An Article about "OPTING FOR THE RIGHT HOUSING LOAN FINANCIER"

OPTING FOR THE RIGHT HOUSING LOAN FINANCIER

The dream of every person on this earth would be to own a house in his life time. with so many financial institutions around, getting a housing loan has become very easy and in fact the aspirant thinks it is a boon. his desire to construct a house drives him crazy to the extent that he may blindly sign any document to get the loan even without reading the loan document. 

Seeing the present trend, it is quite clear that banks and financial institutions are ready and more interested to provide housing loans. a notable fact here is that there is no prescribed norm or procedure of either RBI or Indian Bankers Association as far as housing loans are concerned except timely cautions to the banks in respect of over exposure to the housing loan and interest rates. 

Each bank has its own type of documents related to housing loan and many a times, the applicant is kept in dark about the documents required and the procedures followed for the purpose of housing loan. The Financial Institutions make the borrower to submit himself and gives him no choice other than to accede to its terms and conditions. On many occasions, the applicant is made to sign the documents on the blank papers and also on blank cheques which is highly irregular and it is also not advisable.

There is a meteoric growth in the housing and building construction sector and one of the main reasons is the easy availability of housing finance to all income groups.

MAIN CATEGORIES OF HOUSING FINANCE

Housing Finance Companies, old scheduled banks, and New Generation banks form the three main categories of the housing finance. Though housing finance companies are also in the fray, the competition between the Old Scheduled banks and new Generation banks are rather stiff and both of them have their own positive and negative aspects.

OLD SCHEDULED BANKS

All the nationalized banks and private scheduled commercial banks which are rather old can be categorized under the above head. The process to sanction the loan takes a lot of time. But the advantage in these banks is the transparency factor where the transactions are lucid. Original documents need to be deposited in the bank once the loan is cleared.

NEW GENERATION BANKS:

There is a radical change in the functioning of the New Generation Banks when compared with old scheduled commercial banks. They are not very particular about the title or the valuation of the property, and the loan is released irrespective of the registration value of the property. The major disadvantage while dealing with these banks are it is next to impossible to get all the details of other charges imposed by the bank as in many cases they are handed over for outsourcing. There would be a long wait to get back the original documents despite clearing the complete loan amount as the documents will be preserved in some other metro city.

Direct Selling Agents or DSA act as a commission agents between the borrower and the new generation banks. They market the products of the financial institutions on a commission basis which will be charged on the loan of the borrower as service charges. Their job will be to get you the cheque of the loan and once they do that, they will forget the borrower all together as the business relationship with the borrower would come to an end. They are just agents who want to solicit business and make every attempt to satisfy their principle company and to get their commission. Once that is done, it is the transaction just between you and your financier.

Hidden cost:

The borrower should be more prudent and ensure that what other fees are to be paid apart from interest on the loan. In most cases, huge fees are charged other than the interest amount thereby nullifying the benefit of lower interest rates. The other fees may include processing fee, legal fee, administrative fee, inspection charges, notice charges, etc. Each bank has got its own technique and methods to collect various other charges from the borrower.

Selecting the financier

Even though there are plenty of home loan lenders, it is always difficult to select the right lender. The borrower should not get carried away by the attractive schemes and colorful advertisement which is just an eyewash. There are a set of parameters which plays a major role in deciding the proper and reliable home loan lender.

It is always advisable to choose the lender whom you know for sometime and also the antecedents of the lender. This is because in a long period of loan repayment of 10-20 years, there is a chance of getting EMI default due to various reasons viz. illness, social commitment, death, job shifting etc. If such a thing happens, the financier with whom you have borrowed the loan may take severe steps and slap hefty fines, interest, and legal notice and may even resort to intimidation. 

Further, the Secularization and Reconstruction of Financial Assets – Enforcement of Security Interest (SRAFESI) is very strict and if the default of the EMI continues for a period of three months, the account will be considered as a Non performance Account (NPA). The banker will send 60 days notice under the SRAFESI Act. After the expiry of 60 days, the possession of the property will be taken by the financial institution and the property will be auctioned. This may be avoided to a certain extent if the lender is a known person to the borrower and may take a bit lenient step by giving the borrower some breathing time to clear the loan.

Interest Rates

There are normally two types of Interest rates viz. Floating and fixed rates. It is advisable to opt for the floating rate as it goes down further from time to time and the bank will notify duly about the loan amount charged every month and the new EMI is less than the previous month.

Now even fixed rates have increased. Fixed rates are easy to calculate the EMI for entire period of loan. When the rates are falling, it is advisable to go for floating interest rate but fixed rates are always better to make a commitment for your lender for entire loan period.

These days, the Housing loan interest rates are getting increased by all the banks and Financial Institutions.

Negative list

Each home loan financiers have their own set of rules for providing housing loan. There are some home loan financiers who do not encourage professionals like film artists, TV artists, police, journalists, politicians, Advocates, self employed who do not possess bank statements or who can influence their position and create trouble at the time of repayment. It is better to approach banks who do not ask for income proof or a guarantor.

Track record of the financiers

It is quite common these days to hear about the confiscation of the property by the banks whenever there is any default of the EMI. Some of the banks employ Goondas and anti-socials elements to recover the property through illegal way.

Even though the rate of interest may be a tad above the other financial institutions, it is advisable to opt for such an institution where there is a good policy and customers are treated with respect.

However, it is a good practice to receive acknowledgement of all the original documents you hand over to the lender.

An Article about "Agreement for sale of Immovable Property"

Agreement for sale of Immovable Property

The pre-requirement for sale of immovable property is agreement to sell. The agreement to sell contains, terms of sale, consideration, time limit, description of property, terms of payment, handing over possession and rights of both the parties to enforce the agreement, and penalty for not performing the contract. Generally, the purchaser pays some amount as advance being earnest money to the seller, which is acknowledged by the seller in the agreement to sell.

The process of sale of immovable property is governed by the provisions of Transfer of Property Act. The agreement to sell is a specialized document, which conceptualizes the terms of contract. The skill, knowledge, experience of the advocate is reflected in drafting the agreement to sell and invariably, the agreement to sell contains the clause which protects the interest of the purchaser, who has parted with his money.

There is a practice amongst many to avoid the sale agreements and to go directly for sale deeds. This is a very risky practice. Agreement to sell is required to avail the bank finance. The sale agreement binds the parties to perform their part of the contract.

In the absence of agreement to sell, though the purchaser had made all the arrangements for payment of sale consideration amount and to meet the stamp duty and registration expenses, the vendor may back out if he finds another purchaser with better sale consideration. Likewise, even the purchaser may also back out if the finds out similar property for lesser value. If there is any conditions in agreement to sell which vary from the rights and obligations of the seller, purchaser as detailed in Transfer of Property Act, the terms which are agreed in agreement to sell shall prevail over. If no conditions are mentioned in agreement, the rights and obligations of seller, purchaser as detailed in Transfer of Property Act comes into force.

Having paid the advance amount, (or) earnest money, will the purchaser has any charge or lien over the property for the amounts paid?

The Transfer of Property Act governs the rights and obligations of vendor and purchaser.

Rights of Agreement Holder:

In case of sale, the purchaser gets title and ownership to the property only if the transfer is affected in accordance with sec. 54 of T.P. Act, which deals with the sale of immovable property.

See 54 of T.P. Act states that "Sale how made such transfer in the case of tangible immovable property of the value of one hundred rupees and upwards can be made only by a registered instrument." So registration of sale deed is mandatory and only thereafter the purchaser gets title. It also states that the agreement to sell itself does not create any interest or a charge on such property. In this kind of situation if the seller refuses to transfer the property under agreement to sell then the questions which arise for consideration are:

Whether purchaser under agreement to sell is entitled to only damages or the immovable property as per agreement?

If the purchaser under agreement to sell is in possession of immovable property can he be disposed of immovable property?

So far as first question is concerned See 40 of Transfer of Property Act states that "Where a third person is entitled to the benefit of an obligation arising out of contract and annexed to the ownership of immovable property but not amounting to interest therein or easement thereon, such right or obligation may be enforced against a transferee with notice thereof.

Ex: "A" contracts to sell a house to 'B' while the contract is still in force he sells the same house to 'C' who has notice of the contract. 'B' may enforce the contract against 'C' to the same extent as was enforceable against 'A'. From this we find that, the purchaser with notice of a previous contract for sale of the same property is in the eye of the law is a trustee of the prospective purchaser of previous agreement of the property purchased. Even u/s 91 of the Trusts Act, the title of the subsequent purchaser with notice of the prior agreement is subject to the obligations created by the agreement to sell. So, the agreement holder may proceed against the purchaser of the property who had notice of the existing contract. See 27 (b) of the Specific Relief Act entitles the purchaser under agreement to sell to compel subsequent purchaser to execute a sale deed in his favor.

In order to have better hold on the property agreed to be purchaser the agreement to sell may be registered, and a paper notification may be taken to notify the general public about the agreement.

Purchaser in possession of the property:

For the second question as said earlier i.e., if the purchaser under agreement to sell is in possession of the property, can he be dispossessed of the immovable property?

In this regard Sec. 53-A of the T.P, Act 1882, is relevant which provides that when:-

a] The transferor i.e., seller has agreed to sell for consideration any immovable property; 

b] Such agreement is in writing and signed by him; 

c] The contract provides for taking possession of the property before execution and registration of sale deed; 

d] In part performance of the contract, the seller has put the purchaser in possession of the property agreed to be sold; 

e] The purchaser under agreement being already in possession continues in possession in part performance of the contract; provided that the purchaser has done some act in furtherance of contract. 

f] the purchaser under agreement has performed or is willing to perform his part of the contract, then purchaser under agreement is entitled to protect his possession of immovable property. When the agreement of sell is subsisting, if someone who purchases the property with notice of prior agreement of sell his right is subject to such prior agreement to sell.

It is to be noted that this benefit can be availed only by those who were put in possession by virtue of a legal document. A person seeking protection of doctrine of part performance has to prove that he has in part performance of the contract has taken possession of the property and in case he was already in possession he continues to be in such possession in part performance of the contract and had done some act in furtherance of the contract. 

In addition, the purchaser under agreement has to show that he is willing to perform his part of the contract. The only course for seller in such cases is to seek for payment of balance of sale consideration.

An Article about "Owning of immovable properties by companies"

Owning of immovable properties by companies

As any individual could hold, enjoy and dispose of property in his or her name, the same way a company also could deal with the property in its name, though it is an inanimate body. A Company is an artificial person created under the Companies Act 1956 with the right of perpetual succession and use of its unique and individual common seal. Mainly, there are two types of company’s viz., Private Limited Company and Public Limited Company. A private limited company can be formed by two persons with a restriction of maximum membership to 50 persons and a public limited company can be formed with minimum number of members at seven. There are no restrictions on the maximum number of embers. A company is a legal person different from its members / shareholders and it possesses the right to enter into valid contracts of sale, purchase, hold, lease or take on lease and mortgage immovable properties in its own name.

Under the Companies Act, 1956 registration of both Private Limited Company and Public Limited Company is compulsory for which purpose the formalities as are enumerated in the Act are to be complied with. The Registrar of Joint Stock Companies will issue a certificate of incorporation and the certificate of commencement of business on being satisfied of the compliance of the formalities. However, the certificate of commencement of business is not required to form Private Limited Companies.

Memorandum and Articles of Association

The Memorandum and Articles of Association are important documents of a company. The memorandum of association refers to the name of the company, objectives of the company, liabilities of its members, capital of the company and the subscription clause 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

As Companies are inanimate bodies, all the official documents belonging to or relating to the company are executed by the authorized signatory and shall invariably have the common seal of the company affixed on such documents to authenticate the same as the documents of the company.

Authorized Officers

Resolution passed in the Meetings of the Board of Directors or by an authorized committee of the Board of directors of a company authorizes any of its Officers to represent the company and act on its behalf only to the extent authorities delegated in the resolution. Such persons, however, are required to affix the common seal of the company to supplement their signature/s and to authenticate the company documents.

The Articles of Association specifically deals with powers of the directors regarding sale, purchase and mortgage of immovable property. A company could appoint a Power of Attorney holder empowering that person to execute deeds on behalf of the company and such a document should bear the company's common seal. It empowers the Directors, Managing Agents, Secretary, Treasurer, Manager or any other authorized official to authenticate the documents on behalf of the company. Any charge created by the company on its property needs to be registered with the Registrar of Companies within 30 days of creation of such a charge by filing Form No.8. Charges not registered within the stipulated time are not taken into consideration by the official liquidator appointed by the court to manage and settle the affairs of a company upon its liquidation or against any registered creditor. Such registered charge also serves as a notice to all persons dealing with the property. 

The Registrar of Companies maintains the Register of charges and it is open to public for inspection. The information recorded by the Registrar of Companies in the Register of charges is different from the information available at the Sub- Registrar's Office and those mentioned in their records. It is necessary to inspect the Register of Charges while transacting with a company.

Apart from the Register of Charges maintained by the Registrar, a company is also duty bound to maintain a separate Register of Charges created on its properties. This Register of charges is open for inspection by the members of the company and its creditors.

Procedural aspects to borne in mind

The Companies Act, 1956 restricts the powers of the Board of Directors to sell, lease or otherwise dispose of the whole or substantially the whole of the undertaking, remit or give time for repayment of any due by a director, invest otherwise than in trust securities, borrow money in excess of the aggregate of the paid up capital of the company, contribute to charitable and other funds not directly relating to the business of the company as are enumerated in clauses (a) to (e) of Section 293(1) and the 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. 

Likewise 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 only exception provided is for the temporary loans taken by the company from its bankers in the ordinary course of its business.

Immovable Properties of the company

According to the Transfer of Property Act, 1882 'a living person' includes a company. However, it is necessary that the person who deals with a company should know the contents of the Memorandum of Association and the Articles of Association to ascertain whether the transaction which is being entered into is as per the objectives and the powers and rules regarding governance of the company and are not ultra virus of the powers conferred on a company. Verification of the memorandum and Articles of Association would provide the necessary information in this regard. It is generally presumed that all the persons who deal with the company are aware of the contents of the Memorandum and Articles of Association of that company. Death of the authorized signatory or its directors would not dissolve the company and the company would continue to function and its properties remain undisturbed.

According to section 79-B(1)(b)(ii) of the Karanataka Land Reforms Act,. 1961, it shall not be lawful for a company to hold any agricultural land. However, section 109 permits holding agricultural lands for certain purposes after getting permission from the Government. Under Section 109(1) of the Act, a company can hold agricultural lands for Industrial Development, Housing Projects, Horticulture and Floriculture to the extent permitted under clauses (i) to(v) thereunder. Once permission of the Government for use of the agricultural land for a particular purpose as stated above is obtained, such land cannot be put to use for any other purpose.

An Article about "Your home loan and financier"

Your home loan and financier

Selecting a house to suit one's needs and taste is a difficult task. After moving into newly constructed or purchased house, residents complain of various shortcomings, and often feel that previous house was more convenient.

Choosing a suitable home financier is even more difficult, it requires lot of study of various schemes, interaction with the present borrowers. Market is flooded with financiers, offering different schemes supposed to suit borrowers' needs, glossy advertisement proclaiming to save a lot of interest as though financial institutions are charitable institutions doling out money for acquisition of house. The borrower needs to be very selective and careful while choosing the financier.

Your Banker

Generally every individual will have a bank account: and have personal relations with the bank. The bank having dealt with the account for many years will have adequate knowledge of financial position of its client and many a times will be a family friend.

Housing finance is of a long duration, generally with a minimum of 15 years and a maximum of 25 years. It is but natural to have ups and downs during their long period with fluctuation in income, may be owing to illness, expenditure on marriages, mishaps in the family leading to temporary cessation of payment of equated monthly installments. Your banker should be able to understand your difficulties and co-operate with you during those difficult days. With the enactment of SRAFESI Act, the banker may take possession of your house with a notice of 60 days and thereafter may sell it. So it is always preferable to choose your long time banker, for financing of acquisition of house, who will not resort to aggressive measures in the event of default/delay in repayment of loan.

Amount of loan

Many new era bankers sell their products, home loans by adopting aggressive methods and also lure you to borrow big loans, which in future may become difficult to service. Borrower's failure to repay the loan as agreed would be a boon to such bankers, who may take possession of the property and sell it and add various expenses to borrower's liability.

One should not always anticipate that income will regularly increase until retirement. Inflation frequently erodes savings. Prepare cash flow statements by taking into consideration the probable expenditure on providing education of children, marriages, illness and unforeseen expenditure. Correctly arrive at your wise surplus funds, portion of which may be directed towards equated monthly installments, based on which the loan amount may be arrived. Please avoid directing entire surplus to repayment. It is advisable to seek the help of financial consultants.

Repayment period

Though the loans are available within repayment period of25 years or more it is viable to repay the loan in 10 to 15 years so that interest burden is not too much. Repayments in five years or less may be feasible for small loans for a couple of lakhs. EM! for one lakh of rupees alone at 7.5% will be Rs. 2000/-. Do not stretch the repayment until retirement, but ensure that loan is closed at least a couple years before retirement. One should not expect that his terminal benefits to take care of repayment. Terminal benefits are meant for future unencumbered happy living. Choose step-up or step-down repayment depending upon your needs.

Interest rates

There are two different types of interest rates viz., floating and fixed. Some institutions offer different types of fixed rates, semi fixed, fixed for certain period, a combination of fixed and floating. 

Floating rates are related to market condition and may increase or decrease. Fixed rates are supposed to be fixed for entire period of loans, but loan agreements of many financial institutions have conditions where fixed rates are also revised under certain circumstances.

Floating rates are preferable where the interest rates are going down and the repayment period is small. 

Fixed rates have to be opted where interest rates are going up and repayment period is long. At present interest rates are at lowest, fixed rates are preferable.

Card Rates

Though financial institutions advertise their lending rates, the advertised rates are called card rates. But actual lending rates depend on the income of the borrower and his negotiating skills. This also is related to risk involved, higher the risk, lower the income, interest rates will be more. Many banks reduce their card rates in case of borrowers with good income and lower risk.

Documentation 

Borrowers have very little choice in documentation. Each financier has his own set of documents and will be made available to the borrower at the last minute. They are predominantly one sided in favour of financiers. But borrowers should study each and every clause, conditions, and seek clarification wherever required. They should obtain a copy of all documents executed.

Uninvited Borrowers 

Every financial institution has its own list of category of people to whom finance is advanced. It is based on the experience of the institution, and category of people whose income is not assured, litigant minded people and the people who may influence the repayment. Politicians, advocates, film and TV. artists, Journalists, Police, are among a few who are on negative list. Such borrowers may approach their regular bankers.

Direct Selling Agents 

Of recent times, direct selling agents are very active in the field. They are just agents of the financial institution to procure business. They have a sweet tongue, work for commission and will be in touch with you, until the loan is disbursed. You cannot get any service from them once your loan is sanctioned by the bank. The borrower should develop personal rapport with manager of the financial institution to have better after sales service.

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Advocate Selvakumar

An Article about "Property Possession Rights"

Property Possession Rights

Possession In essence means holding an immovable property in possession with or without title of ownership. It is a continuous act of claiming exclusive use of the property as if the holder owns the property to which he mayor may not be having right of ownership.

Possessions are of various types. Adverse possession, symbolic possession, possession under an irrevocable power of attorney, possession under lien and possession under part performance of a contract are a few important ones.

A person in actual possession of an immovable property has certain right and interest in the property he is holding. The possessor has such a strong control over the immovable property that he can keep others out from occupying it. Unless otherwise proved, possession may be taken as title of ownership.

Mere possession of an immovable property does not mean that the person is the real owner of the property.

Holding a property after a decree is passed for vacating it, even after enough time is given for vacating the premises, is illegal and cannot be termed as permissive possession, ownership are not one and the same. 

Possession means not only physical possession (or constructive possession) of a property but also full control over it. Occupation means the right to hold and occupy a property. Ownership means lawful possession of a property which may not come with actual physical possession of property.

A landlord gives his agricultural land to a tenant for cultivation. Though the property is the same, the rights enforced are different. The landlord possesses the land without occupation and the tenant cultivates the land without possession. The mere right to cultivate does not confer the right of possession on the tenant.

Similarly, in a mortgage, the tenant as the mortgagee is in actual physical possession of an immovable property and the landlord as the Mortgagor is the true owner of the property. Here the mortgagee possesses the property without ownership and the Mortgagor owns the property without occupation. Possession is temporary. Ownership is permanent.

Adverse Possession

Adverse Possession means a person possessing an immovable property which is unfavorable, unhelpful or harmful to the interest of the rightful owner. Adverse possession is possession of a property by a person on his behalf or on behalf of some other person on which the true owner has a right of immediate possession.

If, however, the true owner does not enforce his right within the time limit stipulated under Law of possession of the property becomes adverse to the true owner. The result is that the true owner not only loses his right, title and interest in the property but also cannot maintain a suit in a court of law.

Possession must be hostile in total denial of the title of the true owner. The Possessor must be in actual possession of the property under a claim of right. The property must be in his continuous possession and the people in the neighborhood must know that he has been staying on the premises peacefully and continuously for a long period of time and paying taxes in his name so as to show that the title of property is adverse to the true owner. It must be open and hostile enough for the interested parties to come to know of it.

A person, who exclusively holds an immovable property physically, openly, peacefully and without interruption by the true owner for a period of 12 years or more, is considered to have acquired the ownership and title of the immovable property by adverse possession.

The expression adverse possession indicates a hostile or unfriendly possession, which is either expressed or implied by open denial of the title ofthe true owner.
Adverse possession is a one-sided act. Therefore, it cannot be documented. A person holding a property for a long time does not mean that title of the property can be denied to the true owner.

Possession turns adverse only when the rights of the possessor and the true owner do not match. The person holding possession of the land should hold the same on his own behalf or on behalf of some person other than the true owner, while the true owner all along has a right of immediate possession of the property. 

Further possession to constitute adverse possession should be exclusive and actual physical possession. It is not at all necessary that the true owner should have actual knowledge of the adverse possession so long as it is open and the interested parties have knowledge of it. 

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Advocate Selvakumar

An Article about "The Income Tax Ombudsman Guidelines 2010"

The Income Tax Ombudsman Guidelines 2010

The Income tax Ombudsman Guidelines are introduced with the objective of enabling the resolution of complaints relating to public grievances against the Income Tax Department and to facilitate settlement of such complaints.

The Ombudsman shall be independent of the jurisdiction ofthe Income Tax Department. The offices of Income Tax Ombudsman shall initially be located at New Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Pune, Lucknow, Bhopal and Kochi.

GROUNDS ON WHICH COMPLAINT CAN BE FILED:-

A complaint on anyone or more of the following grounds alleging deficiency in the working of the Income-tax Department may be filed with the Ombudsman:

(a) delay in issue of refunds beyond time limits prescribed by law or under the relevant instructions issued from time to time by the Central Board of Direct Taxes;

(b) Sending of envelopes without refund vouchers in cases ofrefund;

(c) Non adherence to the principle of 'First Come First Served' in sending refunds;

(d) Non acknowledgement of letters or documents sent to the department; 

(e) Non up-dating of demand and other registers au leadingto harassment of assesses;

(f) Lack of transparency in identifying cases for scrutinyand non communication of reasons for selecting COl the case for scrutiny;

(g) Delay in disposing cases of interest waiver;

(h) Delay in disposal of rectification applications;

(i) Delay in giving effect to the appellate orders;

(j) Delay in release of seized books of account and assets, after the proceedings under the Income-tax Act in respect of the years for which the books of account or other documents are relevant are completed;

(k) Delay in allotment of permanent account number (PAN);

(l) Non credit of tax paid, including tax deducted at take! source;

(m) Non adherence to prescribed working hours Income Taxofficials;

(n) Unwarranted rude behavior of Income Tax officials with assesses;

(0) any other matter relating to violation of the administrative instructions and circulars issued by the Central Board of Direct Taxes in relation to Income-tax administration.

PROCEDURE FOR FILING THE COMPLAINT

Any person, who has a grievance against the Income-tax Department, may, himself or through his registers authorized representative, make a complaint against the Income-tax official in writing to the Ombudsman.

(a) The complaint shall be duly signed by the complainant and his authorized representative, if any, and shall state clearly the name and address of the complainant, the name of the office and official of the Income-tax Department against whom the complaint is made, the facts giving rise to the complaint supported by documents, if any, relied on by the complainant and the relief sought from the Ombudsman;

 (b) A complaint made through electronic means shall also be accepted by the Ombudsman and a print out of such complaint shall be taken on the record of the Ombudsman.

(c) A print out of the complaint made through electronicmeans shall be signed by the complainant at the earliest possible opportunitybefore the Ombudsman takes steps for conciliation or settlement.

(d) The signed printout shall be deemed to be the complaint and it shall relate back to the date on which the complaint was made through electronic means.

No complaint to the Ombudsman shall be kept pending unless:-

(a) the complainant had, before making a complaint to theOmbudsman, made a written representation to the Income Tax authority superior to the one complained against and either such authority had rejected the complaint or the complainant had not received any reply within a period of one month after such authority had received his representation or the complainant is not satisfied with the reply given to him by such authority;

(b) the complaint is made not later than one year after the complainant has received the reply of the department to his representation or, in case, where no reply is received, not later than one year and one month after the representation to the Income Tax Authority.

(c) the complaint is not in respect of the same subjectmatter which was settled through the Office of the Ombudsman in any previous proceedings whether or not received from the same complainant or along with anyone or more complainants or anyone or more of the parties concerned with the subject matter;

(d) the complaint is not frivolous or vexatious in nature.

No complaint shall be made to the Income-tax Ombudsman on an issue which has been or is the subject matter of any proceeding in an appeal, revision, reference or writ before any Income-tax Authority or Appellate Authority or Tribunal or Court.

An Article about "Requirements for Drafting a Deed"

Requirements for Drafting a Deed

Before drafting any kind of deed of transfer, it is very important to incorporate all the necessary requirements for an effective enforcement of such deeds apart from giving legal sanctity, which requires due diligence and a thorough scrutiny. The following are the essential requirements:

Nature of the Deed

The deed has to specify the description of the deed, such as "This Deed of Sale", "This Deed of Mortgage", "This Deed of Agreement to sell", etc, which may not necessarily be in Bold letters, but is preferable in order to highlight the nature of the deed.

Date of Execution

It is very important to mention the date of execution of the deed since the same is required for determining the limitation and also for registration of such conveyance in the revenue records of the concerned revenue departments. The date of execution of the document may vary from the date of registration, since the documents can be presented anytime within four months from the date of execution for registration.

Parties to the Deed

All the necessary persons having interest in the property intended to be conveyed have to be mandatorily made as parties to the deed in order to avoid any future legal disputes likely to be raised by the parties having interest over the property. It is also important to properly depict the status of each party to the deed.

Recitals

The deed shall contain the previous history pertaining to the property in a precise way, explaining the nature of the interest and motive behind the execution of such deed, which authenticates the title, which is called Recitals in legal parlance.

Habendum

This part of deed speaks about the interest in the property that the purchaser is being conveyed such phrases as "To Have and To Hold". This phrase can be seen in almost all the sale deeds.

Covenant

A covenant is an agreement wherein either or both the parties to the deed bind themselves to certain terms and conditions which create an interest over the property, which may be express or implied. In recent times, with the advent of Apartment culture, it is very necessary to incorporate covenants of various types besides those for maintenance of common areas and facilities in the deed.

Testimonium

This is the part of the deed which states that the parties have signed the deed. This is very important in order to prove authentication of the execution of the deed and the involvement of the proper parties having interest in the property in legally conveying the property to the parties of the other part.

Testatum

This IS the witnessing clause wherein the witnesses signing the deed are introduced, along with their names, addresses and signature. This clause is also very important for the reason that the witnesses also play an important role to prove execution of the document. However, it is advisable that both the witnesses are from purchaser/transferee's side.

Operative Words

This part of the deed depends upon the nature of conveyance. However, operative words clearly depict the intention of the parties conveying the property in favour of the other party/ies, which IS necessary for passing of the title.

Parcels

This means description of the property following the operative words. Anything intended to be conveyed/assigned has to be specifically mentioned. Every minute details about the identification of the property has to be clearly incorporated. Any ambiguity about the description of the schedule property may lead to serious problems.

Exceptions and Reservations

Property intended to be transferred must not fall within the ambit of those prohibited under the statute or by orders of the Government. This part of the deed speaks about the conditions restraining the alienation and assurance that such alienation does not involve any restrictions.

Exception refers to some property or definite right which is existing on the date of conveyance and the same would transfer if not expressly excluded.
Reservation refers to the right which is not existing but created at the time of transfer.

Completion of transaction

The deed can be enforceable only if the same is properly stamped under Indian Stamp Act. Apart from this, it is also necessary that the same has to be registered under the Indian Registration Act. Under the said Act, registration of certain documents is made compulsory and if such documents fall within this category, only after the registration of such documents, the right, interest and title over the property is validly transferred from the transferor to the transferee. However, registration of the documents depends upon the nature of the transfer.