Download - nriva - property purchase precautions (1)
NAMASKARAMNRIVA
harsh but fact
Innocence is a sin
Ignorance is an offence
But - no law holds innocence or ignorance an offence
Law casts duty on us to be prudent and diligent
Law comes to the rescue of only diligent, but not dormant
my aim through this session -- to drive
Purchase of property is not an exchange of money for a registered sale
Purchase of property is a process with investigation into seller’s title and application of legal mind
Buying a property that is free from encumbrances and frauds is not an easy task in the present society
Caveator Emptor – golden principle
Let the purchaser beware
Buyer must be cautious and take all precautions before purchasing property
purchaser is deemed to have notice of anything, which he had failed to discover either because he did not inquire into deeds relating to property and its possession
What we see while buying property but fail to see
We concern for price, affordability, locality, suitability, appreciation, re-sale value, investment opportunity etc
We very rarely get an idea to investigate into title and ownership of property
We have to know holding a registered sale deed or gift deed, the seller does not become owner of a property – so investigate the title and title of owner ship – don’t startle by hearing investigation
Don’t be driven by – a strong desire, a gut feeling, belief in seller, belief in middlemen, a ready-made and self-satisfying answer what happen to us alone when many people buying?
Title – marketable title
“title – the means whereby the owner of lands has the just possession of his property. It is a root by which the right to sell and convey property becomes vested in seller”
“marketable title – it shall be good and indubitable and free from all encumbrances. It is a title free from all such reasonable doubts as would affect the market value of property”
Value for money
A good title passes from a good title – a bad title passes from a bad title – the seller cannot pass a better title than his own
ownership
“collection of rights to use and enjoy property, including right to transmit it to others. Ownership is the state of being owner i.e, proprietorship”
Ownership is exclusive right of
possession
enjoyment
disposal
Ownership is nothing but opinion/belief - and an absolute ownership is an absolute opinion based on the strength of various documents.
Acquisition of ownership
By contract – by way of sale and purchase
By inheritance – by way of succession or by way of will
By prescription – by way of adverse possession
Tracing of title
Period: 30 years minimum – it differs from case to case
Object:
who was the owner 30 years ago?
how title to property descended on seller?
whether such descent is legally valid?
whether seller’s title is clear, valid, subsisting, marketable and free from encumbrances?
whether seller is in peaceful possession and enjoyment of property?
whether the documents substantiating seller’s title and legally valid?
How to trace title to property?
Obtain EC – chronological record of registered documents( but what about unregistered documents?)
Obtain true copies of seller’s title deeds from concerned authorities
Verify that all the true copies are taken from the originals
Check if these documents are legally valid
Read them carefully and make note of series of events linking the owner of property thirty years ago
If there is any break in the link, call for the link
Check if the links legally valid
Title deeds
All original documents and link documents of the scheduled property
Municipal tax receipts/assessment record entries/mutation
Municipal plan in respect of house/apartment
Pattadar pass books and title deeds, adangal, pahani register extracts, FMB in respect of agricultural lands
Court /Arbitration orders
Sale certificate/pattas issued by banks and government
Death certificate of the deceased owner
Legal heir certificate/succession certificates
Will deed etc.,
verification
Personal inspection
Enquiry by third party – relative, friend or reliable agency
Credential of seller
Price/consideration – too low – then doubt
Public notice through news paper advertisement indicating intent to buy the property – calling for objections
Missing original documents – procedure – FIR – possibility of depositing the title deeds – notice to the public
Rights of women members, protected tenants etc
General power of attorney – precautions – SPA (attestation)
General Power of Attorney
General Power of Attorney
Special Power of Attorney
Special Power of Attorney to present the document executed by Principal and admit execution before the Registering Authority – Attestation – Procedure.
Section 32A Form – photo form
Frauds in GPA – checks and precautions –cancellation/revocation – intimation to the Registrar
NRI - Challenges – AnswersRBI guidelines wrt purchase of immovable property by other than citizens of India
http://www.rbi.org.in/scripts/FAQView.aspx?Id=33
Above web link will take us to FAQ Section of RBI on the matters of Acquisition and Transfer of Immovable Property in India by a person resident outside India
RBI is the competent authority to issue instructions and present instructions are updated on 2nd July 2012
Purchase and sale of agricultural/residential/commercial properties is the subject matter covered
Also see http://registrationacts.in/nriservices.php for more information on the subject
Do the Registrar register Charminar, Assembly, Tajmahal etc?
What Registration Act, 1908 (India) prescribes
What are the expectations of registry public
Mismatch
Remedies so far – Section 32A; inclusion of Sale agreement, lease etc as compulsory registrable under Sec 17 etc
Bhoo Bharathi ; The Land titling bill – Torrens law – a small dose
What we require – a full fledged Torrens law – Whether possible in India
Torrens law – principles
The Torrens system works on three principles:
1) Mirror principle – the register (Certificate of Title) reflects (mirrors) accurately and completely the current facts about a person's title. This means that, if a person sells an estate, the new title has to be identical to the old one in terms of description of lands, except for the owner's name.
2. Curtain principle – one does not need to go behind the Certificate of Title as it contains all the information about the title. This means that ownership need not be proved by long complicated documents that are kept by the owner, as in the Private Conveyancing system. All of the necessary information regarding ownership is on the Certificate of Title.
3. Insurance principle – provides for compensation of loss if there are errors made by the Registrar of Titles
Torrens law – perfect title registration
Its purpose was to establish a land registry. Each piece of land would have a single Certificate of Title, kept at a government office. The state government would guarantee the validity of the title, rather than the solicitor/conveyancer who prepared the deeds of conveyance.
The process of conveyancing has become so simple that the buyers and sellers of property can do it themselves without a solicitor/conveyancer.
The Certificate of Title shows:
The present owners
Easements such as underground pipes that may require access for storm water or sewage, and 'right of carriageway' for neighbours get
access to their property
Covenants such as building restrictions
Caveats such as a requirement for someone's approval before
transfer of ownership Mortgages
Registration Act – Certain important provisions
Time of presentation – documents executed outside India
Persons competent to present the document
Place of registration
Erasures, interlineations etc – attestation
Enquiry before registration – limited enquiry powers
Anywhere registration within the district
Anywhere registration within the State – proposal
Frauds - punishments
Indian Stamp Act – important points
Stamp duty before or at the time of execution of the instrument
Stamp duty payment after 2002 – challan system
E-stamping – future
Validation – payment of stamp duty on the instruments –impounding – without penalty within a year from date of signing of the instrument – with penalty after one year
Unregistered vs unstamped instruments
Taxation and other matters relating to NRIs and non-citizens
www.registrationacts.in
A comprehensive guide on the matters:
property purchase
document preparation
document registration
stamp duty
marriage registration
firms registration
societies (ngo) registration
nri/pio issues
accurate and updated answers for the queries
Your guide – lawman to layman
http://registrationacts.in/propertypurchaseprecautions.php
http://registrationacts.in/documentregistrationrequirements.php
http://registrationacts.in/documentpreparationprecautions.php
http://registrationacts.in/saledeedpreparationandprecautions.php
http://registrationacts.in/hindumarriagereg.php
Important websites
www.registration.ap.gov.in – registration department
http://www.ghmc.gov.in/ - GHMC
http://www.hmda.gov.in/ - HMDA
http://www.hyderabad.ap.gov.in/index.aspx --HYDERABAD COLLECTOR
http://apland.ap.nic.in/cclaweb/revenue%20acts.htm --REVENUE DEPARTMENT
http://apstatepolice.org/APPW/jsp/homePage.do;jsessionid=0A7BF3AF181262E8A650B2A2E1E0A323?method=getHomePageElements -- POLICE, AP
Land ceiling in Andhra Pradesh
Class of land(1)
Wet - Double crop wet land
Extent of standard holding(2)
Wet land other than double crop wet land
(a) (b)
Hectares Hectares
Class-A 4.05 (10 acres) 6.07 (15 acres)
Class-B 4.86 (12 acres) 7.28 (18 acres)
Class-C 5.46 (13.5 acres) 8.09 (20 acres)
Class-D 6.07 (15 acres) 9.11 (22.5 acres)
Class-E 6.68 (16.5acres) 10.12 (25 acres)
Class-F 7.28 (18 acres) 10.93 (27 acres)
DRY DRY
Class-G - - 14.16 (36 acres)
Class-H - - 16.19 (40 acres)
Class-I - - 18.21 (45 acres)
Class-J - - 20.23 (50 acres)
Class-K - - 22.85 (54 acres)
VII. Computation of holding :
The extent of standard holding shall be determined as shown in the following statement (Sec.5)
TABLE
Double crop wet land Wet land
Class A …. 10 Acres 15 Acres
Class B …. 12 Acres 18 Acres
Class C …. 13.5 Acres 20 Acres
Class D …. 15 Acres 22.5 Acres
Class E …. 16.5 Acres 25 Acres
Class F …. 18 Acres 27 Acres
Dry
Class G …. 35 Acres
Class H …. 40 Acres
Class I …. 45 Acres
Class J …. 50 Acres
Class K …. 54 Acres
Standard Holding :- In the case of family unit consisting not more than (5) five members, it ranges from 10 to 27 acres in respect of wet lands and from 35 to 54 acres in respect of dry lands, based on the classification of lands in the first schedule as noted below : (Section 5)
Andhra Pradesh map
HMDA map
V. Srinivasulu, DIG, Registration Dept, Govt of AP, presently ED, APGIC
http://in.linkedin.com/pub/srinivasulu-vemula/29/472/b49