheduled tomorrow, it is just a day before the High Court hearing on the matter.

It is alleged by a group that NONE OF THE COMMON MAN (CITIZENS) HAVE BEEN SELECTED AS THE WARD MEMBERS.

 

Rainy Season and the problems of low lying areas and illegal layouts-Water Pollution and Noise Pollution


Even before the onset of Monsoon, Bangalore received a good spell of rains, but the BBMP as usual was not prepared and the citizens suffered.

But, as a responsible citizen, cannot blame the system or the BBMP alone.

Illegal construction, blockage of drains, construction in the low lying areas are the main reasons for the flooding.

The revenue sites and the Converted layouts have blocked the normal flow of water in the canals, by forming illegal and unauthorised layouts and blaming the administration for their own mistake.

Water borne diseases are on the rise and the ground water is contaminated beyond repair.

All these illegal layouts discharge highly toxic sewage into the valleys or raja kaluve or in the soakpit, thus the lakes became poisonous and the ground water is highly contaminated as untreated sewage is let into the ground.  Later, the same people, drill borewell and use the contaminated water, resulting in skin and respiratory disorders.

All the social media abuzz with the dangers of water, air and noise pollution.  All these talks only on the internet and nothing useful has come out of it, till date.

Noise pollution is affecting the children, much more than the elders.  Everyday, the vehicles emit poisonous gases and ALTERED (ILLEGAL) SILENCERS AND THE SHRILL HORNS, POSE MAJOR RISK TO THE HEARING PROBLEMS.

The Police, the kspcb and the RTO have turned blind eye towards these illegal alterations and noise pollution.  The normal parameter set by the CPCB is 75db in the residential areas, whereas the vehicles, spew venom and with their shrill horns and silencers, make life miserable with 100db to 200db sound, which will make any normal human being DEAF, very soon.

BBMP-NGT- NO MORE BUFFER ZONE VIOLATION – 400 PROJECTS AT LIMBO – PRE LAUNCH- GOVINDA !!!!!!!!! GOVINDAAAAA!!!!!!


The Bruhat Bengaluru Mahanagara Palike (BBMP) and Karnataka Urban Development Department (UDD) tendered an unconditional apology to the principal bench of the National Green Tribunal on Wednesday, and undertook to withdraw with immediate effect, a circular laying out exemptions from the buffer zone ruling of the tribunal.A UDD letter to the BBMP, dated February 16, 2017, interpreting the NGT ruling too has been withdrawn. Citing the UDD communication, the BBMP had issued the circular, dated March 30, 2017, exempting projects which had already received plan approvals from the buffer zone ruling.

The department and BBMP submitted affidavits and were represented by additional chief secretary Mahendra Jain and joint commissioner Sarfaraz Khan, respectively.

Castigating the BBMP for tweaking its order on the buffer zone around lakes, the NGT had on Tuesday directed that any such attempts in future would be subjected to contempt proceedings. The tribunal also deterred the officials from interfering with the NGT judgment in future, and from using impertinent language with regard to it.

On March 30, 2017, nearly a year after NGT ordered increasing the no-build buffer zone around lakes in Bengaluru from 30metres to 75metres, BBMP issued a fresh circular reinterpreting the order. The circular had stated that the new buffer zone of 75metres for lakes and wetlands won’t apply for building constructions in layouts which have sanction from the planning authority, before the order was issued on May 4, 2016.

The green bench also noted that the intention behind the BBMP circular and legal opinion approved in the UDD letter dated February 16, was clearly to frustrate the NGT judgment. It observed that the language used in the letter and comments given on the judgment dated May 4, 2016, are unacceptable.

“The opinions expressed in the BBMP circular and UDD letter are completely contrary to the tribunal’s judgment. We wish the government on its own should take some action to show they have some respect for law,“ the green bench noted.

The tribunal told the UDD that it should know the law and that NGT is not a quasijudicial body. The NGT has been described as a civil court in the NGT Act, it pointed out.

The circular issue was brought to the notice of the principal bench in New Delhi on Tuesday, by intervener Namma Bengaluru Foundation, when it was hearing the Bellandur Lake case. The bench took exception to the circular and UDD letter, and ordered all officials connected to them to appear before it on Wednesday .

 

PRE LAUNCH- FREE BALAJI DARSHAN
 The National Green Tribunal’s Wednesday directive instructing BBMP to withdraw its circular dated March 30, 2017, that reinterpreted an earlier directive by NGT on the lake buffer zone, has left the construction industry and developers in confusion again.Many of them fear that projects in the vicinity of lakes could get stuck.

A senior member of the Confederation of Real Estate Developers’ Associations of India (Credai), Karnataka chapter, said as many as 500 small and big construction projects in different parts of the city were stuck due to confusion over buffer zone norms around lakes and storm water drains.

“There were about 200 projects which got plan sanctions when the NGT issued fresh buffer zone norms in May 2016.And there are about 300 applications that have come before BBMP and BDA after the NGT directive,“ he added.

In its March 2017 circular, BBMP had exempted projects whose plans had been sanctioned before the NGT order, from its buffer zone ruling.Many builders in the city had heaved a sigh of relief as the circular brought clarity on buffer zone norms.

“We are yet to get a copy of the Wednesday order by NGT.I do agree that we need to protect the environment but the lack of clarity on buffer zone laws has left the construction industry in confusion. If somebody has violated norms, let the agencies initiate action. At least 200 big projects (construction on 5 acres to 10 acres) are stuck due to this,“ said Suresh Hari, secretary, Credai-Bengaluru.

Questioning the practicality of the extended buffer zone norms, the Karnataka government had also joined builders’ groups ( For Mutual Benefit) to challenge the NGT order before the Supreme Court recently .

The government impleaded that various constructions and layouts spread over a total area of more than 1,000 acres are stuck due to confusion over the buffer zone.

It includes 40 applications pending approval of layouts covering 789 acres, 21 plans sanctioned by BDA and awaiting occupancy certificate covering 95 acres, and 19 plans awaiting completion certificate and spread over 49 acres.

Mahendra Jain, additional chief secretary , urban development department, said, “We have to follow the NGT directive and withdraw the March 30, 2017 circular.“

NATIONAL GREEN TRIBUNAL IS furious at BBMP buffer zone exemptions Circular by the Commissioner, stating that the NGT order does not have retrospective effect


BBMP Commissioner has issued internal circular to the Town Planning Authorities that the NGT order on the Buffer Zone will be PROSPECTIVE.  Those who have already obtained or sanctioned the building plan and other plans need not comply with the buffer zone regulation.  This act has angered the NGT.  NGT has directed the BBMP to immediately appear before it and explain this ACT by BBMP today.  Otherwise, contempt proceedings will be initiated and the concerned officials will be PUNISHED.
It is further learnt from reliable sources, that the BBMP Commissioner was advised by the LEGAL EXPERTS that the NGT order is not retrospective.  Based on their extensive and in depth knowledge, expertise and advise, the Commissioner, seems to have issued the Circular.
Taking exception to a Bruhat Bengaluru Mahanagara Palike (BBMP) circular exempting projects, whose plans had been sanctioned before the order, from its buffer zone ruling, the National Green Tribunal (NGT) on Tuesday ordered all civic officials who had approved and issued the circular to be present before it on Wednesday.

The principal bench in Delhi is hearing the Bellandur Lake case when intervener Namma Bengaluru Foundation submitted the BBMP circular dated March 30, 2017, highlighting the civic body’s apathy to the city’s lakes.

The foundation counsel accused the authorities of malfeasance in circumventing the tribunal’s directives. He also read out extracts of the urban development department letter, referred to by the circular, which stated that the NGT does not have powers to frame law.

Furious at the language of the circular, the green bench asked the Karnataka

government counsel: “By what authority have you clarified our judgment?“ The bench threatened to initiate contempt proceedings against guilty officials. The Karnataka counsel conceded that the language used was `unfortunate’.

The bench also summoned the state pollution control board, lake conservation and development authority and BWSSB officials to appear before it at Wednesday’s hearing. It directed the state to make special arrangements for their travel, if required, to get them to the court in time. The tribunal also expressed serious concern at the apathy of officials present in the courtroom regarding the quanity of sewage being treated or dumped in Bengaluru’s waterbodies.

Mahendra Jain, additional chief secretary, urban development department, who was present in court, submitted that 480 million litres per day (MLDs) of untreated sewage flows towards Bellandur lake, of which about 250 MLDs gets treated. He also said Sewage Treatment Plants of 150 MLD are being built near the lake.

When these figures contradicted figures in affidavits filed by different authorities, the officer sought time to reconcile his notes.

At a hearing last week, the tribunal had directed the state government to stop flow of untreated sewage into the lake immediately. The government was warned that an environment compensation charge would be imposed if it failed to comply with the direction. Jain appeared before the NGT on behalf of the chief secretary who had been summoned.