Monday, March 1, 2010

PANIYALA ASSOCIATES
Corporate Law Firm

Consumer Education Bulletin

Important Post Purchase Steps to Protect Immovable Property
Immovable property is acquired with an intention to own and posses the same as an “asset”. However, if proper measures are not taken immediately after the acquisition thereof, the “asset” can turn out to be a “liability”. We have come across many cases of post purchase complications like encroachment, boundary dispute, illegal possession, irrecoverable loss of title deeds, inability to avail housing loan, defects in the sale deed etc. Hence, we have decided to issue this mail [ privileged communication] and a general advice with a view to educate our close friends and well wishers as a advisory bulletin to help them to protect their right, title, interest together with possession over their properties like house site, residential building , flat/ apartment so as to own and enjoy the same peacefully.

Following list is not exhaustive. It is only indicative and suggestive. You can customize/personalise depending upon your local needs, practice and procedure having regard to the laws in operation in your area in consultation with your legal advisor.


1. Open a separate property file. Keep the files safely. Index the same and accordingly have a list of documents.

2. Preserve the original Sale Deed in a protected plastic folder to save the writing thereon including the signatures, as the life of the document sheets is approximately 40 to 50 years. [Also depends upon the quality of papers and ink used].

3. Also preserve the Receipts issued by the registering authority inrespect of stamp duty and registration fee. In case of payment of stamp duty and registration fee by Demand Draft, keep a photocopy thereof.

4. Take actual physical Possession of the site or building. [Residential house, apartment, commercial or industrial shops etc].
§ In case of vacant site, enclose the same with compound wall or fencing. Lock the main gate. Display board saying that site is owned by Mr._____ or This site is not for sale.
§ In case of buildings immediately change the main entrance door lock and have your own lock and key.
§ It is also advisable to put a name board showing the name and contact number of the owner.
§ Ensure that you are in actual, exclusive, lawful and peaceful physical possession and enjoyment of the property purchased and there is no rival claimant.

5. Transfer the Mutation Register in your name.
§ In case of municipal/corporation area – get the Khata transferred.
§ In case of revenue area – get the RTC [Record of Rights] transferred in your name as provided under law.
§ In case of village area, again get the Khata/Patta transferred.

Corporation/Municipal/Town Panchayath area are governed by the Karnataka Municipal Corporation Act, Karnataka Municipalities Act and Karnataka Panchayath Raj Act respectively.

NOTE: These mutation registers like Khata/RTC/Patta have practical significance also. In case of land acquisition by the govt. or public authorities, then notice of proposed acquisition is given only to the persons, whose name is entered in these revenue and munciapl records. Also in case of litigation, these documents only support the possession to get interim reliefs from the Courts of Law like injunction etc as strong legal presumption is attached to the entries made in these documents.

6. Get the Property Tax Account transferred maintained by the local self government bodies like Corporation, Municipality, Panchayath etc as this is different from Khata or RTC. This register is maintained the purpose of payment of property tax. By avoiding tax temporarily, one can save few hundred for few months. But, the collateral supporting documents of ownership along with title deed will become weak in case of dispute.

7. Pay Property Tax / Land Revenue, as the case may be, to the jurisdictional authorities and have receipt in the file.

8. Confirm the door number or property identity number issued by the authority concerned and ensure that your name as mentioned in the title deed is entered inrespect of the said door number.

9. Obtain Encumbrance Certificate after the date of registration of sale deed and make sure that your name and title deed [under which you have acquired the right] of property finds place in the EC. [You need to apply for the EC of just 10 to 15 days].

10. Transfer your name in inrespect of Water Supply. Electricity, Telephone and such other service providing organizations/ authorities. This will save you from sudden claim of arrears of fee,cess,tax etc.

11. Obtain certified copy of all previous title deeds [parent/mother deeds etc] plus your own title deed, all revenue and municipal records, authentic location sketch and all records to reconstruct the file incase of loss of original set of documents.

12. It is also advisable to take Special Power of Attorney of the Seller of the property for the limited purpose of rectifying any typographical errors, if crept in the deed/document or executing supplemental deeds or documents like Confirmation Deed, or submit NOC etc as the Seller of the property may die or leave the country or not accessible or available in future. This will also avoid some Seller’s demanding extra money for executing such supplementary documents.

Please send your feedback to improve this list and educate law abiding citizens’ vivekanandapaniyala@gmail.com
Paniyala Associates – Corporate Law Firm

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