April 2017 - Ved Legal

Advocates for Redevelopment

Key Clauses for Redevelopment Agreement:-

1. The completion period of Redevelopment shall be of not more than two years and in special cases not more than 3 years in case of any exigencies.

2. The Developer should give Bank Guarantee of 20% price of Redevelopment Project.

3. The Developer should try to give alternate accommodation to the members in the same area till the Redevelopment Project is complete. Otherwise he will pay monthly rent and Deposit (equivalent to the prevalent rate of rentals in the same vicinity including the yearly rent escalation) agreeable to members or make available Transit Camps.

4. In case this advance rental is dishonoured, the society has the right to prevent the builder from either selling or allowing any new flat purchaser to occupy their respective flats.

5. The Agreement should be registered under Registration Act 1908.

6. All the new members shall be admitted in the society after completion of the Redevelopment Project and after approval of General Body Meeting of the society only.

7. The Agreement should have specific mention of the agreed Carpet Area.

8. The Development rights given to the Developer will be non-transferable.

9. The flat owners will vacate their flats only after receipt of all the legal permissions for the Redevelopment work and those in possession of their flats will not lose their rights.

10. Agreement between contractor, Architect and society should have a condition that disputes, if any, on the Redevelopment work shall be settled u/s Rule No. 91 of the Rules.

11. After receipt of the Occupation Certificate for the Redeveloped building the distribution of the flats should be preferably made in accordance to the prevailing arrangement of present floors. In case when the Allotment of flats is required to be made by lots, only after completion of the building the Developer should make available the lottery system after completion of the Redevelopment Project. The developer should arrange for draw of lots for the distribution of flats in presence of Registrar’s representative and video shooting of the complete process will be made.

12. No member of the Committee or Office bearer shall be a Developer and or his relative.

13. The Building Plans which are approved by the Municipal Corporation / Competent Authority shall be again placed before the General Body Meeting for information. A member wishing to have a copy of the approved Documents can get the same on his written application. The Committee is bound to issue the information on charging a reasonable fee.

14. The housing society member need to calculate and assess the financial implication keeping in mind the interest of all members on account of any increase in the maintenance charges for the additional facilities / amenities builder may provide. Depending upon the average financial capacity member should ask the developer if he is willing to bear the maintenance charges which would otherwise have been borne by the society members. In the case of such an arrangement the society should ask the developer to deposit the amount in a separate account prior to giving him permission to sell the surplus flats in the newly redevelopment building.

15. Ensure to add appropriate penalties / damages in case the project is delayed beyond the agreed period including but not limited to payment of rental and other charges to the members.

By admin|April 29th, 2017|Advocates for Redevelopment|Comments Off

What is Mutation of Property?

When buying a property, due diligence is essential and you have to verify a lot of important property documents. Patta or mutation or Khata is one such important property document.

When you are selling a property, the prospective buyer might ask for a copy of the latest mutation document. Based on my experience, it has been observed that many people do not know the importance of this document.

Mutation is the change of title ownership from one person to another when the property is sold or transferred. By mutating a property, the new owner gets the title of the property recorded on his/her name in the land revenue department and the government is able to charge property tax from the rightful owner.

One needs to get mutation done and get the new owner details updated in the revenue records maintained by civic bodies like Municipalities, Panchayats or Municipal Corporations.

Mutation Vs Registration of Property:-

Registration of the property is a full and final agreement signed between two parties ie., buyer and seller. Once a property is registered, it means that the property buyer in whose favor the property is registered will become the lawful owner of the property and is fully responsible for it in all respects. The new owner is liable to pay property taxes, development charges etc which are levied by the local civic body.

Once the property is registered in Sub-registrar office, the buyer of the property has to get the title of the property updated in his/her name in the local revenue office (municipality or panchayat office). This is known as mutation. Once the property is updated in the revenue records, henceforth the new owner has to pay the applicable taxes to the civic body (like property tax, development charges etc.)

So, registration of property and mutation of property are two different things. Mutation of property happens after the registration of property.

Registration of property through the execution of a Sale Deed is done at Sub-registrar office (Registration office) and mutation is done at local civic body office. Registration of the property does not lead to automatic update of land records in revenue office.

Types of Mutations:-

There are two types of mutations.

1. Mutation of Agricultural lands &

2. Mutation of Non-Agricultural Lands. Example : Flats, independent houses, residential plots, godowns, etc.,

In case of Agricultural lands, mutation is must. Without mutation the land title will not pass to the new owner. Mutation should be entered in the revenue records. The owner’s name which is recorded in the revenue records is referred as ‘Pattadhar’. In scenarios like land acquisition by the Government then the compensation is paid only to the individual whose name is present in the revenue records.

In case of non-agricultural lands, failure to mutate does not take away your right in the sale deed. That is even though the mutation has not done, the purchaser’s title will not be affected. He/she will remain the owner of the property. But the only problem of not mutating is that you may not get electricity connection, water connection and you cannot pay municipal tax.

When Mutation of property can be done?

You need to get the transfer of title of property (mutation) done in the below circumstances to avoid any legal disputes in the future;

• After buying/purchasing a property.
• After inheriting a property through a Will or without a Will.
• After acquiring a property through a Gift Deed.

By admin|April 25th, 2017|What is Mutation of Property?|Comments Off

Advocates for Deemed Conveyance

Conveyance of Co- Operative Housing Society:-

Conveyance of a Property is transferring the Rights, Title, Interest and Ownership of the Property from the Seller to the Purchaser.

In case of a Co- Operative Housing Society (formed by the Flat Purchasers/ Owners under the provisions of Maharashtra Co- Operative Societies Act, 1960), Conveyance is transferring the Rights, Title, Interest and Ownership of the Land and Building from the Land Owner/ Property Developer to the Co- Operative Housing Society.

As per the provisions under Section 11 of Maharashtra Ownership Flat Act, 1963, Conveyance is the Right of the Co- Operative Housing Society and the Duty of the Property Developer/ Promoter to be executed within 4 months from the date of Registration of the Co- Operative Housing Society.

The Conveyance is to be executed by way of Conveyance Deed between the Land Owners & the Co- Operative Housing Society where the Property Developer is the Confirming Party. This Conveyance Deed is required to be Adjudicated & properly Stamped as per the Bombay Stamp Act, 1958 & thereafter Registered as per the Registration Act, 1908. It is required to obtain the Index II of the Registered Conveyance Deed. The copy of Registered Conveyance Deed along with the Index II is to be submitted to various Government Offices for change in the mutation entries of the Property.

After the Land and Building is conveyed in favour of the Co-operative Housing Society and the Title of the property is fully and finally recorded in the Property Card and other Revenue Records then only the Co- Operative Housing Society becomes absolute owner of the Property & the Title of the Co- Operative Housing Society becomes completely free and marketable

By admin|April 24th, 2017|Uncategorized|Comments Off

Advocates for Society Management

Duties and Responsibilities of the Managing Committee of Cooperative housing society:-

Putting a board displaying name of the society, full address with registered survey No. and Registration No. near the main gate of the society which could be seen easily.

To raise funds for the society.

Recommend to the society for deciding maintenance fee, repair and deposit amount.

To give membership, pass the resignation of members similarly to take decision regarding nomination of the members.

Internal inspection of the flat.

To take decision on the various applications received from the members.

To take action against the defaulting members.

To issue Share Certificate to the members.

To call monthly meeting of the committee and finalize its minutes.

To determine agenda of the annual meeting and to call Annual Meeting in prescribed period.

To organize special general body meeting as required.

To make arrangement of election for the formation of a new committee before expiring the term of the managing committee.

To select office bearers by forming the new committee after election.

After taking charge of the office by the members of the managing committee,it is obligatory on them to execute bond under Section 73(1) (1AB) in M-20 (bond paper of Rs.100/- and each separately on the cost of the society) and to include the same in the record of the society. Similarly, the responsibility to inform the concerned Registrar in the regard is entrusted with Secretary.

It is necessary to take detailed note of taking charge, handover of record with its detailed list of the record received in the minutes of the managing committee meeting. Thereby the record regarding exactly which files received in whose possession and on which date is available with the society permanently.

To fill up the vacant post in the managing committee as per provision in the bye-laws and Rule No. 60(5) of Maharashtra Co-operative Rule 1961.

To accept the resignation of the members of Managing Committee.

To keep neatly the files of members and society records.

To finalize the financial statement of the society within 45 days at the end of the financial year.

To submit society’s record for Audit.

To make available papers mentioned in Section 32 as per members demand.

To take decision as per provisions in by laws and laws on the complaints received from the members.

To give necessary information to the members if he contacted society for selling of the flat and co-operate him for selling as per provisions in by-laws and laws.

To take decision on the applicant regarding letting of the flat and inform the same to the concerned member within prescribed time limit.

To make agreements as necessary on behalf of the society.

To take necessary action for keeping the property of the society in order.

To take insurance policy of the building and property of the society.

To give approval for change in utilization of flat.

To inspect flat of the member internally by taking prior appointment for the purposes of leakage/structural audit etc.

To initiate action as per provision in law if the member makes hindrance in internal inspection.

To sanction the amendments in laws, rules, bye-laws suggested by the government from time to time with the approval of the general body meeting.

It is obligatory on the part of the government to give details of the bill/bifurcation and also as per which resolution/ bye- law if the members demand so.

It is obligatory on the part of the society to accept less amount paid by the member than the amount shown in the bill and it is necessary to give receipt of thereof.

There is a provision in the sub-rule about how much maximum interest to be charged. However, it is necessary to make resolution in the general body meeting about charging interest.

By doing structural audit of the building, necessary repairs should have been carried out with the approval of the general body meeting.

If the society does not have funds and if any member is ready to do leakage work on his own cost, then to form the rules in that regard and take approval of the general body meeting for the same.

To submit the fault rectifying report in ‘O’ form by rectifying the faults in the audit report, within three months to the Auditor and to send its copy to the Registrar.

By admin|April 20th, 2017|Advocates for Society Formation in Pune, Duties and Responsibilities of the Managing Committee of Cooperative housing society|Comments Off

Advocates for Transfer of Property

Amendments In The Transfer Of Property Act 1882.

Execution and registration of sale deed for an immoveable property transfers and conveys absolute title of the property in favour of the buyer. However, in certain cases, when a sale deed for an immoveable property is being executed, the concerned parties incorporate certain conditions in the document that impose restrictions or constraints on the right of the buyer to sell or transfer the property.

The Transfer of Property Act, 1882 deals with such restrictions or constraints. Any condition or limitation restraining the buyer from parting with or disposing of his interest in the property is void according to the act. Two exceptions to this rule are:

■ In the case of a lease where such restriction or condition is imposed for the benefit of the lessor, and

■ Where a property is transferred to or for the benefit of a woman who is not a Hindu, Muslim or Buddhist, with a condition that she shall not have power during her marriage to transfer or create any encumbrance in the sale of property transferred to her

The above mentioned rule has been incorporated into the Act to encourage sale and purchase of property without restriction on future transfer . It is based on the basic principle that transferring a property cannot be separated from giving the beneficial ownership of the property to the transferee/buyer. Therefore, the condition by which an absolute restraint is imposed against the transfer of that property is considered to be void. Selling or transferring the property is an inherent right of every owner and restrictive conditions cannot be imposed on him or her.

One of the examples of absolute restraint can be where A ( owner of a property) agrees to sell it to B (the buyer)for 1 lakh. While executing of the sale deed, A puts a condition in the sale deed that if B ever intends to part with or sell or transfer the house in the future, B must sell the house to A or heirs of A and to no one else. Such a condition would fall in the category of absolute restraint as it affects the beneficial enjoyment of the house by B. Beneficial enjoyment of the house by B includes his right to sell it or dispose it in any other way.

The consistent view of the courts has been that an absolute restraint is void but a partial restraint is not.

For applicability of this rule, two essential conditions are required: ■ There must be a transfer of property and ■ There must be a condition which absolutely restrains the transferee/buyer from alienation/transfer of such property This rule applies to only those conditions which impose an absolute condition on the alienation/ transfer of property. However, there may be certain conditions, which partially restrain the right of the owner of the property to alienate/transfer the property. Such specific conditions which partially restrain the owner from alienating/ transferring the property have been held to be valid by various courts on various occasions.

By admin|April 19th, 2017|Advocates for property, Advocates for property transfer in pune|Comments Off

Advocates for Deemed Conveyance

Need for Deemed Conveyance

A Co- Operative Housing Society is the owner of the Land & Building & individual member enjoys the ownership right of the Flat/ Shop based on the Share Certificate issued by the Co- Operative Housing Society.

A vast majority of Co- Operative Housing Societies does not have the Conveyance in their favour & hence are not the owners of their Land & Building. In this situation, even though each member of the Co- Operative Housing Society has paid full consideration and is in possession of the Flat/ Shop allotted, he does not enjoy the benefits of title ownership of the Flat/ Shop.

In case of Co- Operative Housing Societies formed long back, many of the Buildings are in dilapidated condition and their repairs are not economically viable. The best solution available for these Co- Operative Housing Societies is to go ahead with ReDevelopment. The non- availability of the Conveyance & therefore free/ marketable Title affects the ReDevelopment Process badly.

In case of Co- Operative Housing Societies formed recently, the ReDevelopment at the moment is not on the agenda. However the non- availability of the Conveyance and free and marketable Title may affect its present Revenue and may be a hindrance in ReDevelopment process in future.

Therefore Deemed Conveyance is in the larger interest of the Co- Operative Housing Societies (and their each and every member) who are denied their right of Conveyance by the Land- Owners & Property Developers.

By admin|April 17th, 2017|Deemed Conveyance of Co-operative Housing Societies in Pune|Comments Off

Advocates for Property Registration in pune

PAPERS/DOCUMENTS REQUIRED FOR PROPERTY REGISTRATION IN PUNE

The following papers and documents are required for the registration of property.

ADJUDICATION

Adjudication is a process which evaluates a market value of a property and hence ascertains the stamp duty by collector of stamps. It is better to get the document adjudicated in case the building is very old and proper depreciation is not given by the sub-registrar.

NO OBJECTION CERTIFICATE

A No Objection Certificate (NOC) is required under the Urban Land Ceiling Act, if the land transferred exceeds 500 mtrs in the Pune City, If the land belongs to a Government Body or Semi-Government body or Charitable Trust then the NOC of the body is also required.

PROPERTY CARD OF THE LAND

A Property Card of the land on which the property is being registered is situated is necessary. This requirement is irrespective of whether land is sold or the building is being sold or any other part of the building is being sold and also irrespective of whether the seller of the property is recorded as the owner on the property card or not. In other words, even the flat owners are expected to produce this paper at the time of registration.

PROOF OF OLD CONSTRUCTION

If you are going to purchase and old property then you may claim the benefit of depreciation during the adjudication procedure. For that, the documents required are

–Municipal Assessment Bill Of The Building,
–Building Completion Certificate
— Original registered agreement between the builder and original purchaser of that flat or of any other flat in that building

REGISTRATION FEES

As per the valuation the registration fee is to be paid in cash to the sub-registrar at the time of registration. The fees are prescribed in the Registration Act, 1908 which is 1% of the market value or up to Rs. 30,000/- which is accepted by a Challan.

PROOF OF IDENTITY

Any proof of identity such as voter id card, PAN card, driving license, passport etc are required during the registration procedure.

Original Stamp Duty Payment Receipt

Photocopy of the Deed and Butter Paper

By admin|April 14th, 2017|Advocates for property|Comments Off

Advocates for Society Formation in Pune

Why a Co-operative Housing Society is better than Apartment Owners Association?

1. The builder is interested in using the increased FSI which will be awarded by the govt. for that area at any time in future. If the ‘Society’ is formed, then upon the transfer and conveyance of land in favour of the Society, the increased FSI will be owned by the Society and the builder shall not have any right over it. But if it is an Apartment, then the builder owns that increased FSI and can use it anywhere. Thus, the builder will keep taking advantage of every increase in FSI throughout in the future.

2. In an Apartment, the builder retains the ownership of the open spaces which are not included in the saleable area. Example – Terrace or any open parking/stairs space which is not included in the saleable area. But in case of Society, the builder cannot retain any right on any of these areas and has to hand over everything to the Society. The Maharashtra Apartment Ownership Act also provides for the ownership of an individual Apartment in a building and to make such Apartment heritable and transferable property.

3. Bye-laws and Rules of ‘Society’ are binding on all the residents and nobody can act as per his/her whims. Hence, if the Society decides to ban any objectionable commercial activities in the flats such as noise-making music classes or using the flat for catering or courier activities etc or not to rent out to bachelors etc, then all the residents have to abide by it. But if it is an Apartment, then owners can violate the Apartment Rules and the Apartment Body can just file a case in the Civil Court. However, while the Society disputes are resolved in a separate Court i.e. Co-operative Court dealing with Society matters and hence they are fast resolved whereas, the Apartment matters have to be taken to the normal Civil Court and hence they typically take years and decades to resolve.

4. When the building contemplates redevelopment after 25-30 years, the Society’s decision will be final and hence the Society members will have negotiation power with the builder at that time. But if in case of an Apartment, the consent of every Apartment-owner is required and hence it goes into an endless delay due to lack of a common decision acceptable to everybody. There are many instances in Mumbai wherein finally the dilapidated buildings had to be forcefully vacated by an eviction order from Court since they became unlivable. Thus, while the decisions are taken on a ‘majority’ basis in Society, the Apartment goes with rule of ‘Acceptable by Everybody’. So if the builder has retained even one flat in an Apartment, he will play a veto card in his favour at the time of redevelopment.

By admin|April 12th, 2017|Advocates for Society Formation in Pune|Comments Off

Advocates for divorce in pune

DIVORCE BY MUTUAL CONSENT

Mutual Consent Divorce was brought by the India Parliament vide Amendment in the year 1976 in the Hindu Marriage Act.

Divorce by Mutual Consent means when both Husband and wife has agreed amicably amongst themselves that they cannot live together anymore and that the best solution is to Divorce, without putting forth any allegations against each other, in the court of law, than such a Divorce petition presented jointly before the honorably court, is known as mutual consent Divorce.

It is the quickest form of divorce in India. The Conditions required under Section 13B of the Hindu Marriage Act are as follows:

(i) Husband and wife have been living separately for a period of one year or more,
(ii) That they are unable to live together,
(iii) And that both husband and wife have mutually agreed that the marriage has totally collapsed, hence marriage should be dissolved.

As per law, duration/time of obtaining mutual consent divorce is six months. Although, parties have option of filing the second motion petition any time between six months and eighteen months from the date of the filing of the Mutual Consent Divorce Petition.

PETITION FOR MUTUAL CONSENT DIVORCE CAN BE FILED AT ANY OF THE FOLLOWING PLACE:-
• Place where marriage had taken place
• Place where husband and wife last resided together.
• Place where wife is residing at the time of filing of the Petition

Once petition for divorce by mutual consent is filed, party’s presences are required in the Court for recording of the statement. In the event one of the party is unable to come, such party can appear through power of attorney. Such power of attorney preferably should be a family member of the spouse. Once statement is recorded, it is commonly called First Motion has been granted.

After passing of first motion, parties are called upon to wait for six months period before moving Petition for second motion. This period is extendible unto eighteen months. This six months period in mutual consent divorce is generally called cooling-off period. Six months period are given to parties to think their relationship again. It is given for reconciliation.

After six months period, if parties have been unable to resolve their differences, they will have to appear in the Court again. Statement of parties would be recorded again.

During the period of six months i.e. before moving second motion, both parties have liberty to withdraw their consent for divorce.

After this Court passes an order dissolving the marriage by granting decree of divorce and thereby marriage stands dissolved.

ADVANTAGES OF MUTUAL DIVORCE

Divorce by Mutual consent saves time, money and energy for both, Leaves no room for unnecessary quarrel.

By admin|April 12th, 2017|Advocates for divorce in pune|Comments Off

Advocates for Deemed Conveyance

Why does the housing society require deemed conveyance?

As per section 11(1) of the Maharashtra Ownership Flats Act, 1963 read with Rule 9 of the Maharashtra Ownership Rules, 1964, the developer and the land owners are required to convey the right, title and interest in the land and building in favour of the society/company or the association of flat purchasers within four months of its registration.

After the expiry of the statutory period of four months, the said land and building are ‘deemed’ to have been ‘conveyed’ to the registered legal body and the legal body thereafter, can represent before the competent Authority (District Deputy Registrar) to convey the same, in favour of them by giving sufficient opportunities to the builder and land owner within six months of making such application.

Legally speaking, the society members only have the possession rights of their flat and not the land on which their building stands. Hence, it’s very important that once the society is formed, the members put in all their efforts to secure conveyance for their building.

It is essential for a resident of a housing society or an apartment complex to be aware of and understand the concept of deemed conveyance. “The housing society requires deemed conveyance to get absolute rights, title, interest and ownership of its property”.

To add to it, for any housing society, it is of utmost importance to obtain deemed conveyance and have the land named after their society, failing which, a housing society cannot go through the process of redevelopment. Deemed conveyance is a reformatory measure, mandatory for a society to acquire eligibility for redevelopment.

Why are most societies unable to acquire deemed conveyance?

The primary reason is mostly attributed to the lack of awareness among society members about such an important right.

Many co-operative societies do not complete the conveyance procedure due to the promoter/builder/developer not executing the conveyance. Not availing professional help, a lack of proper documents, a lack of awareness are also said to be the reasons why many societies do not have deemed conveyance.

Conclusion:-

Deemed conveyance is a legal document through which the society will get absolute rights, title, interest and ownership of its property (land and structures) in the name of the society. If the society fails to acquire this document, the builder continues to be the legal owner of the land and can sell it at any given point of time.

Therefore, it’s important that the society members take the initiative and acquire this document at the earliest and at the same time, it’s necessary that the government simplifies the process of acquiring conveyance for the stakeholders as this will create a win-win situation for both, the government as well as the housing societies in the city.

By admin|April 11th, 2017|Deemed Conveyance of Co-operative Housing Societies in Pune, Deemed Conveyance process in Pune|Comments Off

12 Next