QUESTIONS ON PROPERTY MATTERS

Advocates, property advocates in Bangalore, property lawyers in Bangalore

Whether a grandson has any right of share in the property of his grandfather during his life time?          

                                                                   

A grand son has no right in the property of his grand-father. A grandfather is competent to deal with his self acquired property in whatever the fashion he likes including disposal of his self acquired property by way of WILL in favour of his choice person. But, if the property held by the grand father is an ancestral property then he is prevented from dealing with this property at his will. In such a case, upon partition of the family property, the grandson will get a share out of the share of his father.

What is the mode of payment under the SAS ? I have lost / misplaced the tax receipt for theproperty tax paid last year. What should I do to obtain a duplicate copy ?

Property tax under the Self Assessment Scheme [SAS] may be paid by way of cheque, DD or cash. In addition to the 30 Range Offices, nearly 80 branches of various banks (Dena Bank, Syndicate Bank, ING Vysya Bank, Mysore Bank, Corporation bank, Bank of Baroda, Andhra Bank, and Canara Bank) have been authorized to receive the property tax and issue receipts on behalf of the BBMP.

You can request the Assistant Revenue Officer to issue an endorsement saying that the property tax for a particular property has been paid.

Ihave purchased a house in January 2003.The sub-registrar of Basavanagudi, wherethe sale deed was registered, did not agree for the stamp duty paid on the saledeed and served us a notice to pay additional stamp duty of Rs.6,575/- whichwas also paid and the sale deed was registered. The registered sale deed iswith me. I am in possession of the house. But recently I have received a noticefrom the Department of under valuation stating that the property is undervaluedand to pay additional stamp duty of as Rs. 4,255. As I have paid the stamp dutyas demanded by the sub-registrar why this notice? Can I ignore the notice ?  Please advice.

It is wrong to ignore any notice issued by government departments, courts, and advocates. The notices have to be replied and complied with, stating the actual position. This is in general.

With regard to your specific query, about the receipt of notice from under valuation dept, The Karnataka Stamp Act 1957, under section 45-A has given powers to the Deputy Commissioners to re-examine the documents such as registered sale deeds to detect cases of under valuation. He may also issue a notice to the parties to pay the deficit stamp duty. However, this action has to be done within two years from the date of registration. Though you have paid stamp duty as determined by the sub-registrar, the Deputy Commissioner is empowered to re-examine the issue. If you think that the property is not undervalued and correct stamp duty is paid, you may contest through an advocate with supportive documents. If not you may pay the stamp duty as demanded. The department will give an endorsement for having paid the deficit stamp duty.

My uncle has given Power ofAttorney to his friend to develop certain properties, negotiate and sell them.He has also received the consideration. The stamp duty paid on Power of Attorney is Rupees One Thousand only andthe Power of Attorney is not registered. The Attorney holder has developed the property and has sold to various purchasers. But, now my uncle wants to giftsome portion of the said property to his sister. Since the stamp duty paid onPower of Attorney is only Rupees One Thousand and not as per sale deed and isnot registered, can my uncle claim the sale deeds executed by his friend, Power of Attorney holder, as irregular and not enforceable and gift the property to his sister.    

                                 

The stamp duty payable on Power of Attorney given to a promoter to develop the property and to sell the property is only Rupees One Thousand and not as payable on sale deed and the Power of Attorney given by your uncle to his friend is properly stamped. The Registration of such Power of Attorney is also not mandatory as per Indian Registration Act. If the person other than the executor of the sale deed presents the document for registration as a Power of Attorney holder and admits the execution such Power of Attorney requires registration. But, if the person who is signing the documents and the person who presents the sale deed for registration admits the execution are one and the same, such Power of Attorneys need not be registered. In the instant case, the Power of Attorney holder himself has executed the sale deed and has admitted the execution.

Further your uncle has received the consideration and his friend has developed and sold the property in furtherance of powers given to him. As such your uncle cannot claim that the sale deeds are irregular not enforceable and also cannot revoke the Power of Attorney. He has no right to gift a portion of the said property to his sister.

I have recently purchased some immovable properties at Banaswadi out of my earnings.  I do not have any children and have adopted aboy who is 17 years old. I want to gift some of my properties to my sister by will but natural parents of my adopted son are objecting to this stating that it is against law.

You are at liberty to deal with properties which are acquired out of your own funds as you like, provided no agreement is made at the time of adoption about non-alienation of property. You may bequeath the property to your sister by will. Section 13 of Hindu adoption and maintenance act is very clear in this regard. However, apart from legal aspect you have a duty to your adopted son and should provide for him also.

I have mortgaged my property to bank to avail loan. The mortgage is simple mortgage which is registered. Iam in possession of the property which is vacant. Can I let out this mortgaged property, which would help me financially to discharge the loan?

Transfer of Property Act deals with this situation. The relevant section is 65-A, which you may refer. The mortgagor, if in lawful possession of the mortgaged property shall have all powers to let out / lease the property which is binding on the mortgagee. If the terms of your mortgage do not prohibit such leasing / renting of the property you may let out the property, subject to certain conditions stipulated in the act. Such lease should be in the ordinary course of management of the property and in accordance with local law, usage and custom.

Further, such lease shall reserve the best rent that can be reasonably obtained and should not have any premium or rental advance. The lease should not provide for renewal. The lease should commence not later than six months from the date of lease.  In the case of lease of buildings, whether leased with or without the land on which they stand, the duration of lease shall not exceed three years and the terms of the lease shall provide for reentry on failure to pay the rent within the time specified. However, these terms may be varied or changed by the mortgage deed itself. So please verify the mortgage deed executed by you and proceed.

I have purchased a site nearKrishnarajapuram. The site is formed in converted land for non-agriculturalresidential purpose the site is assessed for property tax by the villagePanchayat. I have planned to construct ahouse in the site and plans are being submitted to village Panchayat forapproval. But I apprehend the land maybe notified for acquisition by BDA in due course. What will be the position of the house constructed in case BDA notices the land for acquisition?

The BDA may notify the land for acquisition at any time. The BDA first issues preliminary notification where in it calls for any objections. BDA also conducts the survey of lands proposed to be acquired and documents the developments and constructions. Thereafter considering the objections and the developments, final notification will be issued. Any constructions prior to the preliminary notification will be integrated into the layout. You may go ahead with construction of house after obtaining approval of plan and thereafter get the property assessed for tax. In case BDA notifies the land for acquisition you may file objections with relevant documents.