Monday 31 August 2015

REQUIREMENTS OF A VALID SALE DEED



It is a life time ambition of every individual to have a shelter over head.  This ambition was achievable in the past only by a very few people in view of financial and other constraints. Due to technological development and social changes with higher purchasing power, now-a-days people could own house and house sites with much ease.

A person may own an immovable property by way of acquisition, succession, transfer or assignment. One of the modes of transfer of immovable property is by way sale and the execution of sale deed results in the transfer of right, title, interest and ownership in the property transferred in favour of the purchaser. Transfer of immovable property in India is governed by the provisions of Transfer of Property Act, 1882. 

SALE

Explicit and voluntary intention to transfer the ownership of the property by the seller to the purchaser for consideration is the essence of a valid sale; Section 54 of the Transfer of Property Act, 1882 deals with the concept of Sale. Sale is defined as a transfer of ownership of the transferor in favour of transferee in exchange for a price paid or promised to be paid or partly paid and partly promised. The Transferor and the Transferee are also known as “Seller” and “Purchaser” respectively. The amount paid in exchange of such transfer by the Purchaser to the Seller is the “Sale Consideration”. Generally, the entire sale consideration is paid to the transferor at the time of registration of sale deed unless there is an agreement between the parties to the contrary. Deferred payment of sale consideration does not arrest passing of the title of the property so transferred from the transferor to the transferee. 


Sale Deed is also known as conveyance deed. This is a document through which the seller transfers his right, title and interest in a property to the purchaser, who, in turn, acquires and holds the same as an absolute owner. Even though it is neither necessary nor mandatory to enter into a sale agreement before entering into a sale transaction, it is advisable to enter into a sale agreement wherein the terms and conditions of sale could be minutely stipulated. Generally, a sale deed is executed in accordance with the sale agreement and upon compliance with the terms and conditions of the sale agreement. 

Factors to be considered before execution of Sale Deed:

Before execution of a sale deed, it is very important to trace the title of the seller. This can be done by scrutinizing the relevant documents of title. Scrutinizing the title documents would mean and include tracing the origin of the property, flow of title and the status of the present owner.  It is equally important to obtain and scrutinize the Encumbrance Certificates in order to verify the transactions pertaining to the property intended to be purchased and to know about the existence of any kind of encumbrances or liability over the property. If there is any encumbrance on the property, it shall be the duty of the seller to discharge the same at his own cost.  Similarly, previous charges or mortgages, if any, created on the property are to be cleared before execution of the Sale Deed for transfer of valid and transferable title by the seller to the purchaser.  

Further, it is also necessary to verify whether all the statutory payments like property tax, water and electricity  charges and  such other levies on the property have been paid and permission and clearance as are  required for transfer of property, according to law, are to be obtained by the seller.


Preparation of Sale Deed is not an easy task. Interests of both the seller/s and the purchaser/s are to be protected. Some of the necessary clauses which should find  place in the sale deed are:

• Details of the parties, such as name, residential address, age and name of the father or husband of the parties;

• If one of the parties is a minor, name of the guardian representing him.  Generally the minor is represented by the Natural Guardian. 

• In case of inanimate bodies such as firms, companies, HUFs etc., details of the authorized persons authorized to represent such bodies;

• Details regarding as to how the seller has acquired property and his ownership and title;

• Details of advance payment if any made and mode of payment of balance of sale consideration

• acknowledgement of receipt of  advance  and the sale consideration  by the seller

• The fact of handing over of original documents of the property along with delivery of possession to the purchaser.

• Indemnifying the purchaser in case of defect in the title of the seller.

• Authorization letters issued by the seller for transfer of water, electricity meters;

• Details about execution of General Power of Attorney if any executed by  either of the parties 

• Permanent Account Number (PAN) of the seller and the purchaser if the sale consideration is more than rupees five lakhs. 
If either of the party is not an income tax assessee, then Form No.60 or Form No. 61 in case of Agriculturists, has to be submitted along with the sale deed at the time of registration.


• If the seller has already entered into an agreement to sell with some person other than the present purchaser then, such an agreement requires cancellation and the Agreement Holder has to be made as Confirming party to the sale, thereby confirming the execution of sale deed in favour of the present purchaser since the agreement holder will have right to enforce agreement of sale against the seller for specific performance. 

• All the necessary parties who have got right and interest over the property are to be arrayed as parties. If they are not made as parties, they have to sign the sale deed as Consenting Witnesses consenting for the present sale transaction.

EXECUTION

After the Sale Deed is prepared all the parties to the deed shall execute it by affixing their full signature. Each page should be signed by all the sellers. Any alteration, addition or deletion is to be authenticated by full signature of the parties.  Execution of the Sale Deed requires to be witnessed by two witnesses. The witnesses shall give their full particulars and addresses.


Sale Deed of immovable property of value more than Rupees one hundred needs compulsory registration. The duly executed sale deed should be presented at the jurisdictional sub-registrar’s office for registration. All the parties, including the consenting and confirming witnesses shall be present at the time of registration and admit the execution of the sale deed. The purchaser also has to be present at the Sub Registrar’s office at the time of   execution of the sale deed. In case, the purchaser is not in a position to be present at the time of registration before the Sub Registrar, he can depute his agent with necessary Power of Attorney to be present and sign the documents on his behalf. In Karnataka, photographs of purchaser and the vendor and their thumb impressions are taken at the Sub-Registrar’s office and are printed on the Sale Deed. At the time of registration, there should be two witnesses who could generally be persons known to the purchaser who would sign the deed as witnesses and another person known to the vendor who would identify the vendor and affix his signature to the deed. 

TIME LIMIT FOR PRESENTING THE DOCUMENT

There is a time limit for presenting the documents for registration. The time limit is four months from the date of execution.  Thereafter a grace period of another four months is allowed on payment of penalty. The maximum penalty is ten times of registration charges.

DISPUTES REGARDING STAMP DUTY PAYABLE:

At times, the registering authorities may dispute the quantum of stamp duty paid. In such cases, the purchaser has an option of paying the additional stamp duty by way of cash or pay order as demanded by the registering authorities or in the alternative he may contest the decision of the registering authority in which case the Sub Registrar will keep pending the registration and refer the matter to the Registrar of Under Valuation for determination of the proper Stamp Duty payable.

HANDING OVER OF ORIGINAL DOCUMENTS:

The vendor has to make available to the purchaser all the original documents pertaining to the property.   If the property is divided into one or more portions, the seller has to give certified copy of the documents to the purchaser while he has to hand over the custody of the original documents to the purchaser who is  purchasing the  larger portion of the property and make a declaration to that effect. 

Since drafting of sale deed requires abundant caution and presence of mind with sufficient knowledge of property and other allied laws, it would be better if services of advocates who have vast experience in property transactions are utilized to avoid unexpected and uncalled for litigations which may arise in a poorly drafted sale deed.

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Saturday 29 August 2015

REQUIREMENTS FOR DRAFTING DEED




Before drafting any kind of deed of transfer, it is very important to incorporate all the necessary requirements for an effective enforcement of such deeds apart from giving legal sanctity, which requires due diligence and a thorough scrutiny. The following are the essential requirements:


The deed has to specify the description of the deed, such as This Deed of Sale, This Deed of Mortgage, This Deed of Agreement to sell, etc, which may not necessarily be in Bold letters, but is preferable in order to highlight the nature of the deed.

Date of Execution:

It is very important to mention the date of execution of the deed since the same is required for determining the limitation and also for registration of such conveyance in the revenue records by the concerned revenue departments. Further, the date of execution of the document may vary from the date of registration. However, the documents can be presented anytime within four months from the date of execution.

Parties to the Deed:

All the necessary persons having interest in the property intended to be conveyed have to be mandatorily made as parties to the deed in order to avoid any future legal disputes, likely to be raised by the parties having interest over the schedule property. It is also important to properly depict the status of each party to the deed.

Recitals

The deed shall contain the previous history pertaining to the property in a precise way, explaining the nature of the interest and motive behind the execution of such deed, which authenticates the title, which is called Recitals in the legal terminology.

Habendum

This part of deed speaks about the interest in the property that the purchaser is being conveyed such phrases as To Have and To Hold. This phrase can be seen in almost all the deeds.

Covenants

A covenant is an agreement wherein either or both the parties to the deed bind themselves to certain terms and conditions, which create an interest over the property, which may be express or implied. In recent times, with the advent of Apartment culture, it is very necessary to incorporate covenants of various types besides those for maintenance of common areas and facilities in the deed.

Testimonium

This is the part of the deed which states that the parties have signed the deed. This is very important in order to prove authentication of the execution of the deed and the involvement of the proper parties having interest in the property in legally conveying the property to the parties of the other part.

Testatum

This is the witnessing clause wherein the witnesses signing the deed are introduced, along with their names, address and signature. This clause is also very important for the reason that the witnesses also play an important role to prove the execution of the document. However, it is advisable that both the witnesses are from purchaser/transferees side

Operative Words

This part of the deed depends upon the nature of conveyance. However, operative words clearly depict the intention of the parties conveying the property in favour of the other party/ies, which is necessary for passing of the title.

Parcels


This means description of the property following the operative words. Anything intended to be conveyed/assigned has to be specifically mentioned. Every minute details about the identification of the property has to be clearly incorporated. Any ambiguity about the description of the schedule property may lead to serious problems.

Exceptions and Reservations

Property intended to be transferred must not fall within the ambit of those prohibited under the statute or by orders of the Government. This part of the deed speaks about the conditions restraining the alienation and assurance that such alienation does not involve any restrictions.

Exception refers to some property or definite right which is existing on the date of conveyance and the same would transfer if not expressly excluded. 

Reservation refers to the right which is not existing but created at the time of transfer. 

Completion of transaction

The deed can be enforceable only if the same is properly stamped under Indian Stamp Act. Apart from this, it is also necessary that the same has to be registered under the Indian Registration Act. Under the said Act, registration of certain documents are made compulsory if such documents fall within either of the category. Only after the registration of such documents, the right, interest and title over the property is validly transferred from the transferor to the transferee. However, registration of the documents depends upon the nature of the transfer.

Execution

Execution of the document will be complete only after the parties put their signature on the deed. Special care should be taken when any of the deed is signed by the party who is an illiterate or blind or Pardanashin lady. In case any document is signed by some person by putting thumb impression, the documents has to be signed by the person who has taken the thumb impression and if any map or plan sketch is annexed to the document, then the same has to be signed by the parties.

Attestation

Attestation, is not a mere formality, but is imperative to prove the proper execution of the document. Though there is no standard form for it, the essential conditions of a valid attestation is that two or more witnesses have seen the executant signing the instrument and that each of them sign in presence of the executant. However, a person who is a party to the deed or a Power of Attorney Holder cannot sign the deed as an attesting witness.

Possession of property

It is very important that the transferor transfers possession of the property in favour of the transferee. It is not necessary that actual possession has to be handed over to the transferee, but even constructive possession will transfer and create a right and interest over the property.


There are certain categories of documents which require compulsory registration. If the document need not be compulsorily registered, then the mere execution of the document incorporating all the necessary causes will complete the act of transfer. On the other hand, the documents requiring compulsory registration is enforceable only after completing the formalities of registration. The main reason for insisting for registration is to protect the intending transferee against fraud and to maintain a public register at the office of the Sub-Registrar.

Thus, the transfer or assignment of right, title and interest over the property, irrespective of the nature of transfer, entirely depends upon the deed of conveyance. Any ambiguity, inadvertent addition or deletion in the deed may give rise to lot of legal problems, thereby obstructing peaceful possession and enjoyment of the property. Thus, the above discussed are the clauses required to be incorporated in all the documents to safeguard the interest of the parties to the deed.

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Friday 28 August 2015

PROCEDURE TO MAKE CHANGES IN THE PROPERTY DOCUMENT


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Documents are the record of various transactions; they contain certain terms, conditions, consideration amount, names of the parties to the transaction, date of the transaction, clear and complete description of the subject of transaction, so as to make them easily identified. For example, sale deed of a property contains the origin, flow of the title, present status, names of seller and purchaser, consideration amount, easementary right and brief description of the property with measurement, construction and boundaries. They are the permanent records, which are relied on for generations. Such documents must be legible, clear, readable, free of error and should not create any doubts or disputes. They reflect the terms of transaction for which both the parties have freely consented.

It is always advisable to prepare draft copies of the document for verification by both the parties in case of agreements and understanding.  However, the sale deed should be in favour of purchaser since the vendor receives the consideration.  He has to safe guard the purchasers interest in the property to be purchased. Any additions, deletions, alterations in the draft copies should be discussed by both the parties and another draft copy as agreed by both the parties is to be prepared. 

The second draft copy has to be vetted by legal advisers to ensure that it complies with legal, statutory requirements. Thereafter only the final deeds are to be prepared. As for as possible, additions, alterations, cancellations should be avoided.

Additions, Cancellations:

But at times, some additions, alterations, cancellations are inevitable which are discovered at the time of execution. All such alterations, cancellations, additions are to be done before presenting the document for registration. All such modifications should be authenticated by full signature of all the parties to the document. But signature of witness is not necessary for such modifications. Only full signature and not initials or short signature should be affixed. For cancellation, the original words should be neatly struck off. It should be signed by the parties to the document.  

Erasing fluid should not be used. Registering authority records such additions, alterations, cancellations pagewise on the document itself. This validates the additions, alterations, cancellation etc. Any modification done after registration is not valid and does not form a part of the document. More over the document itself becomes invalid. Copies of the registered documents are maintained at registering offices and certified copies issued by such authorities also record on certified copies the number of cancellations, additions and alterations done before registration. They do not contain anything added deleted, modified after registration. So proper care should be taken so that all modifications are done before registration and full signature of all the parties are obtained to the transaction. If anything has to be changed after registration a separate rectification deed has to be executed. 

Filling up blanks:

Some documents may have blanks as the required information will be available only at the time of execution.  Often, date of execution is left  blank, until the date is finalised.  Details of the demand drafts, cheques like number, name of Bank, Branch  are also left blank.  All such blanks have to be filled up before presenting the document for registration and should be authenticated by all the parties to the document or executor with full signature.

Attestation:

Attestation means witnessing the documents. Certain documents like will, agreement to sale, sale deed require attestation.  Execution of the documents should be witnessed by two persons, who are major and of sound mind.  Both the witness should affix their full signature and should furnish their address.  Attestation is not necessary in case of certain documents.

Thumb Impression:

There are many people who cannot sign. Thumb impression of such people are taken for execution of documents instead of signature. Left hand thumb impression (LTM) in case of males and Right hand Thumb Impressions (RTM) in case of females have to be obtained on documents for execution. Brief description LTM or RTM of ---------------- has to be written immediately below the thumb impression. As the persons who affix thumb impression are illiterate, who cannot read or write, the entire contents of the documents should be read over and explained to them and a separate note to that effect has to be annexed to the document preferably signed by an Advocate.
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Thursday 27 August 2015

VERIFY THE DOCUMENTS BEFORE PURCHASE OF THE PROPERTY




A clear and marketable title of  property free from encumbrance would provide the owner a  rightful ownership of such property and the possession of the property could be either physical or constructive.

The foremost requirement to be exercised by the  intending purchaser of property  is to thoroughly scrutinize  the title deeds of the property.  There is no particular yardstick prescribed to trace out the title and, therefore, it depends upon the diligence and application of mind of the person who scrutinizes the documents. Scrutiny of documents is a specialized work and only persons who are well versed in scrutiny of property documents can analyse and give a clear opinion. Generally speaking,  origin of the property, subsequent transfers and the present status are the three most important aspects which  are taken into consideration  to trace the title of a property.

Modes of acquisition

There are different modes of acquisition of property by any individual.  Some of the modes of acquisition of property are Grant Land by the Government, allotment made by the Government / Various Autonomous bodies / Housing Societies, etc., acquisition of property under a Will, by purchase  or inheritance.

If the property is a Grant Land or allotted by any authority, then the Grant Certificate or Allotment Letter issued by the Competent Authority is necessary, apart from the other relevant documents. In the case of acquisition of property under a Will or by way of  purchase,  Gift, Exchange, Partition, Release, Settlement or inheritance, it is necessary to scrutinize and verify all the relevant documents of 42 years prior to the date of the present transaction to ascertain  the  transactions which  have taken place during this period.  This will enable the purchaser to make  sure of the valid title of the vendor. At the same time, genuineness of the relevant documents at the time of  transfer of property during this period has to be diligently examined.

The next important step is to examine the present status of the property i.e. who is the present owner, whether his / her name has been recorded in the revenue records of the concerned Authority and whether property taxes are being paid by the owner periodically.


The third step is identification of the property which  is very important and a must.  The purchaser should not only  get the property identified but also should compare the description of the property shown in the document with the actual. Accurate details pertaining to the number assigned to that particular property, its extent, boundaries, name of the Village or Municipal Council or any Autonomous bodies within whose limits the said property falls are required to be ascertained. If the building exists on the particular property, then  details pertaining to the existing building and whether the building is constructed in accordance with the building sanction plan and relevant Bye Laws of the concerned Authority has to be mentioned. Measurements mentioned in the document should tally with the physical measurements. In case the physical measurement mentioned in the document is less than the actually physical area available, the actual area available is to be considered for the purpose of payment and documentation. Normally, the purchaser shall pay either for the measurements mentioned in the documents or the actual physical measurement, whichever is less.

Nature of Title

Nature of title such as tenancy right, occupancy right, possessory right, full ownership is also another important aspect which requires search and examination since  the persons having some interest or right over the property are necessarily to be made  as parties to the  transaction, sale or mortgage.


If the property is tenanted, then it is very important to get confirmed from the tenant that there is no litigation pending between the vendor and the tenant pertaining to the ownership of the property or the tenancy rights. Further, it is also necessary to convey the tenant about the proposed sale transaction and to attorn the tenancy in favour of the purchaser.

Conversion

Normally, agricultural lands cannot be put to use for non-agricultural purposes. To put to use the  agricultural land for non-agricultural purposes it is mandatory to get the agricultural land converted for utilization for non agricultural purposes. However, there are certain exceptions to this mandatory requirement and  the agricultural land can be put to use for non-agricultural purposes with the specific order of the competent authority. The special enactments applicable to grant lands also require to be looked into. Further, it is also necessary to find out from the Land Acquisition Department whether the property in question is under the orders of acquisition by the Government and whether any notification to this effect has been issued. by the Government.

Encumbrance  certificate

Verification of encumbrance certificates is a part of scrutiny of property documents to rule out any subsisting encumbrance over the property. But, such certificates cannot be totally relied upon since there are instances wherein transactions duly registered in the concerned Sub Registrars office are not reflected in the E.Cs issued by the department. In such  cases it is necessary to do the search in the office of the  Sub Registrar, on payment of the prescribed fees.

Minors interest

In cases of sale of ancestral property, it is necessary to find out whether the vendor has a clear title over the property and there are no claims of minors interest. If the property proposed to be conveyed is  ancestral property, then the involvement of Minors interest is very common. In cases where minors interest are being transferred or conveyed, permission from the court for conveying the property is mandatory under the provision of Guardianship and Wards Act. If the property is conveyed in contravention of the provisions of this Act, then such conveyance can be challenged by the Minor within three years  from the date of his  attaining majority or from the date of getting knowledge of such a sale.

Thus, for purchase of property it is necessary to verify as to how the vendor has acquired the property. Only upon being satisfied about the valid title of the vendor, the purchaser can negotiate and enter into an agreement of sale  with the vendor. It may be noted that if the property is a composite property, then most of the owners will retain the original title documents  and only Xerox copies of such documents will be delivered to the purchaser.

Since scrutiny of property documents is technical in nature, utilization of services of an experienced advocate in property matters would help the purchaser immensely and while scrutinizing the documents the advocate shall be able to decide as to which  documents  are to be  in original and which could be certified copy or  Xerox copy. 

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Wednesday 26 August 2015

SCRUTINY LEADS THE WAY TO THE DREAM HOUSE



It is the desire of every person to own a shelter. At the end of long years of employment some manage to gather the required amount to buy the property while for the more fortunate it is at their desire. However, buying a property always requires a huge investment and careful selection to avoid chances of future disappointments. Careful selection, however difficult the process may be, can go a long way in ensuring value appreciation and peaceful enjoyment of the property, as it covers selection of location, right vendor, etc.,

The Bangalore Development Authority  is the planning  and developing agency in this area. Any layout in the metropolitan area of Bangalore must be approved by the BDA. This is mandatory as per the Karnataka Town and Country Planning Act, 1961, and BDA Act 1976.  So it is essential to make sure that the site you purchase is in a BDA approved layout or has been approved by any other competent authority.

There are many agricultural lands in the metropolitan area and in areas abutting it.

The Karnataka Land Reforms Act does not allow purchase of agricultural land by the non-agriculturists; unless it is converted for non-agricultural purpose. Even house building co-operative societies are covered under this restriction.

Revenue Site

Another dangerous area is a revenue site. Revenue sites are formed on agricultural lands, which are not converted.

Using such sites for residential purpose is against the law. These sites are not entitled to power, water supply and sewerage connections. Most landowners use Form No.9 & 10 to confuse and convince the purchasers and these are generally fabricated documents, which are not issued by any statutory authority and hence not genuine.

Government acquired land

The government is vested with powers to acquire lands for the purpose of development. Firstly, the Land Acquisition Officer announces a preliminary notification for acquisition of land and calls for objections from the public or the affected party.  The affected party has to file objections within 30 days, stating the developments done on that property after obtaining all permissions from the statutory authority concerned and also taking into account the real value of the property. After hearing the case of the affected party, the government may delete the said survey number from the notification and announce the final notification. After the final notification, the government may pass an award, after which, such of the properties which have a mention in the final notification is considered as acquired property. Notified lands are prohibited from alienating. But many owners sell such notified / acquired lands to gullible purchasers by using Form Nos.9 and 10. One should be very careful to ascertain as to whether the property was acquired or not and has to check-up with the acquisition authorities in this regard.

Comprehensive development plan

The comprehensive development plan (CDP) is in operation in the Bangalore metropolitan area. This plan has divided the metropolitan area into different zones. Each zone is earmarked for a particular activity which are, residential:  commercial:  industrial  which  includes  light  and  service industries, medium industries and heavy industries: public and semi-public Utilities and Services; Parks and open spaces, play grounds including public recreational area, transport and communication, agricultural land and water sheet (Water body). 

Activity other than that stipulated in such zones is not permitted. One must always ensure that the site purchased is used in conformity with the zonal regulations, For example, houses for residential purpose should be constructed only in the residential zone. With regard to this, the zonal regulation map is available at the BDA office and it is essential to verify the Zonal Regulation Map before purchase of property.

Further, Village Panchayats are also entitled to issue the Khata but only in respect of the village Panchayat area and a further 200 metres from the limit of Gramathana area, which is marked as village area in the survey map issued by the Survey Department.

Legal formalities like tracing title of the property, verifying the sanction plan, electricity, water, sanitary facilities and relevant sanctions, checking up the plinth area, carpet area and the super built up area are all important aspects to be verified with the help of a qualified professional. However, before checking legal formalities, approvals and permissions, it is essential that a careful selection of location with regard to its surrounding areas, habitation, density of population, access of various facilities etc., be made to ensure that the property purchased can be lived in peacefully and that the potential for reasonable value appreciation of the property is good.

Selecting a location

Location is the most important aspect while investing in a property. It is advisable to ensure that there are no slums nearby, a place of worship attached to the property, drainage line close to the property. The purpose of buying a property often determines the location. It may be for self-occupation as a residence or for investment purposes. If the house / flat is for own occupation, a residential locality not far away from the heart of the city is preferable. If any person offers a property at a cheaper rate than the prevailing market rate, then it is advisable not to accept the offer, as it may have certain hidden problems, which are difficult to trace out. Some people may try to convince you by saying that there is a lot of demand for the property and offer you very little time to make a decision on buying the property. One should not yield or be pressured by such tactics but ensure proper verification and examination of documents with extraordinary care before committing. Always select property in approved layouts to get all the facilities within the layout. The area should have well developed roads; good drainage and the civic staff should do the garbage clearance regularly.  Low-lying areas should be avoided as they get inundated during monsoons.

The proximity and accessibility to work place, schools, market place, hospitals, railways, bus station and recreational centers is important. The locality should have adequate banking facility, frequency of public conveyance, other modes of transport, availability of public telephone booths etc. A location which is not far away from the modern facilities and infrastructure but far enough to avoid pollution, is preferable.

Prefer an area inhabited by decent, educated and cultured people of cosmopolitan outlook. Ensure that the area is not home for anti-social elements. There should not be factories or workshop especially the ones which work during night, in the immediate neighborhood, to avoid noise pollution and sleepless nights apart from affecting the quality of power supply. Property attached or close to highways or heavy traffic areas are better avoided as they result in noise pollution.  Further, the area should have regular supply of water, power and good ground water table for bore well.

Facilities like public park/garden for walks are worth considering. The location of a temple, mosque or church and religious institutions which arrange regular discourses in this age of stress and strain is a welcome factor. Apart from the above, the size of the plot to suit your budget and the permitted FAR (Floor Area Ratio) are important factors to be considered.

Vaastu Aspect

Vaastu is of individual preference, however people are increasingly adopting Vaastu principles for their property and it will be worthwhile, keeping in mind the value appreciation and future sale, to ensure that the property is as per the Vaastu guidelines.

If the purchase is for investment purpose, the chance of resale is an important factor to be kept in mind. A developing area is preferable to a developed area. The investment in a developing area is comparatively low and value appreciation will be more.

Non-availability of parking space and traffic restrictions have an adverse effect on the value of the property. Accessibility to the railway/bus stations, airport, star hotels and availability of infrastructure facilities play an important role.

Selecting a vendor

While selecting the vendor / promoter, you need to look into his track records. This can be done by paying a visit to the earlier projects of the vendor or in case he is an individual, enquiries could be made with people who had transactions with that individual or with the people living in a close proximity to the property. Similarly, you have to select a reliable real estate dealer to select a suitable property.

Before investing your money in flats or in any property, choose a well known builder/developer/promoter: Do not get carried away by attractive colourful brochures.

Many builders have abandoned their projects in a semi-finished stage exposing the purchaser to financial loss and mental agony. In vesting in a flat which is under construction by unknown new builder is risky. Check the credentials of the builder before investing your hard earned money. Verify the track record of the builder for prompt delivery, construction standards, adhering to the agreed cost without escalation, providing amenities, before booking a flat. Ensure that there are no deviations from the development rules and also check the post sales service. It is preferable to opt for a ready-to-occupy flat.  By doing so, the attendant risk of investing in a property to be developed can be avoided.

Do not be tempted by colourful advertisements and attractive offers, which mention that the said property is bank approved or BDA approved. Legal opinions from bank or from the promoter should not be relied upon. It is always advisable to obtain a proper legal opinion from a well-qualified lawyer before purchasing a property.  Further, claims of having obtained BDAs no objection certificate or approval from BDA or CMC should not be taken as true in the absence of personal verification by self or through a lawyer, from the concerned department.

The property scene is similar to the speculation industry; prices can either appreciate or depreciate, though the latter is rare. In  fact, it is the difference in the amount of gain in value and the time taken to achieve such appreciation in value which is important. Slow and poor appreciation in value would be almost equal to depreciation while fast and large appreciation can give benefits like any other investment and that too without any effort on the part of the investor. A thorough study of title, location, developments already in the area, the expected development in the area, other facilities already in place and surrounding places and a careful analysis of these factors before purchase can ensure great benefits and greater peace and prosperity to the purchaser/investor.

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