1. Institute of Real Estate & Finance
LECTURE ON PROPERTY LAWS
By – Adv. Sharang Pande
B. Com. DBM, MBA, LLB.
Pande Advocates & Legal Consultants
2. Legal Aspects Of Real Estate
Before we move ahead to the main
topic, we will first understand the
basics necessities required for each
and every Legal Document.
We will also understand and know
about documents required for buying a
property.
3. What is a Document?
Ordinarily the word Document denotes a textual record. But as per sec. 3 of
Indian Evidence Act, 1872 A Document means any matter expressed or
described upon any substance by means of letters, figures or marks or by
more than one of those means, intended tobe used or which may be used for
the purpose of recording that matter.
A writing is a document.
Words printed, lithographed or photographed are documents.
A map or plan is a document,
An inscription on a metal plate or stone is a document,
A document shall include any matter written, expressed or described upon
any substance by means of letters, figures, or marks or by more than one of
those means, which is intended to be used or which may be used for the
purpose of recording that matter.
5. According to Sec.2(e) of Indian Contract Act, 1872, every
promise and every set of promises, forming the consideration for
each other, is an agreement.
It is quite clear from above definition that a promise is an
agreement.
When a person to whom the proposal is made, signifies his
assent thereto, the proposal is said tobe accepted. A proposal,
when accepted, becomes a promise. From this it is clear that an
agreement is an accepted proposal. The process of definition
shows that a contract is an agreement, an agreement is a
promise and a promise is an accepted proposal. An agreement
therefore comes into existence only when one party makes a
proposal or offer to the other and that other signifies his assent
thereto,
In short every agreement is the result of a proposal from one
side and its acceptability by the other.
7. Drafting may be defined as the synthesis of law
and fact in a language form. Perfection cannot be
achieved in drafting unless the nexus between law,
facts and language is fully understood.
A legal document is basically an enumeration of
the transaction and all terms and conditions agreed
to between the parties involved.
Drafting is to transform oral or verbal terms of
business transaction in to written form by arranging
words in step by step way, so that the terms of the
transactions could be seen as they are agreed in
chronological order, which should to understand it
easily and keep the records of the transaction for
perpetual purpose.
8. Ten Important Steps To Be Followed
For Drafting A Document
Ascertain a proper title of the document, which aptly
describes the nature of transaction in brief.
Ascertain the parties to the transaction/agreement or the
persons executing the document representing the parties.
The particulars of identity like father’s / husband’s name,
residential / official address, age, date of incorporation in case
of company etc. should also be mentioned.
Note down the transaction / agreement and the consideration
involved.
State the mode and manner of payment of Consideration.
9. Note down the various terms and conditions of the
agreement. These terms actually state the rights and
liabilities of each party under the agreement. These
terms should be drafted in very clear and precise
language. The words used should be unambiguous so
that only one meaning / interpretation is possible. It
should be ensured that no condition is left out.
At the end, the document should bear signatures and
stamp / seal where necessary of the executing parties.
The date and place of execution should also be
mentioned.
Some documents also require tobe witnessed by some
independent person who si not party to the document.
When stamp paper or stamp duty is necessary in that
case it should be paid either on stamp paper or by
franking or by stamping now a days.
10. If document is required to be registered, it should
be presented for registration before the appropriate
authority, within a reasonable time after execution
or signed.
The agreement should be drafted as per guidance
prescribed in law and right consideration amount,
and purpose of the agreement must be legal.
11. CONTRACT
A Contract can be written, oral or implied also.
However it is always preferable to enter into written
contracts as it is always difficult to prove the terms
of an oral or implied contract than a written
contract.
An agreement may not result in a contract but a
contract should constitute an agreement.
12. Types of Contracts
1 Acquisition Agreement, 2 Agency Agreement, 3 Advertising
Agreement, 4 Consultancy Agreement, 5 Construction
Agreement, 6 Distribution Agreement, 7 Franchise
Agreement, 8 Foreign Collaboration Agreement, 9 Hire
Purchase Agreement, 10 Investment Agreement, 11 Jt.
Venture Agreement, 12 Service Agreement, 13 Shareholder
Agreement, 14 Stock Purchase Agreement, 15 Sale
Agreement, 16 Technology Sharing Agreement, 17
Agreement to act as Tech / Mgt. Advisor, 18 Agreement to
give Tech. Knowhow, 19 Collaboration Agreement, 20
Manufacturer & Sole Selling Agreement, 21 Underwriting
Agreement for Shares & Debentures of a company, 22
Agreement between company and manager, 23 Agreement
with security services provider, 24 Brokerage Agreement, 25
Agreement between firm and a broker agency, 26 Agreement
between Manufacturer and Commission agent, 27 Dealership
Agreement, 28 various employment agreements, 29 Various
Labour Agreements, 30 various agreements in Banking and
14. DOCUMENT FROM BUILDER
Development Agreement & Power of attorney[DAPA]
7/12 extract with original owner name and later with builder’s
name with mutation entries.
Property Record Card (PR Card) if Available.
ULC Certificate & Order.
NA Order OR Gunthewari.
Sanctioned Plan / Sanctioned Lay out plan.
Commencement Certificate
Marketing Broacher
Copy of Agreement to sale to be executed by builder or
developer.
15. DOCUMENTS REQUIRED FROM SOCIETY
Agreement to sale or Assignment, Index II & Registration
Receipt.
Deed of Conveyance if Executed, Index II & Registration
Receipt.
Commencement & Completion certificate.
Allotment Letter By Society.
Registration Certificate of the Society.
Share Certificate (Updated)
NOC of the Society / Builder.
Society Transfer Charges
Latest Society / Maintenance Charges Receipt.
Society By-laws.
16. DOCUMENTS REQUIRED IN CASE OF APARTMENT
Agreement to Sale,
Index II & Registration Receipt.
Deed of Apartment,
Index II & Registration Receipt.
Deed of Declaration Executed
Yes If No Why not yet completed.
Commencement & Completion certificate.
If not issued then why not?
Latest Maintenance Charges Paid Receipt.
Latest Electricity Charges Paid Receipt.
Latest Municipal Taxes Paid Receipt.
17. OTHER NECESSARY DOCUMENTS
Is Flat Transferred in the name of current
owner
Yes / No? If No Then Why?
Housing Loan or Any kind of Loan against the
Property Yes / No
If yes, Status of Loan – Loan Repaid /
Payment
in process.
18. In case of buying agricultural
land / plot / farm house etc.
Name of Village –
Name of the owner
Survey / Hissa / Gut No. -
Total Area of lands - H R Unit
Name of Town (Taluka) -
Name of District -
Rate Per Acre In Rs. -
Access to the land -
Type and Condition of land -
7/12 extract of last 30 years -
Mutation entry record -
Land / Plot Map -
Phalni bara / Fragmentation map -
19. Zone Certificate -
Family tree of Owner of the land -
List of minors -
4 boundaries of the land -
Govt. Rate of that land -
Stamp duty & registration charges -
Map of the village with s. no. -
Govt. Demarcation Copy -
List of Other rights holders -
Details of Govt. Reservation -
Area under forest
Area under Hillside / Hill slop -
Area under Pond / Lake / River /Brook-
Area under Village / Basti -
Area under Industrial Zone -
Govt. DP Plan Crosscheck -
Any other relevant papers -
Details of MOU / GPA done if any -
Distance from prominent city -
20. Water availability to the land -
Nearest big city -
Electricity supply availability -
Climatic Condition of area -
Conveyance available (Road / Rail) -
Distance from Air Port -
Distance from Railway station -
Distance from National Highway -
Public / News Paper Notice -
Objections if any -
Details of Court Litigation with record –
Search and Title report if any -
21. Legal aspects from customer’s point of view
It would be advisable for buyers or purchasers that when they intend to
buy property from Builders or in resale market, one should always
approach good lawyer, who can investigate title documents of the
property and give you sincere and true advice about the same.
It is very much necessary to check all documents to be in line and
nothing is missing so that one should not face any problem in future.
Every customer or purchaser has to be very much alert while buying a
property, because buying property involves huge stake or amount,
many times is one time investment for buyer, and there are chances
of litigation involved in property transactions, hence a buyer should
never be careless while buying property.
Inspecting Legal Aspects does not mean only checking legal
documents or title documents, however it is necessary to check
other parts like whether plan is sanctioned or not?, is the land on
which building is being constructed has got valid residential NA
permission, the building is not constructed on land fall in excess of
Urban Land Ceiling Act; the directions of the flat and building are
rightly mentioned.
Many other legal necessities are already discussed in our earlier
discussion.
22. Legal Aspects – Purchasers Point of View
Deficiency in services
Poor construction quality.
Manufacturing faults with in 3 years from handing
over possession.
No Completion / Occupancy Certificate.
Construction not as per sanctioned plan.
Articles different than promised.
Non execution of conveyance deed.
Misleading Information in broacher or
advertisement.
23. Legal Aspects – Relating To Construction
Activity
Development Agreement & POA
Land / Plot Purchase Agreements
Joint Venture Agreements
Agreements with Purchasers
Conveyance Agreements of Society / Apartment
Various Permissions
Sanction of Plan as per norms
Construction contracts
Labor contracts
Construction Insurance.
Safety measures
24. Legal Actions Taken -
In case of construction quality is not upto mark.
In case Quality Material is not used.
In case construction not completed on promised
date.
In case completion certificate is not obtained.
Civil Actions
Criminal Actions
Actions Under Consumer Protection Act.
In case conveyance is not executed.
In case coercive and one sided agreement is
drafted.
25. Other Legal Liabilities -
Accident On Site
Accident of worker.
Death of worker.
Insurance
Workman Compensation.
Safety Measures
Trade / Workers Union
Etc.
