Wednesday, 15 April 2015

Querries on Property matters


 Querries on Property matter


Q. Certain hidden facts like pending cases, prior agreements, government notifications of the property cannot be traced out easily by verification of the documents.  How can these hidden factors be uncovered, and what should a purchaser do to protect himself against these hidden factors?
                Rajan Kalyan, JP Nagar, Bangalore

A. Generally seller hands over the copies of the property documents to the purchaser to examine the title. Such documents contain only title documents, which may be cross-checked in the sub registrar’s Office. But they do not disclose any pending litigations, prior agreements which are not registered and government notifications. As such, the Purchaser should be very cautious and make arrangements for thorough search of records at the concerned jurisdictional Courts to rule out the possibility of any pending cases and also in offices of Urban Development Authorities such as : BDA, BMRDA, KIADB, KHB, High way and other planning authorities etc., to rule out the acquisition notifications, if any.
Further, it would be difficult to verify any existing prior agreements or arrangements which are not registered. As such, proper enquiries with owner of the property, and also with neighbours may be helpful. It would always be better to register the sale agreement and get the property registered at the earliest.  Above all, Paper publication of the intention of the Purchaser to buy particular property would help the purchaser to a certain extent. 

Q. What is Paper publication? How does it benefit the purchaser
Shenoy, Rajajinagar, Bangalore

A. Though the Paper Publication may not be a statutory requirement, yet the idea of getting a notice published in the widely circulated newspaper in the locality, is to elicit the information from the general public that a bona fide purchaser is intending to purchase the property from its owner. Besides this, the paper notification also invites objections from various interested persons with documentary evidence in support of their claim within the specific period.

Even after issuance of such paper notification, a person said to have his claim to the property does not lose his rights just because he could not disclose his rights in response to such paper notification within the given time.

Q. I am not able to understand the difference between Khatha Certificate and Khatha extract. Would you please enlighten me on this ? Could you also brief me about the importance of Encumbrance Certificate ?
Veeresh, Uttarahalli

A. Khatha is a revenue record maintained by the municipal authorities in respect of a property standing in the name of a particular person for purposes of assessment and collection of property tax. As it is a secondary document in the absence of primary documents like Sale Deed, Gift Deed, Partition Deed, Release Deed, Will, Grant etc., however it does not establish the title in its totality.
Khatha Certificate is a Certificate issued by the Municipal authority Office confirming that the Khatha of a particular property stands in the name of a particular persons.
Khatha Extract is an Extract of the tax assessment register maintained at Municipal Office giving complete details of the property like: Area of the site, building, property tax levied, access and total tax payable, name of the previous and present owner of the property, etc.
Encumbrance Certificate is issued by Sub Registrar Offices for a specific period as required by the applicant. It contain the details of the property like: Sy. No. House No. boundaries, and encumbrances on such property like: Sale, Gift, transfer, mortgage, if any, which are registered at the said sub registrar’s office. However, the Encumbrance Certificate do not reflect the encumbrance transactions of deeds which are not registered.

Q. What is the procedure for Khatha transfer and how do we know that the Khatha transfer Certificate is genuine and original
Sreenivasa Prasad, Jayanagar, Bangalore

A. Transfer of Khatha of property to your name is to be done by the concerned jurisdictional revenue authority under whose jurisdiction the property is situated. For this purpose, you have to apply for transfer of khatha in a duly filled Khatha Transfer application duly signed by both the Seller as well as Purchaser i.e., yourself, and enclose a copy of the registered Sale Deed, latest tax paid receipt and up to date encumbrance certificate along with the necessary fee.
Thereafter, the authorities do acknowledge receipt of the application and indicate the date by which the process will be completed; however, the entire process is to be required to be completed within 45 days. Meanwhile, the authorities may also call for certain additional information / document etc., if felt necessary for verification and confirmation. Thereafter, the Khatha of the property would be transferred into your name and an endorsement will be issued in your name to this effect. Thereafter, tax paid receipts on such property would be issued in your name, which show that the said property stands in your name.
As regards ascertaining whether the Khatha Certificate issued is genuine and original or not, the Khatha Certificate is usually issued by the concerned jurisdictional Corporation Office and as such you may directly visit such office and obtain the same to confirm its genuineness and originality.     

Q. Do the financial institutions permit the transfer of loan from one institution to other and what is the fee charged for such transfer and whether it would be better to transfer from one institution to other ?      
                                                Sadashiva murthy, Hosakote

A. Financial Institutions allow the transfer of loan from one institution to another even though they don’t want their existing loan accounts to be taken over by other institutions. However, such institution which allow transfer of loan account may charge foreclosure charges for such transaction in order to minimize such transfer of loan accounts. It is left to the customer as to when to transfer the loan from one institution to another taking into consideration various factors of which the major point is to look into the rate of interest besides other benefits which he would get from other institution on such transfer. After obtaining in-principle approval from the taking over institution or bank, such transfer of loan account is possible.




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