Saturday, March 5, 2016

PURCHASE OF PROPERTY - POST REGISTRATION ACTIVITIES

PURCHASE OF PROPERTY - POST REGISTRATION ACTIVITIES


Post-registration activities are the steps to be undertaken by the Purchaser after registration of the sale deed. There are certain requirements to be fulfilled in order to get valid title and to exercise ownership over the immovable property by the Purchaser.
The following are the essential activities required to be carried out by the Purchaser after registration:
  1. Obtain Original documents:The first and the foremost activities to be performed by the Purchaser is to obtain all the original documents including link/connected documents of title from the Seller and to compare them with the Photostat copies which the Purchaser’s advocate would have scrutinized earlier. If the Advocate calls for the other original documents or certified copies, ensure production of the same. It is always advisable to apply for Certified copies of the sale deed.
  1. Encumbrance Certificates:It is also necessary to register the application for updated Encumbrance Certificate in the Sub Registrar’s Office on the day of registration itself, which shall be from the date of entering into an agreement to the date of execution of the sale deed.
  1. Possession of property:Physical possession of the property is of vital importance. It is advisable to inspect the property a day ahead of registration to make sure that the property is as per the sale agreement. One of the clauses to be incorporated in the sale agreement is that the Vendor shall hand over vacant possession of the property and the purchaser shall receive all the keys of the property at the time of registration. If need be, one may change the main door lock itself.In case of vacant sites, it is necessary to put up a display board with the wordings “This property is owned by “so and so”. Tresspassers will be prosecuted.” Fencing of sites or putting up compound walls, though expensive, is preferable. Periodical visits to the site are a must to detect any a kind of encroachment.
  1. Transfer of Khatha and Khatha extract of the property:After registration of the sale deed, the purchaser must ensure that the Khatha in the records of the local bodies like Gram Panchayat, CMC or the City Corporation is transferred in the name of the Purchaser. For such transfer, it is necessary that both the buyer and the seller have to sign the application for transfer of Khatha, which is done simultaneously while signing the sale deed. This is necessary to avoid unnecessary disputes and complications in future.
Duly filled Khatha Transfer applications have to be presented before the concerned Office, along with a copy of the sale deed and receive necessary acknowledgement.  At the time of execution of the sale deed, the Vendor has to sign certain documents, such as:
-Khatha Transfer application
-Letter for transfer in favour of the Purchaser of Statutory deposits for electricity meter
-Letter for transfer in favour of the Purchaser of Statutory deposits for water, sanitary connections
-In case of second hand sale of apartment, letter for transfer of Apartment Membership and Corpus fund has to be obtained by the Purchaser from the seller.
The following is the procedure involved for transfer of Khatha:
-To present an application in the prescribed form in the Office of the City/Town Municipalities or Corporation having jurisdiction along with the supporting affidavit giving all particulars required in the application. In the affidavit, it is necessary to declare that the Purchaser is the present owner.
-To enclose Certified copy of the sale deed with the latest tax paid receipt of the property.
-To furnish Khatha Certificate standing in the name of the Vendor.
-The sketch showing the locality giving particulars of the ward or zone and name of the street, etc., and deposit the fee prescribed.
Local bodies transfer Khatha in the name of the Purchaser after collecting a transfer fee, which is generally 2% of stamp duty paid on the sale deed and issue written confirmation of transfer in the name of the Purchaser.  While transferring the Khatha, local bodies reassess the property and issue assessment notice in the name of the Purchaser. Further, tax paid receipt should be in the name of the new owner/Purchaser.
For the properties falling within the jurisdiction of either BMP or BBMP, Computerised Khatha Certificate and Khatha Extract will be issued. Khatha Certificate is an authenticated document to prove the ownership and possession of a particular person over the immovable property. While Khatha Extract will be issued this reflects the actual site area and built up area, if the building is existing.  Further, property tax required to be paid will also be reflected in the Khatha Extract, which will be arrived at after reassessment.
  1. Building License and Plan: If you are planning to make any material alterations or propose to construct a new building on the property acquired by you, it is necessary for you to get the license and plan approved by the local body within whose jurisdiction your property falls. This can be obtained only after depositing the prescribed fees. In order to get the License with approved plan from the authorities, the Khatha of the property must stand in your name in the revenue records of the concerned local body and up-to-date taxes ought to have been paid.  The normal procedure for securing License with approved building plan is to obtain 10 sets of blue prints of plans from the licensed architect/building engineer.
Construction has to be commenced after the license is obtained and should be completed within 2 years from the date of obtaining the license and approved plan, which will be stipulated in the Plan itself. However, you can get an extension if the construction could not be completed within the stipulated period. Once the construction of the new building is completed, you must get such a house/building assessed afresh and pay taxes as assessed by the concerned revenue authorities.
  1. Electricity connection: After Khatha is transferred in the name of the present owner, he has to ensure whether the statutory payments/deposits in respect of the property including the electricity charges are paid within the stipulated time.
If fresh or new electricity connection is to be obtained, it is essential to enlist the services of a Licensed Contractor.The amount of deposit to be made depends upon the requisitioned load or number of kilowatts required.  In case the property is already serviced with the electricity connection, an application has to be presented by the Purchaser in the prescribed form before BESCOM (in Bangalore)/concerned Electricity department authority having competent jurisdiction, enclosing an affidavit declaring that you are the present owner and by filling up the particulars required in the application along with the consent letter of the previous owner for such transfer.  Subsequently, the electricity connection/meter will be transferred in the name of the present owner.
  1. Water and Sewage connection: The purchaser should also verify the statutory payments/deposits made by the previous owner and collect such deposit receipts from him. For fresh connections, it is desirable to enlist the services of a qualified plumber. In case your property is already has water connection/s, then same procedure as required for change of electricity connection has to be followed. However, the documents are to be presented before the concerned Municipal Administration authorities connected to Water and Sewage departments.
  1. Corpus fund and club membership: If the Purchaser is intending to purchase an apartment, it is also necessary that the Vendor has to issue a letter for transfer of corpus fund and club membership in the name of the Purchaser.
9. Bank Loan: In case the Purchaser wants to avail Bank loan, then the Purchaser is required to deposit all the relevant title documents in original with the Bank and to obtain endorsement to that effect from the concerned Bank. However, it is advisable to keep Photostat copies of all such documents intended to be deposited with the Bank for personal records.
Thus, mere execution of the Sale Deed does not automatically confer the title in favour of the Purchaser. A person can enjoy legal and peaceful possession and enjoyment over the Property only after ensuring that the post-registration activities are fully completed and satisfactory complied with.
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