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 am lucky that I got an allotment of site in Anjanapura Layout. The BDA has executed the sale deed in my favour on payment of full amount; the sale deed is in my possession. I have possession certificate and Katha issued by BDA in my favour. I am paying the property tax regularly; I have not fenced the site, as BDA has installed board indicating the site numbers. I was away from the country for the last six months and returned recently. During my recent visit to site, I was surprised, as I could not locate my site. It has been encroached by my neighbour who has constructed a compound. The board indicating the site numbers is removed. Please advise me how to get my site as BDA expressed helplessness.

Q:- My friend had purchased a house in Gadag.  It has only ground floor. He has permitted me to construct another floor (1st floor) and to use it for my residence or 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:- I have purchased a site from my friend. My friend got the site by allotment of BDA and has paid the full value to the BDA, which has executed a conditional sale deed.  The sale deed has put a condition that the transferee should not sell the site for a period of 10 years from 1986 that is up to 1996, whereas I purchased it in 1994.  I have paid full price and the sale deed is registered in my name.  Please advise whether the condition put by BDA would trouble me.

Q:- My cousin is a minor and owns certain immovable properties in Mysore. He would be completing 18 years of age on 12th March 2005.  It is learnt that his natural guardian is negotiating to lease out his properties for 15 years. Please advise me whether he can lease the property for 15 years.

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 is the difference between rental agreement with leave & license agreement?