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FAQ’s

Carrying out a process of buying or selling real estate is not one of the simplest activities to partake in. In fact, there are several nuances that exist which most occasional homebuyers or sellers may not be well-versed with.

Definition: Bayana is an Indian term used to indicate the token money that is usually given to the landlord in order to informally freeze the negotiations on a particular property. This is paid post the formalization of the initial terms and conditions. Bayana is a form of formal agreement written on a stamp paper with related conditions that are agreed upon by both the seller and the buyer.

Process: The estimated time to pay the bayana is usually one week after the token money is offered. Token money, in this case, denotes the small amount paid to the home seller as an indication of serious intent to purchase the property from them. Several terms are noted on the agreement for the reference of both parties. Terms include the time frame for the property transfer and the payment of the residual amount, which is often between 10 to 30 days but can vary.

The dynamics: The bayana amount is supposed to be one-fourth of the total price to be paid for the property. It’s suggestive that longer the time frame to clear the remaining amount, the higher would be the bayana. This is the period when the seller applies for the No Demand Certificate (NDC). This certificate provided by the concerned housing authority in the midst of both the parties. The property is transferred instantaneously and the seller receives the bank draft.

Demerit: In any case, the deal falls through after the payment of bayana due to some problems on the seller’s end, it then becomes obligatory for the seller to pay double the amount of the bayana amount as penalty. This procedure is considered legal in India. However, if the buyer backs out, he loses the complete bayana amount.

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De Jure Possession is literally translated to “possession in the eyes of law”. This implies that even in case of the property owned by the possessor is locked, the De Jure possessor is also and still the de facto possessor. Before delving into the meaning of De jure possession, it’s best to understand what the newly introduced term refers to; De facto translates to “in fact or in reality” which is indicative of having being possessed by the possessor irrespective of the status of the property, such as being occupied, leased or locked up, in this instance.

How is De Jure Possession important? First of all, de jure possession implies a person’s possession of an object or thing, in this context, it would be a land or real estate property. This, however, does not imply that the person necessarily has ownership of the same unless specified in legal terms or is certified under the eyes of the law. It significantly represents the possession which, in the courts of law, exists. It is also known as constructive possession. For example, a caretaker or a driver may possess your car, but in the eyes of law, it is possession of yours or its legal owner’s. Possession of bailor through bailee is de jure possession on the part of the bailor.

What is the difference between De jure possession and De facto possession? The difference between de facto and de jure recognition is mainly its political nature rather than legal. The conditions and regulations under international law for the recognition of a new regime as the de facto Government of a State are that new regime has, in fact, effective control over most of the State’s territory and that this control seems likely to continue. In the current real estate world in accordance to the law that governs it, it is suggestive that the owner of a property has the right of possession and can further assign or allot that right completely or partially to another person under legal binding who may also assign the same to the right of possession to a third party. For instance, a real estate builder or the owner of a residential property has the right to assign the right of possession to a property or realty manager under a property management contract who then is allowed to assign the right to possession to potential homebuyers or tenants under a rental agreement. A well-informed homebuyer or owner is what we intend to encourage. Knowing what your rights, duties and responsibilities are, help you and the real estate manager or developer you interact with for a plausible purchase of an apartment. This also aids in a seamless and transparent transaction between the parties. Carrying out a process of buying or selling real estate is not one of the simplest activities to partake in. In fact, there are several nuances that exist which most occasional homebuyers or sellers may not be well-versed with. 

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Real estate is a vast field to enter into and as a home buyer, this field might appear much more vast than it is. This is often why a lot of new or novice homebuyers hesitate or neglect understanding the concepts of home-buying, property taxes, etc. this article sheds light on one of the most valuable and important documents required by a property owner.

Definition: A “Khata” is referred to a record in a register of the government that is maintained by the division of land revenue. It’s a record where the name of the owner of a property is entered. To put it in simple words, the document is a record kept with the land revenue department expressing that a property X is owned by Mrs. A and that the property tax for Property X is to be collected from Mrs.A. The Khata is a document that confers a property owner having an account with the Municipality for taxpaying processes. It holds great importance as it denotes the liability of a property owner to pay property taxes. A Khata is solely a document of land revenue record and does not possess the authority to establish the ownership of any property. It is most often required for different purposes when dealing with immovable property. Be it buying the property, selling it or applying for a loan. There are a number of authorities and procedures that are required to be updated. Most of these procedures require you to furnish a copy of the Khata also referred to as a Khata Certificate.

Process: The standard information required to be filled on a Khata form is the owner’s name, size of the property, the location of the property, the built-up area of the same property, etc. It can be obtained by paying Rs.25 from the concerned office of the Assistant Revenue Officer or at any of the Citizen Service Centers.

Purpose: You need a Khata for several occasions when dealing with land, property or real-estate related work. You need it to apply for electricity and water connections, it’s also necessary for trade and acquiring building licenses. It is also required when applying for a bank loan.

Eligibility Any title holder of any property within the BBMP Jurisdiction can apply for a khata in a prescribed form. He/she must also submit relevant documents, to the designated Assistant Revenue Officer.

Types There are two types of Khata in Bangalore- A & B Khata. Both have similarities and their own distinct dissimilarities. Below are the definitions & differences between the two:

A Khata An ‘A’ Khata document verifies that the associated property taxes have been duly met by the owner of the property to the department of BBMP. It also indicates that the property complies to all building bylaws and government regulations regarding properties in Bangalore.

B Khata A ‘B’ Khata document indicates that the property that is registered is of an illegal nature or is in violation of government regulations regarding properties in Bangalore. However, despite having civic charges lifted off the property by the owner, BBMP holds the right to collect taxes from buildings constructed illegally, including buildings constructed in violation of bylaws. Such properties are listed by BBMP under the B Khata.

Span for acquisition An A Khata most often takes about 4-6 weeks after the submission of the application with all the required documents.

What is it? An encumbrance certificate refers to a mandatory document that is used in transactions regarding any property. It is furnished as evidence of free title/ownership. It holds great importance when buying a property, house, flat or a plot. “Encumbrance” indicates that the contract formulated on a particular property, whereby it acts as a security for any liability of its owner that has not been discharged as on date. It is used to verify that the property does not possess any financial or legal dues. This certificate guarantees complete ownership of the property without any kind of legal liability or monetary binding.

Importance of an EC
The encumbrance certificate is of high importance for someone applying for a home loan or is obtaining loans against a property they own. It is also regarded of high value for those who want to sell or buy a property. All the transactions recorded relating to a particular property for a specific span is contained within the EC. These data and information also consist any claims or encumbrance on the property brought or sold by the owner.

An average of 10-15 years of encumbrance is demanded by the Government authorities and financial systems such as banks. One may also ask for up to 30 years encumbrance certificate to be verified. To reduce further confusion or to gain clarity, one can also obtain a Possession Certificate of the ownership of the particular land, from the village office.

What is Form no. 15 & 16?
Generally, the encumbrance certificate is issued in Form No. 15 and 16. In case if the property does not have an encumbrance during the required time frame, Form 16 will be issued. It is the certificate of Nil Encumbrance. In case of the property having encumbrance registered during the said tenure, then form No. 15 will be issued. The purpose of the certificate in form 15 is to exhibit the documents that have been registered with regard to the property. Scenarios such as the nature of the encumbrance such as gifting, partition, lease and mortgage fall under this umbrella.

Obtaining an EC?
Given below is the procedure to obtain an EC:

  • First, one must download the Form 22. Attach it with a Rs 2 non-judicial stamp along with the address to the Tahsildar, attaching an attested copy of the respective person’s residential address. This must then be furnished alongside the purpose for which the certificate is required.
  • Next step includes the provision of the details of ownership such as the accurate survey number and the location of the property. Mentioning the period and a full description is highly important at this stage.
  • The above document needs to be provided with the requisite fee according to the period of encumbrance.
  • The following application must then be submitted to the jurisdictional sub-registrar’s office, under which the property is then registered.

Facts about the EC:

  • As a rule of thumb: The encumbrance year initiates from April 1st of a calendar and closes on March 31st, of the next calendar year.
  • Most commonly, the EC is provided in one’s regional language however, an English translation can be procured at an additional fee.
  • The EC for property can be obtained from the sub-registrar’s office where the particular property has been registered.

Duration of obtaining an EC The standard time taken to obtain an EC is usually around 15-30 working days.
As much as it is valuable to any property owner to possess an EC, one must also be informed that even though an EC may give the details of the encumbrance on a property, some information or documents are exempt from it. Thus, it is recommended that the buyer obtains both the EC and a possession certificate as a proof of complete ownership of the property.

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Concept of HVAC HVAC is an abbreviation for heating, ventilation, and air conditioning. The system is generally used to provide heating and cooling services to buildings. HVAC systems are a standard requirement according to the industry standards for the construction of new buildings. HVAC systems are responsible for controlling the ambient environment ie. temperature, humidity, air flow, and air filtering. It is also imperative that it must be designed for and executed along with other data centre components such as cabling, computing hardware, physical security systems, data storage, fire protection, and power. The selection of an HVAC contractor is a very crucial element while planning or constructing a building.

HVAC is referred to as an area of mechanical engineering that deals with the designing aspect of systems in building architecture. In this context, heating refers to the method of placing heaters effectively in the building in order to decrease energy costs and also create a comfortable living environment. Ventilation denotes to the process where the stale air is removed. This is in regard to the Kitchens, etc. Air Conditioning refers to the strategic points in the building where the air condition units are placed in such a way that the energy efficiency is increased. It’s very important that the heat in the building is carefully and meticulously removed in an effective manner, to create uniform temperature conditions.

Process involved HVAC combines energy calculations along with any kind of liquid or fluid flow within the building through the means of Energy simulations and CFD. It also utilized in understanding building physics. A separate space, referred to as a plenum, is often allotted to every house that enables air circulation for HVAC and communication cabling. This is usually done in the space between the structural ceiling and a drop-down ceiling or even under a raised floor. HVAC is an significant part of residential structures such as independent homes, apartment buildings, commercial hotels and senior living facilities as well as industrial and office buildings such as malls, skyscrapers and hospitals. The system manages the environment of the unit it is installed in. The system is responsible for safe and healthy building conditions. The indoor conditions inside are often regulated with regard to the temperature and humidity, using fresh air from outdoors.

Types of HVAC System

  1. Split and Window AC
  2. Packaged Heating & Air Conditioning System
  3. Central AC System

Defining FERA Foreign Exchange Regulation Act (FERA) was an act introduced in the year 1973, to regulate some payments dealing in securities, foreign exchange, the import & export of currencies and the acquisition of immovable properties by foreigners. This was introduced when the foreign exchange reserves were considerably low. FERA was formulated and furthered upon the presumption that the foreign exchange earned by Indian residents were the rightful property of the Government of India. It was supposed to be collected and surrendered to the Reserve Bank of India (RBI). The prime objective of FERA was to control certain payment dealings in foreign exchange that had a hand at affecting the foreign exchange earned from the import and export of currency. It was also intended to aid in conserving the precious foreign exchange and to accelerate the precise utilization of the revenue in order to promote the economic development of the country. Under Section 31 (1) of the Foreign Exchange Regulation Act ( FERA) of 1973, it was made mandatory for every foreign corporation, that were not incorporated in India to obtain permission from the Reserve Bank Of India (RBI) so as to procure, transfer, hold, or dispose any immovable property within India. The FERA applied to every residing citizen of India. The RBI was entrusted with the power to revoke the authorization of any company in case of non-compliancy.

Rules laid by FERA Some rules followed by Forex are as follows: FOREX

  • Restrictions on the establishment of a place of business in India
  • Permission of RBI is required for practising a profession in India by foreign nationals
  • Restriction on the acquisition, holding, etc., of immovable property in India
  • RBI has the Power to call for information of any personal documents like Indian currency, foreign exchange and books of account.
  • Power to search suspected persons and to seize documents

Conclusion At the time of formulation of the FERA, India had a shortage of foreign exchange (forex). That is when the government restricted the exchanges, or dealings of India with foreign countries. But the impact of these rules and regulations were massive and affected the import and export of currency. It controlled everything with regard to foreign exchange and was intended to minimize dealings in forex and foreign securities. However, the wave of liberalization had a larger effect on the act which led to the removal of the measures of FERA. It further replaced it with a set of foreign exchange management regulations. Foreign Exchange Management Bill (FEMA), a new draft was then drafted and was prepared by the Government of India to replace FERA. This was created keeping in view of the Indian economy. However, until FEMA began to be enacted upon, the provisions of FERA were applied.