Institute of Real Estate & Finance

LECTURE ON PROPERTY LAWS

By – Adv. Sharang PandeB. Com. DBM, MBA, LLB.

Pande Advocates & Legal Consultants

 Legal Aspects Of Real Estate

Before we move ahead to the main topic, we will first understand the basics necessities required for each and every Legal Document.

We will also understand and know about documents required for buying a property.

What is a Document? Ordinarily the word Document denotes a textual record. But as per sec. 3

of Indian Evidence Act, 1872 A Document means any matter expressed or described upon any substance by means of letters, figures or marks or by more than one of those means, intended tobe used or which may be used for the purpose of recording that matter.

A writing is a document. Words printed, lithographed or photographed are documents. A map or plan is a document, An inscription on a metal plate or stone is a document, A document shall include any matter written, expressed or described upon

any substance by means of letters, figures, or marks or by more than one of those means, which is intended to be used or which may be used for the purpose of recording that matter.

What is an agreement?

According to Sec.2(e) of Indian Contract Act, 1872, every promise and every set of promises, forming the consideration for each other, is an agreement.

It is quite clear from above definition that a promise is an agreement.

When a person to whom the proposal is made, signifies his assent thereto, the proposal is said tobe accepted. A proposal, when accepted, becomes a promise. From this it is clear that an agreement is an accepted proposal. The process of definition shows that a contract is an agreement, an agreement is a promise and a promise is an accepted proposal. An agreement therefore comes into existence only when one party makes a proposal or offer to the other and that other signifies his assent thereto,

In short every agreement is the result of a proposal from one side and its acceptability by the other.

What is Drafting?

Drafting may be defined as the synthesis of law and fact in a language form. Perfection cannot be achieved in drafting unless the nexus between law, facts and language is fully understood.

A legal document is basically an enumeration of the transaction and all terms and conditions agreed to between the parties involved.

Drafting is to transform oral or verbal terms of business transaction in to written form by arranging words in step by step way, so that the terms of the transactions could be seen as they are agreed in chronological order, which should to understand it easily and keep the records of the transaction for perpetual purpose.

Ten Important Steps To Be Followed For Drafting A Document

Ascertain a proper title of the document, which aptly describes the nature of transaction in brief.

Ascertain the parties to the transaction/agreement or the persons executing the document representing the parties. The particulars of identity like father’s / husband’s name, residential / official address, age, date of incorporation in case of company etc. should also be mentioned.

Note down the transaction / agreement and the consideration involved.

State the mode and manner of payment of Consideration.

Note down the various terms and conditions of the agreement. These terms actually state the rights and liabilities of each party under the agreement. These terms should be drafted in very clear and precise language. The words used should be unambiguous so that only one meaning / interpretation is possible. It should be ensured that no condition is left out.

At the end, the document should bear signatures and stamp / seal where necessary of the executing parties. The date and place of execution should also be mentioned.

Some documents also require tobe witnessed by some independent person who si not party to the document.

When stamp paper or stamp duty is necessary in that case it should be paid either on stamp paper or by franking or by stamping now a days.

If document is required to be registered, it should be presented for registration before the appropriate authority, within a reasonable time after execution or signed.

The agreement should be drafted as per guidance prescribed in law and right consideration amount, and purpose of the agreement must be legal.

CONTRACT A Contract can be written, oral or implied

also. However it is always preferable to enter into written contracts as it is always difficult to prove the terms of an oral or implied contract than a written contract.

An agreement may not result in a contract but a contract should constitute an agreement.

Types of Contracts 1 Acquisition Agreement, 2 Agency Agreement, 3

Advertising Agreement, 4 Consultancy Agreement, 5 Construction Agreement, 6 Distribution Agreement, 7 Franchise Agreement, 8 Foreign Collaboration Agreement, 9 Hire Purchase Agreement, 10 Investment Agreement, 11 Jt. Venture Agreement, 12 Service Agreement, 13 Shareholder Agreement, 14 Stock Purchase Agreement, 15 Sale Agreement, 16 Technology Sharing Agreement, 17 Agreement to act as Tech / Mgt. Advisor, 18 Agreement to give Tech. Knowhow, 19 Collaboration Agreement, 20 Manufacturer & Sole Selling Agreement, 21 Underwriting Agreement for Shares & Debentures of a company, 22 Agreement between company and manager, 23 Agreement with security services provider, 24 Brokerage Agreement, 25 Agreement between firm and a broker agency, 26 Agreement between Manufacturer and Commission agent, 27 Dealership Agreement, 28 various employment agreements, 29 Various Labour Agreements, 30 various agreements in Banking and financial Institutes etc.

List of Documents Required

For Purchase of Built Up Properties

DOCUMENT FROM BUILDER Development Agreement & Power of attorney[DAPA] 7/12 extract with original owner name and later with builder’s

name with mutation entries. Property Record Card (PR Card) if Available. ULC Certificate & Order. NA Order OR Gunthewari. Sanctioned Plan / Sanctioned Lay out plan. Commencement Certificate Marketing Broacher Copy of Agreement to sale to be executed by builder or

developer.

DOCUMENTS REQUIRED FROM SOCIETY

Agreement to sale or Assignment, Index II & Registration Receipt. Deed of Conveyance if Executed, Index II & Registration Receipt. Commencement & Completion certificate. Allotment Letter By Society. Registration Certificate of the Society. Share Certificate (Updated) NOC of the Society / Builder. Society Transfer Charges Latest Society / Maintenance Charges Receipt. Society By-laws.

DOCUMENTS REQUIRED IN CASE OF APARTMENT

Agreement to Sale, Index II & Registration Receipt. Deed of Apartment, Index II & Registration Receipt. Deed of Declaration Executed Yes If No Why not yet completed. Commencement & Completion certificate. If not issued then why not? Latest Maintenance Charges Paid Receipt. Latest Electricity Charges Paid Receipt. Latest Municipal Taxes Paid Receipt.

OTHER NECESSARY DOCUMENTS

Is Flat Transferred in the name of current owner Yes / No? If No Then Why?Housing Loan or Any kind of Loan against theProperty Yes / NoIf yes, Status of Loan – Loan Repaid / Payment in process.If paid, Loan clearance Certificate.

In case of buying agricultural land / plot / farm house etc.

Name of Village – Name of the owner Survey / Hissa / Gut No.- Total Area of lands - H R Unit Name of Town (Taluka) - Name of District - Rate Per Acre In Rs. - Access to the land - Type and Condition of land - 7/12 extract of last 30 years - Mutation entry record - Land / Plot Map - Phalni bara / Fragmentation map -

Zone Certificate - Family tree of Owner of the land - List of minors - 4 boundaries of the land - Govt. Rate of that land - Stamp duty & registration charges - Map of the village with s. no. - Govt. Demarcation Copy - List of Other rights holders - Details of Govt. Reservation - Area under forest Area under Hillside / Hill slop - Area under Pond / Lake / River /Brook- Area under Village / Basti - Area under Industrial Zone- Govt. DP Plan Crosscheck - Any other relevant papers - Details of MOU / GPA done if any - Distance from prominent city -

Water availability to the land - Nearest big city - Electricity supply availability - Climatic Condition of area - Conveyance available (Road / Rail) - Distance from Air Port - Distance from Railway station - Distance from National Highway - Public / News Paper Notice - Objections if any - Details of Court Litigation with record – Search and Title report if any -

Legal aspects from customer’s point of view

It would be advisable for buyers or purchasers that when they intend to buy property from Builders or in resale market, one should always approach good lawyer, who can investigate title documents of the property and give you sincere and true advice about the same.

It is very much necessary to check all documents to be in line and nothing is missing so that one should not face any problem in future.

Every customer or purchaser has to be very much alert while buying a property, because buying property involves huge stake or amount, many times is one time investment for buyer, and there are chances of litigation involved in property transactions, hence a buyer should never be careless while buying property.

Inspecting Legal Aspects does not mean only checking legal documents or title documents, however it is necessary to check other parts like whether plan is sanctioned or not?, is the land on which building is being constructed has got valid residential NA permission, the building is not constructed on land fall in excess of Urban Land Ceiling Act; the directions of the flat and building are rightly mentioned.

Many other legal necessities are already discussed in our earlier discussion.

Legal Aspects – Purchasers Point of ViewDeficiency in servicesPoor construction quality.Manufacturing faults with in 3 years from

handing over possession.No Completion / Occupancy Certificate.Construction not as per sanctioned plan.Articles different than promised.Non execution of conveyance deed.Misleading Information in broacher or

advertisement.

Legal Aspects – Relating To Construction ActivityDevelopment Agreement & POALand / Plot Purchase Agreements Joint Venture AgreementsAgreements with PurchasersConveyance Agreements of Society / ApartmentVarious PermissionsSanction of Plan as per normsConstruction contractsLabor contractsConstruction Insurance.Safety measures

Legal Actions Taken - In case of construction quality is not upto mark. In case Quality Material is not used. In case construction not completed on promised

date. In case completion certificate is not obtained.Civil ActionsCriminal ActionsActions Under Consumer Protection Act. In case conveyance is not executed. In case coercive and one sided agreement is

drafted.

Other Legal Liabilities -Accident On SiteAccident of worker.Death of worker.Insurance Workman Compensation.Safety MeasuresTrade / Workers UnionEtc.

If You Have Any DoubtsPlease Ask

THANK YOUSharang B. Pande

Advocate9823054740

pandeassociates@gmail.com Pande Advocates & Legal Consultants

Gr. Floor, Rudra Gauri Apartment, 3rd Lane B/h SBI Karve Road Branch, 3/9,

Erandwane, Pune – 411004.