Legal formalities
Querist :
Anonymous
(Querist) 28 January 2010
This query is : Resolved
Sir,
My dad is an NRI and he is planning to buy a flat in my name in Bangalore. We have zeroed in a resale flat which would cost around 40L + registration.I am a software professional. I would like to know what all are the legal formalities and what all documents should i make sure the seller has. The owners of the flats in the building have only got the khata registration number and not the khata paper it seems. So, how will we go about transferring khata? And how much would the registration fees come?
Please reply.
Thanks a lot
A V Vishal
(Expert) 28 January 2010
While purchasing flat/apartment, the following matters may be verified and ascertained that they are correct:
(i) Agreement to sell with promoter should be compulsorily registered in Sub Registry Office, there after sale deed also should be registered.
(ii) Permission for construction of flat/apartment and sanctioned plan should have been approved by City development authority/ Corporation / Municipality / Panchayat.
(iii) Whether promoter/seller has right to sell the property.
(iv) If sale transaction is by a General Power of Attorney holder whether general power of attorney is valid on the date of transaction/sale deed.
(v) Flats/apartments constructed in violation of sanction plan should not be purchased.
(vi) Verify whether occupancy certificate is obtained from the local authority.
(vii) Verify whether deed of declaration and Co-operative society or company is formed and registered.
A V Vishal
(Expert) 28 January 2010
Apart from the above it would be wise to hire an advocate to get the title deeds, link documents, E C's. etc... to be verified throughly by way of a search in the registry records and muncipality. Further check if the intended vendor has no pending tax dues, electricity, water or dues to Housing society, It would be prudent to also verify whether the property is mortgaged or any loans are existing on it. Finally a Public notice through 2 largely circulated Newspapers one in english and the other in the local vernacular paper must be published seeking any objections of the intended purchase of the property.
Querist :
Anonymous
(Querist) 28 January 2010
Thanks a lot for your reply.
What about khata transfer?
Also, since my dad is buying the flat in my name,would it lead to any other problems?
Also, Is PAN card details of buyer required for registration?
What is gift deed?
samyak Satish
(Expert) 28 January 2010
I think, even if you dont require any loan to purchase it, take it. Inform the seller and put condition that the agreement and cash payment if any will be made after confirmation of loan. Contact HDFC, ICICI, IDBI and ask them whether they will give u loan for that specific house. Dont pay processing fee in advance. The Bank will check majority of documents & things, so will not require to worry as ultimately bank money will be involved & bank will do take all care through professionals to check whether that house can be purchased or not.
You have not specified whether there is any housing society formed? If yes, ask secretary in advance about all querries & formalities. Put the formality of Khata Transfer on the seller in agreement with a condition that you will pay X amount only upon receipt of requisite document showing that khata transfer is done. Inquire i neighbourhood how much actual expenses req for this work. If seller insist on reimbursement of such expenses, you may require to bear it but ultimately the burden will be on seller to comply with formality. U negotiate with seller and put such conditions on him.
B K Raghavendra Rao
(Expert) 29 January 2010
1.Sale transaction is a benami. Your father is purchasing the flat in your name. The Income-Tax authorities would definitely ask you for source of income.
2. After purchasing the flat, present a copy of the sale deed together with an application for transfer of khatha of your particular flat to BBMP.
3. Stamp duty is 6% of the sale consideration amount paid or the guidance value whichever is higher.
4. Your PAN need to be mentioned in the Sale Deed.
5. As it is a re-sale, you need to look into the documents like sale deed of the present owner, encumbrance certificate from the date of his purchase till date, khatha certificate, khatha extract, latest tax paid receipt.
6. It is advisable to make major children of the present owner as consenting witnesses in the sale deed to avoid future litigation.
Querist :
Anonymous
(Querist) 29 January 2010
Hello Sir,
Would the fact that my father purchased it for me be enough explanation? Or is there some other way I can go about it?
The seller told us that he has only the form B of khata and Form A is still not given to any flats in that area by BBMP. Would this be a problem later on?
We are anyway planning to get copy of all his documents and verify it with a lawyer.
Guest
(Expert) 30 January 2010
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