Archive for the ‘Property’ Category.

How to evict your tenant?

Karnataka Rent Act 1999 provides various grounds, on which a tenant can be evicted from a premise by the Landlord. Every such eviction shall be in pursuance to an order from the competent Court. The Court can order the eviction of a tenant on the following grounds:

a) If a tenant has not paid the whole of the arrears of the rent, within two months from the date on which a notice of demand for     payment has been served on him by the landlord.

b) If a tenant, without the consent in writing of the landlord, sublet, assign or otherwise part with the possession of the whole or     any part of the premises.

c) If a tenant has used the premises for any purpose other than that for which they were let, with out the consent of the landlord.

d) If the tenant or any members of his family has not been in occupation thereof for a period of six months.

e) If the tenant has not been in occupation thereof without a reasonable cause for a period of two years.

f) If the premises have become unsafe for human habitation and are required by the landlord for carrying out repairs which    cannot be done with out the premises being vacated.

g) If the premises are required by the landlord, for the purpose of immediate demolition, as ordered by the Government or any    local authority.

h) If the premises or any part thereof are required by the landlord for carrying out any repairs which cannot be done without the    premises being vacated.

The other grounds by which, a tenant can be ordered to be evicted from the rental premises, by a competent court are:

a) If the premise consists of not more than two floors, and the same are required by the landlord, for the purpose of immediate     demolition, to rebuild the same.

b) If the tenant, his spouse or dependent living with him, has built or acquired a premise.

c) If the premises were let to the tenant for use as a resident during his employment under the landlord and the tenant has ceased    to be in such employment under the landlord.

d) If the tenant has caused substantial damages or alteration to the premises which has the effect of changing its identity or    diminishing its value.

e) If the tenant has been convicted with causing nuisance or annoyance to a person living in the neighborhood.

f) If the tenant has been convicted for using the premises for illegal or immoral purpose.

g) If the tenant has used the premises in a manner contrary to any condition imposed on the landlord by the government or the     local authority while giving him a lease of the land on which the premises are situated.

The other grounds by which, a tenant can be ordered to be evicted from the rental premises, by a competent court are:

a) That the tenant in his reply having denied the ownership of landlord, has failed to prove it or that such denial was not made in    a bonafide manner;

b) That the person in occupation of the premises has failed to prove that he is a bonafide tenant,

c) That the tenant after having agreed with or having informed the landlord in writing the date to vacate the premise does not do     so on or after the date so agreed or informed;

d) That the premise let are required whether in the sane form or after reconstruction or rebuilding, by the landlord for occupation     for himself or for any m4enmber of his family if he the owner thereof, or for any person for whose benefit the premises are     held and that the landlord or such person for whose benefit the premises are held and that the landlord or such person has no     other reasonably suitable accommodation;

e) Further when a Government servant or employ of local authority is provided with official quarters and if such servants own a     premise in his work place and he is asked to vacate the quarters on that ground then he is entitled to immediate possession, of     that premises, within 60 days from the date of eviction order.

The members of armed forces are also entitled for to recover immediate possession of the premises. The person who has served in the defence section and who has let out his house to the tenant is entitled to recover immediate possession.

Tax implications of a home loan

For many people buying a home is a dream wish. For some, especially employed with huge pay packs, it is a means of saving on the taxes.

The Income Tax Act allows a person to deduct the total interest paid on the home loan from his or her taxable income, subject to a maximum of Rs 1,50,000/-. This is available only if you are staying in the house in which you took the loan. If you have rented out your house property, then the Act allows you to deduct the interest amount from the rental income from the house.

Further a home lonee is entitled to a rebate, to a maximum of 20%, with a ceiling of Rs 20,000/-. However if your gross total income exceeds Rs, 5,00,000/- then you are not entitled for a rebate. The rebate is calculated on the principal amount paid towards loan clearance.

However it should be kept in mind, the tax benefits will not accrue to an assessee, if the property is located in another state. If the property is located in another city, then the benefit on rebate will not be applicable. For a plot of land tax benefits are nil.

The maximum limits of tax benefits are per assessee. So couples, who are joint applicants/joint owners for home loans, can claim respectively, benefits up to the maximum limits

Clarifications on the regularization scheme of Karnataka Government (Part-2)

1. Many Banks are providing loans to pay the regularization fees. Some of them include SBI, SBM, Indian Overseas Bank, Bank of India, Axis Bank, HDFC Bank and Canara Bank.
2. BBMP has also provided hotline services from 12 am to 2 pm to give clarifications about the scheme. The numbers are 080-32440101, 32446161, and 32448181.
3. So far, around 1.6 Lakhs of applications have been sold by BBMP. But only around 2500 filled applications have been received.
4. BBMP has made some tie-ups with Institute Of Engineers for assistance to fill up the regularization application forms.
5. For properties coming within the purview of BDA, applications forms can be collected from the office of BDA.
6. Developments made in agricultural zone or green belt cannot be regularized under the scheme.
7. Constructions below high-tension electric lines, on civic amenity sites, land abutting storm water drain, tank bed, river course or canal cannot be regularized under the scheme.
8. The regularization fee cannot be paid in installments. The entire fee has to be remitted in the form of DD at the time of filing the application.

Clarifications on the regularization scheme of Karnataka Government (Part-1)

The regularization of unauthorized constructions and developments proposed by the Government of Karnataka is going on from 16-09-07 and it is to be completed by 14-12-07. Though the Government has made extensive arrangements for the successful realization of the objectives of the scheme, the public is left unanswered pertaining to many of their queries and clarifications. Here are some facts about the regularization scheme. 

1.     The regularization scheme is applicable all over Karnataka.

2.      Regularization is required for formation of sites, land use violation, set back violation, and FAR violation.

3.     Land use violation will be regularized by BDA,or the concerned planning authority.

4.     For set back and FAR violation BBMP (in Bangalore) and local authorities in other areas are authorized to regularize.

5.     The application forms are available from Bangalore one centers, post offices and Apex bank branches.

6.     For residential buildings set back violation is permitted up to 50% and for Non-residential buildings up to 25%.

The usage of basements for residential or commercial purpose cannot be regularized under the scheme.
(———To be continued)

Roads notified for road widening in Bangalore (Part-2)

The Bangalore Mahanagara Palike has notified the following roads for road widening and for granting Transfer Of Development Rights vide a notification dated 18-01-05.

1.Cottonpet main road (from Kempegowda bus station to Mysore road)
2.Avenue road (from K.R Market to K.G road (SBM Circle)
3.Mysore road (from Sirsi Circle to Ring road)
4.Mahalakshmi Layout and Nandini layout Main road via Ayyappa temple & Singapore layout (from West of chord road to Outer ring road in Nandini layout)
5.K.R road (from Subbaram chetty circle to M.M industries behind Yediyur tank)
6.Sulthan road (from Royan circle to Briyand square)
7.1st main Chamrajpet( from Royan circle to 3rd cross Chamrajpet)
7.3rd cross Chamrajpet & Bull temple road: from BHS school to 1st main Chamrajpet
8.Link road: from Gitanjali theater to 1st main Sheshadripuram
9.Padarayana pura main road: from Pipe line road Vijayanagar to Binny Mill tank bund road
10.Bull temple road via N.R Colony Channamma tank bed & 30th main BSK 3rd stage: from BMS College to Ring road in BSK 3rd stage petrol bunk near junction of ring road & Puttalingaiah road
11.K.G Road: from Mysore bank circle to Elite hotel and Upparpet police station
12.Dr. Ambedkar road (Tannery road): from Madhava Mudaliar road (Madras railway line) to ring road
13.Hennur road: from pottery road to ring road
14.Banaswadi road & wheeler road: St. John Church road to ring road
15.Magadi road: from Housing board colony to ring road near Beggars colony
16.Kurabarahalli main road in ward 16: from Shankar Mutt to Pipeline road
17.17th main J.C Nagar in ward 13: from pipeline road to bridge in outer ring road
18.5th cross road Malleshwaram: from Mohammaden block to Geetanjali theatre
19.Commissariat road: from Mayo hall Jn to D’souza circle
20.Race course road: from Ananda Rao circle to Basaveswara circle
21.Kasturba road: from Siddalingaiah circle to Queens statue circle
22.Suranjan Das road: from Kuvempu circle (Airport road) to Old Madras road
23.Infantry road: from Ali Askar road to Main Guard cross road

Roads notified for road widening in Bangalore (Part-1)

The Bangalore Mahanagara Palike has notified the following roads for road widening and for granting transfer of development rights vide a notification dated 18-01-05.

Name of the Road: ———-From:————–To:
1.Bellary Road———-Hebbal Flyover———-Minsk square
2.Palace road———-Mysore Bank Circle———-High ground Police station
3.Sheshadri road———-Central Jail Cross———-K.R Circle
4.Nrupatunga Road———-K.R Circle———-Hudson Circle
5.Vidhana Veedhi———-Gopalgowda Circle———-K.R Circle
6.Mission road———-N.R Road———-K.H road
7.Devanga hostel road———-Hudson Circle———-Mission Road
8.Sankey road———-Kaveri theatre jn———-Yeshwanthpura circle
9.Jayamahal road———-Mekhri circle———-Cantonment railway Station
10.Hosur road———-Central Silk Board jn.———-Yankey Factory jn
11.Hosur Luskar road———-Yankey Factory———-Richmond road Shooley circle
12.Victoria road———-D’souza circle———-Airport road.
13.Lower Agaram———-Hosmat hospital———-National games, Road, Koramangala.
14.Sarjapura road———-Kendria Sadana road———-Agaram Road Ring Road cross.
15.Hosur road———-Lalbagh main gate———-Yankey Factory via…Diary circle.
16.Dickenson road———-M.G Road———-Ulsoor road.
17.Ulsoor road———-Dickson road———-Kensington road
18.Kensington road———-M.G road———-Murphy Road
19.Murphy road———-Ulsoor lake———-Old Madras Road
20.Old Madras road———-Trinity circle———-Murphy road jn Via Ulsoor
21.Airport road———-Trinity Circle———-Airport Helicopter Division
(——To be continued)

Regularization of unauthorized developments and constructions (Part-2)

The Handbooks containing details for regularization are available at Bangalore One Centers, Post Offices and Apex Bank branches. The applications come along with the handbook. There are worked examples in the Handbook for various types of regularization. If the building that is to be regularized has more than two floors, a structural engineer has to certify that the building is structurally safe. The application should be accompanied by the required documents and respective fees.

After 14th December 2007, the applications will be processed for their corrections and if the violations are within permissible limits, then the screening committee will recommend for regularization. The competent authority will issue a certificate in this regard.

The BBMP has set up information kiosks at their 8 Zonal offices, various Citizen Service Centers, BBMP complexes, various BDA Complexes, KSRTC and BMTC Bus stands.  If one fails to apply for regularization within the prescribed time, then supply of water and electricity to the building will be liable for disconnection.

Encroachments on government lands, on neighbor’s lands, constructions on basements, land reserved for civic amenities, land below high tensions wires, developments in the agriculture zone or the green belt areas etc. cannot be regularized.

Regularization of unauthorized developments and constructions (Part-1)

The Government of Karnataka has amended the Karnataka Town & Country Planning Act, 1961 as well as the Karnataka Municipal Act, with a view to regularize certain unauthorized developments and constructions. For violations pertaining to buildings, setbacks and floor areas, the Screening Committee constituted under BBMP will process the applications. For regularizations of unauthorized lay outs and sites or for change in land use, BDA is the authority to regularize the same and subsequently the Screening Committee of BBMP will regularize the building violations therein.

Applications for regularization are of three types. The yellow color application is for regularization of unauthorized lay outs and plots; pink application form is for change in land use; the green application form is for applying for regularization of building violations. The present scheme is available only for a limited period of three months. It has commenced from September 15th 2007 and will be in force till 14th December 2007.

Under this scheme, setback violations, up to 50% percent in case of residential buildings and up to 25% in case of non residential buildings can be regularized. Similarly FAR violations up to 50% in case of residential buildings and up to 25% in case of non residential buildings can be regularized. Similarly buildings with land use violations and violations pertaining to sites in both converted and non converted land and buildings constructed on non converted lands can be regularized using this one time opportunity. (to be continued———–).

How to draft a lease agreement?

Normally only advocates and licensed deed writers are permitted to draft deeds. However on many occasions general public draft common deeds relying on the models they have. A lease agreement or a rental agreement is a very common document used by the public. In many cases the real estate agents themselves take upon the role of a deed writer. However, let us see the essential requirements of a lease agreement.

The person who lets out a premise for lease is known as Lessor. The person who takes the premises for his use is known as the Lessee. The premise which is the subject matter of the lease is the Leased premise.

A lease agreement shall contain the time period of the lease. A lease agreement for a period of more than 1 year need to be registered in the state of Karnataka. Hence the usual practice is to go for a lease of 11 months and then renew the same for further periods. The lease agreement shall be properly stamped.

The lease agreement shall mention the rent reserved for the premises as well as the date of payment of the same. Similarly it shall contain the details of the security deposit paid. Normally the security deposit shall not bear any interest.

There should be a proper description of the premises leased. Further the responsibility of payments of electricity bills, water bills, telephone bills etc, is on the Lessee. However, it is the duty of the Lessor to pay the land and building taxes.
The mode of termination of the lease shall be clearly spelt out in the lease agreement. Similarly there should be a provision for the issuance of notices to each party.

The terms Lessor and Lessee shall be deemed to include their successors, executors, legal representatives and permitted assigns. In the schedule, the leased premises should be described properly including the municipal number, the area and floor of the leased premises.

It shall contain the mention of the nature of activity permitted in the premises. Further there should be a mention that the Lessee is not permitted to sub-let or sub-lease the premises.

Normally, there is one clause to the effect the Lessor will have the right to inspect the leased premises after giving sufficient notice to the Lessee. Few agreements provide for a ‘Lock-in-period’ where neither of the parties can terminate the agreement.

Usually, late payment of the rent attracts interest at 18% per annum. It is a duty cast upon the lessee to deduct TDS if applicable and to furnish TDS certificate to the Lessor in time.

In case of apartments and shopping complexes a separate maintenance charge is also demanded for the maintenance of the common areas. There should be an understanding as to whether this is included in the rent or not.

Duties and liabilities of the promoters of an apartment (Part-II)

Similarly the promoter shall not give possession of the apartments to the purchasers until he obtains a completion certificate / Occupancy certificate from the concerned authorities.

Under law, the promoter is duty bound to make a full and true disclosure of all outgoings, including ground rent, local taxes, water, electricity charges, assessment, interest on any mortgage etc. Further the promoter shall give the buyer true copies of the documents pertaining to the apartment.

Before accepting any advance payment or deposit from any purchaser regarding the purchase of a flat, a promoter shall enter into a written agreement and the said agreement shall be registered. Similarly the promoter is liable to maintain separate accounts of sums taken as advance or deposit and to be a trustee thereof and shall disburse them for purposes for which they were given.

It shall be the duty of the promoter to pay all outstanding on the flat till the property is transferred to the purchasers, provided he has collected the same from the intending purchasers. Similarly the promoter cannot unilaterally alter or add to the plans and specifications without the consent of the persons who have agreed to take the flats.