Legal Forms India
Real Estate



LEGAL CHAT
Issues to focus on before purchase of plot
R.L. NARAYANAN
There are some critical issues which the buyer may not be aware of while purchasing a plot
Apprisal: The title scrutiny often takes the backseat in buying a plot.
Purchase of plots particularly in the outskirts and also anywhere in the State is seen as a good source of investment. Many NRIs are also interested in purchase of plots. At times, people make bulk purchase with the hope that they will get good return on investments. In these types of purchases, the title scrutiny often takes a backseat and only the value of the plot is considered as paramount factor for making the purchase decision.
Further, the purchase of plots is made on the basis of advertisements and without understanding the implications involved. Technology has improved to such an extent that it is possible for a buyer sitting at a long distance to view the land or plot that the person desires to purchase.
Based on this and also on the basis of certain maps and topo plans, a decision is made for purchasing a property.
While one may get an idea of the location , the actual issues relating to the sale or purchase are not addressed and may surface at a time which is critical to the buyer.
The process of purchase of land is basically like purchase of any other property.
However, there are some difficulties. It may not be possible to know always as to who is in possession of the property.
Certain other particulars relating to the land like the interest of a tiller or any other third party claiming certain rights may not be immediately perceptible.
Various factors, which affect the title of the owner like adverse possession or encroachment, are also not easily identifiable. Implications
The first thing that one has to check is whether the plot is approved or otherwise. In Tamil Nadu, approval for plots can be granted only by the CMDA or the DTCP. Certain other approvals like Panchayat approvals for plots, may not meet legal requirements. Please understand the implications of lack of approvals and also lack of approval from proper Authority before making the decision.
In the context of approvals, extent of plots is also relevant. Certain given extents of plots, though sold as agricultural lands, are capable of being put to intended use at a later date by undertaking a process. Certain plots may not be capable of being put to such use. Therefore, the extents of plots would be relevant.
The original classification of the land and the revenue records have to be checked. When large extent of land is promoted as plots, then there is a method of looking at title. This is a fairly difficult process and it is best to obtain opinion from a professional. If you are not planning to get it from your own counsel, then you have to get the opinion from the Promoter’s Advocate at least.
Certain banks and institutions fund for purchase of plots and though the process is not a substitute for your undertaking of screening of title by your Advocate, at least the opinion of the advocates for the bank would be helpful. Case-to-case basis
At times, the plots may be approved under a particular Approval Number. However, the specific plot being sold to you may not be approved under the said approvals. This has to be checked. There could be a variance in extent. Certain plots could have been renumbered. It is possible that the revenue records may not match the plans produced to you as approved. Certain area reserved for Government of Public purposes may be sold. All this has to be checked on a case-to-case basis.
Another factor, which complicates the issue is the fact that immediately after the approval, a Patta is not usually obtained for a specific Plot. One has to cull various facts and inferences from other documents. These factors present difficulties.
In rare cases, it is possible that the approvals relating to another plan are superimposed on the copy provided to you. Only if a thorough process is adopted, these types of issues can be found out. There could be a description of a road or a pathway, which may not tally with the facts on ground.
One will find that the value of the plot may appreciate faster in certain localities and many issues, which appear to be insignificant at the time of purchase, may loom large when it comes to sale of valuable property. The possibility of a building being immediately put up on the land after obtaining proper approvals will definitely make the land much more valuable than otherwise.
At times, the land is purchased only for appreciation and one is able to actually transact with the land by getting the benefit of good appreciation notwithstanding the location and also many issues that may arise in the process. Some developers and promoters also assist in sale of land and have come up with various ways of selling the land in such a manner that it is convenient for the purchaser to make a decision of investment. There is also a system of collecting the purchase price by instalments and some of these schemes have also proved beneficial to the purchaser.
By and large, if at least the title of the property is in order and either the Promoter or the purchaser has checked the basic title and has an opinion or a certificate to that effect, then the decision to purchase becomes much easier .
One should also consider as to whether the land can be secured suitably after purchase and whether a promoter offers such assistance. Immediately after the purchase, certain steps like transfer of Patta and also making the documents in order in case there is any insufficiency should be undertaken.
In the event that you have purchased a land and you have not transferred the Patta in your name and if the land is acquired by the Government, then it is most likely that the notice will only be sent to the person in whose name the Patta is available and you may lose the chance of contesting the matter or receiving the benefits. You may also lose valuable time if the land is acquired because you have not transferred the Patta in your name. It is likely that you will miss the public notice issued by the Government for acquisition and may not be able to make effective representations in the process.
By:Partner, RANK Associates

Choose a Sub-Category to view or post
Plots

Apartments / Flats

Houses / Villas

Land

Commercial

Other

Rental
Skyscrapers 2008 - The World's Tallest Buildings

-General ..Chennai Discotheques ..Chennai Water Sports ..Chennai Cinema Halls
- History .. Chennai Shopping Malls ..Chennai Entertainment ..Chennai Excursions ..Pulicat
- Dos & Don'ts ..Amusement Parks ..Crocodile Bank ..Mahabalipuram ..Muttukadu
- Important Facts ..Thanjavur
- Must Know- Weather/Climate - Things To Do - Embassies- Tourist Offices - Airports
- Bus Stations - Central Railway Station - Egmore Railway Station

KNOW CHENNAI BY PLACES
West Chennai
- Ambattur - Anna Nagar - Ayanavaram - Kilpauk - Porur - Vadapalani
North Chennai
- Ennore - Perambur - Pozhal - Purasavakkam - Tiruvottiyur - Tondiarpet
South Chennai
- Adyar - KK Nagar - Kotturpuram - Meenambakkam - Mylapore - Saidapet - Tambaram
- Teynampet - Thyagaraya Nagar - Tiruvanmiyur - Velachery
Central Chennai
- Egmore - George Town - Nungambakkam - Royapettah - Triplicane
Around Chennai - Kanchipuram - Tiruvallur
Others ..Chennai Monuments
.. Airport ..Bus Station .. Freemasons Hall
.. Central Railway Station ..Fort St. George
.. Egmore Railway Station ..Kamaraj Memorial House



Chennai Cakes,..Ice Creams,Restuarants,..Fast Food...TIPS TO CHENNAI VISITORS
Indian Railways Airlines Contact Dtls STD Codes Call Taxi Chennai’s music schoolsGood Schools in Chennai ...RestaurantsBy Speciality By LocationChinese ContinentalFast Food ItalianMughlai Multi Cuisine Sea Food South IndianFood..Chennai Bar and Pub Do Not Drink&Drive... Investment in Gulf Real EstateDiagnostics Centers .. 24hr Chemists .. Beauty Parlours .. Doctors .. Hospitals .. Health Clubs .. Blood Banks .. Stadiums-General ..Chennai Discotheques ..Chennai Water Sports ..Chennai Cinema Halls- History .. Chennai Shopping Malls ..Chennai Entertainment ..Chennai Excursions ..Pulicat- Dos & Don'ts ..Amusement Parks ..Crocodile Bank ..Mahabalipuram ..Muttukadu- Important Facts ..Thanjavur- Must Know- Weather/Climate - Things To Do - Embassies- Tourist Offices - Airports- Bus Stations - Central Railway Station - Egmore Railway Station ...Chennai Bar and Pub Do Not Drink&DriveKNOW CHENNAI-General ..Chennai Discotheques ..Chennai Water Sports ..Chennai Cinema Halls- History .. Chennai Shopping Malls ..Chennai Entertainment ..Chennai Excursions ..Pulicat- Dos & Don'ts ..Amusement Parks ..Crocodile Bank ..Mahabalipuram ..Muttukadu- Important Facts ..Thanjavur- Must Know- Weather/Climate - Things To Do - Embassies- Tourist Offices - Airports- Bus Stations - Central Railway Station - Egmore Railway StationKNOW CHENNAI BY PLACESWest Chennai- Ambattur - Anna Nagar - Ayanavaram - Kilpauk - Porur - VadapalaniNorth Chennai
- Ennore - Perambur - Pozhal - Purasavakkam - Tiruvottiyur - TondiarpetSouth Chennai- Adyar - KK Nagar - Kotturpuram - Meenambakkam - Mylapore - Saidapet - Tambaram- Teynampet - Thyagaraya Nagar - Tiruvanmiyur - VelacheryCentral Chennai- Egmore - George Town - Nungambakkam - Royapettah - Triplicane Around Chennai - Kanchipuram - Tiruvallur Others ..Chennai Monuments.. Airport ..Bus Station .. Freemasons Hall .. Central Railway Station ..Fort St. George.. Egmore Railway Station ..Kamaraj Memorial House
..Chennai Beaches ..MGR Memorial
..Marina Beach ..Senate House
..Elliot's Beach ..Thousand Lights Mosque
..Covelong Beach ..War Memorials ..Government Museum..Valluvar Kottam

1 comments:

  1. Costa Rica said...
    congratulations! this blog is very interesting and has information most important we invite you to visit our blog www.Costa-ricarealestate.com and www.costarica4retirement.com and you will find both. Prices will amaze you Great investment opportunity at Costa Rica Pacific Coast, costarica real estate ,

    retirement in costa rica, costa rica condominiums. Visit us for more info at: http://www.Costa-RicaRealEstate.com

    ReplyDelete

POST BELOW ADVERTISEMENTS AS "POST A COMMENT"
PREVIEW AND SUBMIT
ANY STYLE and in ANY FORMAT

ADVERTISEMENT MAY CONTAIN (NOT A MUST)
Title:Contact Tel/email:Content:City:Area:Looking for / Available :Category:URL if any :Date posted:You can copy/paste too.

Subscribe to: Post Comments (Atom)
...Indian Universities Web Directory... International Property AddThis Feed Button New business? However small it may be, success requires proper planning, preparation and insight. YOUR RIGHTS In business, there are no guarantees. There’s simply no way to eliminate risks associated with starting an enterprise. But you can improve chances of success with good planning, preparation and insight. Find out what to consider when starting a business. Drawing up a business plan It’s important to draft a comprehensive and thoughtful business plan. Much hinges on it: Outside funding, credit from suppliers, management of your operation and finances, promotion and marketing of your business, and achievement of your goals and objectives. Creating a business plan will force you to think about key issues before you start your enterprise, such as raising money and your projected start-up costs and marketing strategies. This will help you figure out if your idea is a winner. Naming The core of naming a business lies in understanding the trademark law. Trademarks help consumers identify the makers of the goods or services. Often, the name of your company may also be used as a trademark to identify your company’s offerings. What’s in a name, you may wonder. But if you choose something too similar to a competitor’s name, you might be accused of violating the their legal rights, and you could be forced to change it and even pay monetary damages. A good business name should be: ■ Distinctive ■ Memorable ■ Easily spelled and pronounced ■ Suggest the products or services you offer ■ Distinguish you from your competitors Partnerships Many people opt for partnerships with their friends or relatives for doing business, because they feel very comfortable dealing with people they have known for a long time. But before you do, create a Partnership Agreement which should include the following: ■ Amount of equity invested by each partner ■ Type of business ■ How profit and loss will be shared ■ Each partner’s pay and compensation ■ Distribution of assets on dissolution ■ Provisions for changes or dissolving the partnership ■ Dispute settlement clause ■ Settlement in case of death or incapacitation ■ Restrictions of authority and expenditures Financing A new business Money can be raised either by borrowing it from a friend, family member, bank or selling ownership interests (equity) in your business. There’s no hard and fast rule on the best way to raise money; you’ll have to evaluate your situation and decide what kind of loan or investment you’re willing to take. If you are going beyond family and friends for loans or equity investments, you’ll definitely need a business plan. If you take a loan, you will have to repay the money over time (usually monthly), with interest. The lender won’t receive an ownership interest in your business, and you won’t have to share any of your future profits with the lender. On the other hand, if you raise money by selling equity (ownership interests), you will not have to make these monthly payments or repay the investment at any particular date. L e g a l All about you The business of doing business your business is profitable, you’ll need to share the profits with your investors, generally in proportion to the percentage of the business they own. Licences and permits Business licences and permits can range from the general (a basic trade licence to operate a business within a city), to the specific (a permit to sell alcohol/ firearms/food items). Bear in mind that regulations vary by industry. Investigate into the licensing and permit requirements that affect your industry, and avoid any temptation to ignore these important regulatory details. Being out of licensing and permit compliance could leave you unprotected legally, which may lead to expensive penalties, and can jeopardise your business. Location of workplace There is no universal rule for choosing a business location. The biggest consideration is sometimes not where it is but what it is. The building facilities need to be appropriate for your business whether you are working from home, a business centre or a rented space. Or you could take up space in a market with similar businesses or consumer groups. Entering into agreements Be mindful of employment contracts as these take different forms. All employees at a company may be asked to sign the same form of contract, or each employee may have a contract with the employer that is exclusively applicable to his or her employment agreement. It mentions the kind of work the employee will do, for how long, and at what rate of pay. Please consult an attorney who can advise you about Confidentiality and Non-Competition Agreements, and clauses pertaining to ownership of inventions, exclusive employment, termination, minimum wages, bonus, arbitration and jurisdiction. In almost all business dealings, every time you or your company agrees to take some action or make a payment in exchange for anything of value, a legal contract is created. Make sure that you and the other party agree on the meaning of any potentially ambiguous words or phrases. Even a misplaced (or unnoticed) punctuation mark can dramatically change the scope of your rights and obligations under a contract. Watch out for commonly misused words. When you agree to bimonthly payments, for instance, do you understand that you will be paid every other month? Or do you expect to be paid twice a month? Some business agreements may be simple enough for the regular person to draft, while others may require the help of a lawyer. Advertising If your advertisement is deceptive, you’ll face legal problems even if you had the best intentions while framing it. In addition, if your advertisement contains a false statement, you have already violated the law. The fact that you didn’t know ‘the information was false’ is irrelevant. Advertisements should conform to laws and should not go against morality, decency and the religious susceptibilities of people. Business Advisors Finally, the key to success for any entrepreneur is to have the best set of advisors, not necessarily the most expensive but the ones you can trust totally. These may includes lawyers, chartered accountants, insurance advisors, and bankers among others. Decide on the meaing of potentially ambiguous phrases. Even a misplaced punctuat ion mark can change the scope of your rights and obligat ions