Thursday, 27 April 2017

Residential real estate

The real estate market in Bengaluru is gaining ground, thanks to sustained growth in market prices and investors' interests. Being the IT hub of India, Bengaluru has a multi-cultural population with good social infrastructure, excellent educational institutes and constantly upgrading physical infrastructure.

A redeeming feature of this market is that it allows flexible growth in many aspects, right from infrastructure and technology parks to educational institutes.

Box47386 Potential residential micro-markets: Looking at the current prospects, we recommend investing in real estate, which includes land, apartment or villa projects depending on the budget. A good investment in real estate should yield high returns over a long period of time and hence is considered as an asset.

With the recent government initiatives, there is a lot of hope for a buyer, unlike before. Developments like the recently passed Real Estate (Regulation & Development) Bill 2016, Smart Cities initiative, and the introduction of REITs (real estate investment trust) are expected to bring in the much-required transparency into the sector and enhance investors' confidence in the coming years.

Currently, some of the most promising residential micro-markets are located in and around the Outer Ring Road (ORR), Whitefield towards the East and in North Bengaluru locations like Thanisandra and Kogilu. As per the latest Knight Frank Research findings, East Bengaluru saw greater momentum in sales growth during the period January-June 2016 due to preferred budget range, access to employment hubs and metro connectivity. Both East and North Bengaluru have the benefits of good social and physical infrastructure, accessibility to employment hubs, varied price options and project availability.

Meanwhile, an important trend that has been witnessed is the shrinking of sizes of apartments and also formats to studio, one BHK units, two-and-a-half BHK units, thereby bringing down the ticket size of the apartment. Investors and buyers alike, with a lesser budget, can opt for affordable housing projects located in South Bengaluru peripheral regions such as Anekal, Attibele, Chandapura, Kammasandra, Hosa Road and Begur, as well in West Bengaluru peripheral locations like Kumbalgodu, Tumkur Road and Kengeri due to availability of land at relatively cheaper prices.

Hoskote and Mandur in the east and Rajanukunte in the north are also viable options. These locations are good for long-term investments, especially the ones that are abetted by the upcoming metro connectivity.

Not to be overlooked, investing in land is also a good avenue for investment purpose. Micro-markets located in the industrial regions of West Bengaluru like Peenya and Yeshwanthpur have great potential due to support and social infrastructure in place.

This region commands connectivity to railway stations, highways, metro rail and airport as well. Owing to the comparatively lesser land pricing, it holds potential to be an IT hub in the future. Investors can also look at closed down or sick units and factories located in this industrial belt and gated communities as it portends substantial prospect in commanding higher prices in the forthcoming years.


All is not well with the private's organizations Properties originators. On a couple of occasions, the property purchasers a got by some of these property planners by non-adherence recipient obligation and for non-adherence of building byelaws an other statutory essentials. The resultant effect is that the purchaser taking after very much an extended period of time of acquiring their home in a townhouse building gets notice from the city and town masterminding forces as to encroachment of building byelaws and resistance with other statutory requirements. Left with no other option, these level proprietors Tart running from post to segment to save their home/level and safe weight and turmoil for no defect of theirs. 

Remembering the finished objective to save these level/house proprietors from the evil. His flawed property builds, the BBMP, BMRDA, BIAAPA another town orchestrating forces from whom the private property fashioners need to get flexibility should educate in their individual we its the summary of endeavors of private property designers cleared by them. 

Immediately, the Bangalore Development Authority illuminates me.The recipient site only the once-over of certain unapproved configurations going with it.In this domain, yet have not been instructing the summary regarding approval outlines on their site. The concerned town orchestrating forces may kind I consider telling the summary of insisted outlines similarly on their site. Further, because of space structures, villa made by the private property engineers, it should be made as re-crucial for all these property creators to convey a completion support procured from the proficient force before enrollment on unique deed for the purchasers by the designers. To control these private property architects and to secure the level's eagerness/house buyers, the Union Government has come. 

With a recommendation for thought by the State Governments to foundation a Real Estate Regulatory Authority to coordinate the rule, arrangement, trade and organization of private structures Apartment structures by the property developers.It is prescribed that the components of the authoritative theory. 

Consolidate affirmation of the capabilities and the private's points property originators, to make preventive step or non-adherence of statutory necessities, to direct fitting if the money got by the architects from the buyers. The regulatory force may be empowered to begin stringent reformatory movement against the bumbling property engineers.

Tuesday, 25 April 2017

Purchase of flat

The apartment culture is of recent origin and has become very popular. This type of group housing is not alien to the human culture. Earlier, people used to live on riverbanks in groups sharing common facilities.

In the early twentieth century it was known for such group housing but in a different manner. Group housing popularly known as “Vatara” was very common where small dwelling units were constructed in a single compound and families lived in perfect harmony and unison. The Vatara, used to be horizontal or L shaped with single storey buildings whereas the apartments are vertical with multi-storied buildings.

In Bangalore, in the early seventies, the first Apartment constructed was Shalimar Apartment. In the early eighties, Apartment culture began to show its presence in Malleshwaram. Apartment Culture is rapidly picking up.

Advantages :

Flats have certain advantages when compared to Independent Houses. Community living offers Security and certain amenities and facilities, which an individual cannot afford and which can be shared with other Occupants as common facilities at minimal cost. Facilities like gym, recreational centre, swimming pool, sauna; Jacuzzi, full-fledged security, clubhouses, sports and games come at nominal cost. Generally, Apartments have Owners Residents Association, which attend to the problems of the Residents and carryout repairs.

The Purchaser of a flat need not worry about issues like obtaining plan sanctions, finding a Contractor, supervising the construction, getting water, power, sanitary connection and other related formalities, which the Developer takes care. Purchaser may have the interior done according to his needs on payment of some additional fee.

Sanctioning Authority:

With respect to sanctioning of plans, various approving Authorities have powers with some restrictions. The Village Panchayat cannot approve a plan of a Multi-storied building; High Rise Building Complex or a Building more than 8000 sq.ft of land and any building plan exceeding the prescribed height have to be approved by Town Planning Authority. It must be kept in mind that any massive violation of the sanction plan will face the threat of demolition of the building at the future date.

It is also necessary to ascertain whether the building has complied with the Floor Area Ratio (FAR), i.e., total Built-up-area permitted on the plot with prescribed setbacks vacant space that is to be left around the building.

Financial Institutions are currently offering long-term loans at a very low interest rate. Housing finance companies and banks also prefer financing the flats as multiple beneficiaries live in a single compound and it would be easy for them to follow up and they need not spend much on legal formalities.

Any high rise structure should have clearance from BWSSB, BESCOM, Fire force, Telephone Department, Pollution Control Board and also from the Airport Authority of India.


No doubt, there are certain disadvantages also. Most important is the lack of privacy which is available in independent houses where the resident is the King of the house and has unlimited freedom. The Owner of a flat cannot have additional construction and alteration. Even in order to repair a leak on the ceiling one has to obtain permission of the Association and the person living on the upper floor. Whereas, in the case of an independent house, the Owner may add additional construction as per his requirements and let out the same to supplement his income without any hindrance.

Generally, local people prefer independent houses. The resale value of flats is less, since the building gets depreciated and demolishing a flat and reconstructing it is also not possible. In case of independent house, though the building gets depreciated, the land value appreciates. If necessary, the old building may be demolished for new construction. Then, the resale value of an independent house is always more. Flat Owners have to pay monthly maintenance charges, which at times will be equal to or quarter or half the value of rents paid to a house, depending upon the amenities provided.

Process of Purchase :

The Purchaser of a flat has to take into account the location of the flat, its proximity to civic amenities and also select the Builder according to his track record. It is always advisable to visit some of the projects completed by the Builder before booking a flat.

Verification of the title of the property is one of the important aspects of purchase of property. Though the Builder provides Legal Certificate from their Advocate, the Purchaser should always independently get the title verified by his own Advocate. Only Advocates with a minimum of 7 years of experience are eligible to issue legal opinion for the apartment to the Developer as per the Karnataka Apartment Act. 

If the property is sold by a General Power of Attorney (GPA) holder, verify the terms of GPA and whether the Owner who has given the GPA is surviving or not, should also be checked.

Validity of the GPA, Joint Venture and other Title deeds are most important factors that should be kept in mind. Agreement with the Developer should contain the Ownership details, sale price, payment schedule, Specifications of the construction, car parking details, undivided share of land, common amenities, Penalty clause for both parties, what are the other deposit charges to be deposited, Registration charges, whether Sales Tax is applicable or not, any other expenses etc., should be mentioned in the Agreement. Further, it must also contain the layout plan, sketch of your portion of the apartment, with specifications, date of commencement of construction work, date of handing over of the apartment, penalty for delayed construction and payment defaults, no escalation clause, guarantee for the quality of construction and construction materials used. 

Conveyance / Sale Deed :

After completion of the apartment construction, the Sale Deed should be executed by the Vendor of the land and the Promoters jointly as per the understanding. The Sale Deed must also mention the duties and responsibilities of the Buyer and the Seller, the Purchaser has to pay the required Stamp Duty and complete the Registration formalities. Registered Sale Deed is the main document that confers on you the Ownership of the flat. On the basis of the Sale Deed the Revenue Authority issues documents of title like the Khatha Certificate, Khatha Extract and Tax paid receipts.

Price of a flat is determined, based on the various factors like location, specification of the work, Carpet Area and percentage of Super- Built-up-Area. 

Undivided Share of Land:

When you purchase an apartment you are entitled to an undivided share in the total land area. The undivided share depends upon the built up area of the apartment and the land area. As the total built up area increases the undivided share decreases and vice versa.

Share Certificate Method:

Purchase of the flat by Share Certificate Method is very popular in Maharashtra. A Registered Cooperation Society acquires land, constructs flats which are allotted to its members; whereas in Karnataka, the Share Certificate Method is not accepted by General Public, Financial Institutions, State Government, etc. Karnataka Government is of the view that individual flats should be Registered by regular conveyance. When tracing the title of this type of Share Certificate Method, verification of the Society Record, its Byelaws and Share Certificates is very important.


You must also know what certain areas are called with reference to a building. From the Floor Area Ratio and Site Area, we can work out the Total Constructed Area. Plinth Area is the total area of construction. This includes all the floors as well as the wall thickness. Carpet Area is the area inside the constructed building between the walls and the area actually usable.

Super-Built-up-Area is the saleable area generally applicable to apartments. This includes the wall thickness, projected common areas and the set back area. Some Promoters will adopt certain methods to arrive at more Super-Built-up-Area to reduce the sale price. The Purchaser should be very cautious about the Super-Built-up-Area, on which the price of flat is determined. Super-Built-up-Area consists of actual flat area plus proportionate area of common areas like staircase cum verandah, balcony and other common areas etc. Carpet Area is the area available for actual residing. Generally Super-Built-up-Area should not be more than 25% of the carpet area.

Apartment Owner’s Association :

After the construction and handing over of flats, the Owners of apartments form an Association to take care of the needs of the Residents and to upkeep of the common areas. The Builder must hand over detailed drawings of electrical wiring, piping and drainage system to the Association. The Builder must also hand over to the Association all the Original Documents of Title and Sale Deed including plan, drawings etc., as without proper drawings, it would be difficult for the Association to maintain the apartment building.

The building should have lift facility. One has to examine the provision for water supply and sanitary connection. In many cases, though borewells are drilled, the yield is much less. So the Residents have to purchase water from Outside Agencies at Exorbitant Costs.

The apartment must strictly adhere to the building byelaws. It must comply with all Rules and Regulations laid down by the Pollution Control Board, Corporation or Municipality, Housing Development Board and other Authorities. Violation of laws will create great problems for the Occupants of the apartment block.

At the time of commencement, the Builder should obtain Work Commencement Certificate and Occupation Certificate, at the end of the completion of construction, from the Authority which sanctioned the plan.

These are the general important points one should look into before purchasing a flat. Right choice of the Builder is very important. Do not go by glossy advertisements and tall claims. There are many reputed Builders in the field with impressive track records. Choose one of the good Developers to satisfy your needs.

Monday, 24 April 2017

Developing Property through Joint Venture.

Urbanization has accelerated migration of people to the nearby cities in search of jobs and other means of livelihood. This increased influx of population to the cities has in turn caused the paucity of residential accommoda¬tion. The employees prefer to have accommodation near to their job centers to avoid wastage of time in commuting, resulting in vertical growth of city instead of lateral growth. Vertical growth saves lot of land and can accommodate a number of families in a small space. But, vertical development of land requires heavy investment which in turn has led to joint venture.

Joint Venture:

Joint venture is joining of hands. The words "Joint Venture" is described in the dictionary as "a business activity by two or more people or companies working together".

As stated above, vertical development of land comprising number of flats requires lot of money, manpower, expertise, experience, which an individual cannot undertake. Many a time an individual may own some land, but may not have funds to fully exploit it. Similarly a builder developer who has a resource may need some land to employ his resource profitably. Thus, the owner and developer join hands to develop the land. 

In order to avoid disputes, misunder¬standings in working, both the parties reduce the terms and condi¬tions into writing. This is called Joint Venture Agreement.

Unlike construction of an independent house, the group housing or construction of apart¬ments is more complicated, requires approval from various agencies like water supply board, sanitary department, power supply board and Airport Authorities, The project requires to be approved by banks for finance. Joint venture agreements clearly stipulate the duties and responsibilities of each of the parties.

In order to avoid spending huge amounts for procurement of property, the developers venture into joint development activity with land owners through joint venture agreements, develop the property and hand over certain number of flats to the land owner. The number of flats/apartments given to the land owner depends on the prevailing market value of land in that area at the time of project commencement.

Joint Development agreements:

The developer or builder enters into an agreement with the owner of the land known as Development agreement or Joint Development Agreement or Joint Venture Agreement. An immovable property for development may be either vacant land or land with structures thereon.

A developer or builder enters into an agreement with the owner for purchase and development of the land. The development agreement contains obligations and rights of land owners and builder, like obtaining statutory permissions, ratio of sharing the developed property between owner and developer, process of finding prospective purchasers and funding the project, time duration of comple¬tion and penalties for violation.

What is contained in the J V agreement?

The agreement contains the particulars like the commitment of the promoter to construct it as per the approved plan and specifications as approved by the local authority; possession date, price to be paid by the purchaser and the intervals at which the installments are to be paid specifying stage of construction; precise nature of the body to be constituted of the persons who would take the flats; details regard-ing the common areas and facilities specifying the percentage of undivided interest in the common areas and facilities appertaining to the apartment agreed to be sold; a statement of the use for which the apartment is intended. Copies of the title certificate issued and a copy of the approved plan and specifications, a list of fixtures and amenities including provisions for lifts to be provided for the flat to be sold should be attached to the agreement.

A promoter, while he is in possession and when he collects from persons who have taken over flats or are to take over flats sums for payment of out goings, has to pay all out goings until he transfers the property. The outgoings would include ground rent, municipal and other local taxes, taxes on income, water charges, electricity charges, revenue assessment and interest on any mortgage or other encum¬brances, if any.

One should also ensure that the area of the apartment has been mentioned in the agreement. It is also mandatory for the developer/promoter to convey the land in favour of the society/association of flat owners /condominium /Company within a stipulated time.


The development agreement must be in writing and registration of this agreement is not compulsory. If the developer meets the above requirements, he is well protected and can start construction work. But in case the developer commits any breach of the contract, the defence under Sec. 53 A cannot be availed.

Apart from equities, the developer would have a right against a subsequent transferee of the property with notice of the developer's right or a gratuitous transferee of the property under Sec. 40 of the TP Act but not against the transferee for consideration and without notice of the rights of the developer against the property.


After examination of the property of the land owner, the developer offers to him his offer for development of the property. This offer basically consists of the percentage of the built up area which shall be offered to owner towards cost of the land and the amount of security deposit that will be paid. This security deposit is a refundable advance which has to be refunded back to builder on successful completion of the project.

The percentage of area offered to the owner is arrived at after taking into account several factors such as cost of the land, cost of construction, escalation in cost of construction, cost of obtaining approvals for the building, marketing and administra¬tive expenses and most importantly the selling price of apartments in that area.

If the offer is attractive, the land owner will give his acceptance and hand over a copy of the title docu¬ments to enable the builder to get the same verified by his Advocate.

If the builder's Advocate approves the title, a draft copy of the Joint Development agreement laying down the terms and conditions of the development is given to the landowner for his approval who generally get it vetted by his Advocate.

If the draft of the Joint Development agreement is found to be okay, the same is prepared and prescribed stamp duty is paid. This agreement is signed by the Builder and landowner and the builder pays the first portion of the refundable advance to the landowner.

Along with the Joint Development Agreement, the landowner also gives a Power of Attorney to the Builder to apply for various approvals required for construction and also to sell the portion of the area coming to the Builder's share.

All the procedures and formali¬ties and costs for approvals are taken care of by the BUILDER.

The Builder then gets the plan prepared by an Architect, taking into account the requirements of the landowner. Once the plan is ready and approved by the landowner, the same is submitted for approval of the Government authorities.

After the plans are submitted and approved, the builder takes possession of the land from the owner. At this stage, the balance portion of the refundable advance is paid to the landowner.

After taking possession of the land, the builder proceeds to demol¬ish the old building if any and get the site ready for commencement of work.

On receipt of the approval, the builder commences the construction and marketing of the project.

As and when the apartments falling to the builder's share are sold, the proceeds are received by the builder in stages and the builder will register the apartments in favour of the buyers.

Out of the apartments coming to the landowner's share, they may like to retain some apartments and sell the balance. The landowner can decide to sell his apartments initially or sell the same when the building is 50% over or when it is nearing completion or after completion. Based on the requirement, the builder will sell the landowners apartments and pass on the proceeds to the landowner as and when the same is received from the buyers. When the landowners' flats are sold and a payment is received, the landowner will register these apartments in favour of the buyers.

On completion of the project, the apartments being retained by the landowner are handed over to him and the advance which was given by the builder at the time of commence¬ment of the project is refunded back.

The builder and the land owner will facilitate formation of a Flat Owner Association and hand over the title documents to the Association.

Rights and obligations of a developer:

As per Sec. 54 of the Transfer of Property Act, an agreement for sale does not create any interest in the property in favour of the purchaser though the consideration is paid partly or fully unless and until a deed of transfer by way of sale or lease is

executed in favour of the purchaser. Many Joint Venture agreements are supported by Power of Attorney executed by the owner in favour of the developer for the development works and enters into an agreement to sell and a sale deed to the extent of developer's share after completion of the total building.

For more:


Sunday, 23 April 2017



The Indian Succession Act 1925, deals with the Succession certificate. The relevant sections are 370 to 390 in Part X of the act.

The Succession certificate is representative in nature. During one’s lifetime one might have lent money or acquired securities. He might have not have recovered those debts or money due under securities, when he was alive. When such a person, a creditor dies, somebody should recover such debts or money from the borrowers, which is generally done by the legal heirs, of the deceased. The law has facilitated this process and section 370 of Indian Succession Act provide for issue of Succession certificate in such cases.

But the issuance of Succession certificate has some limitations. The Succession certificate cannot be granted in respect of any debt or security to which rights have to established by letters of Administration or Probate as per Sections 212, 213 of Indian Succession Act.

As per the section 212, no right to any part of the property of the person who has died without making a Will, can be established in any Court of Law unless letters of administration are obtained from a Court of proper jurisdiction. Similarly no right as an executor can be established in any Court of Law unless a competent jurisdictional court grants probate of Will. 

But it should be borne in mind that the Succession certificate does not finally adjudicate as to the legal succession. The certificate simply authorises some person to recover the debts and as stated earlier it is merely representative in nature. All the money recovered and obtained has to be disposed off as per the rights of the persons who are finaly entitled to it. The Succession certificate serves dual purposes, it prevents debts from being time barred, on account of disputes among the legal heirs and helps the borrowers, who can discharge the debts by paying to the representative of the deceased, which provide a valid discharge.At certain times the court will insist on the security from the person to whom certificate is granted as source of indemnity to the persons ultimately entitled for such moneys. The grant of the certificate does not confer any title on the grantee.

The word debt has a wide meaning than generally understood. An amount due under life insurance policy is a debt and succession certificate can be obtained. Likewise amounts under provident fund; bank deposits, are also covered under debts. A share certificate is a security under which money is due and court grants succession certificate. However, in one interesting case (Ranchhoddas Vs Govindadas Banetwala (1976) 78 Bomb LR 219: (1976)) the court held that succession certificate cannot be granted in respect of gold jewels pledged by the deceased in a bank as there was no element of debt in that transaction.

It has been made clear in the Succession Act that no court shall pass a decree against a debtor of the deceased person for payment of debt to a person claiming, on succession, to be entitled to the assets of the deceased person or any part thereof except on production of Succession certificate with the particular debt specified therein.

Any person who has beneficial interest in debt, or security of the deceased can apply for Succession certificate provided he is a major and of sound mind. A guardian appointed under Guardians and Wards Act can also apply for Succession certificate. Any application for Succession certificate has to be made to the district court in accordance with the procedure prescribed by the code of civil procedure.

Succession certificate can also be revoked in some instances; like, the proceedings were defective in nature, the certificate was obtained by making false suggestion or concealing some information, the certificate was obtained by means of untrue allegations, the certificate has become useless, inoperative on account of circumstances that a decree or order made by a court in a suit or other proceedings with respect to the effects of debts and securities specified in the certificate renders it proper that the certificate should be revoked.


Friday, 21 April 2017


As per provisions contains in Section 118 of Transfer of Property Act, when two persons mutually transfer the ownership of one thing for the ownership of another, neither thing or both the things being money only, such a transaction is called an exchange. This definition is not restricted to immovable property only. 

Thus, exchange implies, when two separate property owners mutually agree to transfer the ownership rights by exchanging the property. Further, exchange also mean exchange of lands and barter of goods too.

If one of the items that has been transferred in money, then it is not an exchange but sale, because sale should always be for a price. But money in one form can be exchanged for money in another.

In case of exchange, the transfer of ownership of one thing is not the price paid or promised to pay, but something else in lieu. For example: if a person transfers a land valued Rs.20,00,000/- to another and in return, the other person transfers a shop valued Rs.18,00,000/- and pay Rs.2,00,000/- in cash, it is an exchange. 

This type of exchange transactions can be reduced into writing in the form of Property Exchange Deed. This Exchange Deed document for transfer of property rights need to be registered with the jurisdictional sub Registrar’s Office by paying prescribed stamp duty. While drafting the exchange deed and its registration including the document execution, its presentation and admission utmost care need to be taken, since this is a complex process. 

Before drafting such complex type deed of transfer, it is very important to ensure that all the necessary requirements for the effective enforcement of such deeds are incorporated which only give legal sanctity to the document. The essential requirements for such deeds are discussed below:

Description of the Deed:

The deed has to specify the description, such as “This Deed of Property Exchange”, which may not necessarily be in bold letters, but is preferable, in order to highlight the nature of the deed.

Date of execution:

It is very important to mention the date of execution of the deed since the same is required to determine the limitation and also for recording of such exchange in the revenue records. Further, the date of execution of the document may vary from the date of registration. However, the documents can be presented for registration, anytime within four months from the date of execution.

Parties to the deed:

All the proper and necessary persons pertaining to the property intended to be exchanged have to be mandatorily made as parties to the deed in order to avoid possible future legal disputes, which may likely to be raised by the parties having interest over the exchanged property. It is also important to properly depict the status of each party to the deed.


The deed shall contain the previous history pertaining to the property in a precise way, explaining the nature of the interest and motive behind the exchange of property, which only authenticate the title, and is called as Recitals in the legal terminology. 


A covenant is an agreement wherein either or both the parties to the deed bind themselves to certain terms and conditions, which create an interest over the property, which may either be express or implied. In recent times, with the advent of Apartment culture, it is very necessary to incorporate covenants of various types besides those for maintenance of common areas and facilities in the deed.


This is the part of the deed which states that the parties have signed the deed. This is very important in order to prove the authentication of the execution of the deed and the necessary involvement of the proper parties having interest in the property in legally conveying to the parties of the other part.


This is the witnessing clause wherein the witnesses signing the deed are introduced, along with their names, address and signature. This clause is also very important for the reason that the witnesses also play an important role to prove the execution of the document. However, it is advisable that both the witnesses are from purchaser/ transferee’s side. 

Operative words:

This part of the deed depends upon the nature of conveyance. However, operative words clearly depict the intention of the parties conveying the property in favour of the other party/ies, which is necessary for transfer of rights over the property. 


This means description of the property following the operative words. Anything intended to be conveyed/assigned has to be specifically mentioned. Every minute detail about the identification of the property has to be clearly incorporated. Any ambiguity about the description of the schedule property may lead to serious problems.

Exceptions and Reservations:

Property intended to be transferred by way of exchange must not fall within the ambit of those prohibited under any statute or the Government notification. This part of the deed speaks about the conditions restraining the alienation and assurance that such alienation does not involve any restrictions.Exception refers to some property or definite right which is existing on the date of conveyance and the same would transfer if not expressly excluded.Whereas, Reservation refers to the right which is not existing but created at the time of transfer.

Completion of transaction:

The deed can be enforceable only if the same is properly stamped under Indian Stamp Act. Apart from this, it is also necessary that the same has to be registered under the Indian Registration Act. Only after the registration of such documents, the right, interest and title over the property is validly transferred from the transferor to the transferee. 


Execution of the document will be complete only after the parties put their signatures on the deed. However, special care should be taken when any of the deed is signed by the party who is an illiterate or blind or Pardanashin lady. In case any document is signed by some person by putting thumb impression, the documents has to be signed by the person who has taken the same and if any map or plan sketch is annexed to the document, then the same has to be signed by the parties.

Possession of property:

It is very important that the transferor transfers possession of the property in favour of the transferee. It is not necessary that actual possession has to be handed over to the transferee, but even constructive possession will transfer and create right and interest over the property.

Thus, the transfer or assignment of right, title and interest over the property, irrespective of the nature of transfer, entirely depends upon the deed of conveyance. Any ambiguity, inadvertent addition or deletion in the deed may give rise to lot of legal problems, thereby obstructing peaceful possession and enjoyment of the property. 


Thursday, 20 April 2017

Preparation of site for construction

Before starting any work, generally the process of cleaning occupies the priority. Similarly, before starting construction, the construction site should be thoroughly cleaned and prepared for construction. This is called purging of the site from evil effects.

This process requires a well experienced Mason, who is as important as an Engineer. An inexperienced Mason with his inefficiency may mar the fortunes of the Residents of the proposed house. Many Masons have correct understanding of Vaastu, brought about by generations of experience.

The Masons, should possess accurate tools to mark the directions and to measure the site. Their important tools, set square to fix correct corners, intermediate directions, and plumb line to ensure perpendicular accuracy of the walls, should be used with diligence. The same tools should be used until the construction is completed, otherwise, there may be differences in areas of the rooms and place in between parallel walls.

Marking Directions:

First, the Mason should identify all the eight directions correctly, which is followed by cleaning and preparation of plot. The directions, South, West and SouthWest must be elevated than East, North and NorthEast. Any pits, shallow places, wells in weak or unfavourable positions should be filled up. The surface of the site should be leveled with raise in the directions of South, West and SouthWest. Avoid sites with anthills. Leveling and reforming, raising in the site must be done before starting construction, but not after, to avoid evil effects of Vaastu.

A well or borewell must be dug in North East, East or North after the foundation is laid and its water must be used for construction only. At least, a sump must be laid in any of these directions. The construction materials such as; bricks, tiles, wood, steel, stones, lime in North, East or NorthEast should not be stored in the aforesaid places; instead we can use South, West or SouthWest for storing them.

Starting of Work:

Work should ensure that the excavation starts from North East and proceeds towards North West. Repeat the same process from NorthEast to SouthEast and from NorthWest to SouthWest. This process should end by excavating the Southern side from SouthEast to SouthWest. The foundation work must start from SouthWest to SouthEast, SouthWest to NorthWest; SouthEast to NorthEast and end from NorthWest to NorthEast. Similar process is required for wall constructions. Importantly, at the end of any day, the walls on Southern and Western sides should be higher than the walls of North and Eastern sides. The temperature in the locality determines the height of walls; prefer high ceiling if the temperature is high and low ceiling if temperature is low.


Pillars should be square or cylindrical in shape but pillars in SouthEast must be invariable square in shape. Main entrance should not face the edge of any wall, pillar or compound wall. Likewise, there should not be any tree, well, sump or pit in front of the main door.

The NorthEast corner of the outer walls, compound wall should never be rounded off, whereas it is permitted in other corners. It is better not to have arches of semi-circular shape on gates located on Eastern and Northern sides, but such semi-circular arches are permitted on gates located in South and West.


The flooring of the house should be laid so as to facilitate the flow of water from SouthWest to NorthEast. The level of doors should gradually go on reducing from South to North and West to East. The floor level of the rooms in SouthWest should always be higher as compared to other rooms in the house and it should be lowest at NorthEast. The flooring should be strong and firm avoiding any shallow sound.

If one is demolishing any old house, they can start it from NorthEast and store reusable items in Southern or Western parts of the site, since the work if starting from South or West brings ill health to senior male and female members of the house.