Buying and selling of property

Question: What things to check before entering into a purchase agreement for property?

Answer: 

It is necessary for the seller and buyer of a property to get the sale deed or title document prepared. It contains important details about the transaction including the location of the property, names of both parties, identification number of property, selling price, payment details etc.

Importance of stamp duty

Question: What is the purpose of stamp duty in sale of property?

Answer:

Stamp duty has been imposed by the provincial governments on all property-related transactions. Its amount is decided based on the value of the property and is paid by the buyer. The stamp paper needs to be filled out by the seller, describing his willingness to sell the property to the seller at an agreed price.

Importance of terms of the sale agreement

Question: What terms dictate the sale procedure?

Answer:

The terms stipulated in the sale agreement narrate the sale process therefore ensure that terms safeguarding your interest are inserted.

Interest of the seller

Question: What terms shall be included to safeguard the interest of the seller?

Answer:

The seller shall ensure that the terms of the contract clearly stipulate the payment procedure. If the payment is subject to earnest money then the seller shall clearly identify when the rest of the payment shall be made.

If full payment is to be made on execution of the transfer documents then instructions as to the mode of payment shall be clearly identified. It is preferred that the seller after the buyer makes the payment to the seller, transfer the title of the property along with the associated rights to the buyer. The seller has to hand over the title deed to the new buyer. A new set of documents is then prepared for the buyer, after which the property needs to be registered in his name. Following this step, both parties have to meet the local registrar and declare the transfer of property before witnesses. Then, the registrar makes changes in the local land record as well.

Beware buyers

Question: What terms shall be included to safeguard the interest of the buyer?

Answer:

The buyer shall ensure that the seller transfers the title of the property in a specified period. The term of this period shall be stated clearly to reflect that the parties intend time to be of great importance to the contract and in turn the transaction. The buyer shall also insist on part payment that is pay earnest money before the transfer the title and the rest thereafter.

Due diligence process before sale of property

Question: What preemptive steps shall be taken by the buyers and seller of a property?

Answer:

Due diligence is extremely important for each transaction therefore;

a)      Hire a lawyer  for the purposes of due diligence that is to verify title documents and ascertainment of property and to draft and vet sale agreement;

b)      To background check on parties to the transaction;

c)       To consider tax implications;

d)      To evaluate the market price of the property; and

e)      To execute the sale agreement in presence of witnesses.

Procedure to rent property

Question: What is the procedure to rent out a portion of my house?

Answer:

A landlord shall firstly enter into a tenancy agreement with the tenant this cannot be avoided. The tenancy agreement shall be presented to the Rent Registrar who shall subsequently. The tenancy agreement must also be registered. A tenancy agreement entered in the office of a Rent Registrar or a certified copy thereof shall be a proof of the relationship of landlord and tenant.

Explaining Tenancy Agreement

Question: What thing shall be covered under a tenancy agreement?

Answer:

A tenancy agreement shall contain, as far as possible, the following:

      (a)  particulars of the landlord and the tenant;

      (b)  description of the premises;

      (c)  period of the tenancy;

      (d) rate of rent, rate of enhancement, due date and mode of payment of rent;

      (e)  particulars of the bank account of the landlord, if the rent is to be paid through a bank;

      (f)  the purpose for which the premises is let out; and

      (g)  amount of advance rent, security or pagri, if any.

Tenant causing trouble? Take an action!

Question: My tenant is causing trouble in payment of rent can I evict him?

Answer.

Yes, you can evict him for any of the following grounds:

a.       the period of tenancy has expired;

b.       the tenant has failed to pay or tender the rent within a period of thirty days after the expiry of the period stipulated in section 7;

c.        the tenant has committed breach of a term or condition of the tenancy agreement;

d.        the tenant has committed a violation of an obligation under section 13;

e.       the tenant has used the premises for a purpose which is different from the purpose for which it has been let out; or

  the tenant has sub-let the premises without the prior written consent of the landlord.

Beware of Landlord's exploitations

Question: My landlord is forcing me to get fixtures of the house changed and has cut our water connection till such time that I do?

Answer:

The Landlord is not entitled to force you to change any fixtures that were faulty before you rented it and he can also not cut your water connection off. The landlord under the law has certain obligations towards the tenant which include the following:

a)      subject to the tenancy agreement, repair the premises as may be necessary to keep it in habitable condition or as may be required under a law for the time being in force; and

b)       pay the tax, fee or charge levied on the premises under a law for the time being in force.

c)        Subject to the tenancy agreement, a landlord shall not–

                             I.            cut off, suspend or withhold, without just or sufficient cause, an amenity, utility or easement of the premises; and

                           II.            enter the premises without giving the tenant a reasonable notice.

                         III.             

 If a landlord neglects or fails to fulfill an obligation under this Act or the tenancy agreement, the tenant may file an application in the Rent Tribunal for an order directing the landlord to fulfill the obligation.

Tenants responsibilities under rent agreement.

Question:  What are the responsibilities of a tenant under a tenancy agreement?

Answer:

Subject to the tenancy agreement, a tenant shall–

a)      keep the premises in the condition in which it was let out except for normal wear and tear;

b)       use the premises for the purpose for which it was let out;

c)         allow the landlord to enter the premises for the purpose of inspection or repair;

d)        hand over the vacant possession of the premises to the landlord on the determination      of tenancy;

e)        not cause nuisance to the neighbours of the premises; and

f)       not make a structural change in the premises without the prior written consent of the landlord.

g)      If a tenant fails to fulfill an obligation under this Act or the tenancy agreement, the landlord may give notice in writing to the tenant specifying the act or omission and the remedial action to be taken by the tenant within a specified time.

Filing an application with the Rent Tribunal

Question: How to file an application with the Rent Tribunal?

Answer:

An application in respect of rented premises shall be filed in the Rent Tribunal of the area or the district. The Administrative Special Judge (Rent) of the area or the district may take cognizance of the case or entrust the same to any other Special Judge (Rent).An application shall contain a concise statement of facts, the relief claimed and shall be accompanied by copies of all relevant documents in possession of the applicant. If the application is for eviction of a tenant, the landlord shall submit his affidavit and affidavits of not more than two witnesses along with the eviction application.