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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.

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

QUESTIONS

Q:- What is the difference between ‘Earnest Money’ and ‘Advance’ in Agreement to Sell?

Q:- What is meant by Defect Liability period in  a construction agreement?

Q:- I have taken some land on lease for 99 years and had con¬structed a multistoried building. The lease deed contains a clause. "Cannot assign, Underlet or sublet or part with the possession of the demised property without the previous permission of the lessor". The lease deed provided for construction of building, I have given portions of the building on leave and license to various busi¬nessmen. The lessor has issued a notice demanding subletting charges from me and has also marked the copies to licensees demanding to pay the subletting charges. What is the remedy? Can the lessor institute legal action against me and other licenses?

Q:- In connection with the purchase of a plot in a township on Mysore Road, I have paid major portion of the sale consideration to the developer. But the developer has not completed even half of the work and the progress work is unduly slow for various personal reasons of the builder. I have lost interest in the plot because of this. Please advise me how to get back my money with interest from the builder?

Q:- My wife and my children have thrown me out of the house because of some difference of opinion. I purchased a site and constructed a house there on out of my own funds and presently, they are enjoying this property. Can I Sell this house in occupation of my wife and children? Will they claim their share in the property?