Dear Madam,
I am writing from Detroit, USA. My questions are:
 1) If I sell a residential site in Bangalore and buy another site in Hyderabad using the sale proceeds, do I have to pay ‘Capital Gains Tax’ on the site sold?
2) Or, in order to avoid paying Capital Gains Tax, should I construct a house using sales proceeds after selling the residential site by putting the sale proceeds money into a ‘Capital Gains Account’ ?
I know there is some rule that we can put the entire sales proceeds in ‘Capital Gains Bank Account’ and use it for real estate purposes within a 3 year period to save tax. But I am not sure if it is applicable to selling and buying sites.
Harsha SG

Dear Harsha S G,
When an NRI sells a property, the capital gains is deducted at source. This money is retained in a separate account by the IT department and refunded when you reinvest the amount. I advise you to contact a chartered accountant who can guide you in the matter.
Dear Madam,
Is it compulsory for both seller and buyer to sign on an agreement of sale?
If the seller only has signed and not the buyer, does the document become invalid in a court of law even though it is on a stamp paper and the seller has accepted earnest money? Can you please give the relevant authority for the same?
Secondly- is it binding that at least two or more attesting witnesses should sign in presence of the executant and the executant sign in the presence of the attesting witnesses? If it is not so, does the agreement of sale become invalid in a court of law even though it was on a stamp paper and the seller accepted earnest money. Can you give me the relevant authority for this?
I T Lobo

Dear I T Lobo,
Normally both seller and buyer should sign the agreement. The evidence act presumes that the agreement signed by both parties contains all the terms and conditions to the transaction and no oral evidence is admitted. However if the seller has accepted the advance amount and has ratified the transaction despite not signing the agreement, you could make out a case in your name, if only for the limited purpose of recovery of money. The witnesses should at least be in a position to confirm the signatures of the vendor and purchaser although it is not necessary to have actually seen the seller and the purchaser sign the document.

Dear Madam,
I purchased a site 60x40 in Magadi-Nelemangala road about 10 years back, that is DC converted and is in a layout. I put fencing that was removed by the developer in my absence. I paid local tax till August 2005. The title is in my name. The developer has not done any development. It is also understood he has sold the whole layout (about 10 acres) to another party (2nd sale of same property). The developer is GPA holder. 
With an understanding, the developer and sons of the original deceased land owner, have filed a case to put this land in litigation to frustrate and and chase away the site owners.
Now the price is about Rs 800 per sq ft. I wish to sell my site.
How can I do so? What are my options?
Vadya

Dear Vadya,
If there is a case pending, the details have to be ascertained. If there is a stay order it will not be possible to sell the site. The onus to disclose all material facts about a property is on the seller also. Therefore I would advise you to engage a lawyer who can help you ascertain the facts and advise you accordingly.

Dear Madam,
I purchased a house from an NRI friend last year.The house was about three years old and is located in an approved layout and comes under CMC .I have proper khata and have been paying the taxes regularly.
However, the NRI had built the house with his own resources and did not obtain the plan approval. I had demanded the plan during purchase and the NRI had told me that his local contact would provide it.
 It was later confirmed that there is no plan approval. I subsequently made certain modifications and included the full area for tax under SAS. I also used my own funds for the modification.
    Please let me know if I can get the plan approved post-facto? What else can I do to regularise this? What can the consequences be?     I want to legalise the stated condition and clear the records.
Robin

Dear Robin,   
If there is a house without a sanctioned plan, you could try to get it regularised under the new scheme. It is essential to have a sanctioned plan. I advise you to contact a lawyer who can help you with the process.

Dear Madam,
I have a house in my name. As per the sale deed and the earlier property tax receipt, my name is correctly mentioned as Ranganathan R. In the recent computerised receipts for property tax and khata certificate, the name is mentioned as Ranganatha R.
I requested them (in the citizen centre at Malleswaram where I paid the property tax and also got the khata certificate) to change the name accordingly. They asked me to go to ward office (I come under ward 100). The ward office people expect money to do this minor correction. I am a retired person and I cannot afford to pay the money apart from running around places and people. It is sickening to note that corruption continues to prevail despite Lokayukta.
 I have only one son (no daughter and no wife) who will get the house. Is it necessary to change the name? Will it give rise to any problem-legal or otherwise? Some people say that I need not bother as I am not going to sell the house (as my son will be the inheritor) but some people say that the document should be correct. I am confused.
R Ranganathan

Dear R Ranganathan,
As the mistake is a small one, it may not be necessary to change it. You can get an affidavit made that you are also known as Raghunatha. The name of your father will be the same in all documents and hence your identity can be established. You can leave a will and show both names as aliases of each other. If you sell the house the sale deed can reflect this.

Dear Madam,
I have taken a house on the 6th floor in a 7 floor building and the wing with 42 flats, has one lift. I shifted in November 2005. Ever since installation of lift, it is malfunctioning. The complex is still under construction and out of 500 houses, 180 have been occupied. A society has not formed yet and the builder is paying no heed to residents’ complaints. What are  our options?
A K Handa

Dear A K Handa,
You should collectively move the consumer court for deficiency in service and for compensation.

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.