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.

NEW ROAD FROM MYSORE ROAD TO MAGADI ROAD – A BDA PROPOSAL


The Bangalore Development Authority (BDA) has finalised a project to construct a six-lane road which connects Mysuru and Magadi Roads through Kempegowda Layout and is expected to submit the proposal to the State Government soon and  the project might be completed in 18-24 months.

The six-lane road will be constructed from Mysuru Road located at one end of Kempegowda Layout to Magadi road. A portion of the road — around 10.7 km — will be taken up as an arterial road at an estimated cost of Rs 350-370 crore. This road will have two-lane service road on the both sides and around 320 acres of land may be required for the completion of this project.

The proposed road will put a curb on the entry of heavy vehicles into the city.

After the construction of the connecting road, two sides, along the road, will help take up business activities. For the purpose, about 250 acres of land has been identified in five different places. Information technology companies and industrials units will be established under the Public Private Participation (PPP) model.

CAG RAPS BDA ON BUILDING PLAN VIOLATION – CAG REPORT – A Press Report


CAG: BDA overlooked change of land-use plan by developer

The CAG statement comes in the backdrop of BDA’s lapses in sanctioning building plans for Prestige Augusta Golf Village project in Vaderahalli village, east Bengaluru, which involves development of 460 luxury villas and twin houses spread over 104 acres designed around a nine-hole golf course. In its second instalment on the general and social sectors, the CAG report said the project, initiated in 2013, is facing demolition owing to the BDA’s failure to consider the general power of attorney (GPA) before sanctioning the detailed building plan that resulted in deviation from the approved development plan.
The Comptroller and Auditor General (CAG) has slammed the Bangalore Development Authority for its failure to monitor compliance with building bylaws, especially involving large projects, and said it has resulted in the exploitation of unwary buyers. The audit report placed in the assembly on Monday said the BDA must continuously ensure bylaws are followed. “Failure to do so may result in severe losses to the buyers since BDA may subsequently deny occupancy certificates or demolish the building as those would be illegal structures,” it added.

According to the report, the BDA, in December 2016, issued notice to Prestige Developers seeking reasons for contravening the scope of the development plan approved by the authority. Since the reply was unsatisfactory, it directed the builder to stop work and remove the structure constructed while recallig the sanctioned plan. By then, the developer had developed, ad vertised and sold some residential units in the agricultural land zone to prospective owners violating the norms stipulated in the zoning regulations of the Revised Master Plan 2015 for Bengaluru. As per the regulations, if the land is more than 40 hectares, golf course along with ancillary units like administrative office, guest rooms guest houses and dining facilities may be permitted for housing the staff of government, semi-government, public and private limited for short duration.

The back story

In 2012, owners of Survey Nos 27 to 42 and 56 of Vaderahalli village applied for conversion of land use from agricultural to nonagricultural for the development of golf course and ancillary units. The then deputy commissioner, Bengaluru Rural district, gave the approval on the condition that the land would be used for the intended purpose and construction would be undertaken after obtaining approval from zonal development authorities.

The owners applied to the BDA for sanction of non-residential development plan and it was approved on January 21, 2013 for a golf course and ancillary units. The report said that BDA issued the work order on June 28, 2013 after the land owner entered into a development agreement with Prestige Developers to develop the property and for its sale after executing a GPA in favour of the developer , empowering him to sell, lease, mortgage, exchange or otherwise 67% divided and or undivided share in the land.

“The GPA was submitted along with other docu ments to BDA prior to seeking sanction for the detailed building plan. Despite possessing the GPA, which altered the scope of the development plan sanctioned, BDA sanctioned the detailed building plan for construction of golf course with 460 guest houses on remittance of prescribed fees and charges,” the report said.

 

 

BELLANDUR LAKE FIRE AND POLLUTION – NGT TAKES UP THE ISSUE


The National Green Tribunal (NGT) has suo motu issued notices to all the agencies involved in the upkeep of the heavily polluted Bellandur lake following the most recent outbreak of fire. The matter is listed for Wednesday and NGT has asked for a plan of action from the agencies regarding controlling pollution in the lake, sources said.

The Bangalore Development Authority (custodian of the lake), the civic body (in-charge of storm water drains and alleged to have failed to check the dumping of waste into the lake), BWSSB for letting in untreated sewage into the lake, KSPCB and KLCDA in-charge of lakes in the city, have been served notices.

 

Questions and Queries related to Akrama Sakrama


1). What is FAR?

2). What is Setback?

3). What is height restriction?

4). What is Zonal Regulation?

5). What are the eligibility conditions of the property to apply for the regularisation?

6). How much is the scrutiny fee?

7). How much is the regularisation fee?

8). When the scrutiny fee and the regularisation fee has to be paid?

9). Who can apply for the regularisation?

10). What are the documents that are required to be submitted for the regularisation?

11). What type of properties are eligible for regularisation?

12). Will there be a check on the documents submitted?

13). Where shall I submit the application?

14). Where can I get the application?

15). Can I submit the application online?

16). What will happen, if the violation and deviation is not regularised?

17). How to reduce the deviation or violation to bring to the parameters set by the Government?

18). Who has to pay the regularisation fee? ( in case of apartments-unauthorised floor)

All the queries and questions will be answered soon through a booklet and will be widely published by the Government/BBMP soon.

For.Further Details contact the BBMP after the notification is issued.

 

AKRAMA – SAKRAMA – UPDATE – A NEW YEAR GIFT FROM THE GOVERNMENT FOR THE REGULARISATION OF VIOLATION AND DEVIATION


AKRAMA – SAKRAMA – UPDATE – A NEW YEAR GIFT FROM THE GOVERNMENT FOR THE REGULARISATION OF VIOLATION AND DEVIATION

The Government of Karnataka will notify the AKRAMA-SAKRAMA Scheme, may be from 02-01-2017 and the applications can be submitted till April, 2017.

In a bid to thwart any attempt to bring in a STAY ORDER, the Government has submitted a CAVEAT in the Supreme Court of India.

The Scheme will be enforced subject to the Supreme Court directives.

It is estimated that there are over 10,00,000 properties which have deviated from the sanctioned building plan and over few lakh sites which are in the revenue belt and DC Converted in unauthorised layouts.

B katha sites, if, eligible can regularise and the buildings with a deviation and violation of 50% in case of residential buildings and 25% in case of commercial buildings can be regularised under this scheme.

The state government on Saturday decided to invite applications from property owners for regularisation of illegal properties within the limits of the Bruhat Bangalore Mahangara Palike (BBMP).

A high-level meeting of BBMP, BDA and Urban Development department chaired by CM Siddaramaiah resolved to give four months time to the public to submit their applications for regularisation.

The state government, after resolving a few technical issues within the scheme, has finally decided to issue an official notification inviting applications from the public. Addressing media persons, Bengaluru Development Minister KJ George said, “The government has set a deadline of four months to submit applications by the public. Those properties built before 19 October 2013 are eligible for regularisation.” Elaborating further, George said, “There will not be any change in the fee structure which is based on the guidance value of the property.

All residential properties with 50 per cent deviation and commercial properties with 25 per cent deviation will be eligible to apply under the scheme.

Public can submit their applications online as well as manually at BBMP offices. Any property, which has deviation and had failed to apply under the scheme, will be mapped and mercilessly demolished after the end of the deadline.”