October 4, 2008 by atoneplace
Question asked by Vikas Verma from USA:
Dear Vatsala
I highly appreciate your efforts in resolving lot of property related queries. I am in a bit of a situation and need your help. I am planning to purchase a flat in Hyderabad, this is a new development. Developer started selling flats in this development in 2005, and the flats are ready for possession by next month ie Sep. 2008. There are few flats still up for sale from the developer. Lets say the price developer is quoting right now is Rs X / sft + amenities like car parking and common amenities like clubhouse etc (y) developer would charge + service tax (z) + VAT (A) and registration
(B). So the total cost of purchasing this flat for me would be X+Y+Z+A+B.
I have been speaking to a gentleman for purchasing a resale flat in the same development, he has got the flat registered on his name and there was no VAT and service tax when he purchased it in 2005, so he has not paid either VAT or Service tax for this flat. Could you please tell me what would be my total cost of purchasing the flat in resale if the value of flat is 0.9X that I am being quoted? To simplify it further would I be required to pay VAT and service tax if I bought this property in resale now, also, will I be required to do the registration and pay 10% / 12% what ever is the prevailing rate? Is there any way I could reduce the cost of registering this property in resale. This gentleman whom I am planning to buy the property is an NRI.
I would highly appreciate your inputs, apologies for any naivety since this is my first property purchase.
Cheers
Vik
Vatsala Speak:
On a resale flat no VAT or service charges apply. However registration and stamp duty charges have to be paid. This can be reduced by not showing part of the consideration in the sale deed (but only showing with the guideline value, which is less than the market value). You could show the other amount against fixtures and fittings in the flat or alterations/ improvements done to the flooring, etc.Vatsala
www.atoneplace.com
Posted in Uncategorized | Tagged amenities, car parking, clubhouse, market value, Possession, Registration Charges, Resale, Sale Deed, Service Tax, VAT | No Comments »
October 4, 2008 by atoneplace
Question asked by Prashanth Harish:
Dear Sir/Madam,
My father had a site in Bangalore. I applied for a home loan and built a house in the site. My father wants to convert the ownership of the site to me. In what means can I convert this? Will gift deed work & if so , what is the stamp duty fees?
Regards and Thank you
Prashanth Harish
Vatsala Speak:
Yes, gift deed will work. The stamp duty, registration fees and miscellaneous charges without including advocate’s fee should not exceed Rs. 5000 to Rs. 6000.Vatsala
www.atoneplace.com
Posted in Uncategorized | Tagged Advocate, Gift deed, Home Loan, miscellaneous charges, registration fees, Site Ownership, stamp duty fees | No Comments »
September 8, 2008 by atoneplace
Question asked by Amit Singh from U.S.:
Dear Vatsala:
I came across your services on atoneplace.com, and wanted to get your insightful expertise on the following issues:
- What is the best form of title for an NRI to own a property in India - individually or via a Pvt Ltd. company or via any other method of form of ownership?
- Is holding title via a Pvt Ltd. company a fool proof method to safeguard against any judgements etc.?
- Can a foreign citizen (not of Indian origin) hold property solely in their name in India?
- Can a NRI own property in India jointly with a foreign citizen (not of Indian origin)?
- What is the best way to go about forming and registering a Pvt. Ltd. company that can ultimately purchase and own property in India?
Thanks and I look forward to hearing from you.
Best regards,
Amit Singh
USA
Vatsala Speak:
A property which is not utilized for business cannot be owned by a foreigner whether singly or jointly with a person of Indian origin. If a foreigner wants to purchase property for business, it should be genuine, because it will be scrutinized by the RBI. The title can be scrutinized only by a local lawyer. A foreign citizen of Indian origin stands on an equal footing with an Indian citizen in owning property. The best way to incorporate a company is to engage a lawyer or law firm in India who can handle it for you.Vatsala
www.atoneplace.com
Posted in Buy Real Estate, India, Indian Property, Indian Real Estate, Property Registration, Real Estate, atoneplace.com, legal | Tagged Add new tag, foreign citizen, Indian origin, NRI, ownership, private limited company, Property Title | 1 Comment »
September 8, 2008 by atoneplace
Question asked by Magesh LC:
I have booked a flat two years back by paying 1% of the flat cost as booking advance and then after 45 days, Agreement of sale and Construction is prepared by the promoter. 59% of flat cost paid in 34 days advance, which comprises of 1st Instalment of construction cost and sale deed for registration of undivided share of land in my name. Remaining 40% is also paid in due course, where 21% is delayed due to delay in releasing the loan from bank and remaining is paid on time and advance. We have paid 18% interest for delayed payment as per agreement and also promoter gave us 18% interest for advance payment in the initial stage. Completion period of construction is 18 months and additional grace period 3 months. But now he is asking Escalation Cost (No Where in the Agreement). We also lodged police complaint against Builder for Denying Possession of Flat. Immediately to escape from police interference he has lodged Civil Case and Fraud Criminal Case (as private complaint) against us. Also, builder has to pay penalty charges after the said period in case of Non-Delivery of the flat as per construction agreement.
Booked Flat on 23-06-2006
Last Date of Payment made on 06-07-2006
Due date of Delivery of the Flat - Sep 2007
Additional Grade Period for Delivery 3 months - Dec 2007
Till date possession of my Flat is held with the promoter and asking Escalation Cost (After Thought)
We have to get our Property only through Civil Court / Contact Consumer Forum for Remedy, when Civil Case is filed by the builder?
If Yes, Is there any time frame applicable for Filing case in Consumer Forum?
Kindly guide us
Magesh LC
Vatsala Speak:
The details of the civil case have to be studied. Normally you cannot sue on the same cause of action in two different courts at the same time. It should be decided by your lawyer whether to file a fresh case in front of the consumer forum despite the case filed in the civil court after studying the matter.Vatsala
www.atoneplace.com
Posted in Builder, Buy Real Estate, Registration, Residential Property, Sale Deed, Sale of Properties, atoneplace.com | Tagged Bank, Civil Case, Completion period, Construction Agreement, consumer forum, Escalation Cost, Flat Cost, Fraud Criminal Case, interest, Loan, penalty charges, police complaint, Possession | 1 Comment »
September 8, 2008 by atoneplace
Question asked by Anjali Singh from U.S.:
My mom owns an agricultural land in India ( Madhya Pradesh) which she plans to give it to me eventually. I am an NRI living in US.
Is it possible for her to gift the land to me? If yes
1) Is that something she can do in her life time?
2) What kind of taxes will I have to pay to just hold the land and if I were to sell it and repatriate the money.
My another questions is
1) Can an agricultural land be converted to residential land, if all land in and around are residential already.
2) Do I have to wait for the state to in act some kind of boundary changes etc for it to get converted to residential, or I can apply for its conversion.
3) If I can apply for conversion, what all do I need to do? How long does it take.
I will really appreciate some legal advice.
Thanks
Anjali Singh
USA
Vatsala Speak:
You cannot hold the land even as a gift of agricultural land to NRI’s and PIO’s, as it is prohibited by FEMA. (Foreigh Exchange Management Act). Therefore the questions on sale and taxes become irrelevant. In some states, there is no need to convert the land before putting it to use for non agricultural purpose. If conversion permitted in the state you hold property, it could take about 4 months. The documents required for converting agricultural land to industrial use is parent sale deed, Tippany, Akarband, Nil Tenancy certificate, Endorsements under Section 79 A and B (and endorsements about granted SC land) from Tahsildhar , RTC., Mutation extracts, Encumbrance certificate and Application form duly filled up in quadruple. This has to be supported by reports from the Village account and Tahsildhar’s office after inspection. This is forwarded to the Deputy Commissioner who can then issue the conversion order after colleting the conversion charges.Vatsala
www.atoneplace.com
Posted in Agricultural Land, Buy Real Estate, Gift deed, India, Indian Property, Indian Real Estate, Real Estate, Residential Property, Sale Deed, atoneplace.com, legal | Tagged Akarband, Deputy Commissioner, Encumbrance certificate, Endorsements under Section 79 A and B, Foreigh Exchange Management Act, Land Conversion, Mutation extracts, Nil Tenancy certificate, NRI, PIO, Property Tax, Repatriat, RTC, Tahsildhar | No Comments »
July 25, 2008 by atoneplace
Question asked by Shahul Hameed . A from Kuwait:
Dear Sir/Madam ,
I have taken your email ID from one of legal help blogs. I am a NRI working in Kuwait. I have paid around 6 Lakhs to one Builder in Bangalore for a particular project. No that project did not take place and the builder is not returning the money. If I call him he always asks for 2 weeks time. How do I get money back?
Thanks in Advance for your help.
Shahul Hameed .A
Vatsala Speak:
You should immediately approach the consumer court (after sending a notice) and demand your money back along with interest due to deficiency in service.Vatsala
www.atoneplace.com
Posted in Buy Real Estate, Consumer Act of India, Consumer court, India, Indian Property, Indian Real Estate, NRI, Real Estate, atoneplace.com, legal | Tagged deficiency in service, interest, Kuwait | No Comments »
July 25, 2008 by atoneplace
Question asked by Prashant Shamarao from Bangalore:
Hello, My name is Prashant Shamarao and I am considering purchasing a flat in Bangalore. I currently live in Bangalore. My wife and I will be co-owners of this flat. Is there a difference between the rights of person whose name appears first on the registration document and the person whose name appears second?
Thanks,
Prashant
Vatsala Speak:
There is absolutely no difference, except that sometimes the voting rights in the meetings of the association are given to the person whose name appears first in the sale deed. Vatsala
www.atoneplace.com
Posted in India, Indian Property, Indian Real Estate, Property Registration, Real Estate, atoneplace.com, banglore, legal | Tagged co-owners, rights of person, Sale Deed, voting rights | No Comments »
July 25, 2008 by atoneplace
Question asked by Subha from USA :
Hello,
I am an NRI and want to purchase/register a land in Trichy. At the registration offices i heard that they are nowadays insisting that the party has to be personally present for the registration. I want to give my brother POA for the purchase/registration. For my POA to be valid in Tamilnadu for the authentication, how should it be made? I know i need to get to get attested from embassy. When I affix a photo of mine and sign across it, will it be accepted for registration?
Thanks,
Subha
Vatsala Speak:
The law allows any person who is unable to be present personally for registration to be represented by a power of attorney holder. You should get the power of attorney executed and notorized in the U.S. or alternatively endorsed by the Indian Consulate. Thereafter it should be sent to India and should be stamped with local Indian stamp duty (this will be embossed on the document) within 3 months of its receipt in India. The photo will be required only if the authorities in the US insist upon it. Vatsala
www.atoneplace.com
Posted in India, Indian Property, Indian Real Estate, Property Registration, Real Estate, atoneplace.com, legal | Tagged attest, embassy, Indian Consulate, power of attorney, Stamp Duty, Tamilnadu | No Comments »
July 25, 2008 by atoneplace
Question asked by Vinoth:
I am an NRI and I gave my power of attorney to my father who resides in India. I bought one house and during registration we found that the power of attorney couldn’t be executed immediately as I need some procedures and I have registered in my parent’s name. In order to transfer the property to my name again
1.what is the procedure to be followed?
2.Is that any amount needs to paid again for transfer back to my name?
Please let me know.
Warm Regards
Vinoth
Vatsala Speak:
Your parents can execute a registered gift deed in your name now. It is not costly to do that. You can be present in person in India or through power of attorney.Vatsala
www.atoneplace.com
Posted in Gift deed, India, Indian Property, Indian Real Estate, NRI, Property Registration, Real Estate, atoneplace.com, legal | Tagged power of attorney, transfer of property | No Comments »
July 25, 2008 by atoneplace
Question asked by T.L. Sudarshan from Bangalore, India:
Hi,
My name is Sudarshan.
The house that I live in currently is in my father’s name. He purchased the house and is now retired. His source of income now is the money that he had saved while in service. The house that we live in only has a ground floor. We want to construct another floor (first floor) and for this we need a bank loan. Since my father is not employed now, it is unlikely that he will get a bank loan for this. Therefore, I would like to take a bank loan on my name.
However, I understand that for this the property will have to be registered in my name. Please let me know if my father can gift the property to me without us having to register the property in my name. If yes, can I then take a bank loan on the property gifted to me?
Appreciate if you can let me know the details on gifting and registration or guide me to a source from where I can find out.
Thank you.
Sudarshan
Vatsala Speak:
It is not possible for your father to gift the property or a portion of the property to you unless the gift deed is registered. The banks will not lend on an unregistered gift deed. You may approach a lawyer who can handle the drafting and registration of the gift deed for the whole or part of the property.Vatsala
www.atoneplace.com
Posted in Bank, Gift deed, India, Indian Property, Indian Real Estate, Loan, Real Estate, Registration, atoneplace.com, legal | Tagged Lawyer, unregistered gift deed | No Comments »
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