After a lot of efforts and sacrifice we have tasted the freedom, this is possible because of the great Indian Warriors and freedom fighters who gave their life for India. This is a tribute to all the great people  on the occasion of 64th Independence day of India. Be Proud to be Indian.

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There are lots of confusions in the minds of Bangaloreans, what a ‘B’ khata is ? Most of the people think that this is the only document one can obtain from BBMP which can be showed as a proof of legal ownership of the property as and when required, but in reality it is issued as a temporary legal document for the property owners who comes under the Bruhat Bangalore Mahanagara Palike(BBMP). There are lots of cases and evidences where people are charged more than the actual price for obtaining a legal document which costs around Rs.110.

In reality there is no such document like “B” Khata it is actually called as “B” register in official terms (as per the KMC Act 1976). BBMP is providing it as a temporary legal document for the property owners.

Below is a chart showing the procedure for obtaining ” KHATHA ” (Note: don’t misunderstood it as “B” Khata or “B” Register) for DC (Deputy Commissioner) Converted Sites and Non-DC converted sites -:

Some know-how about the “KHATA” :

1. A Khatha is an identification paper issued by the local civic body to recognise the ownership of a property and that makes the owner eligible to receive the civic amenities extended to him or her.
2. Each City or Town municipal council and corporation issues a Khatha identifying the property owner, after verifying the title deed, the sale deed and other documents apart from measuring the extent of the site.
3. Over the years, indiscriminate issual of Khathas were recorded in the City Municipal Councils and Town Municipal Councils without verifying the documents for the land.
4. In 2007, those under the seven City Municipal Councils (CMC) of Bommanahalli, Dasarahalli, Krishnarajapuram, Raja Rajeshwari Nagar, Mahadevapura, Byatarayanapura, Yelahanka, one Town Municipal Council (TMC) of Kengeri and 110 villages, were brought under the fold of the Bangalore Mahanagara Palike (BMP).
5. Following this expansion and creation of the Bruhat Bangalore Mahanagara Palike (BBMP), those who did not have appropriate approval from the concerned land development authority and yet to come under the ambit of the Palike were issued an acknowledgment which was in common parlance known as ‘B’ Khatha.
6. However, in reality, ‘B’ Khatha does not exist. Property identification numbers are entered into a register called as ‘B’ register stating that the civic agency has been paid its dues by the property owners.
7. For citizens in need of an approval from the appropriate land development authority but have a Deputy Commissioner (DC) conversion, the BBMP re-introduced Betterment Charges which will entail people to take a Khatha on their property.
8. Recently, the Legislative Assembly approved the extension of the DC conversion for another year.
9. However, owners of properties with building bye-law violations will have to wait for Akrama-Sakrama.

Here is a good news for all the property owners, buyers and sellers of Bangalore and Tumkur. Now the Karnataka Govt. is going implement “Online Property Registration Scheme” which comes under ‘Urban Property Ownership Records Project‘ to make the registration process more transparent for the people.This system is probably going to be implemented on 19th August.

As per the news report by honorable revenue minister Mr.G Karunakara Reddy “ This scheme will be implemented as on experimental basis in five sub-registrar offices in Bangalore.Going by its success, we will extend services to all sub-registrar offices in the city after 3 months and across Karnataka in 9 months from the date of launch. ”

Mr. Reddy said “ The launch of online applications will significantly lead to minimising corruption and the role of middlemen in property dealings. It will also protect people’s rights by safeguarding the property against any manipulation, and also the interests of developers and the government.”

The move also reflects the seriousness of the government in raising transparency in the revenue department.

As of now it is only possible for someone to register his/her property only in the jurisdictional registration office of the respective property. But according to the new system even a resident of Basavanagudi can register his property at Rajajinagar or any other place of his choice.

As per Mr. Rajeev Chawla (Principal Secretary of Revenue Department) “ The Urban Property Ownership Records project has been introduced in five major cities — Mysore, Mangalore, Bellary, Shimoga and Hubli-Dharwad till now and very soon it is going to be extended to Bangalore and 10 more towns in the state.This will ensure availability of detailed data on private proprietorship for investors and end-users to determine the price in a transparent manner. The move will completely curb fake registration of properties in urban areas and restrict property disputes.”

The entire system is made fairly simple so that all people can get the full advantage. The entire process is as below :

1. Government will develop a portal or link
2. Website will have model formats which will help consumers fill out the form, and get the required documents
3. Server-generated SMS is automatically sent to applicant at various stages of processing the application
4. SMS is also sent in the event of a query or for personal appearance seeking clarifications
5. Property buyers and sellers will get an online appointment soon after they register
6. Appointments will be fixed for 4 persons per hour
7. People will have the choice of paying a nominal registration fee through credit card or during their time slot when
8. they appear in person for registration
9. Separate counter will be set up for these ‘privileged customers’ for the final formalities

The Reserve Bank of India has increased the rate of interest for housing loan recently. RBI has increased the short-term lending rate from 6.5% to 6.75% and the short-term borrowing rate 5.5% to 5.75%. The Central Bank has not changed the Cash Reverse Ratio(CRR) keeping the liquidity situation in mind. CRR is the amount banks are required to keep with the RBI in cash. The CRR is currently 6%.

In order to tackle inflation, the RBI has increased the interest rates for the eighth time in the last 12 months. Inflation is still above 8%.

Change in EMI and Loan Tenure:

In some banks, if there is an increase in the rate of interest, there will be no change in the EMI. Instead the banks increase the tenure of the loan. And so, the loan tenure may extend for 1 or 2 years more. An increase in the rate of interest means that the floating rate borrowers have to pay an additional cost. The banks may also increase the EMI in order to reflect the increased cost. There will not be any such impact for fixed interest rate borrowers. This is because there will be no change in the interest rate for fixed interest rate borrowers during the fixed period.

Impact on Loan Eligibility:

The borrower’s ability to repay the loan on time is the most important parameter used for calculating the eligibility of the borrower. The banks compare the EMIs with the disposable income of the borrower in order to calculate the eligibility. Disposable income is the amount left with the borrower after meeting the monthly expenses that can be used to repay the loan.

While checking the borrower’s eligibility for housing loan, the banks make sure that the borrower has adequate cash left in order to meet his monthly expenses. And so, the increase in interest rate can have an impact on the borrower’s eligibility. The loan tenure has to be extended if the EMIs are kept low. This will increase the interest cost for the borrower and also the risk of the lender. On the other hand, if there is an increase in the EMI, there is a risk of default by the borrower.

Therefore, the bank calculates the amount available for EMI from a given income in order to determine the eligible loan amount. If there is any change in the loan amount, rate of interest, loan tenure or the method of computing interest, there will also be a change in the EMI. If there is an increase in the interest rate and the other variables are constant, the eligible loan amount will decrease. If there is a decrease in the rate of interest, the loan eligibility will increase.
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Housing Loan:

Housing Loan plays a vital role in buying your dream home. There are a number of banks and financial institutions that offer housing loans for lower interest rate. There are a number of formalities while applying for a housing loan. These formalities start from submitting application to disbursement of loan amount. You must keep some of the basic documents ready for saving your time and efforts.

Documents Required

For sanction of housing loans by a bank, you need to submit basic documents along with application. These documents determine the rate of interest and amounts to be sanctioned as housing loan. The amount varies for each person depending upon their repayment capacity and credit rating. Following documents are essential for getting sanction of home loans.

• Duly completed application form with Passport size Photo
• Repayment Track record of existing loans (if any) or No Due Certificate
• Photo and age proof
• Residence Address proof and signature verification proof.
• Copy of Sanctioned plan and sanction letter
• Cheque

Additional documents required for salaried people are as follows:

• Bank Statement for 6 months (Operating Account in case of self occupied)
• 3 year’s Income Tax return details
• Tax Challan, Balance sheet and Profit/Loss Account for last three years In Case Of Salaried
• TDS Certificate and Identity card
• Bank Statement of Salary Account for 6 months
• Last three months salary slip and Form 16

Tips for Home loan

• Affordable Price: You need to do some homework before applying for Home loan. You need to know how much you can afford. It depends on various aspects such as your monthly expense, current salary or income, credit rating, down payments and interest rate, dependents and so on.
• Compare Cost: There are number of banks that compete to offer home loans at low interest. You need to check the rate of interest and compare with other banks.
• Choose right home or place: Before you applying for a Home Loan you choose a appropriate home which suits to you and your budget. You need not make hurry in choosing a home. Then check all the documents and make sure with your Bank whether they will sanction the loan for the selected property or not.
• Insurance: There are various insurance for your property such as insurance from fire, disaster and so on. Lender requires that you have insurance for your property to safeguard their interest. This is not compulsory in some banks.
• Sign or close the deal: Following these tips step by step will help you close the deal smoothly and you can sign final settlement. The property or dream home is yours now. If this is your first property transaction, realtor will help you in each and every step to help you owe the property.

Types of Home Loans

Home Loan is mostly used for purchase of new home or property.  Most of the borrowers consider home loan is only for buying a home or property but there are different home loans for meeting different needs. Some of them are as follows:

Home Purchase Loans: This for purchase of new home and most of borrowers use this type of loan in purchase of new home or property. These are very common and are basic home loans.

Home Improvement Loans: It is a loan sanctioned or disbursed for the repairs or renovation in existing home. This is very helpful for borrowers who wish to renovate or implement some repair works in existing home or property.

Home Extension loans: This is a loan given for extending or expanding existing home. This can be used for modification of rooms or adding an additional or extra room.

Land Purchase Loan: It is the loan sanctioned for the purchase of land. Land can be either for construction or investment purpose. In this Loan the property documents should be very clear and without any litigation. Most of the bank will not provide any loan for this type of loan unless the documents is clear.

Home Construction Loan: The loan is available for construction of new home. It is a loan sanctioned for constructing a home in existing land or property.

Home Conversion Loan: This loan sanctioned for existing borrower who have financed present home with home loan and wished to move new home which needs an extra funds. This loan helps to transfer existing loan to new home with extra amount and helps to avoid pre-payment charge of previous loan.

Bridge Loan: Bridge loan is a loan for those who want to sell existing home and buy a new home. This loan helps you to finance new home until you find a buyer for existing home.

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While you plan to gift a house, you must know about the corresponding provisions in the Income Tax Act. If you wish to buy property in the name of any of your family member, you should mention his name clearly in the agreement to sell and the sale deed. The legal ownership of a particular property is totally based upon the name in which the property is finally registered during the day of registration. If the property is purchased in the name of two different peoples, the percentage of ownership should also be mentioned in the agreement clearly.

You should also ensure that the person in whose name the property is being purchased has enough funds. This is very much important in order to avoid some income tax issues. If the person does not have sufficient funds, he can also receive a monetary gift or he can take a loan. A person must avoid taking a gift of property from the spouse. A lady must not receive a gift of money to buy property from her husband or parents-in-law.

The Gift Tax Act was abolished few years ago. So, now there is no gift tax on a gift of either a house or funds to buy a house. But, an income earned from such a gift is taxed in a different mode. Before deciding on the options for funding within the family, you must keep in mind the provisions relating to clubbing of income.

According to Section 64 of the Income Tax Act, while calculating the total income of an individual, all incomes that comes directly or indirectly from the assets that are transferred without an adequate consideration are included.

If a person transfers a house without his spouse or minor child’s consideration, the transferor is deemed to be the owner of the house and will be taxed accordingly. But, if a person transfers his house without consideration to his son’s wife or child, he can’t be deemed owner of the house. However, the income earned from that property will be included in his income.
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While taking a housing loan, there are a number of charges that a borrower has to bear. A borrower must get all the details of these charges from the bank, before applying for  a housing loan. Some of the charges are:

• Processing Fee
• Administrative Fee
• Commencement of EMI
• Prepayment charge
• Switchover Charge
• Late Payment Charge
• Commitment Charge
• Insurance

Processing Fee:

Processing fee is non-refundable and is to be paid while filing the loan application. The processing fee is charged to cover the cost of determining the loan eligibility of the borrower. Normally, the processing fee varies from 0.5% to 1% of the amount applied for loan.  Some banks also charge the legal fee separately in addition to the processing fee.

Administrative Fee:

Once the loan has been sanctioned, the borrower has to pay the administrative fee. This fee also varies from 0.5% to 1% of the sanctioned amount. In some banks, both the processing fee and the administrative fee will be charged together. Few banks also charge an amount as file charge.

Commencement of EMI

Normally, the EMIs start from the month of final disbursement of loan amount. In some other cases, it may also start from the month following that. A borrower must decide this, depending upon his cash flow. This timing of commencement of EMIs has to be decided carefully by the borrower since it has an impact on the total interest cost of the borrower over the period of the loan.

Prepayment charge

Some banks charge penalty if the loan is repaid before the agreed duration. This penalty is charged because the bank thinks that it disturbs the cash flow and income estimates of the bank. This prepayment penalty may vary from 1% to 5% of the outstanding loan amount. Some banks do not charge this kind of penalty.

Switchover charge

A person may plan to switch over from one bank to another, if the other bank is offering better terms. In this case, the bank will charge a penalty. This charge may not be payable if the loan is repaid out of one’s own funds.

Late payment charge

This charge is levied if the borrower delays to pay the EMI before the due date.

Commitment charge

If the borrower does not uses the loan amount within a specified period of time after which the loan is sanction, then the bank charges a commitment charge to the borrower.

Insurance

Some banks require that the house should be insured or the borrower should take a life insurance policy where the sum assured is at least equal to the sanctioned loan amount. Some banks also offer free insurance to the borrower. The borrower’s family will not be affected financially because of the loan liability, if the borrower dies unfortunately. This insurance amount will be used to repay the loan amount to the bank.

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Before taking a housing loan, the home loan tenure must be decided. A home loan tenure is the duration to repay the loan. Usually, the housing loan tenure will start from 5 years and it may extend till 25 years. Normally, many people prefer a longer tenure. This is because, if they take a longer tenure, then their monthly EMI will be less.

The EMI totally depends upon the housing loan tenure. The EMI is higher if the loan tenure is short. In this case, the interest paid is also less when compared to a longer loan tenure. One of the factor that decides your loan tenure must be the purpose for which the loan is taken.  If a person is buying a property as an investment, he normally goes for a shorter tenure. This will help him avoid the exit charges that is to be paid in case of early termination of the loan.

Deciding ideal loan tenure:
There are a number of factors that determine the loan tenure. One of the most important factor among them is your disposable income. You have to repay your loan from this part of your income. So, if your net disposable income is less, it is better to go in for a longer tenure loan. In this case, the EMI will be reduced. But, you have to pay the interest for an extended period of time.

When compared to a long tenure loan, a short tenure loan comes with a lower rate of interest. And s0, it is always a best option to go for a shorter duration loan, if you have enough resources to repay the loan amount. This will help you get lower interest rates.

The amount you are going to borrow must also determine the loan tenure. If you are borrowing a huge amount, it is better to go in for a longer tenure loan.

One more factor to be considered is your future income. If you are expecting an increase or decrease in your net income, you have to decide the loan tenure accordingly. If you are going to retire in 10 years, your maximum loan tenure must be 10 years. Do not stretch your loan tenure beyond your retirement age. In the same way, if you are 35 years old, you can have a longer tenure loan, stretching up to 25 years. This is because your income will rise gradually. Your income will be less in the initial years of employment. It increases over years. So, you can go for a longer duration loan and you can reduce your present burden.
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Each state has its own Rent Control Acts in order to protect the tenants from being evicted by their landlords. Landlords cannot evict their tenants without a valid reason. There are few cases in which the landlords can recover the possession.

• If the tenant sublets the apartment to any other person without the permission of the landlord. The tenant has no rights to let any other person as tenants without getting the consent of the landlord in writing.
• The tenant can be evicted by the landlord, if he has not paid arrears of rent with a duration of two months from the due date. The possession of the tenant cannot be recovered if he has paid the rental arrears at anytime. But, if the tenant continues the same for three consecutive months, then the tenant can be evicted by the landlord.
• The landlord can evict the tenant, if the tenant has misused the apartment by using it for some other purpose without the permission of the landlord. In this case, the land lord should give a notice to the tenant and ask him to stop misusing the apartment. If the tenant continues even after giving the notice, the landlord can evict him from the apartment.
• If the tenant or any of his family members do not stay in the apartment for a period of 6 months, then the possession of the apartment can be recovered by the landlord.
• If the landlord is in need of the apartment for his own purpose, then he can recover the possession of the apartment.
• If the building needs a renovation and it can be done only if the tenants vacates the premises. In such cases, the landlord can recover the possession of the apartment.
• The tenant can be evicted from the premises if he has caused any damage to the apartment.

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