Real Estate / Property Matters & More specifically our areas of practice include:

Real Estate / Property Matters

The Real Estate team of Universal Legal consists of specialist lawyers advising on structuring, negotiating, documenting and executing real estate transactions. Members of our team have assisted developers, landowners, corporations and private clients in connection with acquiring, selling, leasing and licensing Industrial, commercial and residential property.



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More specifically our areas of practice include:

    Acquisition, sale and disposal of property, whether carried out individually or through real estate companies and/or funds
    Real estate funds
    Construction, development and re-development projects
    Project finance
    Special Economic Zones
    Specialized contracts, commercial or hotel related projects
    Leases, licenses, agency, property and facility management
    Business conducting and revenue sharing arrangements
    Due diligence and title certification


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Banking and Finance

Banking and restructuring have been core practice areas of our Legal Firm�s High Court Advocate and Supreme Court Advocate. The High Court Advocate and Supreme Court Advocate in our Legal Firm provide legal advice & legal services in India for Debt Recovery Tribunal, Credit Debt, Debt Management, Debt Relief, Debt Advice, Debt Solution, Debt Settlement, Bad Debt, Debt Consolidation, Debt Recovery, Debt Collection, India Debt, Debt Equity, Debt Ratio, Debt Market, Debt fund, OTS: One Time Settlement & NPA: Non-Performing Assets


The High Court Advocate and Supreme Court Advocate in our Legal Firm advice clients on drafting of various banking documents and provide legal opinions on various law related matters and represent them in the courts of Delhi, Mumbai, Guwahati and Bangalore.

Banking Law covers a wide variety of topics relating to the regulation of banks, bank officials, and non-bank institutions that offer bank services. It involves such issues as deposit and trust accounts, state laws that protect consumers financially, the prohibition against discrimination in the allocation of credit, electronic banking and fund transfer systems, limitations on the disclosure of confidential financial information, and credit card agreements and services.

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Intellectual Property Law

The Intellectual Property, Communications and Technology team at Universal Legal have advised both national and international clients in identifying, protecting and enforcing their Intellectual Property (IP) and Information Technology (IT) works. Our IP practice is broad ranging, from all aspects of patent, trademark, and copyright law and related aspects of IP law. Members of the team undertake full range of IP services including procedural filings, registrations, searches, inspection, protection & enforcement, negotiations, licensing, assignments, franchising, advise and representation in all types of IP claims, disputes and litigation.

Corporate & Commercial Matters

The Corporate & Commercial team of Universal Legal has advised on a number of diverse transactions. Members of our team have acted on behalf of venture capitalists, private equity funds, banks, financial institutions, acquirers and sellers in transactions. We have provided on-going support to our clients at all stages of a company's activities from incorporation, business development and restructuring. Further, we have also represented clients in structuring, drafting, negotiating and finalizing of transaction documentation.

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TIPS FOR PURCHASERS OF IMMOVABLE PROPERTY

TIPS FOR PURCHASERS OF IMMOVABLE PROPERTY

1. Invest your hard earned money in projects promoted by renowned developers having proven track record. Do not go by glossy brochures or attractive advertisements. Do not believe the words, ‘Financial Institutions approved Projects’.

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2. Check up the documents with an experienced Advocate. Ensure that the documents of title of the property you intend to purchase are clear. Defective title will create problems at any point of time. 

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3.Always go for a property, which has a resale value. 

4.Ensure that the building has been constructed as per the sanctioned plan and if there are deviations they should be within the permissible limit. The property should not be in a low-lying area or in a filled up water body 

5. You may always rope in the services of a reputed real estate agent and fix his commission well in advance. 

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6. Purchase the property in a developing area. The value of land will appreciate. 

7. If you prefer a ready-to-occupy Flat, locate it off the main road on a wide street with adequate water supply away from cinema hall, marriage hall, open drain, factories and place of worship but not very far from school, college, commercial complex, temple and hospital. 

8. If you buy the Flat/Building under construction, visit the work site regularly and see the work progress. 

9. You may not be a Vaastu believer, but purchase House or Flat or land that is Vaastu-friendly from resale point of view. 

10. If any one offers flats/sites for a cheaper rate than the prevailing market rate, there may be certain hidden problems. So you should be extra careful on finalisation of such a property. 

11. Ensure that the developer has Clearance Certificates from government departments, viz., Electricity Board, Water and Sewage Board, etc.. 

12. Commencement Certificate and Occupancy Certificate are other important documents that are necessary while buying the flats. 

13. Check up the genuineness of the documents with the concerned authorities in person. 

14. Ensure Agreement for Sale and Sale Deed, duly stamped, executed and registered are in your possession. Both should contain fair clauses for both the parties. 

15. In case of flat purchase, specification of the building, including material used, difference between the carpet area and the super built-up area are the important factors to decide the rate. Other facilities like Club House, Swimming Pool etc., also will have to be considered. 

16. Check whether there is adequate water supply and sanitary line facility. 

17. In case of GPA transaction ensure the validity of GPA. 

Property advocates
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Selvakumar Bangalore
Bangalore Legal opinion

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Documents Required

The Documents required for scrutiny of the title will vary in each case. In general the following documents are required to verify the title deeds of the property. However, based on these documents, further documents will also be required to come to a conclusion. 

Documents required for purchase of BDA property (formerly CITB) 

1. Allotment Letter. 
2. Receipts for payment of site value. 
3. Lease-cum-Sale Agreement. 
4. Possession Certificate. 
5. Absolute Sale Deed
6. Khatha certificate from the BDA
7. Tax paid receipts from the Bangalore Development Authority. 
8. Khatha Certificate from the Bangalore Mahanagara Palike (if it comes under Corporation Revenue Jurisdiction). 
9. Tax paid receipts from the Bangalore Mahanagara Palike. 
10. Encumbrance Certificate from the date of allotment to the date of possession. 
11. Re-allotment Letter / Re-conveyance Deed if property re-conveyed by the BDA. 
12. Documents to prove why BDA re-conveyed the property. 

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INVESTMENT IN REAL ESTATE IS A GOOD OPTION

INVESTMENT IN REAL ESTATE IS A GOOD OPTION

It is the general trend in a civilized society that people do earmark a portion of their income for meeting unforeseen circumstances and for meeting the future needs of self and family during the lean period including old age. Financial management if adopted in a scientific way would bring in attractive returns on the investments made. The investor should be prudent enough to select a proper scheme from out of various options keeping in mind the safety for his investment with assured good return.

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Till recently, bank deposits, stocks, mutual fund, insurance policies and bullion were the most opted options by the people. Presently, Bank deposits, insurance policies, mutual funds have become unattractive because of low returns while the stock market is unpredictable and volatile. Moreover, the investment avenues in stock market need close monitoring. With the globalization of the business, many more options for investment have unfolded and the investment strategies have become very complex. This has led to the emergent of specialized investment advisers. According to many investment advisers, investment in real estate is safe and high yielding. But, the investment in real estate is a long-term investment needing considerable capital. 

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The liberalized scheme adopted by the Government of India has awakened the hitherto dormant Indian economy and many multinational companies have set up their offices providing employment to a large number of people. The Foreign Direct Investment in real estate and the creation of Special Economic Zones have also given a fillip to the real estate sector.

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Reverse Mortgage

As a welfare measure, Government is considering introduction of a new banking system called Reverse Mortgage system to facilitate the elderly persons to get housing loan upon mortgage of their immovable property to meet expenses of certain specified categories such as medical expenses, repairs to the dwelling house etc. on the security of his dwelling house. The borrower can repay the money borrowed along with interest during his life time in installments or allow the debt to accumulate to be realized on the death of the borrower. The amounts outstanding will be a charge on the property. 

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Thus, investment in immovable property would not only help the investor to have shelter over his head till death, but also get financial assistance without any commitment of repayment of amount borrowed during his life time. The manifold increase in the pay packets of the staff of multi-national companies and the migration of rural people to urban centers in search of assured income jobs and the desire to have shelter of their own have given a boost up to the real estate market. It is now the desire of every young person to have a house of his own in metropolis like Bangalore as a matter of pride and also to avail I.T. rebate available on investment in immovable properties. Since investment in property is huge, the investor should be cautious and consider various factors before making any investment in real estate. 

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1000 Crores more revenue to the State Government in the current financial year. The revised property gu

The Department of Stamps and Registration with a view to mop up more revenue has hiked the guidance value for properties in Bangalore and has notified the same recently calling for objections and suggestions from the general public. This new move is expected to bring in around Rs.1000 Crores more revenue to the State Government in the current financial year. The revised property guidance value is likely to be implemented in the month of August 2013.

Shelter is one of the necessities of every citizen and everyone is struggling hard to have a home of their own. The overall increase in the revised guidance value on properties across Bangalore is around 20 to 100 per cent, which makes the properties costlier adding to the woes of the buyers. The areas especially the central areas, southern areas and northern areas, which have witnessed increased property transactions, have seen increased guidance value of up to 100 per cent. The slum areas where property transactions were less have seen the least increase of around 10 per cent in the guidance value.

GUIDELINES TO PURCHASERS OF APARTMENTS

GUIDELINES TO PURCHASERS OF APARTMENTS

People with different culture, taste and habits living in separate dwelling units situate within a compound is not new to the country as it was prevalent in the past under the name and style as Vatara houses wherein small dwelling units were constructed within a compound for occupation and use by different families as their residence. Vatara houses were constructed in horizontal or in L shape rows with single storey structures unlike the present day multiple storey vertical apartments.

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Advocate Bangalore
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Bangalore Legal opinion

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Apartmentculture

Apartment culture, though of recent origin, has gained tremendous acceptance by the people in a very short time. Generally, it is seen that in apartments, people of different back- grounds, origin and culture live in good harmony and brotherhood. Shalimar Apartment, built in early seventies was probably the first Apartment that was constructed in Bangalore. Apartment culture further gained acceptance in early eighties when several apartments were built in Malleshwaram and other places. Since-then construction of apartments is in full swing in Bangalore and a large number of reputed builders and Promoters are busily engaged in the development of different Apartment Projects in and round Bangalore to meet the ever increasing demand for commercial and residential apartments.

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Merits of apartments

Apartments have certain advantages in comparison with the independent houses. The first and foremost advantage the purchaser of an apartment will enjoy is that he need not have to worry about the issues like obtaining plan sanctions, finding a building contractor, supervising the construction work, obtaining basic amenities such as water, power, sewerage facilities for the building and so on which is taken care of by the Developer. The purchaser of apartment need not have to worry for any civic problems which he may encounter after his occupation of the apartment, since these problems are tackled by the Apartment Owners Associationl Builder for which a nominal charges are levied.

The next advantage an apartment owner gets would be the social harmony he would get due to community living. A sort of bondage is developed amongst the residents of apartments.

Further, for the exclusive use of apartment owners/occupants almost all the apartments now-a-days, do have facilities like gym, health-club, recreational center, sports club, swimming pool, private security system within the premises for which again a nominal fee is charged.

Demerits of Apartments

Even though living in apartments do have many advantages, they are not totally free from disadvantages. A Person who lives in an apartment generally is deprived of his privacy. Further, the apartment owner is prevented from carrying out any major addition, alteration or modification to his apartment to suit his needs. All such repairs, alterations and modifications are to be carried out with least inconvenience to other apartment owners and any damage or loss caused to the other apartment owners are to be compensated. The amount collected by the Apartment Owners Association to meet the expenses for general maintenance and upkeep may be more than what a person would have spent had he owned an independent house and could be much more than what is required for such maintenance. There is every likelihood of such a common fund being misused by the office bearers of the Association or over which there could be some misunderstanding amongst the apartment owners leading to unsavoury situation.

Apartments would fetch a much lower price compared to an independent house during its second sale. Further, any dilapidated single apartment would fetch no buyers since the land on which such apartment is built is owned by all the apartment owners and the seller does not have the exclusive ownership right over the land on which such apartment is situate. On the contrary, a dilapidated independent house would generally get prospective buyers irrespective of the condition of the structure since new structures could be put on such sites after demolishing the existing ones and the seller of such a dilapidated house will transfer his right, title and ownership of the land as well.

How to proceed?

As in the case of purchase of any other property, verification of ownership title is one of the pre-requisites for purchase of an apartment also. Though the builder of apartments provides legal opinion given by his advocate regarding subsistence of marketable and valid title of the vendors, it is always better that the intending purchaser of an apartment gets the title report of the property scrutinized from an advocate of his choice having vast knowledge and experience in property dealings. The legal scrutiny report shall contain detailed information regarding the origin, flow of title, present status of the owner, validity of the OPA, Joint Venture, if any, entered into between the owner and the Developer.

Another very important aspect which requires consideration is to ascertain whether the approval for construction of apartments and the plan has been obtained form the competent authority and to find out whether commencement and completion certificates have been issued by such an authority.

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Location of the building is another important aspect which one has to consider before purchasing an apartment. This is mainly because any building which has no proper access to main roads with insufficient public transport and other civic amenities such as water, electricity supply, proper, sanitation, parks, market place, hospitals, schools, etc. would put the purchaser of flat to a great hardship and inconvenience.

Apart from all these, the previous history and record of the Builder is necessary to be verified for which purpose, it is always advisable to visit some of the 4 projects executed by the builder in advance.

CORRUPTION AT SUB-REGISTRARS OFFICES

CORRUPTION AT SUB-REGISTRARS OFFICES

Commitment by I.G.R.

Inspector General of Registration and Commissioner of Stamps in Karnataka, Sri D. Sathya Murthy, LA.S., presented lead papers for discussion at the national ICT Consultative Workshop organized by NIRD, Hyderabad on 24th to 26th Feb. 2003. The papers deal with the "KAVERI" an e-govemance project of registration and stamps department for common man in Kamataka.

The papers deal in detail the rampant corruption prevalent in registering department, the modus operandi of corruption, the people involved in corruption. The following is the extract from lead papers:

"It is a common knowledge that the Sub-registrars' Officers in the state have become notorious as dens of corruption. As the corruption which occurs in Sub-Registrars' of- fices will be mostly collusive corrup- tion, where the giver of bribe as well as taker of the bribe would not be ready to complain against each other, in the matter it would not be that easy to secure evidence in relation to such activity.

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In many cases the officers and the personnel in Sub-Registrars' Office's are involving outsiders to help the bribe giver and the bribe taker in relation to their bribing trans- actions, to identify the Officers and officials of the Sub-Registry involved in bribe -taking and bribe giving, becomes much more difficult. "Sub-Registrars' Officers, although they are regarded by the Public as dens of corruption in which corruption is made the way of life of the officers and officials of the sub-Registry, hiring volunteers, the document writers and stamp vendors for the purpose." (Loka yukata)

HARRASMENT TO PUBLIC

Corruption has become a inevitable proposition in the Department. General Public believes that nothing moves without greasing the officials. In addition to that there is lot of secrecy that is surrounded around the property valuations though they are more of an open issue. The local committees constituted for this purpose review these rates once in three years and they are published either locally or through gazette.

The confidence level of the public with the department are very low and they do not feel comfortable to approach the Sub-Registrar on their own without they help of the middle man.

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The behavior of most of the Sub-Registrars is also highly objectionable as neither they are courteous nor helpful in dealing with the public. Their attitude is of making money ir-respective of any customer and they have no discrimination between the poor and the rich. There are instances where they had been so blatant in demanding money even from reputed journalists and police officers despite disclosing their identities. Some of thesub-registrars went to the extent of stating that they need to pay all themasters and therefore, they need to be paid. Most of them have callous, insensitive and indecent behavioral attitudes which compounds the problem. Once they sit in the chair, they loose their senses and the private business approach dawns in their minds.

Added to this is the problem of volunteers. Volunteers system had taken deep roots since more than a decade and they had been function- ing literally as officials of the depart- ment without any locus standi. Most of these volunteers are either retired employees of the department or the relations of the present serving em- ployees of the department which ac- counts for the large number. The remaining number is due to political influence who are basically unemployed and had found out the vol un- teer job as a means to earn quick money. The real problematic sec- tions of volunteers are the goondas and the criminals from the land deal- ers section who are not only rich but also who can afford to use their muscle power to harass the public and squeeze the money. There is also another section which belongs to the close kith and kin of the serving ministers and kinds of corruption.

Holding of Property by Company

Holding of Property by Company

Company is an artificial person created under the Companies Act 1956 with perpetual succession and common seal. It is a legal person different from its members / shareholders. It possesses all the powers to enter into valid contracts, sell, purchase, hold, lease and mortgage the immovable property. It has a legal entity.

There are two important types of companies. They are private limited company and public limited company. Any two persons can form a private company and its membership / shareholders are limited to 50. A minimum number of seven persons can form a public limited company.

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Bangalore Legal opinion

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Under the Companies Act, the registration of both private limited company and public limited company is compulsory. The certificate of incorporation is issued on registration. The registrar of Joint Stock Companies issues the certificate of commencement of business to the public limited companies. This is not applicable to private limited companies.

The Memorandum and Articles of Association is an important document of a company. The memorandum refers to the objectives and powers of the company and articles of association deals with the powers, duties, liabilities of the Board of Directors, share holders/members and rules and regulations governing the management of the company.

Common Seal: Companies are not physical persons who can sign. Common seal is the physical form of the company. The common seal is used as a physical impression made upon the documents executed by the companies. This is special seal engraved on steel block. This is to supplement the signature of the corporate officers and to authenticate company documents.

Authorization by a resolution of the Board of Directors of the company or by an authorized committee of the Board is necessary to affix the common seal. In case of some companies the articles of association deal with affixing of the common seal.

Immovable Property Transaction: The Transfer of Property Act mentions that a living person includes company. It is taken for granted that all outsiders are aware of the contents of the Memorandum and Articles of Association of a company. The Memo randum and Articles of Association deals with the objectives of the company. The powers and rules regarding governance of the company must be verified to ascertain that the transactions are as per the objectives and are within the powers of the company.

The Articles of Association specifically deal with powers of the directors regarding sale, purchase and mortgage of immovable property.

The company may also execute Power of Attorney under its common seal empowering any person to execute deeds on its behalf.

Director, Managing agent, Secretary, Treasurer, Manager or any authorized official may also authenticate the documents on behalf of the company, and it need not be under the common seal.

Any charge created by the company on its property needs to be registered with the Registrar of Companies within 30 days of such creation of charge by filing Form No.8. Charges not registered within the stipulated time are not taken into account against the liquidator of the company on liquidation, or against any creditor.

Such registered charge will serve as notice to all persons dealing with the property.

The Registrar of Companies maintains the Register of Charges and it is open to the public for inspection. This is different from the details maintained at sub-registrar office and mentioned in the Encumbrance Certificate. It is necessary to inspect the Register of Charges while transacting with the company Apart from the Register of Charges maintained by the registrar, the company is also bound to maintain a Register of Charges on its properties. This is open for inspection by the members of the company or creditors.

The Companies Act has restricted the powers of the Board of Directors on conveyancing in some cases. Section 293 of the Companies Act deals with these restrictions.

Consent of the general body of the company is mandatory to sell, lease or otherwise dispose of the whole or substantially the whole undertaking of the company. Like wise the consent of the general body of the company is necessary to borrow in excess of the aggregate of the paid up capital and free reserves. The Board of Directors cannot authorize this type of transaction without the prior consent of the general body. The only exception is temporary loans taken by the company from its bankers in the ordinary course of business.

So, while transacting with the company it is necessary to ascertain that the property is not whole or substantially whole part of the undertaking of the company and if the transactions involve whole or substantially whole part of the undertaking, the consent of the general body is obtained. However, where the ordinary business of the company is selling / leasing this restriction will not apply.

Similar caution needs to be exercised when the company borrows on mortgage of its properties in excess of its paid up capital and free reserves. If the company is in liquidation, only the liquidator, with the sanction of the court, can sell its property in the name of the company.

 The Board of Directors by a resolution in the board meeting has to authorize the sale, lease, mortgage or otherwise disposal of the property / purchase of the property. The resolution by the Board of Directors is necessary even in cases where general body has consented.

Unless the Memorandum and Articles of Association empowers the Board of Directors to sell / purchase/ otherwise deal with immovable properties, any resolution passed by the Board of Directors in this regard will not be binding on the company. At times, it so happens that some of the directors have interest in some transactions. Such interested directors are not allowed to participate in the discussions and vote. Otherwise, the resolution is void.

If the resolution prescribes affixing of the common seal on the documents, it has to be followed in the manner prescribed in the resolution.

Copy of the resolution passed by the Board of Directors, certified by the Chairman and counter signed by the Secretary should be obtained, which should be part of the documents.

The dealings with and by a foreign company are governed by Foreign Exchange Maintenance Act, 1999.

According to the FEMA 1999, a company resident outside India, which has established in India, a branch, office, other place of business, for carrying on any activity in accordance with Foreign Exchange Management Regulations, 2000, excluding liaison office, can acquire an immovable property in India which is necessary for carrying on its activity after complying with all the applicable laws, rules, regulations and directions in force for the time being, such company has to file form IPI with RBI within 90 days of acquiring such a property. Suchcompany is also permitted to mortgage the immovable property as security to anauthorised dealer for borrowing.