Financial Resource

Can I see the Title Deeds?
What will be my undivided share in the property?
Are you building within the permissible FSI?
Will you give me an Allotment Letter?
Will you give me a comprehensive Agreement of Construction?
Can I have a copy of PDA’s approved plan and planning permit, before commencement of construction?
What are your commitments after you complete and deliver the flat?

1. Can I see the Title Deeds?

1. In order to own a flat that is yet to be constructed. You will have to first buy an undivided share in the property on which the flat is going to be built. Before buying this, you must make sure that the title deeds of the property are in order. The title deeds are the set of documents that would unequivocally establish the seller’s ownership of the property and his right to sell it.

2. Therefore get a written opinion on the title from the Builder’s advocate along with photocopies of the title deeds. Certified by an advocate. If this is not available, get an opinion from your own advocate. You must also see the Agreement of Sale between the Owner and the Builder.

3. The manner by which the Owner acquired the property decides the key documents that must be seen:
A. Property was purchased by the Owner:
See the Registered Deed by which he purchased it.
B. Property came to them by a will (i.e. Bequest):
This is known as Testamentary Succession. See the Probated Will. If no Executor / Executrix has been appointed, see the letters of Administration granted by District / High Court according to law.
C. Property devolved through succession:
If the earlier Owner died without leaving a Will, the legal heirs and successors obtain a Deed of Succession issued by the Sub-Registrar or an Inventry of the assets from the District Court, which must be seen (obtain a noterised copy).
D. Property developed through a Gift / Partition / Settlement / Exchange:
The Deed relating to such transfer of Title – Gift Deed / Settlement Deed / Deed of Relenquishment / Exchange Deed – must be seen.

4. The other ancillary / supporting documents that must be seen are :
A. Form I&IV in the name of the Owners, issued under the Seal of the Mamlatdar.
B. Nil-Encumbrance Certificate (EC) for the preceding 31 years, preferably showing no mortgage or other encumbrance that are still existing on the date of purchase. Exercise caution if an uncleared mortgage or other lien on the property is shown in the Encumbrance Certificate.
C. The property being sold must be free of restrictions for sale under the Urban Land Ceiling Act (U.L.C. Act). If a Clearance Certificate for the Property issued by the U.L.C. Authorities is not available, then it has to be ensured that with reference to the land held by the Owner(s), and the nature of their family membership, the built-up area of the construction thereon and the appurtenant / contiguous land around the built-up area fall within the ceiling of Ownership and therefore can be freely said.

5. If the property is not being transferred by the Owner(s) directly but through an Agent, acting as Power of Attorney Agent (POA) of such owner(s), ask for the original or attested copy and scrutinise it. Such a Power can be given either through a Notarised Document or Registered Document. However, a notarised power may not be accepted for property transfer by all governmental/financial agencies.

6. Besides the above, it is advisable to check the following:
A. Property Tax Demand Notices and Receipts for payments to the Corporation.
B. Water and Sewerage Tax Demand Notices and Receipts for Payments to the Panchayat or Municipal Authority.
C. Electricity Bill and Receipts for Security Deposits and Additional Deposits. The latest electricity bill is the best source of proof for payment of dues by the Owners to the Panchayat or Municipality.

2. What will be my undivided share in the property?

Your Undivided Share of land must be equal to:
The built-up area of your flat as in the approved plan/ Total built-up area of the project as in the approved plan This is usually expressed as a percentage of the total land. Therefore, the percentage undivided shares of land of all the flat owners in a complex must be equal to 100. This ensures that the title to the entire land as well as the entire building rests with the group of flat-owners of the complex.
The Sale Deed transferring the Undivided Share in your favour must be duly registered before the commencement of construction of the flat.

3. Are you building within the permissible FSI?

1. The Floor Space Index (FSI) is an important parameter you should know about.

F S I = Total buildt-up area of your complex plan/Total area of the plot on which it is to be built.

2. The permissible FSI for all residential complexes other than multistoreyed buildings in all the end-use zones listed below is 1.5: Primary Residential, Mixed Residential, Institutional and Commercial zones

3. The total construction as declared in the plans of- fered by the promoter should not exceed the FSI permissible.

4. This FSI is fixed by the Planing and Development Authority (PDA) which is the regulatory body governing architectural, structural and environmental parameters pertaining to development within the State of Goa.

5. The rules and regulations governing the above parameters are spelt out in the Development Control Rules (DCR), a copy of which can be purchased from the PDA.

If the permissible FSI is exceeded, you as a flat-owner run the risk of demolition of the construction.

4. Will you give me an Allotment Letter?

Insist on an Allotment Letter at the time of booking, which must clearly indicate:
>> All-inclusive firm and fixed price (clearly indicating the various components such as land cost, registration and stamp duty for the transfer of undivided share of the property, and construction cost) and the schedule of payments.
>> Plan of the flat (as per sketch scheme), built-up-area and the features offered.
>> Committed commencement and delivery period and commitment for liquidated damages for any delay.
>> Post-delivery product warranty by the builder.
If your builder does not provide you with an Allotment Letter, you face the uncertainty of not knowing
>> The exact amount you will end up paying for your flat.
>> When you will get possession of your flat.
>> Whether you will get all the features promised.

5. Will you give me a comprehensive Agreement of Construction?

1. The Agreement of Construction substantiates the commitments relating to land cost (your share), stamp duty and registration fee, construction cost, schedule of payment, list of features, time of delivery, post- delivery warranty etc.
2. If defines the responsibilities and obligations of both the Contractor (or Builder) and the Contractee (or Buyer) and is normally put down on a Rs.10.00 stamp paper and signed by the Builder and the Buyer in the presence of witnesses.
3. The Agreement of Construction is the only source of your title to the flat, read in conjunction with the Property Tax Assessment and Demand Bill in your name. Since it is the document of ownership, funding agencies would demand it, when you apply to them for a loan.

6. Can I have a copy of PDA’s approved plan and planning permit, before commencement of construction?

1. The plan given to you at the time of booking may not be fully conforming to the Development Control Rules and the plan actually approved by the PDA may consequently be different. Therefore insist that you are given a copy of the approved plan and the planning permit before the construction of the complex commences. Check whether the area of your flat in the approved plan is as per the allotment letter.

2. If you have a copy of the approved plan and the planning permit, you can monitor the actual construction and ensure that it is as per the approved plan. If the building is not constructed as per the approved plan, you as a flat-owner, could face the threat of its demolition.

7. What are your commitments after you complete and deliver the flat?

1. Ensure that the builder gives you the Completion Certificate issued by the PDA, which confirms that the construction is as per the approved plan.

2. Ensure that the builder gives the Association of Flat Owners (of which you would be a member) with a set of detailed drawings covering structural, plumbing, electrical wiring, drainage and water supply details.

3. Ensure that the builder commits to rectify defects in your flat and the complex in materials or workmanship.

4. The Completion Certificate confirms the adherence of the completed complex including your flat to PDA’s approved plan, and eliminates all chances of demolition of the construction.

5. In the obsence of the drawings, maintenance of your flat (and the building) will be difficult.

To know more visit:

http://www.magicmasons.com

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