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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Land Title Deeds - Dont Give Copy to Unreliable Brokers

Recently, a friend of mine complained about forging of the signature by brokers and creating Power of Attorney to sell the land without the knowledge of real owner. This is a very serious case very often reported in Bangalore.

The crooks behind this are real estate brokers. They collect photo copies of title deeds from the unsuspecting owners and manipulate the documents by creating a Power of Attorney and then sell the land to innocent buyers.

Therefore, I advice people not to give even photocopy of their title deeds to brokers and thereby get cheated. Be very careful. Always insist for one to one meeting in the presence of your lawyer/property advisor.

Are you buying Landed Property ? Some Precautions

Cases of impersonation is increasing in real estate transactions. Most of the times, buyers do not insist for proper identification of the Seller thinking that only owner comes forward for sale. But there are thousands of cases of fradulent transactions reporting in urban India. Hence, a piece of advice. Know your Seller before knowing more about property.

1. Who is the Seller?. Ask this question first. Insist for identification with the help of PAN Card, Passport, Voters ID Card, DL, Bank Pass Book etc. Keep a copy thereof for reference.

2. Compare seller's personal identification details with the particulars mentioned in the title deed. [ Sale Deed, Gift Deed, Settlement Deed, Partition Deed, Will, Grant Certificate etc].

3. Verify these details with reference to Khata and Record of Rights.

So, ensure that he person who claims to be the owner is capable of proving his ownership based on documentary evidence.

Duty of Real Estate Broker

Insist real estate broker to do atleast the following before taking 2% of the transaction money !

1. Sign the agreement for sale as a witness with correct name, age, parentage, residential and business address. Confirm his/her identity with reference to public documents.

2. Also sign on the Deed of Sale and get photographed before the Sub-Registrar while getting the Deed of Sale or such other deed or documents registered.

Reason:

1. If ther is a fraud behind the deal or forgery in any documentation, you can hold the agent responsible and accountable in criminal proceedings before the court of law.

2. If the deal gets cancelled, you can get him examined as a witness in the court of law.

Who Cares for Human Rights of Police in India?

India lost her another brave son Police Inspector Mr. Mohan Chand Sharma in an encounter with terrorists in Delhi day before yesterday. Nation salutes this hero.

We have intellectuals who 'cry' when terrorists are gunned down by police saying that its fake encounter !. Yes. Ther are cases of fake encounters in this country due to unholy nexus of police, mafia and politicians. But what surprises me is that none of the intellectuals have the courtesy to acknowledge the sacrifice of honest police officers like Mohan Chand Sharma. Because they dont get publicity !.

My heart goes to those military, para military, security forces and police personnnel who sacrifice their life for the nation.

Attack on Churches - Let Hindus and Catholics resolve without Politicians

I was in Mangalore last week when churches were atacked by Bajrangis. It was a clear case of 'vandalims". There is no doubt about it. There can not be any justification for the manner in which these miscreants attacked the churches even though there is a strong case of "objectionable conversion" according to this Hindu outfit. In my view there are better means of protest.

But at the end there was a ray of hope of amicable resolution of diferrences by the leaders of both the communities. Unfortunately, at that point of time enterd the opportunist politicians just to take advantage of the situation with an oblique motive to capitalise the sentiments of the people for political gain. Now the issue is no more in the hands of religios leaders.

I appeal to the common man to continue the same kind of mutual trust and faith without being influenced by these political and religious leaders or media drama.