Thursday, January 16, 2014

An Artical Regardomg "Tips On Property Redevelopment"

Who will not jump at a deal in which the builder offers residents of old buildings a good amount to get a refurbished flat with additional space? This is what has been happeningrecently. Not only does the flat seller receive the cash but he gets a monthly rent for his temporary accommodation also. When the new property is prepared he gets a refurbished, newly built flat in place of his old one.

This is done by builders for thepurpose of redeveloping the property and adding extra floors to a certain building. By selling the extra flats they earn revenue.

Depending on whether the resident is requested to move temporarily or permanently the builder will pay the money to the present residents. For a temporary shift the builder will give money for the other accommodation till reconstruction is complete. Builders sometimes also give post-dated cheques. These should be accepted only if the money paid in advance is enough for at least 18 months of the rent. You should calculate if the sum given would be adequate till you come into the refurbished home.

If you are vacating the flat permanently you would get a larger sum of money from the builder depending on how your property has been evaluated. You should ensure that the amount is enough for you to buy another flat after subtracting tax payable. You should request a bank guarantee in order to prevent you of being defrauded. The builder deposits this amount with the bank that would be given to a resident if the builder does not finish the project within the time promised. However a builder cannot redevelop a building or a society if 100% of the families residing therein do not agree for it.

redevelopment contract keeping in mind your needs. In these deals the resident has to decide the terms and conditions. Therefore, the flat owners or a housing society need the services of a professional lawyer and architect to guide them. The lawyer would make sure that present and future legal issues are tackled effectively. He helps to formulate the documents according to the law.

Before you give the project to any builder you should examine his track record. Your architect may be able to help you know if the chosen builder has finished his previous projects within the time promised and has paid the sum as promised in the contract.

An architect will assist you in knowing the worth of the property upon its valuation. This is a significant factor in deciding the amount offered by the builder. In the later reconstruction time the architect would be a watchdog to make sure that sub-standard materials are not used by the builder for construction

In transactions involving immovable properties, various documents such as agreement to sell, Indemnity bond, General Power of Attorney, Deed of Undertaking, Affidavit are required to be executed. As per the Indian Registration Act 1908, all the documents do not require compulsory registration.

The documents for which registration is optional, notarizing such documents authenticates the execution of the documents and also gives legal sanctity. Apart from the documents creating liability, the Notarized documents play a vital role in the court of law since the same can be filed as the evidence either to initiate or defend the proceedings, irrespective of the nature of the litigation.

Now-a-days, there has been lot of confusion among the public as to whether the documents have to be notarized and the necessity of the same. The person authorized for notarizing such documents is referred as Notary. The functions and importance of the notary and the documents notarized are discussed below;

Notary Is a Public Office appointed by the Central Government or State Government under Notaries Act 1952. Central Government may appoint a Notary for the whole or any part of India. Likewise the State Government may appoint a Notary for the entire State or for any part thereof.

Though Notary can be appointed either by the Central Government or the State Government, certain basic and specific powers have been assigned to such notary. If the documents are required to be produced in the court, then the Notary or the Oath Commissioner appointed for that specific purpose by the State Government has to notarize the same

However, if the document pertains to the affidavit that has to be produced before any authority regarding the age or change of name, then the same has to be verified by the notary appointed by the Government for notarizing such documents.

A Notary is governed under the Notaries Act 1952, wherein specific functions have been assigned to him. The following are few of the functions:

1.To verify, authenticate. Certify or attest execution of any instrument. The word instrument is defined in the Act as every document by which any right or liability is or purports. to be created, transferred, modified, limited, extended, suspended, extinguished or recorded.
So every document is not an instrument, unless it creates right or liability. Each word verified, authenticated, certified and attested by the notary, have different meaning.

Authenticating means, the Notary assures himself about the identity of the person who has
signed the instrument, who is otherwise called as Executants as well as to the fact of execution.
Certify means to testify,Notary is bound to make entry of notarial act of certifying the copy of the
      document as truecopy of original. Attest means to evidence the execution of the same

To administer oath to, or to take affidavit from any person.
To translate and verify the translation, of any document from one language into another.
To act as commissioner, to record evidence in any civil or criminal trial if so directed by the 
court or authority.
To act as arbitrator, mediator, or councilor if so required.
To do any other act which may be prescribed by the statute

Certain specific procedure has envisaged under the Notaries Act training to the   notarial act. According to the act, the Notary has to sign on .1 documents and also has to affix the notary seal. Apart from this, it b the duty of the Notary to mentior- the Registration number of the document and the volume of the Books  which is required to be flat lined by the Notary. The notarial act will be completed only after the executant executing the document or the affidavit signs the book maintained by the notary. Thus, the presence of the executants is mandatory, After completion of all the mandatory requisites, the document or the affidavit notarized will be considered as authenticated documents.

It is mandatory for notary to use his official seal. The Notaries Rules 1956 prescribe the form and design of the seal to be used, which has to be plain circular seal of 5 ems diametre. It shall contain the name of Notary, jurisdictional area where he/she has been appointed to exercise his/her functions, registration number, and engraved with the words "NOTARY" and the name of the Government which appointed him.

The Notary shall use his office seal on every document. The Evidence Act also provides that the courts should take judicial notice of seal of Notary. In the absence of seal of Notary, the document has no evidentiary value.

Apart from the notarized documents, affidavit notarized and attested by the Notary can be filed in the   court of law, both in the civil or criminal proceedings. Section 139 of Code of Civil Procedure, 1908 Section 297 of Code of Criminal Procedure expressly provides for the provision to file the affidavits in the court and such affidavits are admissible as the evidence. However, such affidavits have to be duly notarized, fulfilling all the mandatory pre- requisites provided in the Act.

Before doing any Act of Notary, it is the duty of the Notary to ensure that the proper stamp duty is paid on such instrument. If the same is not duly stamped as required under law, then the same may be impounded under Section 33(1) of the Stamps Act. Apart from the regular stamp duty, the act of Notary attracts additional stamp duty under Article 42 of Indian Stamp Act and Article 36 of Karnataka Stamp Act, which is Ten Rupees.

The Notarial Rules 1956 has prescribed the fees for each category of acts. Rule No.1 0
refers to the fee to be collected by the Notary. The notary shall display the rates of fees
charged by him in a conspicuous place both inside and outside his chamber or office. In
addition to the fees, Notary may also charge traveling allowance by train or road at Rupees
Five per kilometer.

In the present scenario, apart from the Ration card, Income proof, Banks prefer for the
production of affidavit Deed of

Undertaking/Indemnity Bonds before advancing loans. In fact, Corporation office is also
insisting for the production of any of the documents mentioned above before sanctioning the
plan. Hence, it is necessary to enlighten the public about the importance and procedure involved for notarizing the affidavits or the documents.

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