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Deccan Herald » DH Realty » Detailed Story
LEGAL ANGLE
Capital gains depend on location
Vatsala Dhananjay

Dear Madam,
I recently purchased a BDA NOC site (30x40), got it registered at BDA office and obtained the khatha in my name.
What should I do to prevent encroachment of land?
VN

Dear VN,
To prevent encroachments, you can build a compound wall or put up a fence, along with a noticeboard stating that the property belongs to you and, “Trespassers will be prosecuted”. You should also visit the place periodically. You can get your encumbrance certificate updated regularly to see if there have been any unauthorised transactions.

Dear Madam,
I am in the process of buying a flat in Avalahalli, near Girinagar. During registration that was done in February 2006, only a portion of the land has been mentioned. There is no clear description of that schedule. The flat, or builtup area is not mentioned.
2. The builder claims that there is no need for separate registration of the flat. He says that may be included in the document if we decide to sell the flat.
What are the implications of afore mentioned registration?
Veena H S

Dear Veena H S,
The construction agreement entered into with the developer is the title document for the flat. The sale deed is the title document for the undivided portion of the land. Both the schedules can be included in the sale deed to be executed at the time when you sell the property to third parties.

Dear Madam,
We have an old ancestral house in our village which has lot of teak wood as doors, windows and on the roof. If we want to dismantle the house and use the wood for another house in a different place, what is the procedure to be followed?
N N Reddy

Dear N N Reddy,
There is no legal procedure to be followed for shifting movables. You can dismantle the same and shift it wherever you want.

Dear Madam,
I sold my share in agricultural land, which was in the possession of my family for close to 100 years, to a private builder for Rs 25 lakh. Do I have to pay capital gains? If yes, please suggest ways for its investment including government bonds. Do I have to invest the entire sum or a part of it? If the deal was concluded in March 2006, what is the period within which I have to make these investments? Is there any rebate for women?
Rashmi K

Dear Rashmi K,
Capital gains on agricultural lands arises when the lands sold are situated within a distance of 8 km from the urban limits—municipality or corporation. If you have deposited the gains in the capital gains accounts scheme, then you can reinvest the same to construct a house or purchase a house within two to three years. You are advised to contact a chartered accountant to help and guide you.

Dear Madam,
About 10 years ago my mother had an agreement with the developer to build the property and give us two apartments. My mother subsequently passed away. I have been living in the same apartment for the last eight years. I have now asked the builder to give all the documents, which he has agreed to. Could you let me know as to what are the documents that need to be given to me by the builder?
Shaheen
A

Dear Shaheen A,
The documents to be retained by yourself are the copies of the parent document whereby your mother derived title, joint development agreement executed between your mother and the builder, sanctioned plan of the building, khata, tax paid receipts, sharing agreement between the builder and your mother, will of your mother (if she has left a will), death certificate of your mother and your family tree.

Dear Madam,
My father registered a plot in the name of my younger (then unmarried), sister with the understanding and written statement that half of that plot will go to me. My father expired recently and my sister wants to register half of the plot in my name. Presently, she is an NRI with that country’s citizenship. Kindly tell us whether stamp duty through gift tax transaction helps us to register the land cost-effectively. 
Another issue is—land registration in that area is now allowed for only those plots with some construction done. So now if we go for construction what is the appropriate time to do formal registration?
Jaya

Dear Jaya,
If the registered document has only your sister’s name on it, then she can gift half the property to you by a registered gift deed, which has very low stamp duty. You can finish the construction and then register the plot or get a sanctioned plan and then complete the registration.

Dear Madam,
If the owner of real estate property in Bangalore resides in the US and his relative pays the property tax, does that entail ownership to the relative after some fixed number of years?
Prathibha

Dear Prathibha,
The payment of property taxes alone will not make a third party the owner of the property. Only possession which is open, continuous, peaceful and undisturbed for a period of 12 years can grant title by adverse possession.

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.

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