Tuesday, April 23, 2013

What Is Company Lease?


Company Lease




Most Companies in Mumbai prefer to sign a Company Lease which means that the Leave and License agreements are signed by the Company for the use and occupation of the Executive who will be residing in the apartment. 


The occupant could be changed if required but a provision for the same has to be made in the Agreements. A popular term for Company Lease Accommodation is “CLA” which is most commonly used by Multinational, Large Corporate and Foreign Companies who have policies to provide there both Expatriate and Indian Employees Housing.

An overview of the Company Lease Accommodation (CLA)

  • In a CLA, the Company is liable for any default, damage or any breach of the terms and conditions which are usually outlined in the Leave and License Agreements.
  • A CLA can be signed in for any period of 12 months to 60 Months
  • It is more favored with the owners to give their properties in the name of the Company, Corporates etc. as they are more comfortable dealing with a Company than an individual.
  • A lot of Executives prefer taking apartments on Individual Lease as well, but they work with the same companies as they save on some "Fringe Benefit Taxes."
  • Over the past few years owners have become comfortable in giving the apartments to Senior Executives Individually as as there is no Tax Deduction at Source (TDS) (Roughly for Individuals 16.99%, NRI’s 30%, Companies around 25%). If the Employee or the Executive comes forward especially with a family and a secured job, property owners do not fret too much, the best way to securitize them is to Take Post Dated Cheques or Advance Rent and a decent deposit to take care of any damages or pending electricity bills etc. A few good references also help the Owners get the required confidence.



For More Details Please Contact Office :- 2895 32 32 / 2894 87 47 Fax :- 2890 63 63 Mobile :- 9821411063 Skype Id:- neeta.shah30 Email: neeta@aasharealtors.co.in Blog: aasharealtor.blogspot.in Web: www.aasharealtors.co.in Shop No. 2 & 11 , Shailesh Apartments, Borivali West, Mumbai - 400103.

Wednesday, April 10, 2013

Power Of Attorney And It's Advantages

What is a Power of Attorney for Property?
The Power of Attorney for Property document allows a person, called the principal, to delegate to another person, called the agent (often a family member or trusted friend, the power to make decisions regarding assets, finances, bank accounts, and other types of property, including real estate.

 The agent, who does not need to be an attorney, will speak for the principal and make decisions according to the principal’s wishes even when the principal is physically or mentally incapacitated.

What are the advantages of having a Power of Attorney for
Property?
A Power of Attorney for Property is a way for you to decide in advance who will handle your financial affairs if you are not able to act on your own in the future.

Executing this document will save your family from the burden of having to make financial decisions without knowing your wishes. It gives you (rather than the courts) more control over your life.
A Power of Attorney for Property is a flexible document. It helps assure that your agent’s authority will be honored by others at the time any delegated power is exercised. You can give either limited or broad financial decision-making authority to your agent, depending upon your needs. For example, you may want your agent to
have the power to authorize real estate and stock transactions; to handle banking, tax or other types of business matters; to represent you in court; or to address other types of legal claims.


Who may execute a Power of Attorney for Property?

Any person with the legal capacity to make his or her own decisions who is age of 18 may execute a Power of Attorney for Property. The
Power of Attorney for Property document must be signed by you and your signature must be both witnessed and notarized.

Who may be designated as an agent under a Power of Attorney
for Property?
Any person age 18 or older may be designated as your agent. He or she should be someone you know well and can fully trust with handling your financial affairs. It is a good idea to pick someone who lives in a nearby area.

What is the responsibility of an agent under a Power of Attorney
for Property?
An agent must use due care and act in accordance with the terms that you have specified in your Power of Attorney for Property document. He or she may be liable for any negligent exercise of the duties that you have specified.




For More Details Please Contact Office :- 2895 32 32 / 2894 87 47 Fax :- 2890 63 63 Mobile :- 9821411063 Skype Id:- neeta.shah30 Email: neeta@aasharealtors.co.in Blog: aasharealtor.blogspot.in Web: www.aasharealtors.co.in Shop No. 2 & 11 , Shailesh Apartments, Borivali West, Mumbai - 400103.

Tuesday, April 9, 2013

NAR- INDIA 5th Annual Convention



















For More Information, please Contact
Pratibha Verma / Satabdi Paul
Suite No. 510/511, DLF City Court, MG Road Gurgaon 122 004, Haryana, India
M: +91 99 90 15 67 98 / +91 84 47 29 25 60
E: reg@narindiaconvention.com


For More Details Please Contact Office :- 2895 32 32 / 2894 87 47 Fax :- 2890 63 63 Mobile :- 9821411063 Skype Id:- neeta.shah30 Email: neeta@aasharealtors.co.in Blog: aasharealtor.blogspot.in Web: www.aasharealtors.co.in Shop No. 2 & 11 , Shailesh Apartments, Borivali West, Mumbai - 400103.

Monday, April 8, 2013

Registration Procedure





The registration procedure can be completed quickly if you have all the right documents.

What are the papers/requirements at the time of registration of documents? Please give full details.

A document should be fully stamped as per the Stamp Duty Ready Reckoner so as to confirm that proper stamp duty has been paid. The Stamp Duty Ready Reckoner is a public document and is available for inspection at a sub- registrar’s office. 

For registering documents relating to property, one should go the respective registration office along with the original document and one photocopy. The document must be printed or typed on one side only and in black colour. A photocopy should be taken on only one side of the paper and the paper should be of 90 GSM thickness. There should be butter paper between the two sheets of the photocopy. 

Apart from a properly executed and fully stamped duty paid document which is to be registered, the following documents are also required before the registration procedure is started.
  • No Objection Certificate under the Urban Land Ceiling Act if the area of land transferred exceeds 500 sq. mts. in Mumbai City.
  • If the land belongs to a government or semi- government body or to a charitable trust the no objection certificate of such government or semi- government body or to a charitable trust
  • Property Card of the land on which the property is being registered is situated. This requirement is irrespective of whether land is sold or the building is being sold or any other part of the building is being sold and also irrespective of whether the seller of the property is recorded as the owner on the property card or not. In other words, even the flat owners are expected to produce this paper at the time of registration.
  • If property sold/purchased is in the old building and the benefit of depreciation is claimed on the market value, then any one of the following documents is to be produced as a proof of old construction:
    • Municipal assessment bill of the building OR
    • Building Completion Certificate OR
    • Original registered agreement between the builder and original purchaser of that flat or of any other flat in that building
    • Original registered agreement between the builder and original purchaser of that flat or of any flat in that building. 

      It is better to get the document adjudicated in case the building is very old and proper depreciation is not given by the sub-registrar.
      • Original Stamp Duty payment receipt
      • One should go along with along with two witnesses
      • Registration fees and computer service charges is to be paid in cash to sub-registrar at the time of registration

How does one get the document registered at the sub-registrar’s office?

  • Bring the complete document along with other documents above.
  • Submit the document along with input form at the token window and get the token number.
  • Wait till the token number is announced.
  • On token number being announced, all parties to the document must present themselves before the sub-registrar to admit execution of the document, photographed, thumb impression and signature taken on additional sheet of paper in presence of sub-registrar.
  • Pay the required registration fees and computer service charges in cash as per the receipt (Computer service charges are @ Rs.20 per page)
  • The document will be returned within 30 minutes of getting the receipt
  • Please deal only with Officers and staff of the Registration Department who always display government identity card with Government Seal.

If any person who has executed the document is unable to come to sub- registrar’s office on medical grounds, then what should he do?

In case a person is unable to attend the office of the sub-registrar on medical grounds, then he should apply to the sub-registrar through a duly authorized representative stating the fact. The sub-registrar is bound to visit such person after office hours i.e. morning 9.00 a.m. to 10.00 a.m. and in the evening 5.00pm to 6.00 pm. That person shall admit in execution in presence of that sub- registrar, affix his photograph and sign and put his thumb impression on the document. The sub-registrar will take the document with him and complete all the formalities and process of registration. 


For More Details Please Contact Office :- 2895 32 32 / 2894 87 47 Fax :- 2890 63 63 Mobile :- 9821411063 Skype Id:- neeta.shah30 Email: neeta@aasharealtors.co.in Blog: aasharealtor.blogspot.in Web: www.aasharealtors.co.in Shop No. 2 & 11 , Shailesh Apartments, Borivali West, Mumbai - 400103.

Is Registration Compulsory ?




Is registration compulsory for all types of transfer of immovable properties?

Except in case of transfer of shares of a co-operative housing society and housing limited company where registration is optional, virtually in all cases of transfer of immovable property like family arrangement, agreement to sell, conveyance, gift deed, lease deed (above one year), leave and license agreement, tenancy agreement, declaration deed, power of attorney to sell for consideration etc. has to be registered compulsorily under Indian Registration Act,1908 otherwise the proper legal title will not pass on to the purchaser/transferee i.e. the title will be defective if registration is not done.

In what languages should the document be written so that it can be registered in Mumbai?

It should be normally be written is English, Hindi, Marathi and Gujarati only.

After how long is the document given for registration returned?

Documents lodged for registration prior to October 1, 1995 are sent to Pune, after it is indexed, for microfilming and only then it is returned to the party, which may take a few years. All the documents lodged for registration on or from October 1, 1995 are returned to the party within a few days of indexing the same because only the photocopy is sent to Pune for microfilming. After February 1, 2002 when the registration process was computerized, normally the documents have been returned within half an hour.

Why does it take so long time for documents to be returned in old cases?

The above mentioned procedure is one of the reasons but the major reasons due to which the document remained pending at the office of sub-registrar and not being indexed and not returned to the Owner are as follows:-
  • Stamp Duty was not paid according to the "Market Value".
  • Income Tax Clearance certificate U/s 230 was not attached where required (See Note (i) below).
  • N.O.C. of Appropriate Authority in Form 37-1 was not attached where required. (See Note (ii) below).
  • N.O.C. under Urban Land Ceiling Act was not attached where required.
  • Certain parties to the Agreement had not admitted execution in front of the Sub-Registrar
The above deficiencies were always pointed out at the time of registration by way of remark (such as MV, 230A, 37-1, NOC, ADM) on the registration receipt itself but due to ignorance, owners have never cared to clear them and hence documents which do not have deficiencies mentioned in the points mentioned above. However deficiency relating to non-admission is tolerated and the document is accepted and kept pending for admission only.

Note:

  • Income tax clearance certificate under Section 230A of Income Tax Act, 1961is now not required from 01-06-2001 even for documents accepted for registration before 01-06-2001 as requirement for such certificate was on the day of registration receipt itself but due to ignorance and a document was considered to be registered on the day it is Indexed and if it is not indexed uptil now no Income Tax Clearance certificate is required even for old cases.
  • N.D.C. of Appropriate Authority in Form 37-1 is also not required from 01-07-2002. As above NOC is now obtainable this is applicable even for old cases


For More Details Please Contact Office :- 2895 32 32 / 2894 87 47 Fax :- 2890 63 63 Mobile :- 9821411063 Skype Id:- neeta.shah30 Email: neeta@aasharealtors.co.in Blog: aasharealtor.blogspot.in Web: www.aasharealtors.co.in Shop No. 2 & 11 , Shailesh Apartments, Borivali West, Mumbai - 400103.

Sunday, April 7, 2013

Meaning Of MOU




A document that express mutual accord on an issue between two or more parties is called as MOU

Memorandum Of Understanding are generally recognised as binding even if no legal claim could be based. on the rights and obligationslaid down in themto be legally operative. 

A Memorandum Of Understanding must identify the contracting parties. Spell out the subject matter of the agreement and its obectives. Summerize the essential terms of the agreement and must be signed by the contracting parties. It is also called as "Letter Of Intent" 





For More Details Please Contact Office :- 2895 32 32 / 2894 87 47 Fax :- 2890 63 63 Mobile :- 9821411063 Skype Id:- neeta.shah30 Email: neeta@aasharealtors.co.in Blog: aasharealtor.blogspot.in Web: www.aasharealtors.co.in Shop No. 2 & 11 , Shailesh Apartments, Borivali West, Mumbai - 400103.

Saturday, April 6, 2013

What Is Registration?




What is Registration Of a Document?

Registration is the process of recording a copy of a document, transferring the title in immovable property to the office of the Registrar. 

Registration acts as proof that a transaction has taken place. 

The registration of a document serves as a notice of the transaction, to the persons affected by the transaction. Registration also serves as an implied notice to any person subsequently acquiring interest in the property, covered by the registered document. 

When a document, which is compulsorily to be registered, is not registered, it fails to confer any title given by the document. 

The real purpose of registration is to ensure that every person dealing with property for which compulsory registration is required, can confidently rely on the statement contained in the register, as being a full and complete account of all transactions by which the title may be affected. A certificate of Registration is mere evidence that a document has been registered. It is not proof that it has been executed. 

When the execution of a document is directly in dispute between two parties, the fact that the document is registered is not sufficient to prove its genuineness. Registration does not automatically dispense with the necessity of independent proof that the document was executed. 

Registration is done after the parties execute the document. The agreement should be registered with the Sub-Registrar of Assurance under the provisions of the Indian Registration Act, 1908 within four months from the date of execution of the document. However, if due to any unavoidable circumstances, the document is not registered within the time limit, then the document can be registered only on making an application to the Sub-Registrar of Assurance within a further period not exceeding four months and on payment of appropriate fine.


For More Details Please Contact Office :- 2895 32 32 /
2894 87 47 Fax :- 2890 63 63 Mobile :- 9821411063 Skype Id:- neeta.shah30 Email: neeta@aasharealtors.co.in Blog: aasharealtor.blogspot.in Web: www.aasharealtors.co.in Shop No. 2 & 11 , Shailesh Apartments, Borivali West, Mumbai - 400103.

Wednesday, April 3, 2013

When Stamp Duty is Payable And Who is Liable To Pay..




When is the stamp duty payable?

It is payable before execution of the document or on the day of execution of document or on the next working day of executing such a document. Execution of the document means putting signature on the instrument by the person’s party to the document.

Who is liable to pay?


In the absence of any agreement to the contrary, the purchaser/transferee has to pay stamp duty or in case of exchange of
properties, both parties have to bear stamp duty equally.

Is stamp duty payable on all instruments/ documents 

relating to the transfer of immovable property?


Except transfer by will (or by original nomination in a cooperative housing society) all transfer 
instruments/documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and license agreement, agreement of tenancy and lease deeds have to be properly stamped before registration.

It is clarified that a when a nominee transfers the flat subsequently in the name of the legal heirs, that transfer instrument is to be stamped as per the market value. If you have purchased a flat in a co-operative housing society on or after 10-12-1985 you have to pay the stamp duty on market
value as per the Ready Reckoner. A flat purchased through an agreement for sale on or before 9-12-1985 required stamp paper of Rs.5 only. However a flat purchased on or before 9-12-1985 will require stamp duty on market value at the time of conveyance of the property in favour of the society. The concept of payment of stamp duty on market value was introduced from 04-07-1980 will be charged on agreement value only.

What is the relevance of the dates 10-12-1985 and 

04-07-1980?


For any flat purchased in a co operative housing society on or after 10-12-1985, it is required to pay 
stamp duty on market value at the time of signing the agreement itself. However, prior to 10-12-1985, such transactions of agreement for sale required a stamp paper of Rs.5 only at the time of signing the agreement. However stamp duty on market value will have to paid on all such transactions at the time of conveyance of the property in favour of the society. From 04-07—1980 onwards, if the property is not covered under the Co-operative Society Act, you are required to pay stamp duty on market value. This payment is required at the time of execution of the document. However, prior to 04-07-1980 there was no market value concept hence agreement value was accepted for stamp duty payment.

In whose name should the Banker’s pay order be 

issued?


It should be issued in favour of “Superintendent of Stamps, Mumbai”

Is stamp duty payable on the instrument or on the 

transaction?


It is payable on instruments and not on transactions. Stamp duty should 
be charged on the basis of the contents of the instrument only. If any 
information essential for working out stamp duty is missing in the instrument, valuation officer can call for it. Information such as the 
area of the flat, number of the floors and year of construction must be
mentioned in the agreement for quicker response.

What are the instruments on which it is to be paid?


Instruments include every document by which any right or liability is or 
purports to be created, transferred, limited, extended, extinguished or 
recorded but does not include a bill of exchange, cheque, promissory note,
bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt (which is charged under India Stamp Act).



For More Details Please Contact Office :- 2895 32 32 / 2894 87 47 Fax :- 2890 63 63 Mobile :- 9821411063 Skype Id:- neeta.shah30 Email: neeta@aasharealtors.co.in Blog: aasharealtor.blogspot.in Web: www.aasharealtors.co.in Shop No. 2 & 11 , Shailesh Apartments, Borivali West, Mumbai - 400103.

Monday, April 1, 2013

What Is Stamp Duty? Why , When , How & Who Should Pay Stamp Duty?




What is stamp duty? Why should stamp duty be paid?

It is tax, similar to sales tax and income tax collected by the Government, and must be paid in full and on time. If there is delay in payment, it attracts penalty. A stamp duty paid instrument/ document is considered a proper and legal instrument/ document and such gets evidentiary value and is admitted as evidence in courts. Instruments /documents not properly stamped are not admitted as evidence by the court.

How do I find out the Stamp Duty Payable on my property?

You can find out the market value of your property and the stamp duty amount on it from the Ready Reckoner as follows:-
  • You should know the division/village name and C.S. /C.T.S. number of your property.
  • From the Ready Reckoner, locate your valuation zone and sub-zone with the help of the division/village name and C.S./C.T.S. number of your property.
  • From the table know your rate per square meter, then multiply the rate with the built up area of your property in square meters. You will get a value. Reduce or increase this value for lift and depreciation as per the valuation factors given in the Ready Reckoner and you will get a market value. Find out the stamp duty amount applicable to you as per the market value.The Department also does this procedure for you for a nominal fee.
  • The process of valuing the property and arriving at its market value and ascertaining the proper stamp duty is called adjudication.
  • For adjudication, one can apply to the Collector of Stamps along with copy of the agreement containing the details of the property.
  • The adjudication fee payable is Rs.100.
  • In case of a signed document, adjudication must be done within one month otherwise two percent interest per month will be levied as penalty from the date of signature.
  • An adjudicated unsigned document is valid up to six months from the date of adjudication order up to December 31 of that year whichever is earlier.

When is the stamp duty payable?

It is payable before execution of the document or on the day of execution of document or on the next working day of executing such a document. Execution of the document means putting signature on the instrument by the person’s party to the document.

Who is liable to pay?

In the absence of any agreement to the contrary, the purchaser/transferee has to pay stamp duty or in case of exchange of properties, both parties have to bear stamp duty equally.


What is the penalty for delayed payment?

If stamp duty is not paid on time, it attracts penalty at the rate of 2 % per month on the deficit amount of the stamp duty. However maximum penalty can be only 200% of the deficit amount of the stamp duty. (This amendment has come into force from 01-05-2001) Documents lodged with the sub-registrar/superintendent of stamps prior to any amnesty scheme will attract a lump sum penaltyofRs.250 or Rs.300 only, as the case maybe.




For More Details Please Contact Office :- 2895 32 32 / 2894 87 47 Fax :- 2890 63 63 Mobile :- 9821411063 Skype Id:- neeta.shah30 Email: neeta@aasharealtors.co.in Blog: aasharealtor.blogspot.in Web: www.aasharealtors.co.in Shop No. 2 & 11 , Shailesh Apartments, Borivali West, Mumbai - 400103.