advocateselvakumar

Friday 15 April 2016

advocateselvakumar: Judgement SC Judgment: Buyers to forfeit, if remai...

advocateselvakumar: Judgement SC Judgment: Buyers to forfeit, if remai...: Judgement SC Judgment: Buyers to forfeit, if remaining installmentsare not made in time Make sure you read the agreement...

Judgement SC Judgment: Buyers to forfeit, if remaining installments are not made in time

Judgement

SC Judgment: Buyers to forfeit, if remaining installmentsare not made in time

Make sure you read the agreement carefully before you buy a flat and sign on the dotted line.Recently in Delhi, a Buyer lost Rs. 7 Lakh to a Builder after he was unable to pay the rest of the amount for the property. As per on October 18, the Supreme Court Judgement, the Builder had the right to keep the initial amount paid and even cancel the deal since the Buyer had failed to make the payment on time. The property was worth Rs. 63 Lakh.

The Purchaser of an immovable property could forfeit his money if he fails to pay the remaining sum, the apex Court said.

The Realty Experts believes the Judgment could set a dangerous precedent. “Builders who aren’t Professional could collect earnest money and then come up with some frivolous excuses claiming that the Buyer didn’t stick to the agreement, and thus call off the deal and forfeit the money.

The agreement holds the key to the deals. The Buyer will now have to be very cautious before signing and registering an agreement. Even a simple mistake could cost him not only his money but even the deal. This helps the Builders to save themselves from Buyers who give a small amount of money and then not pay the rest, because of which the Builder’s project gets stuck.

The agreement executed by the total amount from the Purchaser should be in conformity with the Law of the land.

A Builder has no right to collect more than 20 percent of the total amount from the Purchaser before executing the registered agreement. The Builders cannot collect more than 30 percent thus, aggregating 50 percent unless he completes the construction of all slabs of the building to be sold. Such rules should be read before signing an agreement.

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Wednesday 13 April 2016

Consumer Forum Builder asked to pay Rs. 2 lakhs for violating flat Sale Agreement

consumer Forum

Builder asked to pay Rs. 2 lakhs for violating flat Sale Agreement

The Maharashtra Sate Consumer Commission directed a Developer to pay compensation of Rs. 2 Lakh to a Thane based couple for cancelling their booking of a flat after the couple refused to pay Rs. 1000 per square feet more than the booking rate.

“This is the best example of how the common man is exploited by Builders”, the bench of presiding member Dhanraj Khamatkar observed while holding Nirmal Lifestyle Private Limited guilty of deficiency in service and of adopting unfair trade practice.

According to the Chairman and Managing Director of Nirmal Lifestyle, they have decided to challenge the order before the National Consumer Commission.

In March 2009, Satish and Shilpa Kolhapure had booked 1,200 square feet flat at the Developer’s Mulund project for Rs 59.35 lakh. Two months later, the Developer executed the agreement. Two days after that, the couple paid Rs. 1 lakh and sought an No Objection Certificate (NOC) from the Developer for a loan of Rs. 50 lakh from State Bank of India (SBI).

A week later, the Developer issued a notice saying the couple owed them Rs 17.2 lakh and had to pay up within 15 days, or shell out the extra money. The Developer then cancelled the booking.

The Developer argued they were justified in demanding the enhanced rate as the couple had defaulted in payment. The Commission dismissed this saying facts show the Developer tried to pressurise them into paying extra, in violation of the agreement’s conditions.

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Tuesday 12 April 2016

PROPERTY EXCHANGE DEED

PROPERTY EXCHANGE DEED

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 theDeed

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.

Recitals

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.

Covenants

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.

Testimonium

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.

Testatum

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.

Parcels

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

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.

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Monday 11 April 2016

HIGH COURT ORDERS DEMOLITION OF BUILDING FOR BYE-LAWS VIOLATIONS

Bangalore: The High Court on Wednesday directed the Respondents to demolish a building constructed in violation of Building Bye-laws at Shanthinagar in the City.

Hearing a Petition by Kamalesh Kumar, owner of a property in Shanthinagar, seeking to demolish the building adjoining to his property alleging building bye-law violations, Justice Ram Mohan Reddy directed the Respondents to demolish the building that violates the bye-laws. The Court also imposed a fine of Rs.25,000/- on Sushil Kumar and Dimple Kumar (owners of the disputed building – Respondent Nos: 4 and 5) payable to the Petitioner.

The Court, which had also summoned the Bruhat Bangalore Mahanagara Palike (BBMP) Commissioner, directed him to demolish the structure, in case if the Respondents failed to do so within a month. “Issue directions to Respondent 4 and 5 to bring down the building constructed in violation of building plan within a month. If the Respondents fails to do so, the Commissioner is directed to pull down the Building”. Justice Reddy observed.

“The Respondents 4 and 5 are directed to pay the Petitioner a sum of Rs.25,000/-. The Commissioner has been directed to take note that the Respondent 4 and 5 are liable for criminal prosecution under Section 436 of KMC Act,” the Court observed further.

The Petitioner, Kamalesh had alleged that the Respondents, who owned a property (Sy. No.8/1) at Shanthinagar, neighbouring his property (Sy. No.8/2) had begun constructing a building. Alleging building bye-laws violations, he brought it to the notice of the BBMP Officials. When there was no action on the part of the Officials, he moved the High Court. The Court directed the BBMP to initiate action against the Respondents. When the Respondents failed to do so, he moved the Karnataka Administrative Tribunal, which also directed to initiate action. However, when the matter prolonged further and the Respondents completed the construction, the Petitioner approached the High Court stating that the BBMP authorities have failed to initiate action against the Respondents and sought directions to the BBMP authorities to implement building bye-laws and dismantle the illegal construction.

The Court lashed out at BBMP for not implementing the bye-laws and said: “The City has become a hornet’s nest for illegal construction”. He directed the Respondents to demolish the illegal building and failing to it, the Commissioner is directed to demolish the structure3 and the cost be borne by the building owner.

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Thursday 7 April 2016

Property Protection How to protect your property

Property Protection

Howto protect your property

One has to spend a great amount of time and money in owning a dream house. If one is living in a rental house then you have got to shed money as much as demanded to reside in apartments.

Unwrap the newspaper or turn the news channel on; one can witness the increasing number of crimes in the City and strange forms of robbery that has left many of us with the feeling of insecurity.

Many of those living in independent houses, especially those in remote places feel they are the primary target of the offenders. In cruel cases the housebreaker goes to the extreme of killing innocent old people, women or kids just for the sake of money and materials. So, the immediate question rising in one’s mind is: ‘are we safe in this civilized Society’?

On the other hand people residing in apartments are timid. Despite employing vigilant safeguards, some of the minor but life risking mistakes we tend to overlook are unlocking the upstairs gate or leaving no information to security guards about what has to be done in the absence of the Owner.

No definite remedy can be sought to curb robbery completely in this Country, but one can be assured of his or her safety by following few guidelines set by our City police Officials. Police force strongly recommends employing efficient and skilled safety guards. One must devote some time and money to mould these Security Guards according to the current needs of Society.

It is advisable to spend money for employing two trained guards and make them work in two shifts a day. Don’t ask the watchman to do your daily chores because professional offenders will be biding their time. When you’re away from your house instruct your watchman to keep tab on every Visitor since burglars disguise themselves as Visitors. One has to make sure that the entrance to the house is inaccessible to burglars.

But what exactly is happening in our Society is that every day there are crimes such as abduction, robbery and other social evils. It is better not to risk your life by paying less and employing incapable persons, instead pay little more and employ capable persons.

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Wednesday 6 April 2016

Bombay High Court directs MHADA to file report on illegal transfer of 3600 flats

Bombay High Court directs MHADA to file report on illegal transfer of 3600 flats

The Bombay High Court has directed the Maharashtra Housing and Area Development Authority (MHRDA) to investigate into the matter wherein 3600 flats have been illegally transferred within a period of 10 years from the date of allotment, and asked MHADA to file a detailed report on the same by April 2015.

On taking up the matter in the Public Interest Litigation filed by Shri Gajendra Khedkar, who in fact, intend to buy one such flat, the Division Bench of Bombay High Court comprising Justice Abhay Oka and Justice A.S. Hadkari, were informed that Mr. Khedkar was interested in acquiring a flat in Samruddhi Co-Operative Housing Society, and he was trying since 2008 but was unable to do so because of one couple Lahu and Geetha Navle, who have illegally acquired 7 flats valued Rs.1.24 Crores in the said Society, in their name, through transfer.

Earlier to this, in a similar matter of illegal transfer of MHADA flats within a period of 10 years from the date of allotment, the State Government had assured the same bench of the Bombay High Court that a written notice will be issued to the beneficiaries concerned, informing them that they should surrender the flats fraudulently secured by them from the Government, within 30 days, failing which criminal action will be initiated against such erring beneficiaries. Further, the State Government also informed that an FIR would be registered under relevant sections of Indian Penal Code (IPC) against those beneficiaries who do not surrender the flats within the prescribed period of 30 days; and such allotment would also be cancelled.

In tune with these directions, the said couple Lahu and Geetha Navle, were arrested in 2010 and booked under relevant Sections of IPC that are non-bailable. Presently the said couple are on bail. Subsequently during 2012, the subject PIL was filed making MHADA as well as the State Government as respondents in the case.

After taking on record, the affidavit submitted by the Advocate of MHADA, to the effect that there are 3600 flats that are illegally transferred within a period of 10 years from the date of allotment, the Hon’ble Court directed MHADA to file report on the same and also directed to brief on the action taken in this regard.

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Tuesday 5 April 2016

Legalising building fraud will lead to disaster- High Court

Legalising building fraud will lead to disaster- High Court

The Bombay High Court, while hearing petitions seeking to legalise illegal structures in various parts of the city, has ruled that Regularization of unauthorized constructions will have to be permitted on a case-to-case basis and should not be granted as a matter of course.

A division bench of the High Court held that the planning authority had to consider various factors such as infrastructure, congestion, water supply, and roads before regularizing illegal constructions against payment of a penalty. If there is an increasing pressure and burden on the existing facilities and amenities then the whole system would collapse resulting in large-scale inconvenience, it was observed.

The cases before the Hon'ble Court pertained to regularization of various structures in Bandra, Goregaon, Boriveli, and Pydhonie apart from the top 17 floors of Gaurav Gagan, a 24-storeyed building in Kandiveli (West).

The Hon'ble High Court further ruled that it cannot be said as a matter of general rule that unauthorized constructions must be regularized if the floor space index (FSI) is available or can be generated in the form of transfer of development rights (TDR) from other sources by the builder. Although section 53(1) of the Maharashtra Regional Town Planning Act provides for regularization of unauthorized structures, the indiscriminate regularization through TDR or FSI can have disastrous consequences. Before the authorities take any decision about regularization they must not only consider the alleged hardship to individual flat purchasers but also the interest of those living in the neighbourhood and the public at large.

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TAX DEDUCTION ON HOME LOANS INTEREST

Incentives are offered under the Income tax Act on the investment in housing properties. Incentives come by way of deduction of payment of interest on the borrowed amount to buy or construct the house. Provisions relating to such deductions are provided in Section 24 of the Income Tax Act. The interest paid on a housing loan can be deducted from out of the taxable income of an Assessee according to this Section. The interest is permitted both on an accrual basis or due basis even if it is not actually paid in the year of accounting. To claim the deduction, the Assessee has to present a certificate from the Lender to whom the interest has to be paid on the borrowed capital pointing out the amount of interest paid or payable. The money should have been borrowed for acquiring the property or for constructing the property or repair of the property. Interest paid on a new loan taken to repay another existing loan is also permitted. The amount can be deducted in five equal installments starting from the previous year in which the house is acquired or built.

The first installment has to be deducted in the year of completion of property construction or the property is acquired and the remaining four installments in the four following years. Deduction for the full year is allowed even if one day is left in the year.

The maximum amount that can be deducted is Rs.1.5 lakhs. The money should have been borrowed on or following April 1, 1999 for acquiring it or for the construction. It is necessary that such acquisition or construction should have been finished within three years from the end of the financial year, in which the capital was borrowed. It has to be certified by the Lender that the interest is payable for the loan advanced for acquiring or constructing the house.

The deduction amount is limited to Rs.30, 000 if the money has been borrowed prior to April 1, 1999.

The date when the construction was started is not important. It is important only when the construction is completed within three years from the end of the financial year in which the money was borrowed. It is also not necessary that the whole cost to be financed though loan. Any portion of the cost of the house can be financed through loan.

It is advisable for purposes of tax to borrow and build or purchase instead of using one's own fund. The reason is that, if one uses his own fund he will not get any tax deduction from his total income.

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Monday 4 April 2016

PURCHASERS OF APARTMENT

PURCHASERS OF APARTMENT

People with different culture, taste and habits living in separate dwelling units situate within a compound is not new to the country as it was prevalent in the past under the name and style as Vatara houses wherein small dwelling units were constructed within a compound for occupation and use by different families as their residence.

Vatara houses were constructed in horizontal or in L shape rows with single storey structures unlike the present day multiple storey vertical apartments.

Apartment culture

Apartment culture, though of recent origin, has gained tremendous acceptance by the people in a very short time. Generally, it is seen that in apartments, people of different back- grounds, origin and culture live in good harmony and brotherhood. Shalimar Apartment, built in early seventies was probably the first Apartment that was constructed in Bangalore. Apartment culture further gained acceptance in early eighties when several apartments were built in Malleshwaram and other places. Since-then construction of apartments is in full swing in Bangalore and a large number of reputed builders and Promoters are busily engaged in the development of jlifferent Apartment Projects in and round Bangalore to meet the ever increasing demand for commer- cial and residential apartments.

Merits of apartments

Apartments have certain advantages in comparison with the independent houses. The first and foremost advantage the purchaser of an apartment will enjoy is that he need not have to worry about the issues like obtaining plan sanctions, finding a building contractor, supervising the construction work, obtaining basic amenities such as water, power, sewerage facilities for the building and so on which is taken care of by the Developer. The purchaser of apartment need not have to worry for any civic problems which he may encounter after his occupation of the apartment, since these problems are tackled by the Apartment Owners Associationl Builder for which a nominal charges are levied.

The next advantage an apartment owner gets would be the social harmony he would get due to community living. A sort of bondage is developed amongst the residents of apartments.

Further, for the exclusive use of apartment owners/occupants almost all the apartments now-a-days, do have facilities like gym, health-club, recreational center, sports club, swimming pool, private security system within the premises for which again a nominal fee is charged.

De-merits of Apartments

Even though living in apartments do have many advantages, they are not totally free from disadvantages. A Person who lives in an apartment generally is deprived of his privacy. Further, the apartment owner is prevented from carrying out any major addition, alteration or modification to his apartment to suit his needs. All such repairs, alterations and modifications are to be carried out with least inconvenience to other apartment owners and any damage or loss caused to the other apartment owners are to be compensated. The amount collected by the Apartment Owners Association to meet the expenses for general maintenance and upkeep may be more than what a person would have spent had he owned an independent house and could be much more than what is required for such maintenance. There is every likelihood of such a common fund being misused by the office bearers of the Association or over which there could be some misunderstanding amongst the apartment owners leading to unsavoury situation.

Apartments would fetch a much lower price compared to an independent house during its second sale. Further, any dilapidated single apartment would fetch no buyers since the land on which such apartment is built is owned by all the apartment owners and the seller does not have the exclusive ownership right over the land on which such apartment is situate. On the contrary, a dilapidated independent house would generally get prospective buyers irrespective of the condition of the structure since new structures could be put on such sites after demolishing the existing ones and the seller of such a dilapidated house will transfer his right, title and ownership of the land as well.

How to proceed?

As in the case of purchase of any other property, verification of ownership title is one of the pre-requisites for purchase of an apartment also. Though the builder of apartments provides legal opinion given by his advocate regarding subsistence of marketable and valid title of the vendors, it is always better that the intending purchaser of an apartment gets the title report of the property scrutinized from an advocate of his choice having vast knowledge and experience in property dealings. The legal scrutiny report shall contain detailed information regarding the origin, flow of title, present status of the owner, validity of the OPA, Joint Venture, if any, entered into between the owner and the Developer.

Another very important aspect which requires consideration is to ascertain whether the approval for construction of apartments and the plan has been obtained form the competent authority and to find out whether commencement and completion certificates have been issued by such an authority.

Location of the building is another important aspect which one has to consider before purchasing an apartment. This is mainly because any building which has no proper access to main roads with insufficient public transport and other civic amenities such as water, electricity supply, proper, sanitation, parks, market place, hospitals, schools, etc. would put the purchaser of flat to a great hardship and inconvenience.

Apart from all these, the previous history and record of the Builder is necessary to be verified for which purpose, it is always advisable to visit some of the4 projects executed by the builder in advance.

Powers of the Sanctioning Authority

For grant of approval for building construction and the plans, different authorities are delegated with this power under different statutes. While, the village Panchayats are empowered to give license for construction of building consisting of ground and first floor, the City Municipal Corporation can approve plans for ground plus three upper floors. The BBMP or BDA or any other concerned Town Planning Authority can approve building plans of land for construction of multistoried buildings apart from constructing an independent house. In the case of high rise buildings consisting of more than four floors, No Objection Certificates form BWSSB, BESCOM, Fire force authority, BSNL, Airport Authority of India and Karnataka State Pollution Control Board are to be compulsorily obtained.

It must be kept in mind that anyone who violates the building bye-laws and zonal regulations would expose himself to the risk of demolition of such structure any time in the future.

Conveyance/Sale Deed

Normally, before purchase of an apartment, a sale agreement is executed by the Owner, [represented by the OPA Holder where there exists a OPA holder] and the Builder, agreeing to sell an undivided share in the land in favour of the intending purchaser. While at the same time, a construction agreement is also executed by the Builder in favour of the intending purchaser agreeing to construct an apartment for him. Once construction of apartment is complete, a sale deed is executed jointly by the vendor of the land and the builder/Promoter in accordance with the terms and conditions of the Joint Development Agreement, if any, in favour of the purchaser. The sale deed specifically recites the duties and responsibilities of the buyer and the seller. As regards sale consideration, it is arrived at upon consideration of the various aspects such as location, specification of the work, carpet area and percentage of Carpet area to Super Built up Area and as agreed to between the parties.

Undivided Share of Land

Undivided share is the percentage of share conveyed in the total land along with the apartment to the purchaser. This percentage depends upon the built up area of an apartment and the actual extent of land upon which the apartments are constructed. As the built up area increase the undivided share over the land also increases.

Super Built-Up Area

Super built up area is the saleable area generally applicable to apartments. Super built up area consists of actual flat area plus proportionate common areas like staircase cum verandah, balcony, lift area and other common areas etc.

Since the price of an apartment depends upon the super built up area, it is advisable for the purchaser to have some knowledge about Carpet area, plinth area and super built up area before purchase of an apartment. Generally super built up area should not be more than 25% of the carpet area.

Registration expenses

It is obligatory on the part of the purchaser to bear the expenses incurred towards stamp duty, registration charges and other incidental expenses to be incurred in connection with the registra- tion of the apartment. Infact, the Builders are collecting Sales tax, service tax, statutory deposits for Bescom and BWSSB.

Registered sale deed

Registered sale deed is the document which establishes ownership title of the apartment in favour of the purchaser. While making the Registration of Sale Deed, certain factors need to be verified, such as: Operative words of the Sale Deed; Consideration passing details; Devolution of the Property conveyed; Flow of title of the Property to the Vendor; Indemnity Clauses, etc. .

Further, the property which you intend the purchase is to be properly conveyed to you along with undivided share of land, besides Super built-up area. Generally, in the Apartment land owners will be more than one person, in such cases, they have to be represented by the Developer being the Registered General Power of Attorney holder for the Developer’s share of land; and in case of Owner’s share of land, basing on the Sharing Agreement, they cannot convey the flat individually and instead all the owners jointly only can convey the property because it being undivided share of land and right of ownership of ingress and egress to be conveyed effectively. Further, the Sharing Agreement is just an agreement and it cannot convey any ownership rights. Relying on the sale deed the concerned Revenue authorities issue other supporting documents of title such as Khatha Endorsement, Khatha Extract and the Tax paid receipts.

Registration under Apartment Owners' association

After completion of construction and handing over of the apartments to the purchasers, the owners of such apartments are required to form an association for the general well-being of the owners or residents of the apartments and for maintenance of common areas. Upon formation of such an association, the builder is duty bound to hand over originals of all the relevant title deeds, detailed drawings of electrical, water and sanitary lines to enable the Association to utilize the same for the common good whenever required. The Apartment Owners’ Association can be formed either under the Karnataka Apartment Owners’ Association Act or Karnataka Societies Act.

A word of caution

Do not go by glossy advertisements and tall claims of the builder. There are several instances wherein the apartments purchased by a few are inflicted with certain latent defects which remain unattended to by the builder when once the sale transaction is complete pushing the purchaser to suffer both in terms of comfort and finance. There are many reputed builders available in the market with impressive track records. Choose anyone of them and have a peaceful enjoyment of your apartment.

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