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Things To Consider Before Buying A Resale Property

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Things To Consider Before Buying A Resale Property

Buying a resale property is not a bad choice provided it meets certain pre-requisites. Buyers who are looking to buy a resale property should do proper research about the property in order to avoid any hassles in the future. Is the property disputed? Are there any legal obligations? These are some common things that you should clarify before you make the purchase. Let us look at some important points that need to be considered while buying a resale property.

  1. Legal Status

The first and foremost thing to consider is the legal status of the property. You must have complete clarity about the property; consult with a real estate lawyer if needed to ensure a fair deal. Look for any outstanding dues on the property like property tax, maintenance dues, electricity dues etc. If it’s a mortgaged property then the mortgage must be cleared before purchase. Also ask for NOC (No Objection Certificate) from the housing society before closing the deal.

  1. Investment

If you are expecting a huge return on investment on sale in future, then a resale property is not the ideal choice for you. However, if you are looking for a place to spend weekends or holidays then it’s not a bad option. Second homes are usually in remote locations, so the percentage of appreciation is really low. As a result, when you sell the home you cannot expect a high amount. In case you are looking to purchase a second home as an investment that you can encash in the future, then you might re-think your decision, as you might even end up selling the property at a loss. Try to buy the property in an area where there is a high value for second homes.

  1. Demonetization Effect

The downward trend of real estate after demonetization is only temporary. It has definitely influenced buyers to review their finances before purchasing any property, even resale properties. Even the developers are cautious about their financial position. But on the brighter side, this is resulted in the long overdue correction in mortgage rates. So, if you are looking to purchase a resale property consider the effects of demonetization before making the purchase.

If you do your homework properly, then it will save you any trouble that might occur afterwards. Even if it’s a resale property, you still have to pay good amount of your hard earned money so try to be more cautious and vigilant before you purchase a resale property, so that you don’t end up losing your money.

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Residential

Under A New Affordable Housing Policy, Assam To Build 83,000 Houses

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Assam To Build 83,000 Houses

Under a new Affordable Housing Policy, Assam government said it would build 83,000 houses in urban areas for the financially weaker section of the society.

CM Sarbananda Sonowal directed the Urban Development Department to prepare the policy at the earliest.

According to an official release, “Government of Assam would soon adopt an Affordable Housing Policy in the state taking into consideration the specific needs of the financially weaker section of the society and effecting suitable modification of the existing by laws.”

The decision was taken at a meeting in which proposed projects of the Assam State Housing Board were discussed.

During the meeting the CM said, “Our government is committed to ensure housing for all and we would construct 83,000 houses at urban areas for the Lower Income Group (LIG) and Economically Weaker Section (EWS).”

The Assam State Housing Board was asked to to complete survey of its assets and conduct their valuation in a time bound manner so that bigger projects could be taken up by the CM.

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Jaypee Group Sets Target Of 24000 Flats By 2020

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Jaypee Group

2020 is targeted by the debt-ridden Jaypee group for the completion of pending 24,000 flats in Noida. The construction has been started with a cost of about Rs 8000 crore. Out of this amount, Rs 6000 crore would come from the home buyers and the rest would have to be infused, says the Jaypee advisor Ajit Kumar. Jaypee group started the construction of 32,000 flats in its township at Noida in 2007, out of which 8,000 units have been delivered so far.

These 28,000 units from the total flats were taken up by the Jaypee Infratech, which has already gone into insolvency, while the remaining 4,000 units were with Jaypee group’s flagship firm Jaiprakash Associates. Now under the orders of Supreme Court and National Company Law Tribunal (NCLT), Jaypee group intends to complete and deliver all 32,000 units by 2020.

6,300 flats and 1,500 plots have already been delivered by the group, aiming for a target of 5000 units by the June. Applications for 1,500 occupational certificates have been submitted, whereas additional certificates for 3,500 units are in the process.

Jaypee group is in the hold of enough assets, including vacant land parcels, if in case they have to pay all bank dues and a heavy compensation to home buyers for the delays in possession of flats. As the group is investing about Rs 20-30 crore a month on construction by the funds coming from toll collection of Yamuna Expressway and home buyers.

An IDBI Bank-led consortium application was submitted to the National Company Law Tribunal, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code, later getting a successful admission.

A few months later, an NCLT-appointed Insolvency Resolution Professional (IRP) took over Jaypee Infratech, for the recovery of bad loans. As Jaypee Infratech faced huge protest from home buyers, due to a major delay in the deliveries of the real estate projects.

While handing over the management of Jaypee Infratech to IPR, the court placed a restraining order on its real estate promoters, directors and managing director, barring them from any kind of international travel, without court’s prior permission. Solely concerned about the home buyers, the court assumed a non-lenient behavior in this matter.

On September 11, the Supreme Court appointed senior advocate Shekhar Naphade as an external supervisor to assist the proceedings of the IRP, which will submit a resolution plan indicating how to safeguard the interests of home buyers and secured creditors.

On October 27, a public notice was issued by IRP Anuj Jain, seeking applications from entities with regard to the resolution of Jaypee Infratech Limited. Several expression of interest (EOIs) got submitted under it, as the resolution plan needed to be approved by the creditors and the NCLT.

The Yamuna Expressway, connecting Delhi and Agra, is one of the major constructions done by the Jaypee Infratech in the field of road construction and real estate business.

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Drafting A Rental Agreement

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Rental Agreement

The rent agreement is a document that seals the arrangement between a landlord and the tenant, it is to help them, forming a good healthy relationship. However, all the provisions and necessary laws should be mentioned clearly in the document as it can be a potent instrument that can be used and misused. With an aim to create a mutually beneficial relationship, these agreements are made to avoid any kind of disputes between the tenant and the landlord.

The basic necessity for an agreement is the background check, a crucial element for tenants as well as landlords, which must be completed before entering into a rental agreement. As the sole purpose of a background check is not only security but it is also important for a perspective of evaluating the advantages and disadvantages of renting.

For the tenant, applying for a rental agreement is like a job interview. As there is need to become presentable in a mature, trustworthy and financially responsible manner. Similarly, the landlord should make sure that the tenant presents the right credentials. Therefore, the agreement calls for a thorough background check. From the tenant’s employment history, contact information and the proof of income, everything has to be taken care of.  

Almost all of the rental agreements are made on notarised stamp papers. There exist some chances of violation from either the parties, despite the document being a legal contract. Therefore, to avoid these violations, the agreement must be registered at the local sub-registrar’s office. Sound clauses and provisions in a lease agreement, only add to the integrity of the document, protecting the interests of both the parties.  

With a proper definition of the roles and responsibilities of the tenant and the landlord. A proper format for the provisions, emphasizes on the mentioning of the tenancy period, the renewal time of the lease, the clause of repair and responsibilities, the frequency and the date of rent payments. All the repairs and maintenance should be completed before taking up a property on rent. All the electrical wiring and plumbing must be checked before occupying, as it will safeguard the tenant from unnecessary expenses that may crop up in future. Pending dues such as electricity and development charges must be checked beforehand.

During the signing of the rent or lease agreement, the presence of two known witnesses is a must. Due to the deterioration of the law stature and the order situation in major cities, the authorities are pressing for the verification of the tenants. The landlords are also asking for the copy of employment letters from the tenant’s employer. A Landlord must insist on a police verification for a tenant, who is a non-native of the city.  

In general, there are ready templates being used by most of the lawyers, who assist in framing the rent agreement. But it is not necessary that these provisions can’t be changed. All the needs can be tailored in the agreement, according to the requirement, with clauses that are mutually acceptable to the tenant and the landlord.

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