[fordday]

I had paid booking amount for a flat in Pariwar Presidency project, located near Madiwala lake, Bangalore. Now the flat belongs to Landlord's share, but all his flats are marketed by the builder. I paid the booking amount in the name of builder. All my negotiations were with the builder, the landlord was never in the picture.

The builder holds the GPA from landlord for marketing and selling his share of flats. I have the copy of this GPA. For sale agreement, the builder says I need to pay the 20% of the cost of the flat to the builder but the agreement will be between me and the landlord and it will be written that the landlord received this money. I will go for a bank loan. Bank will release the remaining 80% to the landlord, which the builder says ok.

This means I am paying 20% to the builder and 80% to the landlord.

Is this a deep mess I am getting in or guys here have some similar experiences, please share.

Fordday.

[motomaverick]

Looking to purchase site or land probably 30x40 or 30x50 in and around Bangalore. Saw some sites by NBR Developers near Bagalur (After Sarjapur) offerred at 425/sqft and 600/sqft. Does anyone has any information on these developers or if anyone can point to other properties.

[BaCkSeAtDrIVeR]

Originally Posted by fordday

Is this a deep mess I am getting in or guys here have some similar experiences, please share..

Going by the description, I do not find anything wrong. What makes you concerned? You are speaking of the final sale deed, right? The sale agreement is already executed between you.

The bank too would have scrutinised the transaction, right? Take a copy of the proposed sale deed.

Make sure that power of attorney specifically authorises the builder to register a deed fo transfer of land.

[fordday]

Originally Posted by BaCkSeAtDrIVeR

You are speaking of the final sale deed, right?

No, I am referring to the Agreement for sale, for which I need to pay 20% of the cost of the flat. The problem here is, I will actually pay to the builder but the agreement will say I have paid this to the landlord.

[Wheeliej]

Originally Posted by fordday

No, I am referring to the Agreement for sale, for which I need to pay 20% of the cost of the flat. The problem here is, I will actually pay to the builder but the agreement will say I have paid this to the landlord.

if ypu are so worried document it clearly that the cheque for so much has been paid in favour of xyz builder, the receipt of which the landlord acknowledges to his account.

i think it should be ok so long as builderacknpwledges that the payment has been made to builder on the landlords behalf and your banker also agreea with ths arrangement.

cheers

[Oxy]

Guys, I find myself in a tricky situation and need some advice.

My father in law is in the process of purchasing a resale property in Palakkad, Kerala. The property will be registered in his name as well as my wife's name.

Now, we need a loan for that. The problem is, the owner of this property already has a loan on it from Sundaram Finance. The original papers of the property are with Sundaram Finance, who say that they will release it 10 days after the loan is fully paid by the current owner.

Due to this, we can't approach any other financial institution for a loan, because obviously the first thing they will ask for are the papers, which Sundaram Finance will not release until the owner clears up the loan, and the owner can only clear up the loan if we give him the cheque after our loan is disbursed. So it's kind of a deadlock situation.

So we approached Sundaram Finance for the loan, and now they have started torturing us. Every other day they will call up and tell us that some or the other document is required. We have been putting up with it so far since we don't really have a choice. Since my wife is going to be a co-applicant, they want all her details as well as my details.

Now some guy calls me up today claiming to be from Sundaram Finance and asks for my credit card number and expiry date. He says it's required for accessing my CIBIL report. I just told him that I am not comfortable giving him my credit card details, and asked him to give me a test email from his company email id, which he did.

I replied to that mail saying that I am not giving my credit card details for the fear of it being misused. Instead, I gave him my current home loan account details and my latest home loan statement.

Did I do the right thing? If the loan gets rejected because of me not giving my credit card details to them, what do I do? I can't even go to any other bank for the loan. Is it safe to give them my credit card details over email or SMS?

[mjothi]

Originally Posted by Oxy

Now some guy calls me up today claiming to be from Sundaram Finance and asks for my credit card number and expiry date. He says it's required for accessing my CIBIL report.

No. There is no need to provide the card number or the dates. A CIBIL report is mainly pulled based on the pan card number, address etc.

Infact, the card name also will not be displayed in the report. It will only display the list of cards (without name, number etc) and outstanding if any. How long are you using/closed etc.

Never give such information.

[srishiva]

@Oxy, My friend bought a house with loan from SBI. The landlord had loan with Citibank. But the Banks did the transactions among themselves and Citibank was paid off and papers were transferred to SBI.
If SBI can do this, Sundaram should do it too. Enquire again.

What kind of financial institution is this that needs your Credit Card number to access CIBIL?

[BaCkSeAtDrIVeR]

Originally Posted by fordday

No, I am referring to the Agreement for sale, for which I need to pay 20% of the cost of the flat. The problem here is, I will actually pay to the builder but the agreement will say I have paid this to the landlord.

Now, I get you are worried. Worst case scenario is that the builder can turn around and say that they did not receive anything for the transaction. Theoretically, since the builder has PoA from the land owner, you are safe off paying to the builder. Get a undertaking from the builder that the advance is for booking an apartment.

Originally Posted by Oxy

Now, we need a loan for that. The problem is, the owner of this property already has a loan on it from Sundaram Finance. The original papers of the property are with Sundaram Finance, who say that they will release it 10 days after the loan is fully paid by the current owner.

Due to this, we can't approach any other financial institution for a loan, because obviously the first thing they will ask for are the papers, which Sundaram Finance will not release until the owner clears up the loan, and the owner can only clear up the loan if we give him the cheque after our loan is disbursed. So it's kind of a deadlock situation.

The institution giving you the loan can issue a DD direct in favour of Sundaram Finance, and they can hand over the documents to the institution granting you loan.

Of course, nationalised banks will ask for an undertaking from SF that they will release documents only to the bank, and of course, Sundaram FInance may refuse. Ask the seller (take him with you when you approach SUndaram FInance for this) to fently remind them of an institution named consumer court.

Did I do the right thing? If the loan gets rejected because of me not giving my credit card details to them, what do I do? I can't even go to any other bank for the loan. Is it safe to give them my credit card details over email or SMS?

IF your loan is rejected by Sundaram Finance, thank god for the beautiful opportunity he has given you.

Edit - it is the existing owner, not you who can sue SF is they refuse to pre-close the loan or abide by requirements of the institution giving you the loan.

[mayankk]

Guys, what would be the current rent for a 1bhk/studio in koregaon park in Pune?
Its a 500sq ft area flat on the 4th floor.

[BaCkSeAtDrIVeR]

The latest budget has a snake in the grass for property buyers. Starting 1/4/2013 (financial year 2013-14), if you are buying property worth more than 50 lakh, you need to deduct tax at source at 1% of total consideration (yep - you need to do TDS). Details will play out pretty soon. Not clear if 50L appliess to apartments (ie., land + building), and if transaction is spread over multiple financial years.

I am sure / praying that the real estate sharks will go to dilli "with tankers full of water" to hose down this proposal.

[carbookie]

Originally Posted by BaCkSeAtDrIVeR

The latest budget has a snake in the grass for property buyers. Starting 1/4/2013 (financial year 2013-14), if you are buying property worth more than 50 lakh, you need to deduct tax at source at 1% of total consideration (yep - you need to do TDS). Details will play out pretty soon. Not clear if 50L appliess to apartments (ie., land + building), and if transaction is spread over multiple financial years.

I am sure / praying that the real estate sharks will go to dilli "with tankers full of water" to hose down this proposal.

Few corrections to your assumptions. The TDS will come into effect from 1st October 2012. It will be applicable on buying of any land except for agricultural land. So will be applicable to apartments. For urban areas, the cut off is 50 lacs, for other areas it is 20 Lac.

Transaction cannot be spread over multiple financial year. The transaction is executed on a single day, when you register your property. The property registration will not be allowed till TDS papers are shown.

This is not necessarily a bad thing. If your intention was not to escape paying tax on property, this will have no effect. You pay 1% TDS, and then you can claim refund at the end of the year, if the TDS was not applicable to you.

The taxation will now happen at the first point of sale and will provide excellent way of tracking people who don't show sale or purchase of properties.

[bejoy]

^^ Speaking of budget, here is a new proposal. Now, the question is where all one can invest? I am sure there would be a lot of interpretations.

Budget 2012: No capital gains tax for SMEs on sale of residential property - The Economic Times

NEW DELHI: In order to augment funds for SMEs, Finance Minister Pranab Mukherjee proposed to exempt capital gains tax on sale of a residential property, if the sale consideration is used for subscription in equity of a manufacturing SME company for purchase of new plant and machinery.

Presenting the Union Budget, Mukherjee added that for SMEs, the turnover limit for compulsory tax audit of accounts as well as for presumptive taxation is proposed to be raised from Rs 60 lakh to Rs 1 crore.

"The Small and Medium Enterprises (SMEs) are the building blocks of our economy," he said in his speech.

[anekho]

Chennai based bhpians, Appaswamy have launched a new project that's practically bang on Sholinganallur junction. Rates are ~4700 per sqft.

Any thoughts on how purchasing a flat here would be as an investment?

[rki2007]

Originally Posted by fordday

I had paid booking amount for a flat in Pariwar Presidency project, located near Madiwala lake, Bangalore. Now the flat belongs to Landlord's share, but all his flats are marketed by the builder. I paid the booking amount in the name of builder. All my negotiations were with the builder, the landlord was never in the picture.

The builder holds the GPA from landlord for marketing and selling his share of flats. I have the copy of this GPA. For sale agreement, the builder says I need to pay the 20% of the cost of the flat to the builder but the agreement will be between me and the landlord and it will be written that the landlord received this money. I will go for a bank loan. Bank will release the remaining 80% to the landlord, which the builder says ok.

This means I am paying 20% to the builder and 80% to the landlord.

Is this a deep mess I am getting in or guys here have some similar experiences, please share.

Fordday.

If GPA has been executed by the landlord and the same is not cancelled , then the builder will be the authorized person to sell the flat. Not that the landlord cannot sell the flat. I think you have to read the GPA in detail. We have to find out whether the landlord has given exclusive rights for the builder to sell the flat or also he has a inherent right to sell the flat himself. Please assure that both of them do not part with the property.

Since the GPA is already registered, the authorized person to sign the sale deed will be the builder (on behalf of the landlord). In this situation paying 80% of the money to the landlord will not be correct.

If you have to pay the proceeds to the landlord then either there should be a clause stating that the landlord ALSO has a right to the sell the property even though the GPA may be executed and at the same time there should be no objection given by the builder particularly with regards to your flat.