All posts by Vidyadhar Naik

Property Consultant I Founder Bangalore Real Estates I Member BRAI I Expert-Times of India Group I Blogger on Bangalore Real Estate Market Trends I

Income limit to buy Farm land in Karnataka

FARM LAND IN KARNATAKA

Bill on the table to increase the income limit to buy farm land in Karnataka.

The State government on Monday March 2015 introduced an amendment bill in the Legislative Assembly, seeking to increase the income limit for purchasing farm land to Rs 25 lakhs from Rs 2 lakhs.

The State government on Monday March 2015 introduced an amendment bill in the Legislative Assembly, seeking to increase the income limit for purchasing farm land to Rs 25 lakhs from Rs 2 lakhs.

On amendments to the Karnataka Land Reforms Act, 1961, the Minister said the government was contemplating amendments to Section 79-A that bars persons having an annual non-agricultural income of above Rs. 2 lakh from buying agricultural land.

The Karnataka Land Reforms (Amendment) Bill, 2015, also proposes to empower Deputy Commissioners of districts to grant permission for purchasing a certain extent of land for educational, industrial, religious and housing projects. The Bill was piloted by Revenue Minister V Sreenivas Prasad.

Merits of Amendement
Enhancement in the limit should help both farmers and Government of Karnataka. Transactions  with false income and under value of land can be avoided.

It is a good move as Government can expect some revenue from this amendment.

By Vidyadhar Naik– LOCAL SPACE    M:09035611299

Also see

 http://bangalorerealestates.in/farm-house-and-farm-land-in-bangalore/

Civic Norms

BMRDA

What is BMRDA ?
BMRDA is an Act to provide for the establishment of an authority for the purpose of planning, co-ordinating and supervising the proper and orderly development of the areas within the Bangalore Metropolitan Region and to provide for matters connected therewith.
What are the Powers and Functions of BMRDA ?

1.To carry out a survey of the Bangalore Metropolitan Region and prepare reports on the surveys so carried out.

2.To prepare a structure plan for the development of the Bangalore metropolitan Region.

3.To cause to be carried out such works as are contemplated in the structure plan.

4.To formulate as may schemes as are necessary for implementing the structure plan of the Bangalore Metropolitan Region.

5.To secure and co-ordinate execution of the town planning scheme and the development of the Bangalore Metropolitan Region in accordance with the said schemes.

6.To raise finance for any project or scheme for the development of the Bangalore Metropolitan Region and to extend assistance to the local authorities in the Region for the execution of such project or scheme.

7.To do such other acts and things as may be entrusted by the Government or as may be necessary for, or incidental or conductive to, any matters which are necessary for furtherance of the objects for which the Authority is constituted.

8.To entrust to any local authority the work of execution of any development plan or town planning scheme.

9.To Co-ordinate the activities of the Bangalore Development Authority, the Corporation of the city of Bangalore, the Bangalore Water supply and Sewerage Board, the Karnataka Slum Clearance Board, the Karnataka Electricity Board, the Karnataka Industrial Areas Development Board, the Karnataka State Road Transport Corporation and such other bodies as are connected with development activities in the Bangalore Metropolitan Region.

What are the permissions required for development activities

1.Notwithstanding anything contained in any law for the time being in force, except with the previous permission of the Authority. No authority or person shall undertake any development within the Bangalore Metropolitan Region of the types as the Authority may from time to time specify, by notification published in the official Gazette.

2.No local authority shall grant permission for any development referred to in sub-section(1), within the Bangalore Metropolitan Region, unless the Authority has granted permission for such development.

3.Any authority or person desiring to undertake development referred to in sub-section (1) shall apply in writing to the Authority for permission to undertake such development.

4.The Authority shall, after making such inquiry as it deems necessary grant such permission without any conditions or with such conditions as it may deem fit to impose or refuse to grant such permission.

5.Any authority or person aggrieved by the decision of the Authority under sub-section (4) may, within thirty days form the date of the decision appeal against such decision to the State Government, whose decision thereon shall be final: Provide that, where the aggrieved authority submitting such appeal is under the administrative control of the central Government , the appeal shall be decided by the state Government, after consultation with the Central Government.

6.In case any person or authority does anything contrary to the decision given under sub-section (4) as modified in sub-section (5) the Authority shall have power to pull down, demolish or remove any development undertaken contrary to such decision and recover the cost of such pulling down, demolition or removal from the person or authority concerned

Which are the authorities to approve layouts?

1. The Bangalore Metropolitan Region Development Authority (BMRDA) – for Bangalore Urban and Rural Districts and Malur Taluk of Kolar District excluding the areas covered by BDA, BIAAPA and other LPA’s.
2.The Bangalore International Airport Area Planning Authority (BIAAPA) – for its local planning area which includes the area of proposed new airport and its environs.

3.The Ramanagaram – Channapatna Urban Development Authority (RCUDA) – for Ramanagaram – Channapatna local planning area.

4.Nelamangala Local Planning Authority – For Nelamangala Town & its environs.

5. Magadi Local Planning Authority – For Magadi Town & its environs.
6. Kanakapura Local Planning Authority – LPA of Kanakapura.
7. Anekal Local Planning Authority – LPA of Anekal.
8. Bangalore Mysore Infrastructure Corridor Area Planning Authority(BMICAPA).

 

Acts and Forms

Know these Acts and Forms

How ownership of immovable property is acquired by a person?
A person may acquire immovable property in any of the following way

(i) By inheritance of ancestral property.
(ii) Through will.
(iii) Acquisition by oneself such as purchase etc.
(iv) Through gift, trust, settlement deeds.
(v) Grant, sanad / Inam by the Government
Through decree of Court.
There are two ways of acquisition:
1.By act of parties.
Example: Purchase, gift etc.
2. By operation of law
Example: Inheritance, decree of Court etc. (for details please see Transfer of Property Act, 1882 (Central Act))

Is it necessary to register in the Office of the Sub Registrar to get khata transferred in respect of property acquired by inheritance?
Not necessary. After the death of owner of a property his heirs, such as wife, children i.e. male and female, married or unmarried may get the Khata transferred on production of death certificate of the owner with details of property held by him to the following officers.
If property is an agricultural land – Tahasildar (See Sec.128 of Karnataka Land Revenue Act, 1964) Offices of Corporation, Municipality, Panchayat or City survey if such office exists.
Which are the documents requires to be compulsorily registered?
1. Gift deed of immovable property.
2. Other non-testamentary instruments, which purport or Operate to create, declare, assign, limit or extinguish whether in the present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property;
3. Non testamentary instruments which acknowledge the receipt or payment of any consideration on account of the creation, declaration, assignment, limitation or extension of any such right, title or interest;
4. Leases of immovable property from year or for any term exceeding one year, or reserving a yearly rent;
5. Non testamentary instruments transferring or assigning any decree or order of a court or any award when such decree or order or award purports or operates to create, declare, assign, limit or extinguish whether in the present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property;
6. The documents containing contracts to transfer for consideration, any immovable property for the purpose of section 53A of the Transfer of Property Act, 1882 shall be registered if they have been executed on or after the commencement of the Registration and Other Related Laws (Amendment) Act, 2000 and if such documents are not registered on or after such commencement, then, they shall have no effect for the purposes of the said section 53A

How to effect partition of property?
a. If all the parties have share (common right) in the property partition can be effected. If partition is effected through an instrument such instrument must be compulsorily registered.
b. Oral partition affected through memorandum submitted to the concerned authorities need not be registered.
c. Stamp duty has to be paid in respect any kind of partition whether it is to be compulsorily registered or not.
d. Parties to the partition may agree to effect partition of unequal shares.
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When there are two or more heirs, can one or two be made full owners by others taking money in lieu of their share?
a) Yes. Any of the co-owners can individually or collectively release his / their right in favour of one or more collectively as the case may be and make him / them full owner. This kind of release can be with or without payment of money. This document is called Release.
b) Release can be made not only in case of inherited property but also in case of joint purchase/acquisition.
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What is a will?
A testamentary document by which a person bequeaths his property to be effective on his death is a will. The property will devolve on the person in whose favour it is bequeathed after death of testator.

Who can execute a will?
a) Any person above the age of 18 years and mentally sound may execute will, but will caused by fraud or coercion or by importunately will not be valid. Therefore a will must be executed voluntarily.
b) Parents or guardians cannot execute will on behalf of minors or lunatics.
c) Attestation by minimum two witnesses is necessary.
d) Scribe (deed writer / advocate) cannot be called witness. Two independent attesting witnesses other than the scribe or necessary.
e) Beneficiary under a will should not sign as attesting witness.
In order to avoid disputes in implementation of a will, description of property and the beneficiaries should be clearly be written without giving room for any doubt.
Is it compulsory to register a will?
It is not compulsory to register. Executants may register at his option. It is better to register the will. If original is lost a certified copy can be obtained from Sub-Registrar Office.
Where can the will be registered?
It can be registered in any office of the Sub Registrar in India 
Is there any time limit to register a will?
There is no such time limit 
Can a will be cancelled?
The testator can cancel his will at anytime during his lifetime. Such cancellation deed requires a Stamp duty of Rs.100-00
Can a registered will be rectified or changed?
If executant of a will wishes to rectify, add to will may do so during his lifetime. This is called codicil. This document does not require stamp duty.

Can a will be registered even after death of testator?
Yes, claiming party under the will have to produce will, records relating to the death of the testator, witness and the scribe before the Sub Registrar. If Sub Registrar is satisfied about the truth and genuineness of the execution of the will, he will register.
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What is the Stamp duty and Registration fee to register a will?
There is no Stamp duty on will deed. For registration of will during the life time of the testator Rs.200-00 Registration fee prescribed. To register the will after the death of the testator Registration fee of Rs.200-00 and enquiry fee of Rs.250-00 is prescribed.
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Is the certified copy of a registered will available to any body?
A certified copy of a registered will is available to the testator only during his lifetime. After his death anybody can obtain after producing proof of death of testator.
How to keep contents of a will confidential?
Will can be deposited in a sealed cover in office of the District Registrar. A fee of Rs.1000-00 prescribed to deposit will in a sealed cover. Depositor or authorized person (executor) can withdraw the sealed cover containing a will, if desires to do so. A Registration of Rs.200-00 prescribed.
What is the procedure to obtain the sealed cover containing a will after the death of the depositor?
On making an application along with proof of the death of the depositor, District Registrar will open sealed cover in the presence of the applicant and it will be registered. Certified copy will be issued if desired. A fee of Rs.100-00 prescribed to open a sealed cover.
What is the procedure for change of khata of the properties obtained through will?
After the death of the testator person claiming through the will have to apply to the concerned authorities as explained in question no.2 along with the copy of the will and death proof.
What are the duties and liabilities of buyers and sellers while purchasing a property?
Following is the duties and liabilities of buyers and sellers
Before sale
liabilities of seller Liabilities of purchaser
To inform defects in the property
To provide records of right
To execute sale deed Payment of consideration
To pay of the liabilities on the property
Rights
Rights of seller Rights of buyer
To get rent and profits Right of encumbrance on consideration already paid
After completion of sale
Liabilities of seller Liabilities of purchaser
To hand over possession Liability on accidental or loss to the property
Information about right
To hand over records of rights after receipt of consideration Duty to pay taxes and liabilities after taking possession of property
Rights of seller Rights of buyer
If consideration is due encumbrance on property of such dues Incremental value/profit on property
Though there are rights and duties the purchaser should carefully examine the following matters;
1) Original documents.
2) How did the seller acquire the property.
3) Encumbrance Certificate of the property for a minimum period of 15 years from Sub Registry Office to know if there are any encumbrances on the property to be purchased.
4) Verify from the concerned court if there are any litigations on the property to be purchased.
5) Verify if there are any litigations, objections in revenue, municipal offices about inheritance or any other matter.
6) If seller is a power of attorney holder, it should be verified from the principal and if such power of attorney is genuine and whether it is still in force.
7) It should be verified whether the transaction is opposed to public policy under Section 22A of the Registration Act, 1908. If so the document will not be registered.
8) If the Property is a granted land to the member of scheduled caste and scheduled tribe, it should be verified if the transaction is in contravention of the terms and conditions of grant and whether permission of the Government is obtained for transfer.
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What are the transactions opposed to public policy?

Government has declared the following as opposed to public policy under Section 22A of Registration Act, 1908 namely,-

(1) (a) Agreement to sell, sale, gift, exchange, mortgage, lease or assignment of land of which the occupancy right has been granted under Chapter III of the Karnataka Land Reforms Act, 1961 in contravention of the restrictions imposed under section 61 of the said act and the rules framed there under.
(b) Agreement to sell, sale, gift, exchange or otherwise of any land in excess of the ceiling limit specified in section 63 or 64 of the Karnataka Land Reforms Act, 1961 in contravention of section 74 of the said act and the rules framed there under.
(c) Agreement to sell, sale, lease, mortgage with possession or otherwise of any agricultural lands to a person or a family or a joint family who or which has an assured annual income of rupees Two lakhs and above from sources other than agriculture in contravention of section 79-A of the Karnataka Land Reforms Act, 1961 and the rules framed there under.
(d) Agreement to sell, sale, lease, mortgage with possession or otherwise of any agricultural land to an educational, religious, charitable institution society, trust, company, association, other body of individuals or a co-operative Society other than the co-operative farming society in contravention of section 79-B of the Karnataka Land Reforms Act, 1961 subject to the exceptions and exemptions provided under section 109 of the said act and the rules framed there under.
(e) Agreement to sell, sale, gift, lease, mortgage with possession or otherwise of any agricultural land granted under the Karnataka Land Grant Rules, 1969 subject to restrictions on sale, transfer, and specific use imposed there under as per the provisions of the said Rules.
(2) One cannot possess land as owner, tenant or as mortgagee with possession in excess of 10 units. If a family consists of more than five members, such family may hold two units per head not exceeding 20 units.
PART A
[See Section 2(A)(35-A)
Classification of Lands
A Class
Lands having facilities for assured irrigation from such Government Canals and Government Tanks as are capable of supplying water for growing two crops of paddy or one crop of sugarcane in a year.
B Class
(i) Lands having facilities for assured irrigation from such Government Canals and Government Tanks as are capable of supplying water for growing only one crop of paddy in a year.
(ii) Lands irrigated by such lift irrigation projects constructed and maintained by the State Government as are capable of supplying water for growing two crops of paddy or one crop of sugarcane in a year.
C Class
(i) Lands irrigated from any Government sources of irrigation, including lift irrigation projects constructed and maintained by Government other than those coming under A Class and B Class.
(ii) Lands on which paddy crop can be raised or areca crop is grown with the help of rain water.
(iii) Lands irrigated by lifting water from a river or Government Canal or Government tank where the pumping installation or other device for lifting water is provided and maintained by the land owner.
Notes
(1) Lands having facilities for irrigation from a Government Source where the system of water supply is suitable for growing only light irrigated crop namely, crops other than paddy and sugarcane shall come under this class.
(2) Lands growing irrigated garden crop will come under classes ‘A’, ‘B’ or ‘C’ as the case may be depending upon the source of irrigation and the system of water supply.
D Class
Lands classified as dry but not having any irrigation facilities from a Government source.
Note.- Lands growing paddy or garden crops not coming under A Class, B Class or C Class shall belong to this class.
PART B
Formula of determining equivalent extent of different classes
One Acre of A Class land having soil classification value above 8 annas = 1.3 acres of A Class land having soil classification value below 8 annas = 1.5 acres of B Class land having soil classification value above 8 annas = 2.0 acres of B Class land having soil classification value below 8 annas = 2.5 acres of C class land having soil classification value above 8 annas = 3.0 acres of C class land having soil classification value below 8 annas = 5.4 acres of D Class land.

Is it necessary to obtain permission for transfer of agricultural land granted under Land Grant Rules or granted occupancy right under Land Reforms Act even after lapse of condition for transfer?
Yes. Application should be submitted to Tahasildar and acknowledgement is obtained. If permission is not granted within 15 days after getting acknowledgement, document can be registered as if permission is granted.
What are other restrictions to purchase agricultural land?
Lands granted to persons belonging to scheduled caste or scheduled tribe cannot be transferred or purchased without prior permission of the Government. This restriction does not apply to mortgagee in favour of co-operative or scheduled banks and partition among family members
2. Social or Industrial organizations can purchase with the permission of the Government (Refer Sec.109 of Karnataka Land Revenue Act, 1964).

How to get transfer of immovable property?
a. As explained under Question 3, if value of property under sale, exchange, lease, and mortgage is Rs.100 or more, deed relating to such transaction must be compulsorily registered (Sec.17 of Registration Act 1908).
b. Gift deed, must be registered irrespective of the value of the property.
c. After the deed is registered `J’ slip is sent to Tahasildar in case of agricultural land and city survey office, in case of city non-agricultural property of properties are under city survey. The purchaser should get confirmed whether khatha is transferred through `J’ slip.
In areas where there is not city survey is not in operation, one has to apply along with copy of the deed to the concerned Corporation/ Municipal/panchyat office to effect transfer of khatha.
What is the purpose of Registration?
(a) By Registration of transaction of immovable property will become permanent public record. This is a notice to the general public. Those getting transfer of property should verify whether such property has been previously encumbered.
(b) According to Transfer of Property Act right, title or interest can be acquired only if the deed is registered.
What are the effects of non-registration?
If a deed of transfer, which is compulsorily registrable, is not registered it will not be admissible in evidence (Sec.49 of Registration Act 1908)
Is there time limit to present a document for registration after it is executed (signed)?
a. Document may be presented for registration within four months from the date of execution (signature).
b. If a document is executed out of India, the period of four months will be counted from the date of its receipt in India.
c. After four months document may be presented within another four months with penalty subject to maximum of ten times the registration fees if the District Registrar grants permission. But document may be presented before Sub Registrar within eight months. Thereafter it cannot be accepted for registration. (For details please see Rule 52 of Karnataka Registration Rules, 1965).
What is the day today timing for acceptance of deeds for registration in Sub Registry offices?
Generally deeds are accepted during working hours. Sub Registrar may stop accepting two hours before closing time if he has sufficient work to attend in respect of deeds already received for registration.
Provided deeds may be accepted in emergency cases on payment of extra fee of Rs.200 one hour before sunrise and one hour after sunset and on holidays.
Can the document presented for registration be withdrawn?
Registering officer may permit withdrawal of the document before completion of registration on written request by the party who presented the document. Fifty percent of the registration fee is refundable. Likewise Stamp duty is also refundable subject to deductions. (Please see question No.19 on stamp duty F.A.Q.)
Who should be present at the time of registration?
A deed may be presented for registration either by claiming or executing party but the executant / executants must be present to admit execution (signing) of the deed (Please see Sec.32 of Registration Act 1908).
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What is the course, if executing party refuses to appear in Registry Office to admit execution?
a. In such circumstances, registering office will issue notice/ summons to the Executant. If the party does not turn up registering officer will refuse registration.
b. Application may be made to the District Registrar on such refusal to the District Registrar who will hold enquiry and decide the case. Rs.250 should be paid for such application.
c. One may submit appeal to the Civil Court if District Registrar also refuses to order for registration (For details please see Sec.73, 74, 75, 76 & 77 of Registration Act 1908).
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Co-opertaive Housing Societies in Bangalore

Good News expected for Co-operative Housing Societies in Bangalore

Recent statement from state co-operation minister H S Mahadeva Prasad

“Government is working out on a solution for execution and delivery of sites to housing society members.”

Government should consider following factors while doing any amendments in the existing co operative housing society act.
1 Change of usage of land should be done on a single window scheme by appointing a separate agency. This would cut down time spent in processing all documents among various departments.
2 Large parcel of land should be permitted for change of   usage of land
3 Percentage of Associate membership should be increased in order to facilitate outsiders with state domicile to buy plots from these housing societies.
4 Plot should be allotted and registered within one year from the date of payment of all installments. Otherwise interest should be paid on the total amount for delayed
period.
5 Developer should register all plots in the name of society. Last minute tussle between Developer and Society should be avoided.
6 Society should not charge additional amount on the basic land cost as mentioned to its members.
7 Society should publish its progress report on acquisition of land and development activities on periodic basis to its members.
8 Members Investment should be safeguarded in proportion of land acquired by the society.
9 There should be transparency on the percentage of money spent from the members installments made to society.Money collected should not be diverted to other projects of
the society.

State Government should mitigate on these problems, site seekers should get sites on time. Co-operative Housing Societies in Bangalore can be a model to other housing societies in the country?.

By Vidyadhar Naik- Local Space. M: 09035611299