logo logo

I am resident of Bangalore and I have few questions on real estate in Bangalore. I heard there is a GO passed by Karnataka government, banning all the registrations process by CMC. Is this GO applicable only in the city of Bangalore or whole of Karnataka? Has this been lifted or still in place? Do I have to pay VAT and Service Tax if I book apartment from a builder? The apartment builder told me that there will be a construction agreement and a land agreement. Since, the construction agreement more is like a service rendered by builder to the buyer, can I just buy Service tax on the construction cost?

- by Sibicon, Bangalore

The government orders prohibiting the registration of certain properties is applicable not only to Bangalore but entire Karnataka. The prohibition is not on all properties in the jurisdiction of City Municipal Councils but only on transfer of constructions on sites which have come up on agricultural lands, which are not converted and in layouts which are not approved by the competent authority. The prohibition is still in force.

Sales tax and service tax is applicable on flats got constructed through a builder.

The purchase of flats involves two important documents, purchase of some percentage of undivided shares in the land and construction agreement in addition to other documents like agreements, possession certificate, etc. The purchase attracts sales tax and service tax.

image

These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.

QUESTIONS

Q:- I have purchased a flat in a recently constructed apartment at Kanakapura Road. The area comes under the jurisdiction of BDA. All the owners have agreed to form an association. There is some doubt, where the association is to be registered, Registrar of Firms or Registrar of Co-operative Society. Some owners mention that the association has to be registered with the Sub-Registrar. We seek your guidance?

Q:- I have a small query regarding execution of sale deed. I had purchased a commercial office property in Ranchi city during 2002. Recently I observed that in the sale deed only the seller (builder) has signed the documents and I didn’t sign the deed. Further I checked with other people also who had purchased their properties during that time and didn’t find their signature either on the sale deed. In this case, is my sale deed still valid or do I need to get executed another sale deed with my signature on it.

Q:- My friend had purchased a house in Mysore.  It has only ground floor.  He has permitted me to construct another floor (Ist Floor) and to use it for my residence or to let out.  He assures me that I would be the Owner of that floor and is willing to execute any documents in this regard.  Please suggest the proper documents to be obtained.

Q:- Who can sign as witness to a document? What is meant by Identification of sale deed? 

Q:- Certain hidden facts like pending cases, prior agreements, government notification of the property cannot be traced easily by verification of the documents.  How can these hidden factors be uncovered, and what should a purchaser do to protect himself against these factors?