Saturday, 31 January 2015


Public generally oft use encumbrance certificates in property transactions because the sole proof to determine free and marketable title of the seller. they're underneath the impression that the encumbrance certificate would disclose all the fees created on a property. But, it's not thus. There could also be many kinds of encumbrances, which can not be mirrored within the encumbrance certificate. the appliance for encumbrance certificate is to be submitted at the territorial Sub-Registrar's workplace underneath whose jurisdiction the property falls. The prescribed type|form} for getting AN encumbrance certificate is form No. 22.

In order to induce a correct and valid certificate, it's important that the soul ought to clearly mention within the application the amount that the encumbrance certificate is needed, careful description of the property, its measurements, boundaries, and therefore the one that is applying.  The encumbrance year commences from April first of a calendar and closes on March thirty first of following civil year. Any fraction of the encumbrance year attracts fee for the total year. The fee prescribed is for single property and per individual form.

Form No. 15 or 16

The encumbrance certificate is issued either in type No.  15 or 16.  If the property doesn't have any encumbrance throughout the actual amount that encumbrance certificate is sought-after, then encumbrance certificate in type No.16 are going to be issued i.e., Certificate of relative quantity Encumbrance are going to be issued. If the property has any encumbrance registered throughout the actual amount that encumbrance certificate is sought-after, then encumbrance certificate in type No.15 are going to be issued.  

The certificate in type No.15 discloses the documents registered in respect of the property, the parties to the deed, nature of encumbrance, amounts secured or transacted within the aforesaid deed, registered range of the document, book no., volume no., and date. The encumbrance certificate issued continually are going to be within the language within which indexes square measure ready specifically Registrar or Sub-Registrar's workplace. If the indexes don't seem to be in English and therefore the soul needs certificate to be ready in English, then the request of the soul are going to be complied with to the extent potential. In state, currently computerised encumbrance certificates are issued.

There is a provision for review of the records of the property maintained within the workplace of the Sub-registrar by the soul himself/herself. just in case the soul prefers to not exercise this authority and simply submits application for issue of encumbrance certificate for a specific amount, the department would be issuance the encumbrance certificate with due diligence and care.  However, there's a rider clause within the computerised encumbrance certificate to state that the department shall not take responsibility for mistakes, if any, within the encumbrance certificate.


Though AN encumbrance certificates discloses all registered encumbrances on a specific property throughout a specific amount, it's bound limitations. The encumbrances disclosed within the certificate are for {the amount|the amount} that certificate is issued and encumbrance created throughout the amount previous this era or throughout the later period don't seem to be mirrored within the certificate. The encumbrance certificate is issued in respect of the property as careful within the form and not as per the registered documents of the property.  Thus, if the outline of the property delineated  within the application doesn't match with the main points of the property as shown within the registered documents, then details of such documents don't seem to be mirrored within the encumbrance certificate. 

The encumbrance certificate discloses the encumbrances created by documents that are registered during a explicit workplace.  In different words, it's the extract of the property register maintained within the Sub-Registrar's workplace and therefore the document that isn't registered and whereunder any charge is made doesn't get mirrored within the encumbrance certificate. Further, there are bound documents that registration isn't required however registration is facultative.  These documents embrace instrument documents, document making lease for a amount of not surpassing one year, any decree or order of a court, or award. Since these transactions don't seem to be mandatorily registerable, they are doing not notice any mention in encumbrance certificate.

Agricultural Land

Agricultural lands are usually heritable. The modification of ownership is recorded in revenue records, mutation register of village panchayath.  Such changes of possession don't seem to be registered. intrinsically encumbrance certificates don't replicate verity possession of the agricultural land. R.T.C, Mutation extracts provide complete details of modification of possession, details of possession, conversion of agricultural land to non-agricultural functions.  Therefore, it's higher to insist and accept RTC and mutation extracts just in case of agricultural lands additionally to the encumbrance certificate.

It is continually wise to get encumbrance certificates for a minimum amount of forty three years and to verify whether or not the encumbrance certificate is issued for the entire amount of your demand and whether or not it contains the boundaries and therefore the measurements of the property, signature of registering authority and therefore the workplace stamp with the exception of revealing the names and therefore the signature of the persons World Health Organization have searched and verified the records of the property. it's conjointly wise for the possible vendee of property to examine the property in person and to verify and ensure that the first title documents are obtainable with the seller. additionally to the present, some further safeguards like paper notification, looking in territorial courts for any unfinished cases may additionally be undertaken to guard the interests of the vendee. 

It is suggested that for tracing the clear and marketable title of the property, the purchasers mustn't principally accept the encumbrance certificate issued by the Registrar or Sub-Registrar’s workplace, however needs to examine all different relevant documents, like title deeds, latest khata certificate, khata extract, and tax paid receipts.

Property Registration

Thursday, 29 January 2015


Sale Deed is additionally referred to as conveyance deed. this is often the document by that the vendor transfers his right to the client, who, in turn, acquires AN absolute possession of the property. This document is dead following the execution of the sale agreement and once compliance of varied terms and conditions elaborated within the sale agreement.

Before the execution of the sale deed the title of the vendor is to be established positively. Copies of the documents of title should be scrutinized by AN advocate, well versed and knowledgeable about in property dealings.

If there's any encumbrance on the property, such encumbrance is to be cleared by the vendor at his price.

All statutory payments like land tax, water and power charges and the other payments due on the property ought to be cleared before the execution of the Sale Deed. Any previous charges or mortgage ought to be clear before execution of the Sale Deed.

Clearances, and permissions needed to be obtained by the vendor ought to be obtained before execution of the sale deed.

Latest encumbrance certificate of the property, following the date of the sale agreement up to the proximate date of sale deed ought to be obtained, and such certificate ought to be of nada encumbrance.

All the persons having interest within the property ought to be created parties to the deed. explicit attention has to be paid just in case of purchase of properties from a company, Partnership Firm, Hindu Undivided Family, Trust, Power of professional Holder and Minor.

A draft Sale Deed, containing full details of the parties, advance quantity paid, mode of balance quantity collectable, receipt of the balance quantity by the vendor, turning in the initial documents of the property, turning in the possession of the property, turning in the authorization letter to transfer power and water meters, linguistic communication of the appliance for transfer of khatha, title of the vendor of the property, indemnifying the client just in case of defect within the title, easement rights, are going to be ready by the purchaser’s advocate. Such draft Sale Deed ought to be captioned as draft Sale Deed and shall be signed by the purchaser’s advocate.

A copy of the draft Sale Deed are going to be given to the vendor for his approval. the vendor and his advocate can verify the draft sale deed and approve it, or could recommend appropriate deletions, additions or amendments. the aim is to induce the proper intention of the parties to the Sale Deed.

On approval of the draft Sale Deed, constant has got to be ready on a top quality or a document paper. In state it should be ready on sensible quality paper like bond or written report and therefore the tax is also paid by method of demand draft or pay order or money. the precise quantity of tax ought to be discovered from the Sub Registrar workplace. client is vulnerable to pay the tax as per price declared within the documents or as per the Sub- Registrar workplace price whichever is higher.


After the Sale Deed is ready all the parties to the deed shall execute it by affixing full signatures. every page ought to be signed by all the sellers. Any over writings, cancellations, erasures and additions need to be documented by full signatures of the parties.

The execution of the Sale Deed needs to be witnessed by 2 witnesses. The witnesses shall offer their full particulars and addresses.

Sale Deed of stabile property important  quite Rupees 100 wants obligatory registration. The punctually dead sale deed ought to be conferred at the territorial sub-registrar workplace. All the parties, together with the confirmation witnesses shall be gift at the time of registration and admit the execution. client additionally has got to be conferred for the execution of the documents at the Sub Registrars workplace. just in case the client isn't in position to be gift before Sub Registrar, he will offer Power of professional to any of his persons to sign and gift the documents on his behalf. just in case vender signs the Sale Deed, it's obligatory that through the registered Power of professional holder solely will represent for him to gift the documents before the Sub-Registrar.


In state, the Sub-Registrars workplace, take the photos of client, vendors, witness and additionally their thumb impressions and print constant on the Sale Deed.

The vendors has got to turn out all the initial documents referring to the property to the client. If the property is split into one or additional parts, the vendor has got to offer certified copy or xerox of the documents to the client and has got to offer declaration to it result. Generally, the larger portion holder ought to get the initial documents

There is a point in time for presenting the documents for registration. The point in time is four months from the date of execution. thenceforth a grace amount of another four months is allowed on payment of penalty. the utmost penalty is 10 times of registration charges.

At times, the registering authorities could dispute the tax paid. In such cases, the client has AN choice of paying the extra tax by method of money or payorder. The client could contest it within which case the Sub Registrar can do the unfinished registrations and send it to the Registrar of underneath Valuation to reach correct tax.

Parties need to quote their revenue enhancement Permanent Account variety just in case the transactions area unit worn out money for the property that values quite Rs five,00,000. Parties, WHO haven't however been assigned Permanent Account variety, can need to file type No.60 or type No. sixty one just in case of Agriculturists.

The purchaser’s advocate has got to take all precautions whereas getting ready Sale Deed. it's a most vital document and decides the fate of the client.  The client has got to preserve the Sale Deed terribly safely.

Tuesday, 27 January 2015

An Article Regarding "Franking of Stamp Papers"

Common man needs small denomination of the stamp papers for various purposes like affidavit, Rental agreements, agreements, undertaking, power of attorney, bonds, memorandum of understanding etc. Public needs stamp duty of the denomination of  Rs20, 50,100 & 200 for  executing  affidavits, rental agreement,  Indemnity Bonds and Sale  Agreement  respectively . These are all the common requirement of stamp duties for giving legal sanction to any kind of documents. Now-a-days  the government departments are insisting for obtaining affidavits and indemnity bond  for various purposes.


Previously, department of stamp duty was appointing the authorized stamp vendors to sell the stamp papers for the above said documentation purpose. It was like a public fare price shops, wherein such stamp papers were easily available not only in all the important places but also in a very remote and interior villages. Infact, Stamp papers were available even in the late night also. Any understanding between the parties will be reduced in writing on the stamp paper and would be signed on that, as the same will be binding on both the parties. After the Telgi scam, from 01/04/2003, using stamp papers for the purpose of any documentation has been totally prohibited in Karnataka. 


After the amendment of Section 10A of the Karnataka Stamp Act, 1957, provision has been made for payment of stamp duty by DD/Pay Order or Bankers Cheque, drawn in favour of the concerned Sub-Registrar office for sale deeds and other documents. Obtaining stamp papers of  small denomination, only two option are available. One is, franking the stamp paper  in the concerned sub-registrar office and another one is purchasing the document  sheet from the state bank of Mysore. Unfortunately, both the modes of obtaining stamp papers are very tedious since it involves lot of  procedure and formalities. Further, the said facility is avaible to the public only for  5 to 6 hours every day.  Infact only in few  branches of State bank of Mysore the facility of  issuing stamp papers are available. In such case, public has  to fill up the challan and  mention the denomination for which stamp paper is required and accordingly  has to pay the requisite commission charges on such amount and later has to stand on a very long queue. So getting a stamp paper in SBM is a time consuming process. Again, such authorized branches of State bank of Mysore are not much interested in issuing this stamp paper rather they are concentrating more on their banking business. Infact, among those authorised branches also, only one or two banks only will issue the stamp paper on that particular date and priority will be given   for their regular customers of the said Bank.

Franking procedure:

The matter has to be typed in the white paper or document sheet and has to be submitted for franking along with the application, but without date and signature of the parties to the said document. This facility is available in certain particular sub registrar offices only such as Jayanagar, Gandhinagar, Basavanagudi, Shivajinagar, Rajajinagar, Kengari, Anekal Sub registrar offices, this facility is available and the franking time is only  between 10:30 A.M. to 3:30 P.M, excluding the lunch hour. Rules and regulations varies from one sub-registrar office to the other. If the party produces the documents for franking, the concerned sub-registrar may refuse by various reasons. For example, if a person made a lease agreement more than 11 months, or that the agreement involves advance amount or if GPA is executed in favour of person other than his/her family member then it may be refused due to insufficient stamp duty. However, it is not a duty of the sub-registrar where the franking of the stamp duty is done to ascertain the stamp duty, but it is by the District Registrar or the Court which should decide the requisite stamp duty on any document at the time of presenting the documents.

Fake Papers

For the past two years, small denomination stamp papers were available easily everywhere. After abolition of the stamp papers, government has not taken any initiative to get the small denomination of the small papers by easy method, which has forced the public to buy the paper in the easiest way in the Taluk office and sub registrar offices entrance, which has resulted in the creation of lot of (small Telgis). Infact, two months ago, City Crime Branch (CCB) raided few of the Sub-registrar offices and Taluk Office and have booked 38 illegal franking, out of which 21 cases in City Civil Court premises and the rest at Mayo Hall, Yelahanka, Peenya, Yeshwanthpur, Koramangala and Jayanagar and arrested nearly 47 agents for having involved in the circulation of fake stamp papers and franking ink and pads, seals and franked blank sheets were also seized . These fake papers are either franked from their own franking machineries or from the original stamp papers, they are using color zerox. People should approach the  authorised Sub Registrar offices to get the stamp paper  embossed on the typed text before signature.

Franking machine   

The Franking Machines shall be used for franking impression of Stamps on all kinds of instruments on which Stamp duty is payable under the provisions of Indian Stamps Act 1899 and the Karnataka Stamp Act, 1957 and the rules made there under.

Usage of Franking Machine by the Proper Officer  

•    Franking Machines shall be installed before the Proper Officer, at the office of the Superintendent of Stamps, Bangalore, Offices of the District Registrar and Offices of the Sub-Registrars at Gandhi Nagar, Jayanagar, Shivajinagar, Basavanagude, Rajajinagar and Kengeri or  in any other offices as may be authorized by the Chief Controlling Revenue Authority in Karnataka for impressing Stamps indicating the payment of stamps duty on the instrument chargeable with duty and the operation of the same shall be under strict vigilance and supervision of the Proper Officer.

•    Before the machine is put to use, the same shall be authorized loaded and sealed by Superintendent of Stamps or District Registrar, Assistant Commissioner of Stamps or such other officer authorized by Chief Controlling Revenue Authority and shall maintain Register in Form No.1 regarding loading and reloading and Form No.2 regarding return of the same and shall be scrutinized every month. In case of  periodical loading of the machine, sanction from District Registrar is necessary if the same is being carried out by the officer other that those authorized to do such act, which shall be entered in Form No.3.

•    The access code to the numeric of the Franking Machines shall be exclusively with the Superintendent of Stamps or District Registrar who shall be responsible for non disclosure, thereof to any person and who shall maintain a separate register in respect of each loading / reloading / incrementing of the amount. 

•    The Proper Officer shall ensure that the seals are not tampered with, in any way by any person or that machine is not handled by any un-authorized persons. 

•    The Proper Officer shall be responsible for the custody of the machine.  A register in Form No.4, shall be maintained in which the meter reading are recorded separately, both at the commencement of the day and at the close of the day.  The difference between the said readings shall be the total amount collected in respect of impressions franked.

•    The parties desirous of having stamps impressed on all kinds of instruments  shall make an application in Form No.5 along with the instrument and value of Stamps to be impressed, by Challan or Cash or Pay Order or Bankers Cheque or Demand Draft to the Proper Officer and on the receipt of the same, requisite amount of stamp duty will be embossed on the instrument and thereafter the Proper Officer shall affix his signature in the space provided on the impressed stamps, which shall be serially numbered and the particulars are to be entered in Form No.6.

•    The authorized user shall at all reasonable times allow authorized office or the authorizing authority or the District Registrar to inspect the machine and collect records without notice.

•    Franking or impressing of Stamp may be allowed up to any amount and such amount, as far as possible, has to be made on the right top corner of the first page of the instrument itself and has to be clear and in bright red colour only. Incase of any mistake or wrong in the amount impressed then that impression shall be torn from the instrument and pasted in the register of daily posting and shall be authenticated by the authorized user or proper officer.  At the time of resetting, set off equal to the amount of wrong impression shall be given. 

    Thus, non-availability of small denomination stamp papers has forced the public either to approach the agents near court complex or sub-registrar office entrance or to enter into agreements in white paper, without paying requisite stamp duty, which, in turn, leads to lot of litigations. In order to solve this problem, the Department of Stamps and Registration has to provide sufficient modes for availing stamp papers of small denominations, which also generates more income for the Government.

Saturday, 10 January 2015

An Article Regarding "Renting out Properties"

It would not be that easy to let out the property and stay free from litigation unless there exists a properly drafted rental agreement. Therefore, it is better to know the salient features of the rental agreements before any property is let out.

Rental agreements in the legal terminology, are known as Lease Agreements. The person who transfers the property is called the ‘Lessor’, and the person who accepts the transfer of property is called the ‘Lessee’.

According to section 105 of the Transfer of Property Act, a lease is defined as “A lease of immovable property is a transfer of the right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of the price paid or promised, of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms”. In short, a lease is a transfer of a right to enjoy the property of the lesssor by the lessee for a certain time, during which period the lessee is put in possession of the property upon payment of lease money or rent. 

Elements of a good lease 

The essential elements of a lease are (1) parties, (2) subject matter, (3) the terms and (4) the consideration or rent. A lease transaction involves commitments by both the landlord and the tenant which are complimentary to each other, the landlord agreeing to let out his accommodation to the tenant in consideration of the latter paying him the rent and the tenant agreeing to pay to landlord the rents in consideration of the landlord allowing him to use the leased premises. A lease is that form of encumbrance which consists of a right to the possession and use of property owned by some other person. It is the outcome of the separation of ownership and possession. 

A tenancy is created not only by an express contract but also by implication by the conduct of parties. Acceptance of rent by the landlord clearly establishes a tenancy. A lease of immovable property may be effected either by a registered instrument or by unregistered instrument. However, in cases where the lease is from year to year or for any term exceeding one year or reserving a yearly rent the lease agreements are to be made only by a registered instrument [Sec.107 of T.P.Act] and the lease agreements for a period less than one year do not require registration. Applicable stamp duty for lease agreements of a period of less than one year is Rs.50/-[Rupees fifty only]. 


It is a common practice to terminate the lease agreement at the end of every eleventh month and enter into a fresh Lease Agreement since if the rent is paid on yearly basis or if the period of lease exceeds one year, then it is mandatory to register the lease agreement. The practice of termination of lease agreements at the end of eleventh month and entering into new lease agreement is adopted generally to avoid payment of stamp duty and registration charges on such lease agreements.


An agreement of lease should be drafted carefully and properly to protect the rights of both the parties and to avoid any misunderstanding in the future. It should be fair to both the Lessor (landlord) and the Lessee (tenant). It should mention the parties to the deed, the description of the property being transferred, the duration of the lease, the monthly rent payable, the date of payment of the monthly rent; the clause for enhancement of rent on renewal of the lease period. The amount of interest-free refundable security deposit, penalty clauses in case of rent default, liability of the Lessee for damages to the property and the fixtures and fittings, notice period in case of early termination of lease; the date of commencement of lease and the date of expiry of lease; the notice period and manner in which the notice will have to be served must also be mentioned.

Obligations of the Lessor

The first and foremost duty of the lessor is to abide by the terms of the lease agreement in letter and spirit and to ensure that the lessee is allowed to enjoy the leased premises without any interference from any unlawful person. He shall have to ensure that all the basic and civic amenities are provided to the leased premises. It is the responsibility of the lessor to carry out major repairs to the leased property to make it habitable and pay municipal and other taxes due on the property. The Lessor should ensure that the leased premises is not used for any immoral or unlawful purposes nor allow storing of any hazardous and inflammable materials like explosives etc. Lessor shall issue receipts for the earnest money deposit and the rents received by him in respect of the leased property. The lessor shall refund the security deposit received from the Lessee when once the lease has come to end. He shall not unfairly make deductions while refunding the security deposit on ground of repair to the damages caused by the lessee. Lessor is bound to disclose to the lessee any material defect in property, with reference to its intended use, of which the former is and latter is not aware, and which the latter could not with ordinary care discover. Lessor is also bound on the Lessee’s request to put him in possession of the property.

Obligations of the Lessee

During subsistence of the lease, the Lessee has a right to enjoy the leased premises without any interference from the Lessor or by any person on his behalf. The Lessee shall pay to the Lessor the monthly rent for the leased premises on the agreed date. He shall also pay the electricity and water bills on or before due dates to the concerned authorities and furnish a copy of the receipt received by him from such authorities to the Lessor for his records. The Lessee shall always keep Lessor informed about the additions or alterations that the leased premises may require to enable the Lessor to attend to such work. The lessee shall not make any structural alterations to the premises or cause damages to fixtures and fittings during the subsistence of the lease. The lessee is under a legal obligation not to use the leased premises for immoral or illegal purposes nor for storing the hazardous and inflammable materials like explosives, etc. The lessee is under obligation to use the leased premises for self use and not to sub-let the same unless the lease agreement has a provision for sub-letting. He shall not cause any nuisance to the co-tenants, maintain the premises in a habitable condition, and on completion of the lease period, hand over the premises to the landlord without creating any nuisance, upon receipt of the earnest money deposit from the Lessor. If the Lessor neglects to make any repairs, within reasonable time after notice, the lessee may make the same himself and deduct the expense of such repairs with interest from the rent, or otherwise recover it from the Lessor. If the Lessee becomes aware of any proceeding to recover the property or any encroachment or any interference with the Lessor’s right concerning such property, he is bound to give, with reasonable diligence, notice thereof to the Lessor. 

General grievance

The following grievances are generally encountered by the Lessee and the Lessor and an effective and properly drafted Lease Agreement shall contain penal clauses for failure to adhere by the parties to the terms and conditions of the agreement:

Non-refund of security deposit

Some of the Lessors (landlords), for obvious reasons, fail to pay back the security deposit to the Lessees (tenants) at the time of termination of lease agreement or make unreasonable deductions from the security deposit. Generally, the landlords who mainly depend upon the rental income and who would have utilized the security deposit for their personal needs, fail to refund the security deposit as per agreement. Thus, when the tenant issues notice indicating his intention of vacating the leased premises or when the lease comes to an end, such landlords would start do going till they get the security deposit from a new tenant. It is the common practice that tenants prefer to continue to occupy the leased premises till they receive back the security deposit fearing losing of security deposit once they have vacated the leased premises. In the absence of payment of monthly rent by the tenant during this period, the landlords resort to adjust the same against the security deposit and till the security deposit becomes nil. 

Non-vacating the premises by the tenant

It is not uncommon that the tenants continue to occupy the leased premises even after the lapse of the lease period on some pretext or the other. Upon failure of the persuasive method adopted by the landlord to make the tenant vacate the leased premises the landlords, in many cases, take coercive action to get their leased premises vacated. 

Thus, non-fulfillment of obligation by the landlord and the tenant would lead to uncalled for misunderstanding between the landlord and the tenant and would make sore the relationship between them, ending up in prolonged and uncalled for litigation.

Need for amicable settlement

All said and done, problems do crop up even when the lease agreements clearly spell out the rights, duties and obligations of the Lessor and Lessee since it is not possible to change the mindset of any person. However, what is needed is to adopt “give and take” policy by both the Lessor and Lessee and part over a friendly note instead of litigating the matter on the philosophy of “live and let others live”. 

It is advisable for the landlords who intend to let out their property to take the help of an experienced advocate in property matters to avoid any complications because of loop- holes in the lease agreement.

Friday, 9 January 2015

An Article Regarding "Rental Agreements"
It would not be simple to unleash the property and be happy from legal proceeding unless there exists a properly written rental agreement. Therefore, it's higher to understand the salient options of the rental agreements before any property is unleash. 

Rental agreements within the legal word, square measure referred to as Lease Agreements. The one who transfers the property is termed the 'Lessor', and therefore the one who accepts the transfer of property is termed the 'Lessee'. per section one zero five of the Transfer of Property Act, 1882, a lease of immoveable property could be a transfer of the proper to fancy such property, created for a precise time, categorical or silent, or in sempiternity, in thought of the value paid or secure, or of cash, a share of crops, service or the other issue valuable, to be rendered sporadically or on fixed occasions to the transferrer by the transferee, WHO accepts the transfer on such terms. In short, a lease could be a transfer of a right to fancy the property of the lesssor by the tenant sure enough time, throughout that amount the tenant is place in possession of the property upon payment of lease cash or rent. 

Elements of an honest lease The essential parts ofa lease square measure (1) parties, (2) subject material, (3) terms oflease (4) thought or rent and (5) length of lease. A lease group action involves commitment by each property owner|the owner} and therefore the tenant that square measure complimentary to every different - the owner agreeing to unleash his property to the tenant in thought of the latter paying him the rent and therefore the tenant agreeing to pay to landlord the rent in thought of the owner permitting him to use the hired premises. A lease is that form of encumbrance that consists of a right to possession and use of property closely-held by another person. it's the end result of separation of possession and possession. 

A residence is formed not solely by associate categorical contract however additionally by implication by the conduct of parties. Acceptance of rent by the owner clearly establishes existence of residence. A lease of immoveable property could also be settled either below a registered instrument or below associate unregistered instrument. However, in cases wherever the lease is from year to year or for any term prodigious one year or reserving a yearly rent the lease is to be created solely below a registered instrument of lease [Sec.107 of T.P.Act] and therefore the lease agreements for a period but one year don't need registration. 

One Year amount 

It is a standard follow to terminate the lease agreement at the top of each eleventh month and enter into a contemporary Lease Agreement since if the rent is paid on yearly basis or if the amount of lease exceeds one year, then it's necessary to register the lease agreement below sec.17( d) of the Indian Registration Act, 1908. 


An agreement of lease ought to be written fastidiously and properly to safeguard the rights of each the parties and to avoid any misunderstanding at a later date. It ought to be truthful to each the lease giver (landlord) and therefore the tenant (tenant). 

It ought to invariably mention the parties name and address, description of the property, length of lease, monthly rent owed, date of payment of monthly rent; clause for improvement of rent on renewal of lease, quantity of interest-free refundable margin, penalty clause just in case of default in payment of rent, liability of the tenant for damages to the property and therefore the fixtures and fittings, notice amount just in case of premature termination of lease; date of commencement of lease and therefore the date of expiration of lease; notice amount and manner during which the notice can ought to be served etc. 

Obligations of the lease giver the primary and foremost duty of the lease giver is to abide by the terms of the lease agreement in letter and spirit and to confirm that the tenant is allowed to fancy the hired premises while not interference. He shall ought to make sure that all the fundamental and civic amenities square measure provided to the hired premises. it's the responsibility of the lease giver to hold out major repairs to the hired property to create it inhabitable and pay municipal and different taxes due on the property. 

The lease giver ought to make sure that the hired premises isn't used for any immoral or unlawful functions nor enable storing of any dangerous  and ignitible materials like explosives, etc. lease giver shall issue receipts for the earnest deposit and for the rents received by him in respect of the hired property. The lease giver shall refund the safety deposit received from the tenant once once the lease has come back to associate finish. 

He shall not below the belt build deductions whereas refunding the safety deposit on grounds of repair to the hired property. The lease giver is guaranteed to divulge heart's contents to the tenant any material defect in property with respect to its supposed use of that the previous is and latter isn't aware and that the latter couldn't with guardianship discover. The lease giver is additionally sure on the lessee's request to place him in possession of the property. Obligations of the tenant throughout subsistence of the lease, the tenant encompasses a right to fancy the hired premises while not interference from the lease giver or by anyone on his behalf. 

The tenant shall pay to the lease giver the monthly rent for the hired premises on the in agreement date. He shall additionally pay the electricity and water bills on or before due dates to the Legal involved authorities and furnish a replica of the receipt received by him from such authorities to the lease giver for his records. 

The tenant shall continually keep lease giver knowing concerning the additions or alterations that the hired premises could need to alter the lease giver to attend to such work. The tenant shall not build any structural alterations to the premises or cause damages to fixtures and fittings throughout the subsistence of the lease. The tenant is below a legal obligation to not use the hired premises for immoral or felonious functions nor for storing the dangerous  and ignitible materials like explosives, etc. The tenant is below obligation to use the hired premises for self use and to not sub-let an equivalent unless the lease agreement encompasses a provision for sub-letting. 

He shall not cause any nuisance to the co-tenants, maintain the premises in a very inhabitable condition, and on completion of the lease amount, deliver the hired premises to the lease giver while not making any nuisance upon receipt of the earnest deposit. If the lease giver fails to create any repairs, inside affordable time when notice, the tenant could build an equivalent himself and deduct the expense of such repairs with interest from the rent, or otherwise recover it from the lease giver. If the tenant involves grasp of any recovery proceedings in respect of the hired property, or of any encroachment, or interference with the lessor's right in respect of the hired premises, he's guaranteed to offer notice therefrom to the lease giver.

Wednesday, 7 January 2015


There is every need to ensure that the documentation of the property proposed to be purchased, is legally valid and enforceable in Law. In case of a readymade flat or house, this process may be little bit easier, but in case of projects under construction there needs strict due diligence.

A broad guideline on the steps to be taken in right direction for this task, is the following:

The first thing one should do, in case of projects that are still under construction, is to make sure that the builder has all the necessary approvals in place, without which it would be considered illegal. The first of these, is the necessary permission to develop the land into a residential complex. For such development, the Builders need to get approval from the Competent Authority of the Government for conversion of agricultural land or land specially designated for industrial purposes into land for residential area.  In case, if the builder has gone ahead without obtaining this approval, the entire project is illegal and it is very risky.

For obtaining conversion of land, it also need several clearance from  environment and other departments such as fire, safety, municipal administration, airport authority, telephone department, etc.  In addition to these, the builder should ensure that his project does not interfere with the urban and town planning and that the entire project has unrestricted access to road and other public utility services.

Secondly, the purchaser should find out, whether the builder has necessary authority to transfer the undivided share of land to each flat owner and the entire plot to the Society of Apartment, on completion of the Project.

Lastly, the purchaser should never forget that  there may be many a slip between the ‘blue print’ and the actual ‘final product’.  In general,  the developers tend to charge a premium for additional features, such as ‘swimming pool’ or ‘designer furniture’ etc. However, unless you ask the builder to incorporate all the promised features in the Agreement and make provisions for penalty in case of non-fulfilment, you stand on shaky ground.  Also, watch out for the fine print, because the builders may slip in a clause in the agreement and may claim that they reserve the right to alter any of the promised features.

As an adequate precaution, please take a look at the approved construction plans and ensure whether they match with things which were promised to you.  You can ask the builder to show you the requisite permits / approvals obtained from the concerned authorities.  While the approved construction plans have to be mandatorily displayed at the construction site at all times, all the important approvals should be made available at the builder’s office. As per the provisions contained in Transfer of Property Act and Maharashtra Ownership of Flats Act, a seller is required to disclose all facts relating to the property, which include various permissions secured by him.  In case the builder refuses to do so, a prospective buyer has recourse under the same acts.      

In addition to these documents, you should also take a look at the Commencement Certificate for Projects in Mumbai. As the name itself suggests, this Certificate is given to the builder to begin construction, only after ensuring that the builder has obtained all the requisite clearances.    

Monday, 5 January 2015


If you are purchasing an independent pre-owned property or a flat in a housing society, initially ask for the original share certificate. One way of ensuring right ownership for property, is to verify the house agreement.  To double check, you can also peruse the telephone and/or electricity bills, as they are issued only in the name of the lawful owner of property. Alternatively, you can check the housing society’s maintenance bill which contains the owner’s name and property tax details.  This document will also highlight any pending charges that are due payable by the owner of the house or flat which you propose to buy. This is crucial because, if the owner sell the flat without paying his entire outstanding dues, the society may recover the same from the new owner.  In order to avoid such hassles, better to ask the Housing Society to issue a No-Due Certificate or a No Objection Certificate.

Please note that any pending litigation on the property should also be a warning signal because the purchaser is legally bound by the result of the suit, and in case the Court establishes that the seller was not the rightful owner, you will have to hand over the property to the true owner who obtains a Judgment and Decree to that effect issued by the Court of Law. 

To check for pending litigations on the property, the lis-pendens registry available at Sub Registrar’s Office need to be verified, as it will contain the owner’s name in case any litigation is pending.

Mortgaged properties are the other lemons, you need to watch out for.  In such cases, the original documents of the property are invariably held by the concerned lending Institution.  As such, in case the Seller fails to show you the original documents of the property, there is every reason  for you to be more alert.  In case the Seller claims that he has cleared the entire outstanding dues, then insist for Bank’s full satisfaction letter or original discharge letter.

Before conclusion, it is generally opined that a clear title is not assurance enough and as such one should even consider to contact previous owners, to rule out any fraudulent transaction. As a prudent purchaser, it is better to publish a ‘public notice’ in the newspaper inviting objections if any against your proposed purchase of said property