The Property / Real Estate Thread

Pallavi · 26th July 2011, 14:19

Quote:

Originally Posted by condor

The other problem is when people dont pay maintenance fees.

This is the major problem. Especially if the apartment is let out and there is disagreement between tenant and owner. The society can issue a notice to the owner in such a case.

@condor: please make sure that there is a registered association or society formed for the apartment. People grouping together and electing one among them to run the maintenance activities simply doesnt workout.
I know of one such apartment where one guy responsible for the maintenance got an onsite opportunity and he left in a hurry without settling the maintenance account to the tune of 27k.

beejay · 27th July 2011, 17:38

Hi,
Does anybody have any details of Prestige Tranquility situated off Old Madras Road. Has anyone booked? AFAIK Prestige is reputed ans couldn't be an issue right? For a very close friend. Thanks in advance.

condor · 27th July 2011, 18:30

Guys, thanks to all and for the responses that are coming in.

Do we have a check list here that lists out what to look for when buying an apt ? New / Used ?

blorebuddy · 28th July 2011, 11:17

Dear Friends,
I am planning to buy a ready to occupy flat in 4 floors building. Every floor has 2 flats and total of 8 houses.

Layout is approved by BDA and it is near Elec City. The building plan is approved by panchayat. Is this a legal one? As per my understanding construction of 4 floors require approval from BBMP. Please clarify.

Can I go ahead and purchase or not?

Spitfire · 28th July 2011, 11:38

Quote:

Originally Posted by blorebuddy

Can I go ahead and purchase or not?

Are you a lawyer?

Regards
Spitfire

beejay · 28th July 2011, 11:54

Is it true that PLC of rs.15 is added for every upper floor in Bangalore. I think its better to stay on the lower floors, coz normally in some other cities flats on the lower floors cost more.
Also, what needs to be taken into consideration when purchaing a flat in a upcoming project. The builder is quite renowned, apart from that. Date of completion is 2014. Are these kind of deals bargained. I am going through a company called Proptiger.

download2live · 28th July 2011, 12:48

We seriously need a check list for buying an apartment here.
Will request Spitfire to start one. He seems to be the most knowledgeable on this.

benbsb29 · 28th July 2011, 13:36

Quote:

Originally Posted by beejay

Hi,
Does anybody have any details of Prestige Tranquility situated off Old Madras Road. Has anyone booked? AFAIK Prestige is reputed ans couldn't be an issue right? For a very close friend. Thanks in advance.

The Tranquility project has small sized apartments, more on the budget homes concept. Is your friend looking for such an apartment?

beejay · 28th July 2011, 14:59

Quote:

Originally Posted by benbsb29

The Tranquility project has small sized apartments, more on the budget homes concept. Is your friend looking for such an apartment?

Yes, he is a NRI and will rent the home out. He plans to come after a few years and settle down in Blore.

mkh · 28th July 2011, 16:45

For buying an apartment even if the builder is reputed, i had posted that you MUST get documents verified
Prestige has a couple of projects that are NOT clear, they have enough muscle to get any plan sanctioned
For a proper project builder needs to get approvals from authorities- especially BBMP, BESCOM , BWSSB. The plan needs to be approved incl how much rise( which means floors)
The builders pay off bank lawyers to approve their projects, so going by the fact that a project has so and so bank approval has NO bearing. If you ask the bank they will CLEARLY say- you cannot take our legal opinion of any value in case problems later
Give a deposit and collect legal documents, take it to a PROPER property lawyer and get them examined.
You also need a loan approval from a bank- get that done ahead ideally. For Sanction, bank will ask many documents from builder, which in case of approved projects is NOT needed
Mind you- A or B, MOST builders will delay, and considering the current scenario where lending rates are rising- FOR SURE by 1-2 years projects starting now will be delayed.
A few more things
1. examine the "extra charges". If a place is say 70 lacs- it can go upto 80-85 adding taxes etc
2. Check the agreement for sale also, get that examined ahead
3. Get things written down in case you are getting any verbal promises.

Twiny · 28th July 2011, 18:24

Please let me know the general norms followed in Bangalore, regarding purchasing a resale property (say for 60Lakh deal).

Token Amount on verbal confirmation: 10-15k ?
Advance on Sale Agreement: 5-6Lakh / 10% of sale value ?
Agreement Validity: 3months ?

Thanks..

benbsb29 · 28th July 2011, 19:13

Quote:

Originally Posted by beejay

Yes, he is a NRI and will rent the home out. He plans to come after a few years and settle down in Blore.

From an investment point of view, i would anyday suggest a normal sized apartment. Beejay, does your friend have a restricted budget?

If he insists on a smaller sized apartment, how about taking a look at Provident Welworth housing? It belongs to the Purvankara group, although the budget housing types. Not sure what stage of completion it is currently.

BaCkSeAtDrIVeR · 29th July 2011, 16:17

Those looking for a check list for buyers - start with post no 31 on page 3 of this thread. And here are some more.

Part 1 - the land

The most complicated part of all in an apartment, and the issues are common for independent houses too.

First, a small intro exclusive to apartments / flats / "townships".

Typically, an apartment starts off with a bipartite agreement for development of the land between the land owner(s) and builder. They agree between themselves that the builder will bui9ld and sell the apartments (or spit up the land into plots - in case of townships /"layouts"). I do not want to go into nitty gritty of these agreements. We will call this the "development agreement".

What buyers need to do is get the title deeds relating to the land vetted, preferably through a lawyer. Do not depend on the financier / bank's lawyers for this.

The law in India says that any person can enter into any transaction in relation to any plot of land; and the registrar's office is bound to register it. What counts is not the existence of the document, but the right person executing the document has over this.

Look into who the prior owner(s) were. If any of them were companies / partnerships / Hindu Undivided Families / Muslim wakfs / trusts / minors / insane persons, etc. In these situations, the seller needs prior permission from some authority / court before transfer can be effected.

Ugh. oh. I will stop here. Get a lawyer to vet the documents. Both the prior title deeds and also the agreement between the land owner(s) and the builder. Ask for copies of relevant permission from the local municipal authorities Like the corporation / panchayath, etc. Look for permission from town planning authorities like Bangalore Development Authority, DDA (Delhi) / MMDA (Chennai) / GCDA (Cochin / Ernakulam), etc.

Look for land revenue receipts from the Village authorities. (Village is different from Panchayath - latter is a local self government department; former is an office of the State government's revenue department).

I can write (like several others have) not less than a 4 thick volumed book on the law relating to land.

Xryder · 29th July 2011, 16:52

I came across this website - Welcome to MyDreamHouse.in

It was recently launched by an alumnus of my Alma mater. I think it may prove useful to those looking for tips on buying, selling, remodeling etc.

BaCkSeAtDrIVeR · 29th July 2011, 17:00

Part 2 - the dramatis personae

Dramatis personae, if I remember my Shakespeare correct, means the characters involved.

Look carefully into who is going to execute the deeds and agreements you are entering into. IF the builder is a corporate body (they usually are), verify that the officer concerned has the authority to enter into the agreement which binds the company. When you make the payment, make sure that the receipt carries the seal of the company.

Remember that "off record" payments can never be even mentioned in a court of law if a dispute arises in future.

Make sure that the land owner(s) sign the initial agteement and final transfer deeds.

In case of ongoing projects, check if there is any provision which enables the land owner(s) to walk out in case of delay. Much wrangling takes place between land owners and builders, and the buyers can get caught in between.

Verify if builder's financing burdens will not cause a domino effect on the building / flat you are purchasing. This requires a bit of explanation. Builder can, and will raise money, and may create a charge on his assets, in favour of their bankers / financiers. No prizes for guessing what happens if you end up buying a part of property so pledged to a bank and builder defaults in his loans after taking the full payment from you.

And finally, make sure that none of the parties - land owners or builders create an encumbrance in any way (even court attachments against their wishes) between the initial agreement and final transfer.

27th July 2011, 17:38	#632
beejay Senior - BHPian Join Date: Apr 2009 Location: The Nilgiris Posts: 1,963 Thanked: 204 Times View My Garage	Re: The Property / Real Estate Thread Hi, Does anybody have any details of Prestige Tranquility situated off Old Madras Road. Has anyone booked? AFAIK Prestige is reputed ans couldn't be an issue right? For a very close friend. Thanks in advance.
	() Thanks

27th July 2011, 18:30	#633
condor Distinguished - BHPian Join Date: Jun 2006 Location: Speed-brkr City Posts: 15,864 Thanked: 16,014 Times View My Garage	Re: The Property / Real Estate Thread Guys, thanks to all and for the responses that are coming in. Do we have a check list here that lists out what to look for when buying an apt ? New / Used ?
	() Thanks

28th July 2011, 11:17	#634
blorebuddy BHPian Join Date: Apr 2007 Location: Bangalore Posts: 594 Thanked: 257 Times	Buying a flat in Elec City area Dear Friends, I am planning to buy a ready to occupy flat in 4 floors building. Every floor has 2 flats and total of 8 houses. Layout is approved by BDA and it is near Elec City. The building plan is approved by panchayat. Is this a legal one? As per my understanding construction of 4 floors require approval from BBMP. Please clarify. Can I go ahead and purchase or not?
	() Thanks

28th July 2011, 11:54	#636
beejay Senior - BHPian Join Date: Apr 2009 Location: The Nilgiris Posts: 1,963 Thanked: 204 Times View My Garage	Re: The Property / Real Estate Thread Is it true that PLC of rs.15 is added for every upper floor in Bangalore. I think its better to stay on the lower floors, coz normally in some other cities flats on the lower floors cost more. Also, what needs to be taken into consideration when purchaing a flat in a upcoming project. The builder is quite renowned, apart from that. Date of completion is 2014. Are these kind of deals bargained. I am going through a company called Proptiger.
	() Thanks

28th July 2011, 12:48	#637
download2live Senior - BHPian Join Date: Feb 2010 Location: - Posts: 1,147 Thanked: 1,144 Times	Re: The Property / Real Estate Thread We seriously need a check list for buying an apartment here. Will request Spitfire to start one. He seems to be the most knowledgeable on this.
	() Thanks

28th July 2011, 16:45	#640
mkh Senior - BHPian Join Date: Oct 2009 Location: Bangalore Posts: 1,072 Thanked: 133 Times View My Garage	Re: The Property / Real Estate Thread For buying an apartment even if the builder is reputed, i had posted that you MUST get documents verified Prestige has a couple of projects that are NOT clear, they have enough muscle to get any plan sanctioned For a proper project builder needs to get approvals from authorities- especially BBMP, BESCOM , BWSSB. The plan needs to be approved incl how much rise( which means floors) The builders pay off bank lawyers to approve their projects, so going by the fact that a project has so and so bank approval has NO bearing. If you ask the bank they will CLEARLY say- you cannot take our legal opinion of any value in case problems later Give a deposit and collect legal documents, take it to a PROPER property lawyer and get them examined. You also need a loan approval from a bank- get that done ahead ideally. For Sanction, bank will ask many documents from builder, which in case of approved projects is NOT needed Mind you- A or B, MOST builders will delay, and considering the current scenario where lending rates are rising- FOR SURE by 1-2 years projects starting now will be delayed. A few more things 1. examine the "extra charges". If a place is say 70 lacs- it can go upto 80-85 adding taxes etc 2. Check the agreement for sale also, get that examined ahead 3. Get things written down in case you are getting any verbal promises.
	(1) Thanks

28th July 2011, 18:24	#641
Twiny BHPian Join Date: Dec 2009 Location: Cochin-Bangalore Posts: 311 Thanked: 50 Times View My Garage	Resale Apartment Purchase norms in Bangalore Please let me know the general norms followed in Bangalore, regarding purchasing a resale property (say for 60Lakh deal). Token Amount on verbal confirmation: 10-15k ? Advance on Sale Agreement: 5-6Lakh / 10% of sale value ? Agreement Validity: 3months ? Thanks..
	() Thanks

29th July 2011, 16:17	#643
BaCkSeAtDrIVeR BANNED Join Date: Jun 2007 Location: Kochi Posts: 2,522 Thanked: 752 Times	Apartment ownership - check list Those looking for a check list for buyers - start with post no 31 on page 3 of this thread. And here are some more. Part 1 - the land The most complicated part of all in an apartment, and the issues are common for independent houses too. First, a small intro exclusive to apartments / flats / "townships". Typically, an apartment starts off with a bipartite agreement for development of the land between the land owner(s) and builder. They agree between themselves that the builder will bui9ld and sell the apartments (or spit up the land into plots - in case of townships /"layouts"). I do not want to go into nitty gritty of these agreements. We will call this the "development agreement". What buyers need to do is get the title deeds relating to the land vetted, preferably through a lawyer. Do not depend on the financier / bank's lawyers for this. The law in India says that any person can enter into any transaction in relation to any plot of land; and the registrar's office is bound to register it. What counts is not the existence of the document, but the right person executing the document has over this. Look into who the prior owner(s) were. If any of them were companies / partnerships / Hindu Undivided Families / Muslim wakfs / trusts / minors / insane persons, etc. In these situations, the seller needs prior permission from some authority / court before transfer can be effected. Ugh. oh. I will stop here. Get a lawyer to vet the documents. Both the prior title deeds and also the agreement between the land owner(s) and the builder. Ask for copies of relevant permission from the local municipal authorities Like the corporation / panchayath, etc. Look for permission from town planning authorities like Bangalore Development Authority, DDA (Delhi) / MMDA (Chennai) / GCDA (Cochin / Ernakulam), etc. Look for land revenue receipts from the Village authorities. (Village is different from Panchayath - latter is a local self government department; former is an office of the State government's revenue department). I can write (like several others have) not less than a 4 thick volumed book on the law relating to land.
	(1) Thanks

29th July 2011, 16:52	#644
Xryder BHPian Join Date: Aug 2010 Location: Banana Republic Posts: 207 Thanked: 79 Times	Re: The Property / Real Estate Thread I came across this website - Welcome to MyDreamHouse.in It was recently launched by an alumnus of my Alma mater. I think it may prove useful to those looking for tips on buying, selling, remodeling etc.
	() Thanks

29th July 2011, 17:00	#645
BaCkSeAtDrIVeR BANNED Join Date: Jun 2007 Location: Kochi Posts: 2,522 Thanked: 752 Times	Apart ownership check list part 2. Part 2 - the dramatis personae Dramatis personae, if I remember my Shakespeare correct, means the characters involved. Look carefully into who is going to execute the deeds and agreements you are entering into. IF the builder is a corporate body (they usually are), verify that the officer concerned has the authority to enter into the agreement which binds the company. When you make the payment, make sure that the receipt carries the seal of the company. Remember that "off record" payments can never be even mentioned in a court of law if a dispute arises in future. Make sure that the land owner(s) sign the initial agteement and final transfer deeds. In case of ongoing projects, check if there is any provision which enables the land owner(s) to walk out in case of delay. Much wrangling takes place between land owners and builders, and the buyers can get caught in between. Verify if builder's financing burdens will not cause a domino effect on the building / flat you are purchasing. This requires a bit of explanation. Builder can, and will raise money, and may create a charge on his assets, in favour of their bankers / financiers. No prizes for guessing what happens if you end up buying a part of property so pledged to a bank and builder defaults in his loans after taking the full payment from you. And finally, make sure that none of the parties - land owners or builders create an encumbrance in any way (even court attachments against their wishes) between the initial agreement and final transfer.
	() Thanks