Q.:  Before BDA or BMRDA gives approval to a township developer, do they scrutinize all the legal aspects like clear title encumbrance, etc.?

A.:  The BDA or BMRDA won’t look into the clarity of title before giving approval. It is the purchaser’s responsibility to ascertain the clarity of the title.  Even if you get the property registered, you won’t get the title in your favour since the property does not have a clear title in the first place. 

Q.:  The BMRDA is constantly cautioning the public against purchase of private layouts.  So, keeping this in mind, how do I safely buy a property in a private layout?

 A.:  Firstly, you have to see the Approved Layout Plan of the site you intend to purchase.  Then you need to see all the documents pertaining to the property and with the help of your advocate you have to scrutinize the documents for the clear marketable title of the property.  If everything is in order, you may proceed with the transaction 

Q.:  What is the difference between Earnest Money and Advance in Agreement to sell?

A.: The seller can forfeit the earnest money if the purchaser defaults in completing the sale.  Whereas, the advance money cannot be forfeited even if the purchaser defaulters in completing the sale.,  The earnest money stands as the purchaser’s guarantee for his performance of the contract.  The advance cannot be treated as guarantee for completion of contract.

Q.:  I am purchasing a BDA corner property along with a house. What are the documents that I must collect from the vendor?

A.:  You must collect the following g documents from the vendor at the time of the sale deed.

  • Auction sale confirmation letter issued by the BDA
  • Receipt  issued by the BDA or bank challan for the cost of site
  • Certified copy of the auction sale agreement
  • Possession Certificate issued by BDA
  • Katha certificate issued by BDA (or BMP if the area comes under BMP)
  • All tax paid receipts including latest tax-paid receipt.
  • Encumbrance certificate from the date of allotment to date
  • Licence for construction
  • Copy of sanction plan
  • Tax Assessment Order for the building
  • Original Sale Deed executed by BDA

In addition to these, important documents you must collect electricity and water bill, sanitary sanction letter and the last bill paid to the electricity board and water supply board.

Q.: I have my eyes set on a particular house in Murugeshpalya.  All the legal documents seem to be in order but the vendor has misplaced the original sale deed.  All the same, he has a certified copy of the same. Shall I go ahead and buy this house?

A.:  If the vendor doesn’t have the original document/parental deed, do not buy the house.  It is likely that the vendor might have created an equitable mortgage by depositing the title deed.  In such cases you are liable to pay the loan along with the interest.  You will not in a position to avail housing fiancé without the parental deed.

Q.:  Can I make a joint Will with my wife? A.:  Yes.  A single Will can be jointly executed by husband and wife where each may bequeath his or her respective share in the property in favour of their children or any other beneficiary.

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