advocateselvakumar

Tuesday, 31 May 2016

PROFESSIONAL APPROACH OF KHB

KarnatakaHousing Board in its press release says about their consumer friendly policies, which are as under:

Twin factors that are propelling Karnataka HousingBoard are its Vision, to improve the quality of life by establishing self-contained communities with state of art amenities that are in harmony with the environment, and its Mission.

In pursuance of its objectives, the Karnataka Housing Board is gearing up to meet the new challenges by restructuring and computerization of its Offices by many innovative customer friendly measures and transparency in its entire functioning.

Allotment of new properties will be as per the regulations of KHB.

All those registered with KHB may get confirmation of their registration by paying initial deposit. However, priority would be given to those who have registered earlier and paid initial deposit.

Balance amount of the cost of the house/site should be paid in three quarterly equal instalments before the completion of the project as soon as intimation is received; however, failure leads to cancellation of the allotment and forfeiture of 25% of initial deposit.

Discounts to the allottees will be allowed for delay in delivery of properties.

Absolute Sale deed will be issued at the time of handing over the possession of the house/site, on full payment.

Another significant development is the importance given to redressal of public grievance. Help desk at Central Office, Public Relation Officers in all field Offices, timely response to grievances, are some of the customer friendly measures.

Land Audit is being undertaken to verify the lands procured and acquired.

KHB aimed at Zero old liability by clearing all its old liabilities by resources of selling the existing properties and intensive recovery drives. Interactive voice response system will give the information to public round the clock. They may also record their grievances over telephone.

The online monitoring of the projects has helped to ensure timely completion of the project, because of close supervision, review, evaluation and follow up action.

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Monday, 30 May 2016

Construction firm in the dock for deficient service

Construction firm in the dock for deficient service

The Karnataka State Consumer Disputes Redressal Commission has found, Kattada, a Partnership firm in High Grounds, guilty of deficient service and has ordered it to pay Rs.10,000/- as compensation to a consumer for causing him mental distress.

The Complainant, had complained against the said firm Kattada to the Consumer Redressal Commission and requested it to direct Kattada to execute and register the sale deed in his name in respect of the flat bought by him from them, and to provide a covered car parking area in front of the main building and servant quarters on the terrace as assured by them. The Complainant had also demanded one set of certified copies of the documents of title related to the said flat.

The Complainant told the Commission that the firm constructed flat No. 301 at RMV Extension, but without the parking area in front of the main building and servants quarters on the terrace. They also did not provide the toilet on the terrace.

On going through the records and hearing both the parties, the Consumer Redressal Commission told the firm Kattada to provide the parking area in front of the main building and servant quarters, and to furnish the certified copies of documents of title relating to the flat, immediately to the Complainant.

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Property Documentation

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Saturday, 28 May 2016

OPPORTUNE TIME TO TRANSFER HOME LOAN

OPPORTUNE TIME TO TRANSFER HOME LOAN

Construction/Purchase of House requires substantial funds and repaying in given time; and it attract normal equated monthly instalments. While some other loans are required to repay in less than five years period and such loans attract heavy equated monthly instalments; and this sort of facility is more suitable to avail finance for repairs and renovations.

Due to the reduction of rates by the RBI, the normal lending institutions/Banks are bound to reduce the interest rates on home loans, as such, this is the most opportune time to transfer the loans to exploit the benefit of low interest rates.

Low interest rates are based on tenure of the loan. Some financial institutions link it to the amount of loan. Borrowers who have availed loans at higher interest rates, may examine the following parameters:

(a) balance outstanding;

(b) balance repayment period;

If the balance repayment period is less than five years, they may transfer the loan to an institution which charges less than 9%. They may choose to pay the same EMI, which they were paying earlier, so that loan gets closed earlier resulting in considerable savings in interest. If not affordable, they may also agree to repay the loan in 5 years with reduced EMI.

In case, the balance repayment is more than five years, examine the balance outstanding and the EMI affordable; and in such case, if the balance repayment period is more than 10 years, transfer the loans, where less interest is charged

While transferring the loans, consider the method of interest calculations. There are various methods like:

Shifting from annual reducing to daily reducing in the present low interest period is prudent to derive maximum benefits.

Timing oftransfer:

Benefits may not be maximum, unless the transfer of loan is properly timed. The borrower should ascertain the type and date on which interest is charged. In case of annual reducing method, the interest is charged on 31st March every year. In case of monthly reducing, generally interest is charged to loan on 5th of every month. As such, transferring the loan on the day on which the interest is charged or slightly earlier is advisable.

Forclosure penalty and admission charges:

Penalty of generally 1% on the outstanding balances is charged on loans transferred. Similarly processing fee/admission charges are levied on incoming loans. Compare the charges with the interest saved before requesting for transferring the loans.

Finally one has to decide whether to prefer floating rate or fixed rate on transfer. As the interest rates have been reduced, fixed rate seems to be a better option, so that one may shift to floating, in case of further reduction.

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Friday, 27 May 2016

HOLDING OF PROPERTY BY A PARTNERSHIP FIRM

HOLDING OF PROPERTY BY A PARTNERSHIP FIRM

Partnershipis a relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all. The persons are called Partners. The name of the business concern is known to be a ‘Partnership firm’. The documents detailing the term of the agreement, powers of the Partners and objectives are enumerated in detail in a document known as ‘Partnership deed’.

Partnership act governs the conduct of the Partnership firm. The minimum number of partners in a partnership firm is stipulated as ‘two’ and the maximum number is ‘10’ in case of firms doing Banking business while in case of firms doing other forms of business it is stipulated as ‘20’.

Further, a ‘Minor’ can also be admitted in a partnership firm, but only to the benefit of the partnership. The Partnership is to be registered with the Registrar of firms and on registration, the registration certificate so issued to be held as a permanent document.

Partnership is not a legal entity. The name of the Partnership firm is only a collective expression to represent all partners. Partnership firm does not have a separate identity different from partners. The partnership firm in its capacity cannot sell or purchase property. A Partner has no implied authority to sell or buy any immovable property on behalf of the partnership. The legal entity is the partner himself. All partners in their individual capacity should also join as parties to the agreement to sell, conveyance deed and execute it in their individual capacity.

At certain times, a single partner represents the partnership firm, which is not a correct practice. In such cases, the said partner should have power of attorney or authority of other partners to execute the documents. Even if a partnership is formed between an individual and a partnership firm the deed of the partnership should be signed by all the partners of the firm.

When an immovable property is transferred to a Partnership firm, it will vest in all the partners of the firm and not in the name of the Partnership firm, since the firm has no separate legal existence or entity. Transfer of property by or in favour of a firm without the names of all the partners is ineffective.

However, the distribution of the assets of the firm on dissolution, where a partnershipproperty is divided or distributed among partners or taken over by one or more partners from others, does not amount to transfer of property and needs no registration. Such a deed attracts stamp duty under a separate category Dissolution deed and not as a conveyance deed.

If the property purchased was in the name of Partner of the Partnership firm and on his death, his share, right, interest in the property would vest in his heir or legal representatives. In case of transfer of such

Property, the heirs / legal representatives of the deceased partner should also join in the execution of the document.

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Property Documentation

Property registration