legal aspects for property transactions

Legal Aspects In Property

Transactions

RE/MAX Mumbai Gujarat Maharashtra

Real Estate• The term Real Estate is defined as land including the air above it

and any building on it.• Realty structure has grown and assumes importance due to

liberalisation.• It is 2nd major employer after agriculture.• There are over 100 laws governing various aspects of real estate• Major amendments are required to make them relevant.


• Legal aspects are a indispensable part of any successful business environment.

• They reflect the govt policy.• Legal knowledge is required to know your rights, responsibilities

and challenges ahead.• Commonly refers to legally approved immoveable properties.• Knowledge of real estate laws is important because of complex

real estate business environment and you can avoid trouble.

Real Estate Laws


Real Estate Laws• Thus information on such real estate aspects will benefit all

stakeholders• With onset of new land utilisation practices• Real estate sector gets more complicated• Several instances of irregularities are noticed• Knowledge of real estate laws will act as a safeguard mechanism

from being trapped


Land In Maharashtra


• Maharashtra is one of the largest states in India.

• There is rapid growth in residential, commercial and industrial development in the state.

• Hence land is in great demand. Purchasing of land is not easy. There are number of laws, practices and procedures in land transaction.


Things You Must Know• Land • Land Record• Change in rights over Land• Investigation of Title• Land Revenue Administration• Agricultural Land• Development of Land• Non Agricultural Land• How to Search Ancestral Land• Land Laws


All about Lands

• Land Registry• Land Reclamation• Land Acquisition• Land Reforms• Land Survey• Land Rights• Land Policy• Land Laws• Land Securities• Land Act


Land Laws in Maharashtra

• Maharashtra Land Revenue Code 1966

• Maharashtra Regional and Town Planning Act, 1966 Bombay Tenancy and Agricultural Lands Act, 1948 and Its Rules

• The Bombay Prevention of Fragmentation and Consolidation of Holding Act, 1947

• The Maharashtra Agricultural Lands (Ceiling On Holdings) Act, 1961

• The Bombay Village Panchayat Act, 1958



• The Bombay Provincial Municipal Corporations Act, 1949

• Maharashtra Restoration of Lands to Schedule Tribes Act 1974

• Maharashtra Restoration of Lands to Schedule Tribes Rules 1975

• Maharashtra Project Affected Person Rehabilitation Act, 1989


• Maharashtra Groundwater Regulation for Drinking Water purposes Act, 1993

• Maharashtra Groundwater (Regulation for Drinking Water Purposes Rules, 1975

• The Mamalatdar Court Act, 1906

• The Maharashtra Co-Op Society Act, 1960



• Hindu Succession Act, 1956

• Registration Act, 1908

• Standarised Building bye Law And Development Control Rule For "B" And "C" Class Municipal Councils Of Maharashtra

• Indian Forest Act 1927




• The Environment Protection Act 1986

• Maharashtra Gunthewari Developments (Regularisation, Upgradation and Control) Act 2001

• The Bombay Highway Act, 1955

• The National Highway Act, 1956

• Transfer of Property Act, 1882

What is Property?

Property is any physical or virtual entity that is owned by an individual or jointly by a group of individuals.

An owner of property has the right to consume, sell, rent, mortgage, transfer and exchange his or her property.

What is Property Law?

Property law is the area of law that governs the various forms of ownership in real property (land as distinct from personal or movable possessions) and in personal property, within the common legal system.

In the civil law system, there is a division between movable and immovable property.


ACTS• Transfer of Property Act, 1882

• MOFA Act, 1963

• Land Acquisition Act, 1894

• Rent Control Act, 1999

• Arbitration Act


ACTS• Building and other

Construction Workers Act

• Child Labour Act

• Consumer Protection Act

• General Clauses Act, 1897

• Hindu Disposition of Property Act, 1916


• Hindu Succession Act, 1956

• Income Tax Act, 1961

• Indian Contract Act, 1872

• Indian Evidence Act, 1872

• Limitation Act, 1963

ACTS


ACTS

• Minimum Wages Act, 1948

• Muslim Personal Law, 1937

• Negotiable Instrument Act, 1881

• Partnership Act, 1932

• Power of Attorney Act, 1882


• RTI Act, 2005

• C.R.P.C. / I.P.C.

• C.P.C.

• Bombay Stamp Act, 1958

• Indian Registration Act, 1908

• M.R.T.P. Act

• M.C.S. Act, 1960

• B.M.C. Act, 1888

• Maharashtra Apartment Ownership Act

ACTS

What is Documentation?

To make & maintain documents about work undertaken is documentation. To keep record of the work done is documentation. Documents are proof of the work done. Therefore documentation of any type of work is important.

Importance of Documentation

In immovable property transactions, the documentation plays a very critical role.

The owner or the mortgagee can possess the asset only through title derived from sale, partition or mortgage. In the case of ancestral property, the right of ownership passes from the original holder to the successor by legal heirship.

Importance of Documentation

In the case of an outright purchase, the sale deed is the primary title deed. Apart from these, there can be gift, grant or mortgage.

When we approach the bank or other lending institution for a loan against a property, the title deeds are to be produced for verification by legal experts.


Property documentation• Essential to have adequate knowledge of clearances

and documents required in property transactions• Lack of information could lead to hardships and

unnecessary litigations• Documents can be classified into 3 categories

1. Legal

2. Revenue

3. Technical


Legal documents

• Public notice in newspapers

• Agreement for sale

• Agreement of sale

• Deed of conveyance

• Lease deed

• Leave and licence agreement


• Deed of assignment

• Gift deed

• Tenancy agreement

• Surrender deed

• Release deed

• Will

• Power of attorney

Legal documents


Legal documents

• Title search and title clearance certificate

• Declaration

• Affidavit

• Undertaking

• Indemnity bond

• Deed of confirmation

• Clearance from charity commissioner (Trusts)


Revenue Documents and Clearances

• Index No. II• 7 / 12 Utara• 6 / 12 Utara• Property Register Card• City Survey Plan• N.A. permission


Technical Document and Approvals• Approved Plans of Building

• Letter of Approval (I.O.D.)

• Commencement Certificate (C.C.)

• ULC Clearance

• Building Completion Certificate (B.C.C.)


Technical Document and Approvals

• Occupation Certificate (O.C.)

• C.R.Z. Approval

• M.O.E.F. Approval

• D.G.C.A. Approval


Government Authorities• Collector

• Deputy Director / Superintendent / District Inspector of Lands and Records

• Tahsildar

• City Survey Officer

• Talathi

• Executive Engineer (Bldg. Proposal) B.M.C. / S.R.A.


Government Authorities

• Sub Registrar of Assurances

• Collector of Stamps

• Ward Officer (B.M.C.)

• Estate Manager, Bombay Port Trust

• Commissioner of Salt

• Chief Officer MHADA,/Secretary SRA

• Charity Commissioner

Documents Pertaining To Co-op. Hsg. Soc.1. APPENDIX – 3 [The Form of

application for membership of the Society by an individual]

2. APPENDIX – 4 [The Form of Undertaking to be furnished by Prospective member to use the flat for the purpose for which it is allotted.]

3. APPENDIX – 11 [The Form of application for Nominal Membership by the sub-lettee the Licensee or the Caretaker or Occupant.]

4. APPENDIX – 14 [form of Nomination to be furnished in triplicate]

5. APPENDIX – 18 [Form of INDEMNITY BOND]

6. APPENDIX – 20 (1) [A Form of Notice of intention of a member to transfer his Shares and Interest in the Capital / Property of the Society.]

Documents Pertaining To Co-op. Hsg. Soc.


7. APPENDIX – 20 (2) [A Form of consent of the Proposed Transferee for the transfer of the shares and interest of the member (Transferor) to him (Transferee)].

8. APPENDIX – 21 [Form of application for Transfer of shares and interest in the Capital / Property of the Society by the Transferor.]

9. APPENDIX – 23 [Form of application for membership of the Society by the Proposed Transferee.]




10. APPENDIX – 28 [A Form of Intimation by the Society to the Transferee about Exercise of Rights of Membership by him.]

11. APPENDIX – 29 [A Form of application for permission to sub-let, give on leave and licence or care-taker basis the flat or part thereof.]

12. APPENDIX – 30 [Form of application for permission to hold more than one flat.]

CHECK LIST OF THINGS A REAL ESTATE CONSULTANT NEED TO WATCH OUT.


About Builder / Promoter:How is the reputation of Promoter / Builder?

Examine the number of buildings / Projects that the builder has completed in the past?

How is the quality of the construction in respect of buildings completed by the Builder / Promoter?

Required technical staff employed by the builder or not?

How are his past dealing with the customers?


About the Title Deeds

Check the relevant documents regarding the title of plot on which the building is proposed to be constructed?

Whether the title Certificate from a reputed Solicitor / Advocate attached to the Agreement?


About the Title DeedsWhether all information regarding

the encumbrances id brought out clearly or is thee vague reference to the encumbrances

Is the extract of property register card or other revenue record of the land / plot on which the flats are going to be constructed attached to the agreement for sale?


Inspecting the Plans / Drawings• Has the builder got the approval

of plans / drawings from the Municipal Authorities / Local Authorities?

• Has the builder shown to the flat purchaser the approved plans / drawings to the flat purchaser?

• Has the builder shown to the flat purchaser the copy of C.C. and I.O.D.?

Property Disputes and Litigation Clear Title Monitory Disputes – Recovery of payments. Consumer Disputes – quality of Construction, Amenities. Ownership Disputes – within family. Third Party Disputes Civic Disputes – between Owners and Local Authorities. Public Interest Litigation

TAKE PROPER ADVISE FROM A COMPETENT LEGAL PROFESSIONAL BEFORE INITIATING ANY COURT CASE.


REDRESSAL OF COMPLAINTS


REGISTRARMatter pertaining to following issues :-

a. Registration of Society on Misrepresentation.

b. Non-issuance of the Share Certificate,

c. Refusal of Membership.

d. No-registration of Nomination by the society.

e. Non Occupancy charges.

f. Demand of excess premium for transfers.

g. Non supply of the copies of record and documents.


h. Tampering, suppression and destruction of the records of the society.

i. Non acceptance of the cheques or any other correspondence by the committee.

j. Non maintenance or incomplete maintenance of records and books of the society.

k. Non preparation of the annual accounts/reports, within the prescribed period.

l. Misappropriation/Misapplication of the funds of the society.

REGISTRAR


REGISTRARm. Audit.

n. Non conducting of election before expiry of the term of the committee.

o. Rejection of Nomination.

p. Non calling of General Body Meeting within prescribed period.

q. Non calling of Managing Committee Meeting as prescribed in Bye-laws.


REGISTRAR

r. Resignation by the Committee.

s. Any other, like, matters which falls within jurisdiction of the Registrar.

t. Defaulter/Disqualified member on the committee.

u. Investment of Funds without prior permission.

v. Reconciliation of Accounts,


CO-OPERATIVE COURTDisputes between the members and /or the members and society, which falls under section 91 of the Act, such as :-

a. Resolution of managing Committee and General Body

b. The elections of the Managing Committee, except the rejection of Nominations, as provided under section 152-A of the Act.

c. Repairs, including Major Repairs, internal repairs, leakages.

d. Parking.


CO-OPERATIVE COURT

e. Allotment of Flats/Plots.

f. Escalation of construction cost.

g. Appointment of Developer/Contractor, Architect.

h. Unequal water-supply.

i. Excess recovery of dues from the members.

j. Any other, like, disputes which fall within jurisdiction of the Co-operative Court.


CIVIL COURT

Disputes pertaining to :-

a. Non compliance of the terms and conditions of the Agreement, by and between the Builder/developer.

b. Substandard Constructions.


CIVIL COURT

c. Conveyance.

d. Escalation of construction cost.

e. Any other, like, disputes which fall within jurisdiction of the Civil Court.


CORPORATION/LOCAL AUTHORITY

Matters pertaining to :-

a) Unauthorized constructions/additions/alterations made by builder/member/occupant of the flat,

b) Inadequate Water supply to the society,


CORPORATION/LOCAL AUTHORITY

c) Change of use by the members/occupants,

d) Building's structural problems,

e) Any other, like, matter which fall within jurisdiction of the Corporation/local authority.


POLICE / CRIMINAL COURTMatters pertaining to :-

a. Nuisance carried by the Unauthorized use of the Flat/Shop/Parking Space / Open space in the society, by the members, builder, occupants or any other persons,

b. Threatening/Assault by or to the members of the society,

c. Any other, like, matters which fall within jurisdiction of the Police / Criminal Court.


CONSUMER COURT

• Now Housing is covered under the Consumer Protection Act, 1986.

• Society, Member can file cases in the District Forum / State Commission for any deficiency in service or defects.


CONSUMER COURT

• There are number of decided cases by the Consumer Court on matters like Conveyance, Flat Possession, Recovery, Repairs, Construction, etc. against the Builders / Society.


GENERAL BODY

Matters pertaining to :-

a. Non maintenance of the property of the society by the managing committee.

b. Non display of board of name of the society.

c. Levy of excess Fine, by the managing committee for act of the member which is in violation of the Bye-Laws.


GENERAL BODY

a. Not allowing the authenticated use of the available open spaces of the society by the managing committee.

b. Non Insuring the property of the society, by the managing committee.

c. Appointment of Architect.

d. All other like matters which fall within jurisdiction of the General Body.


FEDERATIONMatters pertaining to :-

a. Non pertaining of the entry of the secretary of the society, by the member.

b. Non acceptance of any communication by the member/managing committee.

c. Convening Special General Meeting provided under the Bye-Law No.97 and Managing Committee meeting provided under Bye-Law No.133.

d. All other like matters.

legal aspects for property transactions

Real Estate

land acquisition act

holdings act

mofa act

partnership act

limitation act

arbitration act

maharashtra coop society

ancestral land land