DELHI, HARYANA, BENGAL PLAN TO INSURE LAND TITLE

Delhi, Haryana, West Bengal, AP and Orissa are planning to insure land titles in their respective states. Land title insurance is an indemnity insurance against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. It is meant to protect an owner's or lenders financial interest in real property against loss due to title defects, liens or other matters.

A one-time premium in this regard will be shared by the state governments and the primary lending institutions to provide land title insurance. According to industry analysts, many land deals fall through and many result in disputes due to unclear and defected land titles. Apart from companies, foreign investors are also wary of investing in Indian real estate due to the same reason. Insurance of the land titles will remove one of the major hurdles faced by investors in this sector. The move is expected to give a boost to FDI flow into the sector.

The product will act as a defence if there is a lawsuit attacking the title by providing reimbursement of the insured for the actual monetary loss incurred. It is available in many countries but it is principally a product developed and sold in the United States.

"At present, we do not have title insurance companies in India, but the same technique can be employed by banks and financial institutions and housing finance companies in association with the state governments," an official in the urban development ministry said. According to government officials, the move is set to boost confidence among the realty players and property buyers as the government itself will guarantee the validity of land titles.

According to experts, the land title insurance would only succeed if states take an active initiative in computerization of land records. Many states have started computerizing land titles and also get them audited to avert property disputes and to make property transactions transparent. In fact, there is a provision under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for the states to computerize land records and titles for availing funds under the scheme for infrastructure development. Nonconformity would mean the deferment of central funding to the state. "Many states have started maintaining databases of land records and updating it from time to time," the official said. Land title certification begins at the village level itself.

RLYS TO SEEK BIDS FOR DEVELOPING VACANT LAND

Indian Railways plans to invite bids from real estate developers to set up commercial complexes on its vacant land, as part of efforts to increase revenue. In a written reply to Parliament, minister of state for railways R Velu also said private investment would be sought to modernise 26 major stations. The ministry has set up Rail Land Development Authority for commercial development of vacant railway land for generating revenue. "As per current thinking, railway land is to be given to developers for commercial development through transparent bidding process on long term lease basis for development work without any budgetary resources," he said.

Courtesy: ET dtd.25-04-2008

THE LAND BANK AGAIN, AND THE BENEFICIARY'S SHREE PRECOATED

The counter of Shree Precoated is witnessing sustained investment-based buying by investors. The buzz is that the company is going to register good numbers. Analysts say the company is expected to report a PAT of about Rs 240-250 crore on revenue of Rs 2,000 crore for FY2007-08. The company is looking to develop its 67 acres Kanjuurmarg property, which it had acquired for Rs 42 crore about 30 years ago. The current market value is estimated to be about Rs 4,000 crore. The total cost of the project would be to the tune of Rs 5,000 crore and would generate a revenue of about Rs 1012,000 crore over five years. It is already developing its Bhakti Park project in Mumbai. Analysts expect the company to achieve a total topline of about Rs 3,000 crore with about Rs 500 crore bottomline for FY 2008-09. This is largely due to low land acquisition cost and low debt. When contacted, company officials refused to comment on the same. The stock closed at Rs 195, down about 4% on Thursday.

'SPRINGDALE' EXECPTIONALLY DESIGNED ITALIAN HOMES IN WAGHOLI, PUNE

Inspired by the architecture of the land that gave the world its greatest works of art. From Michelangelo's frescos to Leonardo da Vinci's unrivalled Mona Lisa.

IDEB presents exceptionally designed Italian homes on the Pune-Ahmed Nagar Highway. The only residential enclave in Wagholi, one of Pune's fastest developing locality and soon to be a major IT hub.

Merely a hop away from Ranjagaon Industrial City Estate and a whisper away from MIDC's proposed SEZ. Yet housed in a cocoon of lush green open spaces. A haven in the name of home. A true bella figura in the Italian order.

Springdale is a FAR cry from the concrete jungles that outline most urban locales.

The homes here are exceptionally landscaped and carry with them a distinct flavor of Italian Lifestyle. Located in a calm, serene atmosphere with all facilities within reach, Springdale is spread over 23 acres, with ample space around every home.

The houses vary from independent villas, row houses, twin bungalows to apartments. Approximately 372 homes designed around international levels of amenities.

The individual villas are built around a central oval. Where you can stroll leisurely, like on the streets of Venice and rid yourself of the office humdrum. Or engage in a bicycle ride in open air, instead of sweating it out in the gym.

The row houses and twin bungalows afford a scenic delight only paralleled by the scenic marvels from Rome to Sicily and Pompeii to Venice. While the apartment balconies offer their own share of picturesque pleasures.
More information mail:Basavaraj_jote@yahoo.com

TIDCO, DLF INK MOU FOR IT ZONE

Chennai the Tamil Nadu Indusstrial Development Corporation (Tidco)and New Delhi-based real estate developer DLF Building India signed a memorandum of understanding (Mou) in Chennai on Wednesday to develop an IT SEZ at suburban Taramani at a cost of Rs1,500 crore. According to a state government release on Wednesday, the new SEZ will generate employment opportunities for Rs 45,000 people directly, while another 10,000 jobs will be created indirectly. The new SEZ is expected to come up in an area of 45 lakh sq. ft. The first phase of the constructon work on the scond phase (over 20 lakh sq ft) would be completed by 2011, the release said. Tidco officials were unavailable for comment.
Courtsy: BS April 24, 2008

MLD TO INVEST $4.5 B IN RESIDENTIAL PROJECTS

Mahindra Lifespace Developers (MLD), the real estate arm of $4.5-billion Mahindra Group, would invest close to Rs 800 crore in its six upcoming residential projects in Mumbai, Pune, Chennai, Delhi and NCR over the next 2-3 years, reports Pramugdha Mamgain from New Delhi. With the launch of its residential project in Faridabad recently, the company entered the real estate market of North India. The real estate firm is targeting a turnover of Rs 1,000 crore in the next five years against Rs 163 crore in 2006-07. So far, the company has completed projects in Mumbai, Pune and Chennai and is now entering the northern region. "With the launch of Chloris, the residential project in Faridabad, we made our presence in real estate market of the North. We are coming up with a similar project in Delhi spread over 17 acres," said MLD CEO Pawan Malhotra. He added the company is looking at expanding into other areas of the region including Chandigarh and Himachal Pradesh. Asked about funding plans for the projects Mr. Malhotra said, "We would be expanding in a phased manner. Initially, the funding would be primarily through internal accruals. It's only when we go about de-veloping the land further, we may resort to loans and private equity." While work on the Faridabad project has already commenced, construction of the project in Delhi is yet to begin. Work on the two projects coming up in Mumbai and one each in Pune and Chennai are also yet to commence. Currently, MLD has a land bank of 3 million square feet for residential projects

L&T GETS LAND FOR RS 3500 CR MUMBAI PROJECT

The property division of engineering and construction company Larsen & Toubro was on monday given possession of the land for commercial complex of seawoods Darave railway Station at Navi Mumbai the venture with the ity and industrial development corporation of maharshtra cideco, o ver 40 acres is estimated at the 3500 cr is to be develk9oped over thre yesra. This involes developing between foru and ive million saft of commercial space of office complexeds shopping malls star-hotels, multiplexes and service apartments. l&t baged the development rights for rs 1,809 crore in feb this year, outbidding other biggies such as DLF and Indiabulls

LEGAL OPINION SAFEGUARDS FROM DISPUTES

ISSUES THAT A LEGAL OPINION COVERS IN PROPERTY TRANSACTIONS

Getting a legal opinion is important during acquisition of any property. This is an integral part of the property acquisition process. The purchase of property is a complicated process. This is compounded by the fact that each State has its own systems of acquisition and transfer of property. The land records are generally in the local language. Going through the property documents is not easy.
You need to go through a host of documents to trace out the ownership of the property. Although the purchaser can do an initial review of the documents, it is always advisable to have these documents vetted by a legal expert. The legal experts are in a much better position to review and give their opinion on the status of the property. They are generally much more aware of the local laws, and rules and regulations.
A legal opinion should cover the status of the property:

Ø Who is the owner of the property?

Ø What has been the chain of holding and transfer of property over a period of time?

Ø Is the property free from encumbrances or has it been already offered as a security for a loan

Ø Is there any dispute on the ownership of the property whether the transferor or seller has complied with all the requirements to get the ownership of the property

Ø Whether the transferor or seller is competent to transfer the property

The legal expert may prepare a search report. The search report traces the history of the property - who was the original owners of the property and how it has moved over a period of time before reaching the present seller. Also, it traces out any charges or encumbrances created on the property and their present status—whether the charges have been cleared and the property has been released or if there are some charges pending to be cleared. This search on the title of the property is taken for a period of the past 30 years. It is mandatory for the seller to annex a copy of these reports with an agreement to sell with the intended purchaser of a flat. These documents would state whether the title to the property is clear, marketable and free from encumbrance. In other words, it would state whether or not there is any existing mortgage, litigation, condition or claim, which is likely to affect the title of the buyer adversely. In order to avail a housing loan one of the preconditions is that the title of the property should be clear and marketable. 'Clear and marketable' means the seller is genuine and the actual owner of the property. Further, the property should not be under any dispute or litigation. The search report traces this history of the property. The title certificate would state whether the property is unencumbered and has a clear marketable title. This search report and title certificate can be obtained from the advocate who will conduct a survey of the title of the property at the office of the registrar.

PROPERTY DOCUMENTS YOU NEED TO CHECK

Documentation is an essential and complicated part of a property acquisition process. Different states have different requirements. There are many laws that govern the process. However, you should have a checklist of documents to be verified before deciding on purchasing a house. These documents should be scrutinised before giving any advance to the seller. It is always advisable to have these documents vouched by a legal expert.

Here are some documents you need to have checked:

Purchase of freehold residential plot or house

The main documents to be verified in such a case are:
Copy of the sale deed through which the seller got his title to the property Copies of all earlier sale deeds - to verify the chain of past owners of the property
Registration details of the sale deed Agreement to sell the property Receipts of payments made by the purchaser to the seller Copy of the sale deed for registration purposes
Purchase of property from original allottee of a government development authority (for example BDA)

The main documents to be verified in such a case are:
Allocation letter Allotment letter Possession letter Receipts of payments made to authority

Purchase of property from power of attorney (POA) holder of original allottee of a government development authority

The main documents to be verified in such a case are:
Allocation letter from the authority Allotment letter from the authority Possession letter Receipts of payments made to authority Permission to mortgage Authorisation letter signed by the seller Receipts of payments made by purchaser to seller Verification of signature of seller from his bank General power of attorney Special power of attorney Will Agreement to sell the property

Purchase of flat in a group housing society from a original member of the Society

The main documents to be verified in such a case are:
Share certificate issued by the society Lease deed of society Registration details of the society Bye-laws of the society No objection certificate from the society Approved building plan Title of builder Undertaking from society Allocation letter Allotment letter Possession letter Receipts of payments made to authority Permission to mortgage Authorisation letter signed from seller Receipts of payments made by purchaser to seller Verification of signature of seller from his bank

Purchase of flat in a group housing society from a power of attorney (POA) holder
The main documents to be verified in such a case are:
Share certificate issued by the society Lease deed of society Registration details of the society Bye-laws of the society NOC from the society Undertaking from society Allocation letter Allotment letter Possession letter Receipts of payments made to authority Permission to mortgage Authorisation letter signed from seller Receipts of payments made by purchaser to seller Verification of signature of seller from his bank General power of attorney Special power of attorney Will Agreement to sell the property.