Q : What are the legal definitions of "Section 269 UC", "Section 230A"; What is the format of form 37 i; I want a sample agreement to sale and sample sale deed ( all for resale flat).

A : Section 269UC is a provision under the income tax act,1961 under which every transaction above a particular value (which differs from city to city) relating to transfer of any interest in immovable property has to be compulsorily routed through an appropriate authority for obtaining no objection of the appropriate authority. By this method the central govt. tries to prevent undervaluation (and therefore loss of revenue) in real estate transactions. If the appropriate authority feels that the transaction value is low then he can acquire the property at the disclosed value.

Section 230a is a provision under the income tax act, 1961, under which a clearance is compulsorily to be taken by the seller from his income tax officer, if the value of the transaction is Rs. 5 lacs and above. The transaction must relate to immovable property and the clearance has to be taken beforeregistration of the sale deed.

For formats of form no.37i, sale agreement and sale deed, please check the relevant pages of the site.

Q : What does it mean if someone puts a judgment against your property?

A : A judgement against your property can mean many things. It can mean that there is an injunction against your dealing with or disposing off your property or it can mean that you are bound to do a certain thing with regard to your property. Generally, it means that there is a litigation with regard to your property.

Q : Can two people of the same family take two different loans for the same property? What are the registration charges in terms of money? What is done in case of the death of the person in whose name the loan is availed?

A : Registration cost varies from state to state and is 8% of the registered sale value in Delhi. In case of death of the applicant, the loan is payable by the legal heirs of the applicant. Guidelines of most institutions do not permit two different loan for the same property unless it is divisible and the portion is properly demarcated or there is a sub-division of the property. Better informed service can be provided to you by having the details of your query.

Q : What needs to be done if a legal notice is served to you, stating that you have encroached on their land?

A : The legal notice has to be answered. Assuming that the allegation of encroachment is incorrect, you should deny the allegation and state the facts correctly. You should also warn them not to make reckless and false allegations, otherwise you can take them to Court for damages. If the allegation is however correct, then it is better to settle the matter amicably by discussion. If possible, participation of friends, well wishers and neighbours should be sought. Since you have not given any details, it is always advisable to consult a lawyer with all your papers and then have the reply drafted by him.

Q : I have heard so many definitions of "immovable property" that I am disillusioned as to which one to believe ha. Please guide.

A : The Term "Immovable Property" occurs in various Central Acts. However none of those Acts conclusively define this term. The most important act which deals with immovable property is the Transfer of Property Act(T.P.Act). Even in the T.P.Act, this term is defined in exclusive terminology. According to Section 3 of that Act, "Immovable Property" does not include standing timber,growing crops or grass. Thus, the term is defined in the Act by excluding certain things. "Buildings" constitute immovable property and machinery, if embedded in the building for the beneficial use thereof, must be deemed to be a part of the building and the land on which the building is situated.

As per Section 3(26) of the General Clauses Act 1897, "immovable property" "shall include land, benefits to arise out of land and things attached to the earth, or permanently fastened to any thing attached to the earth". This definition of immovable property is also not exhaustive; Section 2(6) of The Registration Act,1908 defines "Immovable Property" as under: "Immovable Property includes land, building, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of land, and things attached to the earth or permanently fastened to any thing which is attached to the earth but not standing timber, growing crops nor grass".

The definition of the term "Immovable Property" under the Registration Act 1908, which extends to the whole of India, except the State of Jammu and Kashmir, is comprehensive. The above definition, implies that building is included in the definition of immovable property.

The following have been held as immovable property. A right to collect rent, life interest in the income of the immovable property, right of way, a ferry, fishery, a lease of land. -The term "Immovable Property" is defined in other Acts for the purpose of those Acts. As per Section 269UA(d) of the Income Tax Act, 1961, Immovable Property is defined as under : -Any land or any building or part of a building, and includes, where any land or any building or part of a building is to be transferred together with any machinery, plant, furniture, fittings or other things, such machinery, plant, furniture, fittings and other things also. -Any rights in or with respect to any land or any building or part of building (whether or not including any machinery, plant, furniture, fittings or other things therein) which has been constructed or which is to be constructed, accruing or arising from any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, or other association of persons or by way of any agreement or any arrangement of whatever nature, not being a transaction by way of sale, exchange or lease of such land, building or part of a building.

Q : What is an indenture?

A : Indenture is so called because in old times, document were executed in two parts and they were indented or cut off in a waving or uneven line to show that the two parts tallied or fitted in properly. The use of the word indenture is discontinued in England where it originated but in India it still continues to be used as synonymous of the word "deed". For the development and transfer of immovable properties, it is always necessary to have a document incorporatingmutually agreed terms and conditions and or understanding arrived at between the parties in writing to carry out the agreed terms and conditions effectively and properly which also helps the concerned revenue authorities to maintain the records of particulars of the immovable property from time to time. The document determines the right and powers of the particular person, duties and liabilities, contractual obligations etc. Documents give the idea and intention of the parties at the time of entering into contract. A party to the document may like to vary the ideas and intentions according to the changed situations and circumstances but, it is the document which prohibits and / or restricts the party to vary the intention that has been incorporated in the Deed for transfer / development.

Q : What is a "Deed"?

A : A deed is an instrument which generally deals with right or interest in property, and is written on a paper, executed by a party under seal and delivered as his act or deed expressing that such person so named makes, confirms, concurs in, or consents to some assurances, other than by way of testamentary disposition, of some interest in the property or some legal or equitable right title or claim or undertakes or enters into some obligation duty or agreement enforceable at law or in equity or does or concurs in some other act effecting the legal relation or position of a party to the instrument or some other person or corporation.