Check for utilities before investing in a plot

 Check for utilities before investing in a plot

   Installing utilities on a property is not an easy task; it entails time, effort and money.  However, if you are prepared to undertake this activity, you can convert your land into a profitable asset

     Installing utilities on your land can be an expensive and time-consuming process.  So, you should calculate all the overhead costs along with the price of the land.

      If you want to buy land and build on it, you need to be aware of the property’s utility easements before you invest in it.  The land you intend to buy must include basic utilities such as water supply, electricity supply and sewage disposal, to begin with.

Why buyers must check for utilities?

      If you’re looking to purchase land that is beyond city limits, then the chances of public utilities being available are not as high as compared to land that is close to residential areas.  This is because utilities are rather uncommon in far-flung vacant plots, especially those that are located on the outskirts and further away.  If the land is situated close to a city or town, then there is a greater possibility that it has the necessary utilities.

      Buyers must look for this because it can be expensive to set up the utilities on a plot if there are none, and this additional expense can affect the final cost and might make you want to reconsider the deal.

How to look for utilities?

The first thing you must procure is the property card or the property details from the seller.  Once you have the property’s address, search online (on the official government website) to confirm if public utilities are available on that land.  Sachin Chopda, managing director of a leading construction company, says, “Once you get the address of the property, search online or ask the local municipal authorities about the availability of the utilities in the area.”

Account for the difference in costs

Installing utilities on your land can be an expensive and time-consuming process.  So, you should calculate all the overhead costs along with the price of the land.  Depending on the land, the site development costs can differ drastically, and in the case of commercial development, the charges may differ even more.

          Neeraj Maheshwari, a civil contractor based in Palghar, says, “The location of the property plays an important role because depending on that, you may have to run overhead power lines instead of underground power lines.”

Other factors to consider

Even if you secure all the necessary government permissions, you still need to account for resistance from neighbours, if any.  For instance, you may need to get permission from your neighbours to install power poles on their property.

      Normally, it takes a month for the utility connections (water and electricity) to become operational.  Securing permissions from the respective municipal authorities can take days, sometimes weeks.  Maheswari concludes, “When considering the timeline for securing permissions, it is best to factor in delays.  This way, you’ll avoid any disappointments.”

All you need to know about gifting property

 All you need to know about gifting property

   If you are planning to gift property to your loved ones, then do it now.  We discuss the implications of gifting immovable property to your near and dear ones

If gifting a home or a piece of land has been at the top of your mind then don’t hold back.  And to make your life easier, here, we tell you how to make the gifting experience a smooth and seamless one.

How property is gifted

Any immovable property - a house or plot of land - can be gifted legally.  The person gifting the property is known as the donor and the one receiving the gift is known as the donee.  For the gift of property to be legally valid, the property should be gifted and accepted during the lifetime of both the donor and the donee.

What is a gift deed?

The gifting of property is clearly defined under section 122 of the Transfer Of Property Act, 1882, where any immovable property, such as real estate, can be transferred through a gift deed.  A gift deed is similar to a sale deed except that no money is paid in the transfer of the property, whether it’s a built house or land.

Contents of a gift deed

A typical gift deed must contain the following:

The names, addresses, and relationship of the donor and donee;

The complete description and details of the house or land that is being gifted should be mentioned clearly;

The gift deed should specify that the donor is the complete and bona fide owner of the property that is being gifted and property exists in entirety;

The donor should explicitly mention the intention to transfer the possession of the property that is being gifted to the donee;

The donor should also indicate that they are transferring the property - gifting it actually - only out of love and affection towards the donee, and no other selfish interest, monetary consideration, or transaction of any type is involved;

It is important for the donor to clearly specify in the gift deed that ownership of the gifted property is being transferred voluntarily and freely to the donee, and the donor is gifting the property without any threat, fear, blackmail or coercion;

The gift deed should clearly state the rights of the donee regarding the gifted property.  A donee’s rights include the right to enjoy the property peacefully and to sell, mortgage, or lease the property whenever they choose to;

In the gift deed, it is important to mention that the donee accepts the gift of property.

Registration of the gift deed

A gift deed is required to be signed by the donor and the donee in the presence of two witnesses, following which the gift deed is registered.  You must remember that it is mandatory for the gift deed to be registered with the sub-registrar office under section 17 of the Registration, Act, 1908, and as per section 123 of the Transfer Of Property Act, 1882.  Your gift contract would be considered invalid if it is not registered legally.

A nominal registration fee is required to be paid along with the submission of the gift deed,  purchase agreement with Index II of the property, society registration certificate, and Aadhar and PAN cards of both parties.

Stamp duty

A gift deed is liable for a stamp duty on it and this fee varies from state to state.  If the property is gifted to a close relative, a lower stamp duty is applicable, compared to the normal transfer of property to another person.  The two percent stamp duty in Maharashtra for gift deed of residential and agricultural properties is between husband, wife, son, daughter, grandson, granddaughter, or wife of deceased son and includes a local body tax (LBT) of one percent and metro cess of one percent.  So the total stamp duty will be this two percent plus Rs 500 with the registration fee of Rs 1,000.  For other relatives, it is three percent plus one percent LBT and one percent metro cess i.e., a total of five percent plus registration fees of Rs 1,000 as per Article 34 of the Maharashtra Stamp Act, amended in 2017.

Taxation on gift

Any gift, including property of any type, is not taxable under section 56 (2) (vii) of the Income-tax Act, 1961, if it is received by an individual or Hindu undivided family from a blood relative, as inheritance, as a wedding gift or in contemplation of death.  On the other hand, if the aggregate of gifts received under other circumstances besides these exceeds Rs 50,000 in a year, then the gift becomes taxable.

All you need to know about property allotment letter

 All you need to know about property allotment letter

An allotment letter is a legal document that serves as proof of ownership or possession of a property

       “ A property allotment letter is an official  document issued to the allottee of a property.  It is usually issued by the legal owner.  In case of a new project or redevelopment project, the developer/ builder of the property issues it.  It serves as proof of ownership.  The allotment letter includes relevant details such as the name of the allottee, address and details of the property, tenure of allotment, and other important terms and conditions, “.

Why is it important?

A property allotment letter helps to establish the ownership of the property and is a crucial document to have if dealing with any legal matters related to the property.

       “ It is also required to avail of certain services and facilities related to the property.  In most cases, it is not necessary to consult a lawyer to get a letter.  However, if the allottee has any doubts or apprehensions regarding the letter, they can seek the advice of a lawyer who is an expert in property law.  This document is also required when applying for a loan against the property,”.

What happens if you don’t have an allotment letter?

Vikram Choudary, a lawyer, shares insight on the consequences of not obtaining an allotment letter:

       You cannot claim to be the buyer of the said apartment;

       Your allotment  to your apartment will not be confirmed;

       The builder can treat the amount provided to him, as a deposit without any confirmation of the flat allotted;

        Developer will no longer need your permission or consent for any general changes and /or amendments to the layout plan or anything relevant where the buyer’s consent is required;

         The builder can sell the apartment to another person without your knowledge and consent.

How to get an allotment letter?

A promoter / developer is the one from whom the allotment letter should be asked.  He advises that one should do so at the time of booking itself or after the booking amount is paid.  As per RERA’s rules, it is compulsory to provide buyers with the allotment letter.

What is the process of acquiring an allotment letter?

Laying down a step-by-step guide on the process of getting an allotment letter,

1.       Pay the booking amount for the apartment you intend to book;

2.       Confirmation of the amount shall be received through a receipt mentioning the amount, your name, project details and apartment number;

3.       The developer is then supposed to initiate the paperwork for the allotment letter, and should give it to the buyer within a few days;

4.       If the developer fails to provide an allotment letter, buyers can serve them with a legal notice stating the violation of RERA law;

5.       If no allotment letter is provided,  a direct complaint can be made to RERA authorities as well.

-          Vikram Choudhary a Lawyer

-          Times Property

Is Indian real estate looking at a green future

 Is Indian real estate looking at a green future?

There is a noticeable shift among present-day consumers to lead a sustainable lifestyle.  Hence, developers too are increasingly adopting eco-conscious real estate solutions

Sustainability today has now become a key consideration while looking for homes or office spaces, with buyers preferring spaces that focus on net-zero carbon measures, health and well-being, and socio-environmental awareness.  The “Emissions Gap Report 2022: The Closing Window” by the UNEP suggests remedial action on six causes of greenhouse emissions, one of which is the built environment.  India’s real estate industry is expected to contribute 13 percent to the GDP by 2025 and become a 1 trillion market by 2030, according to the IBEF.  More than half of India’s 2030 building stock is yet to be built.  There is enough time and every reason to ensure that this construction is green.

India’s green real estate movement is underway

Most of India’s leading real estate developers are incorporating sustainability measures in their projects, focusing on both, asset performance and customer wellness.  Great attention is being paid to air, water, light, and comfort to ensure an enriching living experience at all levels – physical, mental, and emotional.  There is a strong growing focus on using environment–friendly materials during construction, and renewable energy throughout the building’s lifecycle.  More and more projects are employing circularity concepts such as “reduce, reuse, and recycle.” To augment their sustainability efforts, developers are working towards green certifications and platforms.

The report card

A report by CBRE earlier last year stated that nearly a third of the total office spaces in India’s six major cities are green–certified.  The green office stock grew from less than 80 million sq ft in 2011 to 212 million sq ft in 2021, increasing  its share in the total office stock from 24 percent to 31 percent.  When it comes to LEED, India ranks third worldwide in the number of LEED–certified buildings.  The concept of green buildings is catching fast in the residential segment as well.

Green certifications for healthy life and healthy valuations

The environmental and cost benefits of green certifications are well documented.  The environmental impact of buildings built as per LEED standards is much lower than those of conventional buildings.  Green buildings reduce carbon dioxide emissions, optimise energy and water consumption, generate less waste, score high on energy performance metrics, and provide healthier living spaces.  Moreover, properties with high sustainability ratings are attractive to investors, lenders, and fund managers.  Sustainable projects reflect the developer’s commitment to uphold environmental, social, and governance (ESG) principles – an important consideration nowadays while making tenancy decisions.  An analysis of LEED–certified buildings delivered between 2010 and 2020 revealed that these properties consistently yielded more rent than non–certified spaces and witnessed comparatively less vacancy.  Green homes, too, yield significantly better returns on investment in terms of the higher selling price or rental value; rebates on property taxes; better health and well–being; and savings on electricity, water, and maintenance.  Unsurprisingly, green–certified projects are preferred by value – and – environment – conscious consumers and corporations.

        The three Real Estate Investment Trusts (REITs) launched so far in India too, place a lot of emphasis on sustainability aspects.  Meanwhile, state governments and municipalities are incentivizing  green projects by offering fast–track environmental clearance; extra ground coverage; discounts in property tax; additional Floor Area Ratio (FAR); financial assistance, and more.  Environmental regulations stipulate rainwater harvesting, organic waste converters, and solar heating and lighting in most new projects.  The stage is nicely set for the real estate sector to help India meet its sustainability goals in the years and decades ahead.

Is Tambaram an ideal place for your real estate investment

 Is Tambaram an ideal place for your real estate investment?

  Tambaram enjoys good connectivity with other parts of Chennai.  Read on to know if you should buy a house in the suburb

  Part of the Chennai Metropolitan Area, the southern suburb of the state, Tambaram is one of the important localities in Chennai.  The suburb is located on the Chennai-Trichy Highway making it a hotspot among buyers.  The area scores well on the connectivity front as it is on the highway and is home to Tambaram railway station.

    Anarock Group shares, “Home to a railway junction, the region’s connectivity is one of its major bonuses.  Tambaram Railway Station is the main source of connectivity for the residents.  Trains from this station reach various points in and out of the city.  Tambaram is also well-connected via road to other key areas like Velachery Main Road, GST Road and Mudichur Road.”

Price point

As per Anarock’s research, the property prices here are currently around Rs 4,250 per sq ft making it one of the affordable areas in Chennai.  The research further added that as many as 1,520 units have been launched here between 2015 and Q2 2022.  Back in the pre-pandemic period, in 2019, average prices were at Rs 4,000 per sq ft, indicating growth even during the pandemic.  This means that even as an investment Tambaram is a good option.

  Compared to many other localities in Chennai, the property prices in Tambaram are still low.  The place has evolved as a preferred residential locality.  Also, being the hub of many industries and IT companies, many working couples prefer to buy a house in this area.  Tambaram majorly has apartments, which cover more than 60 percent of the total residential occupancy.

Rental aspect

Various key factors drive up the rental prices of the area.  Proximity to the airport, availability of various modes of transportation, and numerous educational institutions are among the key reasons.  Anarock research states, a standard two-BHK house with an area of 1,000 sq ft can yield rent of anywhere between Rs 11,000 and Rs 15,000.  This means that per sq ft, the rent yield stands at around Rs 11.

Social infrastructure

Talking about the social infrastructure, Chugh mentions, “Tambaram is one of the important localities in Chennai – be it for the IT companies, Tambaram railway station, or Tambaram Air Force Station.  The area has a well-developed social infrastructure and is home to many schools, colleges, banks, hospitals, and hotels.  Besides the essentials, it is also a hub for parks and libraries.”

    Being well-connected to other parts of the city like the IT corridor of Old Mahabalipuram Road (OMR) through Velachery Main Road and Grand Southern Trunk  (GST) Road, adds to Tambaram’s advantage.  The Chennai international airport is also around 10 kms away from the suburb.

விற்பனை ஒப்பந்தம் செய்த பின் சட்ட சிக்கல் இருப்பது தெரிய வந்தால் என்ன செய்வது?

 விற்பனை ஒப்பந்தம் செய்த பின் சட்ட சிக்கல் இருப்பது தெரிய வந்தால் என்ன செய்வது?

         ஒரு குறிப்பிட்ட சொத்தை வாங்க நீங்கள் முடிவு செய்கிறீர்கள்.  அதற்கான ஆவணங்களை சரி பார்த்து, விலை பேசி விற்பனைக்கான ஒப்பந்தம் செய்கிறார்கள்.

         இதன் பின், அந்த சொத்தில் எதாவது வில்லங்கம் தெரியவந்தால் என்ன செய்வது என்பதில் குழப்பம் ஏற்படும்.  இது போன்ற பிரச்னைகள் வரக்கூடாது என்பதற்காக பல்வேறு விஷயங்களை விற்பனைக்கு முன்பே ஆராய்கிறோம்.

          இதனால், விற்பனை ஒப்பந்தம் போட்ட பின் சில புதிய பிரச்னைகள் தெரியவரும்.  பல சமயங்களில் விற்பவருக்கு கூட அந்த பிரச்னைகள் தெரியாமல் இருந்து இருக்கலாம்.

           குறிப்பாக, தொல்லியல் துறை தடை, நீர் ஆதார பகுதி என்பதால் கட்டுமான திட்டங்களுக்கு தடை போன்ற பிரச்னைகள் சாதாரண உரிமையாளர்களுக்கு உடனுக்குடன் தெரிவதில்லை.  இதனால், அவர் சொல்லும் விபரங்களை மட்டும் சரி பார்த்துவிட்டு வீட்டை வாங்க ஒப்பந்தம் செய்பவர், பாதியில் சிக்கலை எதிர்கொள்கிறார்.

         இத்தகைய சூழலில் ஒப்பந்தத்தை ரத்து செய்வதற்கான வழிமுறையை அதில் சேர்ப்பது நல்லது.  இன்னும் சில சமயங்களில் குறிப்பிட்ட பகுதியில் அரசு எதாவது காரணத்துக்காக நிலங்களை விற்க தடை விதித்து இருக்கலாம்.  இது போன்ற விபரங்களை கண்டுபிடிப்பது எளிதல்ல.

         எனவே, மக்கள் இது போன்ற அரசு சார்ந்த புதிய தடை உத்தரவுகளை கருத்தில் வைக்காமல் சொத்து விற்பனையில் இறங்குகின்றனர்.

         இதில் சொத்து வாங்க விற்பனை ஒப்பந்தம் செய்தவர் தான் கடைசியில் பாதிக்கப்படுகிறார்.  பொதுவாக, இது போன்ற பிரச்னைகள் இருக்கிறதா இல்லையா என்பதை விசாரிப்பதற்கு சில எளிய வழிகள் உள்ளன.  விற்பனைக்கு வரும் சொத்து தொடர்பாக ஆவணங்களை ஆராய்வதுடன், அரசு சார்ந்த தடை உத்தரவுகள் குறித்து விசாரிக்க வேண்டும்.

         சொத்து அமைந்துள்ள பகுதிக்காக, உள்ளாட்சி அமைப்பு, தாலுகா அலுவலகம், பத்திரப்பதிவு அலுவலகம் ஆகியவற்றுக்கு நேரில் சென்று விசாரிக்க வேண்டும்.  இதில் பல சமயங்களில் அதிகாரிகள் உதவுவது இல்லை.

        இதனால், ஓய்ந்துவிடாமல், பொறுமையாக அலுவலர்களிடம் விசாரித்து பார்க்க வேண்டும்.  அப்போது தான் அந்த சொத்து குறித்த உண்மை நிலவரங்கள் தெரியவரும் என்கின்றனர் வருவாய்த்துறை அதிகாரிகள்.

சொத்து விற்பனையில் பத்திரப்பதிவுக்கும் பணப்பரிமாற்றத்துக்கும் தொடர்பு உண்டா?

 சொத்து விற்பனையில் பத்திரப்பதிவுக்கும் பணப்பரிமாற்றத்துக்கும் தொடர்பு உண்டா?

        அசையா சொத்துக்கள் விற்பனையில் எவ்வளவு தொகையை ரொக்கமாக கைமாறலாம் என்பதற்கு பல்வேறு கட்டுப்பாடுகள் வகுக்கப்பட்டுள்ளன.

         நாடு முழுவதும், ரியல் எஸ்டேட் துறையில் கறுப்பு பண புழக்கத்தை தடுக்க வேண்டும் என்பதற்காக ரொக்க பரிமாற்றத்துக்கு பல்வேறு கட்டுப்பாடுகள் விதிக்கப்பட்டுள்ளன.  இதனால், சொத்துக்களை விற்பவர்கள், வாங்குபவர்கள் ரொக்கமாக பணத்தை மாற்ற முடியாது.

         வீடு, மனை விற்பனையில், வருமான வரி சட்ட விதிகளின்படி செயல்பட நினைத்தால் அவர்கள், 50 ஆயிரம் ரூபாயை மட்டுமே ரொக்கமாக கொடுக்க, பெற முடியும்.  இதன்படி அனைவரும் செயல்பட்டால் வீடு, மனை விற்பனை ஒட்டுமொத்தமாக ரொக்கமில்லாத பரிவர்த்தனையாக மாறி இருக்கும்.

        வருமான வரித்துறை கட்டுப்பாடுகள் காரணமாக, ஐந்து லட்ச ருபாய், அதற்கு மேற்பட்ட மதிப்புள்ள பத்திரங்களை பதியும் போது மட்டுமே பான் கார்டு கேட்கப்படுகிறது.  அதனால், இத்தொகைக்கு குறைவான பத்திரங்களை பதிவு செய்வோர், ரொக்கமாக பணத்தை கைமாற்றலாம் என்று பலரும் பொருள் கொள்கின்றனர்.

         வருமான வரித்துறை இது போன்ற பல்வேறு கட்டுப்பாடுகளை விதித்தாலும், சார்- பதிவாளர்கள் இதை அப்படியே கடைபிடிப்பது இல்லை.  வருமான வரித்துறை நிபந்தனைகளில் எதை கடை பிடிக்க முடியுமோ அதை மட்டுமே நடைமுறையில் ஏற்க முடியும்.

         குறிப்பாக, வருமான வரித்துறையால் சார்- பதிவாளர்களை நேரடியாக அதிகாரம் செய்ய முடியாது.  பதிவுத் துறை தலைவர் வழங்கும் அறிவுறுத்தல் அடிப்படையிலேயே சார்- பதிவாளர்கள் செயல்பட முடியும்.

          இதன்படி, சொத்து விற்பனை பத்திரங்களை பதிவு செய்யும் போது அதில் விலையாக குறிப்பிடப்பட்ட தொகை விற்பனையாளருக்கு கொடுக்கப்பட்டதா என்று மட்டுமே சார்- பதிவாளர்கள் பார்க்க முடியும்.  அத்தொகை ரொக்கமாக கைமாறியதா அல்லது காசோலை கொடுக்கப்பட்டதா என்று ஆய்வு செய்வது சார்- பதிவாளர்களின் பணி அல்ல.  பத்திரத்தில் குறிப்பிடப்பட்ட மதிப்பு சரியாக உள்ளதா, அதில் உள்ள விபரங்கள் படி உரிய நபர் தான் பத்திரப்பதிவுக்கு வந்துள்ளாரா என்று பார்த்தால் போதும்.  பதிவுச் சட்டம் வகுத்துள்ள விதிகளுக்கு அப்பாற்பட்டு சார்- பதிவாளர்கள் கூடுதல் ஆய்வுகள் செய்ய வேண்டியதில்லை.  துறை தலைமையின் அறிவுறுத்தல் இன்றி கூடுதல் ஆய்வுகளில் சார்- பதிவாளர்கள் இறங்க வேண்டியதில்லை என்கின்றனர் பதிவுத்துறை அதிகாரிகள்.