Wednesday 27 April 2016

Selection of the Property

Selection of the Property


The registration has commenced pertaining to all the properties consequent to the relaxation of the ban imposed on the registration of certain properties. The ban on the registration has created an awareness in the public not to invest on the property which is improper.  On the other hand, the recent demolition drive undertaken by BMP in Koramangala has created a sense of fear among the public to invest on the property in and around Bangalore. Walking on the road involves risk; nevertheless we cannot sit at home. Likewise, investing in the property also involves certain risk, but we have to take certain calculative risks which will help us to live in a dream house and also appreciation on our investment.

Unknown Area:
No advocate can give clear cut assurance on the properties. There may be few transactions which cannot be traced from the documents produced for scrutiny, such as previous agreement entered into with somebody, pending court litigation between the family members or outsider, etc, which are the risky areas that cannot be traced by seeing the property documents. However, advertising public notice in the leading daily, having wide circulation in the area where the property is situated, will help to trace certain adverse claims, if any, before purchasing such property. However, such Public notice is only a precautionary measure and may not be binding on any one having interest in the property if the same is ignored or may have not seen the notice at all. If the same is noticed by anyone having any kind of interest over such property, then opportunity will be given to them to file the objection before the purchase of the property and subsequently, issues cropped pursuant to such objections could be sorted out by the Vendor. The purchaser can also back out from such transaction.

I herewith give certain guidelines as to where to invest and how to select the property in order to overcome any kind of ambiguity regarding purchase of any property.

Even though all the properties can be registered by the concerned Sub-Registrar, mere registration would not convey the title. Registering officer will act only in the ministerial capacity and do not have power to asses the Genuineness  and marketable title of the property. Infact, the Sub-Registrars are more concerned with the stamp duty and registration charges. No one can give better title than what they themselves have, is the basic principle of the Transfer of Property Act. A vendor having marketable title can lawfully convey the property and  register in the concerned Sub-Registrar in favour of the purchaser and if the vendor has defective title, conveying the same and getting it registered will not perfect his title as there will be a lot of confusion as to whether the property is legally valid or not.

Clear Marketable title
Before purchasing the property, marketable title, Genuineness of the document, enforceability of the title has to be scrutinized along with a thorough verification as to whether the relevant provision of the laws and other rules and regulations of the revenue authorities has been duly complied. Origin of the property, flow of the title and present status has to be verified with the help of an advocate, who is having experience on such matters.

B.D.A.Sites
Bangalore Development Authority, previously known as City Improvement Trust Board, allotted sites having the perfect title, compared with another title. BDA, being a statutory body, has got its own procedure envisaged in the BDA act in acquiring the lands from the private parties, formation of layouts along with all infrastructure like power, water and roads. Generally, impetus is given for providing civil amenities and width of the roads as per the town planning act. Layouts already developed has been provided with all the facilities immediately, for which we will have to pay moderate rate. Likewise, Co-operative societies layout, private layouts approved by BDA are governed by the rules and regulations of the BDA only. However, purchasing such property is advisable after scrutiny of the title thoroughly.

BMRDA Approved Sites
Recently, lot of layouts approved by BMRDA i.e., Anekal Planning Authority(APA), Nelamangal Planning Authority(NPA), Magadi Planning Authority (MPA), Hosakote Planning Authority(HPA), Kanakapura Planning Authority(HPA), Bangalore International Airport Area Planning Authority [BIAAPA] are coming up in the outskirts of Bangalore, with  proper planning and development.  This is due to the recent ban on registration of such properties without BMRDA Release Letter.
Recently, BMRDA has changed its rules and regulations, wherein only 60% of the sites would be released at the time of approving layout plan, while remaining 40% of the sites will be released after completion of the entire layout.

Accordingly, the Sub-Registrar refuses to register such sites without the release letter. So it became mandatory on the part of the developers to develop the entire layout and get the release order of the balance 40% of the sites. After the relaxation of the ban on registration, Sub-Registrar is registering BMRDA sites without release order, which, infact has affected the developmental activities of such layouts.

Few of the promoters are selling the sites without providing basic facilities with an assurance to develop the same, but fail to do the same.


The government has to take initiative and should make it mandatory to submit order of release of sites at the time of registering BMRDA approved sites, in order to safeguard the interest of such purchasers.

For More...........:


No comments:

Post a Comment