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.


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


Q:- I have constructed a residential complex, which I would like to let out.  My son suggests having leave and license agreement, instead of lease or rental agreement.  Please inform what difference between rental agreement and leave is and license agreement.

Q:- What is the difference between Agreement to sell and Sale deed? Can the Title of a property be transferred only on the basis of a registered Agreement to sell?  Is it necessary to make a registered sale deed to transfer such property though there is an Agreement to sell between two parties and is also registered?

Q:- I had entered into a sale agreement for purchase of a house at Basavanagudi. The agreement is dated 01.07.2000. 1 had paid Rs. 20, 000/- as advance on the date of the agreement and Rs. 80,000/- on 30.09.2000 towards sale price. As per the terms of agreement, seller has to get the sale deed registered in my favour on or after 30.06.2001. He is not willing to execute the sale deed and as per the information is negotiating with others for sale of the property for more money. Seller is my friend who says that limitation period is three years are over and I cannot take any legal action and assures me that he will refund the money after he finds another purchaser. I am ready with money for registration. Please advice what to do?

Q:- Can the intending purchaser of an immovable property, back out of the sale transaction on the ground of non-fulfillment of obligation by the vendor?

Q:- I have purchased a house in Malleswaram jointly with my wife. The sale deed is registered in me and my wife’s name. However, I want to transfer the entire property to my wife. Have I to execute a sale deed in favour of my wife. If so what are the stamp duty and registration charges?