Showing posts with label Buyers. Show all posts
Showing posts with label Buyers. Show all posts

Friday, 13 September 2013

Outdated records major cause for land disputes



Buyers have to be very careful while entering into lands deals. Existence of fake land records and selling of same property for multiple buyers through either forged documents will generate land disputes.


Existence of outdated land records, land sharks forging documents, lack of knowledge of land records and laws are the major causes for land disputes in cities like Bangalore, Mysore and other towns. Therefore, it is better to have a legal opinion before finalising land deal.

The Revenue Department has shown laxity in updating revenue records. Issues such as failure in inter-departmental communications regarding property issues and confusion over custodians of documents are other major causes come in the way of land transactions. Taking advantage of loopholes in the system, real estate agents have either sold property to multiple buyers through either forged documents or the properties have changed hands after suppression of records.

In fact, violation of laws and forging of documents is a common factor in Bangalore. Lands notified by the Bangalore Development Authority (BDA) for acquisition in 1982 have been sold to buyers by forging documents. Similarly, flat owners in South City are at a loose end with the suppression of the fact that a portion of the land had been relinquished in favour of BDA even before the apartments were sold.

In both the cases, validation of titles, which was an important step, could not be done at the sub-registrar's offices as records were not updated.

Titles

The Registration Department has rights for giving “presumptive titles” to the property, but validation of titles and legality of transactions are in the legal jurisdiction. Presumptive title is given on the understanding at face value that both buyer and seller are undertaking a genuine transaction.

By registering properties, the department only give a constructive notice to say that such a transaction has taken place. One has to cross check various documents such as earlier revenue land records, change of hands, tax paid receipts, status of present lands, khata etc, officials in the revenue department maintained.

On a question related to sub-registrar’s office could verify the documents before registration, the official said legally, it can only register the document. If verification process is also given to it, it would be cumbersome and time-consuming.
So, we request all those buyers of lands be doubly careful while entering into land transactions. Do home work, before discussing issues related to price and land registration.

In view of the complex issues involved purchase lands, housing sites and flats, experts suggested that it is better on the part of the buyer to consult legal experts and seek their opinions on land records and validity of legal documents.




Tuesday, 19 March 2013

Real Estate Market see Return of Pre-Launches




Realty firms eyeing pre-launches in markets such as Mumbai, Bangalore to sell large inventories, test new markets

Key property markets such as Mumbai, Delhi and Bangalore are seeing a return of project
pre-launches, signalling rising momentum in real estate sales as buyers and investors regain
confidence in the sector.

Mumbai will see a spurt in pre-launch activity this year after the state government removed
hurdles in obtaining regulatory clearances for real estate projects.

In a pre-launch, real estate firms begin selling a project ahead of a formal launch and buyers
and investors, in return, get sharp discounts of 10-15% or more at this stage as an incentive
for the risk involved.

Over the past two years, pre-launch activity had dropped, especially in Mumbai, because
of the depressed real estate market as well as uncertainties in obtaining approvals. That’s
changing now.

If the pricing is right, investors who have been sitting on the fence for long due to the lack of
launches in Mumbai will come in,” said developer in Bangalore.

Pre-launches offer developers an opportunity to lure back investor interest in the Mumbai
realty market, as project approvals are trickling in and sales are picking up, and mop up
much-needed cash flows. Investors had shifted their attention to projects in neighbouring
Navi Mumbai and Thane districts where more projects were being launched.

“Developers will also offer buyers attractive pre-launch benefits in a bid to accelerate sales
momentum in the initial months following a launch,” he wrote.

Developers who traditionally avoided the pre-launch model are now adopting it for projects
in new markets.

Consolidating


Many companies, taking advantage of a sluggish real estate market, are consolidating or
moving their headquarters to bigger and better offices. Multinationals like VW, Bayer Crop
Science, FedEx, Pepsi-Co and L'Oreal along with Indian majors such as Cipla, Britannia and
HDFC have cleverly used the market trend to save on two fronts — cost and space.

With office rentals and capital values having dropped nearly 25-40% since the 2008 peak
in most parts of the country, including Mumbai, many occupiers are planning to relocate
to newer, safer buildings, with larger floor plates and better amenities," said Ramesh Nair,
managing director, West India -Jones Lang LaSalle India.

Most office space deals for shifting headquarters are either done on an outright basis or
leased for long tenures since a corporate headquarter often symbolises a company's power
centre, and companies usually avoid shifting headquarters for fear of sending wrong signals.

Global financial majors like Citigroup and Goldman Sachs have also used the current
downturn to strike large realty deals for consolidating their operations in Mumbai and
Bangalore, respectively.

In 2012, the country's office market saw new supply of 30 million sq ft and absorption at
27 million sq ft. In 2013 also, new supply is estimated to be around 40 million sq ft with
absorption of 29 million sq ft, and the climate is ripe for negotiating better price and terms.