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Old 14th October 2011, 17:00   #871
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Default Re: The Property / Real Estate Thread

How do people sell with a sale agreement? i mean, i seen people making agreement for the purpose of loan, then the property is under construction. Once completed, he can register it or change hands by paying some "cancellation" amount to builders.

So, with this new rule or law, I don't think this is going to change.

Or is it different?
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Old 14th October 2011, 17:09   #872
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Originally Posted by mjothi View Post
How do people sell with a sale agreement? i mean, i seen people making agreement for the purpose of loan, then the property is under construction. Once completed, he can register it or change hands by paying some "cancellation" amount to builders.

So, with this new rule or law, I don't think this is going to change.

Or is it different?
From what I know and what I have seen, people can/have sold properties only on Sale agreements. They first make an agreement with the builder to purchase the flat and get the loan from bank. For years they dont register the property. Later they will sell it to another person and the second buyer now makes sure that first agreement is void and new agreement is made for his loan. I have seen some banks refusing to offer loans for these kinds of transactions. But private banks definitely did.

Last edited by penpavan : 14th October 2011 at 17:11.
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Old 14th October 2011, 17:17   #873
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Originally Posted by penpavan View Post
From what I know and what I have seen, people can/have sold properties only on Sale agreements. They first make an agreement with the builder to purchase the flat and get the loan from bank. For years they dont register the property. Later they will sell it to another person and the second buyer now makes sure that first agreement is void and new agreement is made for his loan. I have seen some banks refusing to offer loans for these kinds of transactions. But private banks definitely did.
Thanks.
Now, thats new for me. I always thought that registration is the one that completes the transaction. Hmm, feel still a kid in this market
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Old 14th October 2011, 17:19   #874
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Default Re: The Property / Real Estate Thread

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On reading it means that you cannot sell a property unless you have registered it!
Very major decision! So if this is true then you may expect that number of people doing flat/apartment/site squatting on the basis of only sale agreement (with the intention of selling the flat at higher price later) will decrease.
It categorically states that from now on, SALE AGREEMENT is no more a legal document and only SALE DEED is.
So it means that the people who have just taken up flats and plots as an investment purpose will have to register the same before selling it. Right?

I am a complete newbie but does registration involve heavy taxes because of which people will shy away from it? Or is it something to unearth the black money?

Last edited by download2live : 14th October 2011 at 17:23.
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Old 14th October 2011, 17:30   #875
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So it means that the people who have just taken up flats and plots as an investment purpose will have to register the same before selling it. Right?

I am a complete newbie but does registration involve heavy taxes because of which people will shy away from it? Or is it something to unearth the black money?
Exactly. Looks like the Govt does not want to miss out on the registration for _any_ sale. And yes, registration charges are quite significant. More so with revised land guidance values. And know what? If you are a second buyer (means not a direct buyer from a builder) your registration charges are more by around 3-4 percent. (Not sure of this number but definitely it is more than first buyer)

So according to me, in this whole scene the real gainer is the Govt.
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Old 14th October 2011, 17:41   #876
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Default Re: The Property / Real Estate Thread

What will be interesting to see is:
1. Will this be challenged?
2. How will banks respect the Sale Agreements from now. So far they treated it as a legal document to offer loans.
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Old 14th October 2011, 19:35   #877
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Default Re: The Property / Real Estate Thread

The law already requires (since last 5 or 7 years - not sure) that an agreement to sell immoveable property needs to be registered. It is a matter of prudence that a power of attorney should specifically grant powers to sell immoveable proeprty specified in the power of attorney. A general power of attorney is generic; a specific / special power of attorney spells out that holder is authorised to sell immoveable property.

If lawyers and property dealers relied on GPA and unregistered sale agreements, it only underlines my earlier posts - buyer beware!!! Developers' lawyers only look at their own interests; not your interests and rights, as a buyer.

The newspaper report, if fully accurate in its reportage about "concerns" of "lawyers and consultants", highlights another serious problem with the Indian society - Indian lawyers rarely read the law.

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Quote:
Originally Posted by penpavan View Post
On reading it means that you cannot sell a property unless you have registered it!
All documents (in nature of title deeds / agreements etc) related to rights in immoveable property needs to be registered. Even power of attorneys.

Quote:
Very major decision!
The law (Transfer of property act, and registration act) was amended sometime in early 2000s and gave a 2/3 year window for the transition. Too bad the so called lawyers were oblivious to the changes.

Quote:
So if this is true then you may expect that number of people doing flat/apartment/site squatting on the basis of only sale agreement (with the intention of selling the flat at higher price later) will decrease.
Precisely why the law was brought in force in 2000s. These practises (unregistered sale deeds) were also giving rise to money laundering (mal)practises.

Quote:
It categorically states that from now on, SALE AGREEMENT is no more a legal document and only SALE DEED is.
Not exactly. <may be wrong in remaining part> You can still claim personal damages for breach of sale agreements. Previously, you could enforce a sale agreement against a third party buyer, who purchased the property without knowledge of prior sale agreement entered into by the seller.
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Old 14th October 2011, 20:01   #878
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2. How will banks respect the Sale Agreements from now. So far they treated it as a legal document to offer loans.
This is where I am confused.

Banks produce the check on the sellers name once the registration is done. So, how can a guy hold a flat without registering?

This may be for those who but when under construction, and sell off during completion. But not sure if it can be done for all properties.

Right?
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Old 5th November 2011, 10:02   #879
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Default Re: The Property / Real Estate Thread

Anybody know of any flats for rent in areas like Ulsoor or Cambridge Layout in Bangalore ?
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Old 5th November 2011, 14:25   #880
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I have worked for a construction products and services for some time and have built a house in Bangalore, with my experience i would like to give some basic or rudimentary advice to prospective house owners :

1. Approval of plan for construction from the Pachayat or Thaslidars office.
2. Appointment of a contractor based on track record, labour contract is better.
3. Selection of raw materials and standardisation of the same in the form of reputed mfgs.
4. Cement Grade 53, Birla Super, Ultra Tech, ACC, India cements, Zuari etc
5. Pesticide treatment before construction of foundation walls.
6. Bricks selection for example ABW is the best in Blore for which one has to pay advance draft payment, concrete blocks can produce heat but it is quicker to construct.
7. Steel to be used TMT quality, from Tatas.
8. Underground sump tank to be checked for leakproof before sealing it.
9. Provision for drainage pipes and electrical cabling.
10.Centring with steel sheets is better and stable for construction.
11.Engage reliable workers for mixing concrete, the mixture of cement sand and gravel has to be maintained. 5 inches concreting is recommended for non leakage of roof.
12 Electrical pipe National brand is best, cables Finolex or Anchor.
13.Sanitary ware Hindustan, Parryware, Cera, Somany, Neycer in that order even though imported ones too available if one can afford budget white and ivory are cheapest.
14.Tap fittings Jaguar, Essess are standard, Seiko is another recommended company in middle grade.
15. Asian Paint, Nerolac are two brand leaders in paints.
16 Switches look for Anchor modular switches which is long lasting and durable, other brands are Crabtree, Woods, MK
17. Doors and windows mfg by reputed cos preferable, for example Karnataka forest dept provides good quality doors, advance payment is sought. Bathroom doors one can go for fibre doors which is water proof and durable, when compared to flush doors.
18. Godrej and Europa locks are of the highest quality.
19. Tiles, vitrified tiles are good for gloss and sheen, it is easy to lay and maintain. The quality of granite and marble is subjective. Johnson Johnson, Kajaria, Nitco, Somany, Bell, Naveens Murudeswar are some of the reputed manufacturers.
20. Syntex tanks are best for overhead tank and Tata Bp solar for hot water tanks.

Guys you all add some points if i have missed out any. Having a good engineer would help us in estimating the quantity of material to be procured. One caution though nowerdays in bangalore we don t get good quality sand, this is the key for quality construction. Another problem can be legal and trouble emanating from BBMP, and neighbours too if one deviates plan of construction, it is better to maintain harmonious relation otherwise one is bound to face legal case and construction being stopped by jealous neighbours.

Last edited by ukderebail : 5th November 2011 at 14:27. Reason: add info
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Old 6th November 2011, 13:15   #881
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Default Re: The Property / Real Estate Thread

Quote:
Originally Posted by ukderebail View Post
I have worked for a construction products and services for some time and have built a house in Bangalore, with my experience i would like to give some basic or rudimentary advice to prospective house owners :

Bricks selection for example ABW is the best in Blore for which one has to pay advance draft payment, concrete blocks can produce heat but it is quicker to construct.
what about fly ash bricks or those lie Hyderabad industries aerocon bricks?

In the market i was told that MDS legrand is better than Anchor Roma
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Old 7th November 2011, 17:37   #882
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what about fly ash bricks or those lie Hyderabad industries aerocon bricks?

In the market i was told that MDS legrand is better than Anchor Roma
The best according to me is the laterite stones which are available in plenty in South Kanara and North Kerala, construction is easier, stronger and quicker with these huge naturally occurring bricks.

Legrand i have seen it installed by a contractor in one of my friends place, i find it just average when compared to MK and Roma. Generally contractors go for a product wherein they have more profit
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Old 21st November 2011, 13:05   #883
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Default Re: The Property / Real Estate Thread

Friends,

I have little problem with the current own house (Bangalore) where I stay.

1)
I had bought this plot in 2006 and constructed the house with 3 floors. (G, 1st and 2nd).
I have given 2nd floor house to my in-laws to stay.
G flr given for lease for 3 yrs. I am living in 1st flr.
This area is near Vidyapeeta circle[ Banashankari 3rd stg].
For Bangalore south folks, it would be a familiar area.
Its location is close to many good shopping areas, Gandhi Bazaar, DVG road, Bull temple, Jayanagar. My kid's school is very close.
I have been living in Basavanagudi/BSK area & surroundings for last 35 yrs. Its hard to leave this area.

2)
Problem being that my area in becoming more crowded with these taxi-walas/TTs parking on the roads. Areas flooded with low-income group people [Dont mean to insult anyone]. I have to fight with them on weekly basis on parking, garbage, sanitary and kids playing infront of my house, breaking glasses. Its seems so, that part of area was earlier a slum. And then took over from BBMP.
Adding to this, I have a secondary storm water drain beside my house. During buying the plot it was said as conservancy. But, seems like lot of these small houses have not fixed to BBMP pipes instead allowing them to this secondary drain. Luckily, the top layer of drain is closed and its around 7ft wide. I have talked to local Corporator. He says there is no plan to do anything on secondary storm drains. And I can use it for parking.

Other issue is about me parking on this drain. Others also want to use it for parking. If I allow them these taxi-folks park beside my house, i am sure they start all kinds of smoking sessions which is not good. I am like kind of fixed and not to know what to do.

Options:
1) Outright sale of this house and buy a house somewhere in decent locality. [Even far places like Kanakapura road/Uttarahalli, BSK 6th Stg etc]. Tried this option. But, my family is against selling this due to location advantage and wants to build duplex house instead of checking new areas.
This option puts lot of strain on our adjusted mindsets and other supporting systems we had. Selling & buying process. Kids school will be far as well. With current prices even outskirts looks pretty costly along with construction cost and mental tension till we settle.

2)
Give the current house for rent and go for rent near decent localities.
Options works out, but do not want to stay in rented house longer.

3)
Buy a plot in gated community near electronic city[jigani,anekal, behind NH hospital] or Bannerghata road[Nisarga layout].
Construct house. Give the current house for rent.
This seems to be better of the two, but I need to shift my kids school to new school.
New environment for kids also impacts for some. Currently, she goes to classical dance/music. Not sure if we can get similar tutors in new areas.

Sorry for the long story. But, wanted to get inputs from you experienced folks.
Please advice.
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Old 21st November 2011, 18:42   #884
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In the current situation in Bangalore nothing looks viable. Apartments are sold at ransom prices. Rent are roof high. May be building a house in the gated community seems to be wise decision. But off course its all out of reach. You will have to travel and shouldn't complain about it.
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Old 21st November 2011, 21:09   #885
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Does anyone have any idea about TDR whilst selling properties ?
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