CAUTION – APARTMENT BUYERS – PRE LAUNCH OFFERS FROM LITTLE KNOWN OR UNKNOWN GROUPS


PLEASE BE CAREFUL AND CONDUCT DUE DILIGENT EXAMINATION AND THE SCRUTINY OF THE DOCUMENTS, APPROVALS AND COMPLIANCE OF THE PRE LAUNCH OFFERS FROM UNKNOWN, LITTLE KNOWN, DISREPUTE OR STRANGE GROUPS.

DO NOT MAKE ANY PAYMENT OR NOR GIVE ANY MONEY, UNDER ANY CIRCUMSTANCE WITHOUT PROPER AND DILIGENT TITLE CLEARANCE AND APPROVALS FROM THE APPROPRIATE DEPARTMENTS AND BODIES.

EXERCISE UTMOST CAUTION:

BUT, BUYING IT FROM WELL KNOWN AND STANDARD BUILDERS ARE RECOMMENDED.

ALWAYS PREFER THE BEST AND THE TOP BUILDERS LIKE

BRIGADE, STERLING, PURUVANKARA, MANTRI, SOBHA, TATA, GODREJ, DLF, HIRANANDANI, SHRIRAM, PRESTIGE & ADARSH  etc, even, if there are any minor issues, they are capable of resolving it and fulfill their commitments and promise.

DECLARATION CUM INDEMNITY BOND SIGNED BY THE HOME LOAN BORROWERS


HOME LOAN BORROWERS ARE UNAWARE OF THE FACTS THAT AT THE TIME OF AVAILING THE HOME LOAN EITHER FOR THE PURCHASE AND CONSTRUCTION OF THE HOUSE(COMPOSITE LOAN) OR FOR THE PURCHASE OF THE HOUSE OR APARTMENT, A DECLARATION CUM INDEMNITY BOND WILL BE SIGNED AS PER THE DIRECTIVES OF THE RESERVE BANK OF INDIA, WHICH GENERALLY CONTAINS THE FOLLOWING CLAUSE:

DECLARATION CUM INDEMNITY BOND EXECUTED BY THE BORROWER IN FAVOUR OF THE BANK

 Further I indemnify XXXHFL(BANK) from any losses, interests, claims or rights, financial or otherwise if any, arising out of non availability of documents, minor’s interest, litigation, non regularization of deviations in constructions etc and other acts of omission/commission in connection with the said    schedule property and construction /development as mentioned above and declare and assure that the Schedule property has been constructed as per sanctioned plan from XXXXX and if at any point of time, ever proved otherwise, the XXXHFL(BANK) may initiate action for the recovery of the loan.

 

FORFIETURE OF EARNEST MONEY DEPOSIT/SECURITY DEPOSIT/ADVANCE PAID FOR THE PURCHASE OF PROPERTY


Advance/ Security Deposit/Earnest money is paid or given at the time when the contract is entered into and, as a pledge for its due performance by the depositor to be forfeited in case of non-performance, by the depositor.

It (Advance/earnest money deposit/security deposit)represents the guarantee that the contract (clauses in the sale agreement) would be fulfilled by both the parties.  In other words, ‘earnest’ is given to bind the contract, which is a part of the purchase price when the transaction is carried out and it will be forfeited when the transaction falls through by reason of the default or failure of the purchase.

To justify the forfeiture of advance money being part of ‘earnest money’/ `security deposit` the terms of the contract must be clear and explicit.

If the seller fails to perform the contract the purchaser can also get the double the amount/whatever the amount stated in the agreement, if it is so stipulated.

In case if the payment made is that of part payment of purchase price/consideration, then, it cannot be forfeited unless it is a guarantee for the due performance of the contract.

If the payment is made only towards part payment of consideration and not intended as earnest money then the forfeiture clause will not apply. 

 

B-KATHA – HOME LOANS


IT HAS COME TO OUR NOTICE THAT SOME BANKS ARE OFFERING HOME LOANS ON `B` KATHAS.  

PLEASE DO NOT SEEK THE DETAILS OF THE BANKS, WHICH ARE OFFERING IT,FROM US.

THE SANCTION/OFFER OF LOAN WILL NOT CONFER ANY RIGHT, TITLE AND INTEREST AND THE BUYERS ARE ADVISED TO BE VERY CAUTIOUS BEFORE THE PURCHASE.  THIS IS FOR YOUR INFORMATION.

Pre closure/foreclosure charges for home loans – Government Directions –


Government, in May 2010, advised Public Sector Banks, Indian Banks’ Association and National Housing Bank that no pre-payment charges may be levied by the lending institutions when the loan amount is paid by the borrowers out of their own funds; and if any pre-payment charges are to be imposed on housing loans, the same need to be reasonable and transparent and not out of line with the average cost of providing these services. 
The Public Sector Banks (PSBs) have reported that by and large they do not levy any pre-payment charges when the amount is paid by the borrowers from their own sources. 

In general, own funds means funds generated through ‘own sources’ and not through borrowings by any lender. Prepayment of loan by a borrower can take place on account of (i) takeover of his / her loan by other lender, and (ii) out of their own sources. In the first case, the borrower often gets their existing loan refinanced by other lender, if the interest rate offered by other lending institution in the market was lower and attractive. 

In terms of RBI guidelines, in the context of granting greater functional autonomy to banks, freedom has been given to scheduled commercial banks, including public sector banks, private sector banks and foreign banks, on all operational matters pertaining to banking transactions.

DID YOU BUY `B` KATHA PROPERTY ?


IF, YES, YOU CANNOT TRANSFER IT TO YOUR NAME AND NOR CAN YOU SELL IT NOW.  YOU HAVE TO WAIT FOR AKRAMA-SAKRAMA OR ANY OTHER REGULARISATION SCHEME. B KATHA IS NOT USEFUL TO GET THE LOAN AND BUILDING PLAN WILL NOT BE SANCTIONED. 

HOME LOAN CONDITIONS- RBI-01-07-2011


A. Housing Loan for building construction

  1.        i.            In cases where the applicant owns a plot/land and approaches the banks/FIs for a credit facility to construct a house, a copy of the sanctioned plan by competent authority in the name of a person applying for such credit facility must be obtained by the Banks/FIs before sanctioning the home loan.

 

  1.     ii.            An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be strictly as per the sanctioned plan and it shall be the sole responsibility of the executants to obtain completion certificate within 3 months of completion of construction, failing which the bank shall have the power and the authority to recall the entire loan with interest, costs and other usual bank charges.

 

  1.  iii.            An Architect appointed by the bank must also certify at various stages of construction of building that the construction of the building is strictly as per sanctioned plan and shall also certify at a particular point of time that the completion certificate of the building issued by the competent authority has been obtained.

B. Housing Loan for purchase of constructed property/ built up property

  1.        i.            In cases where the applicant approaches the bank/FIs for a credit facility to purchase the built up house/flat, it should be mandatory for him to declare by way of an affidavit-cum-undertaking that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and as far as possible has a completion certificate also.

 

  1.      ii.            An Architect appointed by the bank must also certify before disbursement of the loan that the built up property is strictly as per sanctioned plan and/or building bye-laws.

C. Unauthorised colonies

No loan should be given in respect of those properties which fall in the category of unauthorized colonies unless and until they have been regularized and development and other charges paid.

D. Commercial Property

No loan should also be given in respect of properties meant for residential use but which the applicant intends to use for commercial purposes and declares so while applying for loan.

MOBILE MONEY TRANSFER SERVICE IN INDIA BY DEPARTMENT OF POSTS


The Department of Posts (DoP) has launched the mobile-based money transfer service by Post Offices for quicker transfer of money from one city to another and this service will help those who were unable to avail banking services. The service will be operated by DoP with technological support from BSNL.

HOW TO AVAIL THE SERVICE:

Persons intending to use the service would have to go to the Post Office which will provide them a unique PIN code after the transfer of money. The sender would have to send the PIN to the recipient through a text message who would be home delivered the money after verification of the PIN on his mobile. The recipient could also go to the Post Office and collect the money.

To speed up the money transfer service, the DoP had introduced Electronic MO and Internet MO and that the mobile MO was the third such service. The charges for mobile money transfer will be the same as it is on the traditional money order — five per cent of the remitted amount, a department spokesman said.

 

FAILED ATM TRANSACTION-RBI ISSUES GUIDELINES TO ALL BANKS


May 27, 2011

The Chairman and Managing Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks

Madam / Dear Sir

Reconciliation of failed transactions at ATMs

Please refer to our letter DPSS No. 711 / 02.10.02 / 2008-2009, 1424 / 02.10.02 / 2008-2009 and 101 / 02.10.02 / 2009-2010 dated October 23, 2008, February 11, 2009 and July 17, 2009 respectively on the captioned subject.

2. Reserve Bank has been continuously monitoring the implementation of various directions by the banks. Based on a review of the developments and with a view to further improve the efficiency of operations, it has been decided as under :-

  1. The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to 7 working days from the date of receipt of customer complaint. Accordingly, failure to recredit the customer’s account within 7 working days of receipt of the complaint shall entail payment of compensation to the customer @ Rs. 100/- per day by the issuing bank.
  2. Any customer is entitled to receive such compensation for delay, only if a claim is lodged with the issuing bank within 30 days of the date of the transaction.
  3. The number of free transactions permitted per month at other bank ATMs to Savings Bank account holders shall be inclusive of all types of transactions, financial or non-financial.
  4. All disputes regarding ATM failed transactions shall be settled by the issuing bank and the acquiring bank through the ATM system provider only. No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provider is permissible. This measure is intended to bring down the instances of disputes in payment of compensation between the issuing and acquiring banks.

3. The directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).Non-adherence to the provisions of this circular shall attract penalty as prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007).

4. This directive shall come into effect from July 01, 2011

5. Banks may widely publicise  these changes at all ATM locations and by individual intimation to customers.

6. Please acknowledge receipt.

 

The Reserve Bank of India on Friday directed banks to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within seven days of an account holder’s complaint or else pay a Rs 100 per day compensation.  “The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to seven working days from the date of receipt of customer complaint,” the RBI said in a notification. The RBI further said that all customers are entitled to receive such compensation for delays only if a claim is lodged with the issuing bank within 30 days of the date of transaction. The directive shall be come into effect from July 1, 2011.

Failure to re-credit the amount within seven working days will require the issuing bank to pay a compensation of Rs 100 per day, it said. Earlier, banks were required to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within 12 days.

The central bank instructed the issuing bank and the acquiring bank to settle failed ATM transaction disputes through the ATM system provider only. No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provided is possible,” RBI said. This measure is intended to reduce instances of disputes in payment of compensation between the issuing and acquiring banks, it added.

HOME LOANS-BANK SANCTIONS-DOCUMENTATION-UNDERTAKINGS-AFFIDAVIT- READ IT


HAVE YOU READ ALL THE CLAUSES AND CONDITIONS ON WHICH THE HOME LOAN HAD BEEN SANCTIONED TO YOU?

HAVE YOU EXECUTED AN UNDERTAKING OR AN AFFIDAVIT TO THE BANK REGARDING THE COMPLIANCE?

CHECK IT ONCE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! THE UNDERTAKING EXECUTED BY YOU TO THE BANK?

WE ARE PUBLISHING ONE SUCH AFFIDAVIT WITH GENERAL CLAUSES EXECUTED ON OATH :

 

I, XXXXXXX, S/O/W/O, AGED ABOUT, RESIDING AT  XXXXXXXXXXXX, do hereby solemnly affirm on oath and declare as follows:

I am aware that a special condition is stipulated in the sanction letter for submitting an affidavit to the effect that there are no statutory violation and no violation of the bye-laws of the building society in the construction of the building.

In compliance of the above stipulation, I/we do hereby declare and undertake that I/We have verified all the records relating to the construction and declare that the built up house/flat is constructed is as per the sanctioned plan and in conformity with bye laws annexed to the plan.  I/We further declare that the building is constructed as per the sanction plan without violating the rules stipulated by Corporation/Municipality/panchayat or any other local bodies, who are competent to grant permission for construction of the flat/house.

I/we further declare that I/We are aware purchasing the building with our sole responsibility that there are no statutory violations and if it is discovered by the bank that the building constructed is not as per the sanctioned plan or is in violation of building bye-laws annexed to the plan, the bank shall have the power and authority to recall the entire loan with interest, costs and usual bank charges.

 I/We further declare that what is stated is true and true to the best of my/our knowledge.

                                                                                                                                                                 DEPONENT

WHAT WILL HAPPEN, IF THE UNDERTAKING MADE IS FALSE OR UNTRUE?

HAVE YOU THOUGHT ABOUT IT, BEFORE SIGNING IT?

THINK WELL BEFORE YOU INK

Central registry for properties to avoid fraud is operational


The Central Registry for Properties Operationalised to avoid multiple lending on the same property

The Central Registry of Securitisation, Asset Reconstruction and Security Interest of India, A Government Company, Incorporated to prevent fraud on lending money on properties

The Central Registry has become operational with effect from today i.e.31st March,2011. The objective of setting-up the Central Registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry Of Securitisation Asset Reconstruction And Security Interest Of India, a Government Company, licensed under Section 25 of the Companies Act, 1956 has been incorporated for the purpose of operating and maintaining the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002). The Central Registry shall be under the superintendence and direction of the Central Registrar. Notifications for establishment of the Registry to be operated and maintained by the above company and for the purpose of appointment of Central Registrar have been issued by the Government today i.e. 31st March, 2011.

The Chairman and Managing Director, National Housing Bank shall hold additional charge as the Registrar of the Central Registry for a period of three months and he shall also be the Managing Director and Chief Executive Officer of the Government Company incorporated for the purpose of operating the Registration System.

Initially transactions relating to securitisation and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by Banks and “Financial Institutions,” as defined under the SARFAESI Act, are to be registered in the Central Registry. The Forms for registration and the fees for filing registration particulars as well as for taking a search in the Central Registry have been prescribed by Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011. The said Rules have been notified on 31st March, 2011. The records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property. Availability of such records would prevent frauds involving multiple lending against the security of same property as well as fraudulent sale of property without disclosing the security interest over such property.

A central database of security interests created over property as well as assignment of such security interest by way of securitisation or asset reconstruction would make the secured lending activity in the financial market safer for the lenders. This would enthuse the secured creditors to provide credit to the productive sectors to help sustain the growth momentum of the Indian economy.