Dear Madam,
I am planning to purchase a 30 by 40 site which come under Bidararahalli taluk. The builders have 50 acres of land which they are selling as residential plots. I contacted a representative from ICICI bank who said this property was not eligible for land loan as it is registered under grama panchayat limits and they have not paid betterment charges. However the builder said they had converted the land from agricultural land.
1. Why won’t banks provide land loans for grama panchayat lands?
2. Is it safe to purchase this land?
3. What are the things I should check before purchasing this land?
4. Is this a DC converted land?
Tessith
Dear Tessith,
If the land is converted, the question of it being within gram panchayat limits or not does not arise.You should get the DC conversion certificate to determine if it is DC converted or not. You should get the documents verified by a lawyer to find out if the flow of title is good and marketable. If it is not DC converted, you may get a composite loan for both site and construction, but not for the land alone. Regarding advisability of purchasing non DC converted lands, you should take the advice of a lawyer and understand the risks before purchase.
Dear Madam,
I have purchased a house from a builder in CMC limits, which has SAS khata. But the khata is still in the builder’s name and I have not transferred it yet.
What is the definition of betterment charges? How different is this from property tax and khata?
As a land owner, is it a must to have both ‘Khata Extract’ and ‘Khata Certificate? What is the time limit, to get the khata transferred from the earlier owner? Is there any grace period for the same?
Can I pay the current year’s tax in the name of the earlier owner? What are the implications? Does it affect me in anyway during the transfer?
Is the property tax charged, based on the building plan, or just the built-up area or the size of the plot? Which one is true?
Is the building plan approved by the BDA, good enough to indicate that BDA will no longer acquire my property for any reasons?
What are the basic documents one should have prepared to get the khata transfer done?
While paying the property tax, is there a requirement for the property owner to be physically available in the tax office?
Ramesh
Dear Ramesh,
Betterment charges are collected from the government for supplying water, electricity, roads, etc, in an area which did not have these facilities before.
Property tax is paid for all properties every year and khata is the reflection of ownership in the revenue records. Khata extract and khata is issued only by the BMP and are required to see if there are any buildings put up or if it is a vacant land. There is no time limit for khata transfer. Yes, you can pay the tax in the name of the previous owner and anyone can pay it. The tax is assessed on the actual built-up area. BDA plan approvals, especially for the layout, does mean that one does not have to worry about future acquisitions. The documents required for khata transfer are sale deed, tax receipt, previous khata, application form, NSC certificates, sketch of property and payment of fees.
Dear Madam,
A BDA site has been allotted to three sons on compensatory grounds (for having acquired their lands for the formation of a layout) after the death of their father and a joint khata has also been issued in the name of all the three sons.
How can we proceed if we intend to purchase this particular property? Also, please clarify the following doubts:
What are the documents which we need to collect from the seller?
Should the seller produce the details of the family tree? Would it be possible for the grandsons to claim that particular property?
Would the grandsons have any hold on that property? Is there any requirement for us to take the signatures of their children at the time of registration?
Nagendra
Dear Nagendra,
You should get all the documents to a lawyer and the flow of title should be determined. This will answer all your questions about the rights of grandsons and the signatures of children. The family tree may be necessary in this case. The lawyer will help you with the list of documents to ask for, as it varies from case to case.
Dear Madam,
I am planning to buy a plot near Mysore Road. The land (total of 22 acres) was converted for non-agricultural industrial purpose by the deputy commissioner in 1962 for a period of 50 years.
Now my builder is selling total of 340 sites of the same. He has a letter from chief secretary, Urban Development department, written to the deputy commissioner to consider the conversion of land to residential area (as MLC of the area concerned has requested to change the area type to 50 years before status). Also, the layout plan was approved by panchayat in 1992 (which has expired as there was not development in two years). And the betterment charges are not paid as government has stopped accepting these charges. Kindly guide me on the following:
Will the conversion order be issued by deputy commissioner based on that letter? Will the government accept betterment charges in the future? Will the CMC approve house plan provided better charges are not paid as of now?
Amit Sharma
Dear Amit Sharma,
It is not possible to say if the change of land use will be granted or not or whether the betterment charges will be collected. The plan sanction for the house depends on whether the layout is properly approved and its zonal use. I would advise you to show the papers to a lawyer. It seems that it is in a preliminary stage and marketing has started too early before all approvals are in place. The question of who will sanction the layout is also not clear.
Dear Madam,
I am interested in buying a plot in Bangalore within CMC limits. I have identified a 40x60 site within the plot. The plot was auctioned as it had a sick company in the place. The plot is actually still industrial. The developer says he has applied for conversion from industrial to residential and so has made clear roads and drainage, etc. I have checked the khata with the municipal office and khata transfer is clear for the conversion.
Please advise whether I should go ahead with such a purchase. I do not have full funds and so will have to go for loan. The HF company is not ready to sanction until conversion proof is shown.Will BDA have any authority to take over such a plot?
Ravi
Dear Ravi,
Yes, the required change of land use certificate is essential before purchase. The future acquisition by BDA cannot be commented upon as it may or may not happen depending on various factors.
Dear Madam,
In the early 60s, a property was acquired by CITB. A portion of the same was neither taken in possession nor was it allotted to anybody and continued to be possession of the original buyer. In 2004, the owner paid the betterment charges and tax on the above and got a plan sanctioned for the construction of a house.In 2005, this was sold as land to a developer and he in turn, constructed a house and sold it after self assessment tax formalities. What is the status of the new buyer ?
A reader
Dear reader,
If the BDA has not taken possession or developed the property after the lapse of so many years, the acquisition is deemed to have lapsed. If the flow of title is clear and if there are no lapses in development, the property can be purchased.
Dear Madam,
I own a residential plot in Royal Residency Layout of Bommanahalli CMC in Bangalore. This private layout already has around 80 houses constructed in the last three years.
Recently, when I visited the area for the purpose of obtaining building licence for construction of my house in that site, the Town Planning Authority told me that BDA has recently declared this area as Valley Zone and have hence stopped giving licence.
Under the circumstances I would like to know what will happen to my site? Also, what will happen to the houses that have already been constructed? Please advise on what I should do under the circumstances.
Muthigi
Dear Muthigi,
Having a site in a valley zone will certainly prevent you from constructing a house on it. It is not possible to say what will happen to the already constructed houses. It is not easy to offer you any kind of advice as you are stuck with a bad investment.
The author is a practising advocate specialising in real estate matters. You may e-mail your questions to 1.vatsala@gmail.com. Please mark your mail with `Legal Angle’ in the subject line. You may also write to us at: The Editor, Legal Angle, Deccan Herald, 75, MG Road, Bangalore - 560001.Disclaimer: All the answers provided herein are of a general nature. It is advisable to get specific legal advice after furnishing detailed history of each individual case.
