All you want to know about Lal Dora areas

There was a time when we used to have small spots of villages around a central business district or a small city. When these cities started expanding, the need of municipal corporations, development authorities to undertake development and management of these expanding cities was realized and hence Lad Dora areas were formed. Meanwhile, all these small villages had their own Gram Panchayat’s which worked and decided the development of the villages.

The term Lal Dora for the first time was used in 1908 – to define the habitation (Abadi) land of a village. These lands were the extension of existing villages, which was used by the villagers for their livestock and various other living support systems. To differentiate this land from the agricultural land, the land revenue department used to tie a Red Thread (Lal Dora) around the village extension land. While this was done decades ago, even today the Lal Dora denotes that the jurisdiction of municipal authorities or the urban development is not applicable in the specified area.

As Lal Dora is exempted from building bylaws, there is no strict regulation on construction in these areas, which in some areas has led to haphazard construction. With rapid population growth and un-affordability of the urban areas, these Lal Dora areas swiftly got converted into urban villages. Some of the well-known examples in the National Capital Region (NCR) are Hauz Khas Village, Basant Gaon, Khel Gaon, Munirka and Khirki, among others. These urban villages are also host to some of the known farm houses of the rich in the NCR, including the Bijwasan Farms and West End Farms.

Of these urban villages, many are provided facilities like roads, sewerage, water and electricity by the government. There are a few which are not so blessed and due to the non-availability of such infrastructural necessities, these Lal Dora areas are generally looked at with a raised eyebrow. Due to their proximity to the urban centers as well as cheap rentals, many exporters, warehouses, godowns and even corporates started entering the Lal Dora areas.

The rapid population growth and affordability of the Lal Dora Lands in comparison to the urban residential land has generated interest among investors who have been investing in these lands aggressively over the last couple of years.

Areas such as around Kanjhawala, Chhatarpur, Najafgarh, Rangpuri and Mahipalpur have been preferred investment destinations for such investors. The cost can differ from a minimum of 100 per cent and above in comparison to urban residential land, when compared to opportunities available in these areas.

Original publication at Content.magicbricks.com by AtulayNehra

Stuck with a delayed project – Is there a way out?

Time and again there have been stories where the investors have been left unattended, cribbing and stranded with their investments in the middle of nowhere projects. There are developers who are widely known for taking investors on a ride.

In India, the most expensive purchase for any individual – a real estate is bound by a one-sided un-registered agreement called the Builder-Buyer Agreement. On top of it, an investor gets this agreement only after the payment of at least 20-30 per cent of the total cost. The receipts do not even exist in case of so-called soft launch or pre-launch project.

Pankaj Sinha , a Noida based business man , is one among lakhs of buyers who has been in a dilemma due to the slow pace of construction of property projects. Hoping to shift in to this ultra luxurious apartment on Noida Expressway in 2011, Sinha had booked a unit in this golf course facing apartment complex being built by a known developer with multiple projects in Gurgaon and Noida. He paid Rs 30 lakh to book a space in 2008 for the Rs 100 lakh plus apartment in this project.

It has already been over three years that the project has been behind schedule. Even though Sinha can see the tower in which he owns the apartment, the completion still seems a far dream. A developer’s representative has been kind enough to offer refund of the property at the same price at which he booked the apartment, if he wants to move out of the investment, which means huge loss to him.

Over 25-28 per cent of the committed supply has not been delivered on schedule in India, with residential projects in the National Capital Region topping the charts in delays.

Is there a way out?

The draft real estate regulation bill, which proposes a sector regulator, seeks to outline the obligations of project delivery. Though, until regulations are put in place, buyers will have to rely on their rights laid out in their booking agreements.

First and foremost, any prospective buyer should scrutinize the project and the background of the developer. If possible, hire a real estate consultancy firm who has market expertise and is known for unbiased consulting.

If the project is funded through Foreign Direct Investments (FDI), it is more likely to complete on time.

As an investor, you have the right to ask for the copies of approvals of the project, if not buying during a soft launch stage.

Ask for detailed construction schedule and negotiate for penalty clause in case of delay of project.

Consumer courts always come handy in such cases. Refunds can be claimed if a project is delayed beyond the period stipulated in the Builder Buyer Agreement. You can file a case in the consumer disputes redressed commissions at the national, state and district levels.

Original publication at Content.magicbricks.com by AtulayNehra

The legalities of a Will

One day most of us would have to write this document – where we would like to assign rights to our real estate to our successors. This documentation is covered under “ The Indian Succession Act 1925” and everyone calls it by a simplistic sounding word “WILL”

A Will or testament is a legal declaration by which a person, the testator, names one or more persons to manage his/her estate and provide for the transfer of his/her property at the time of their death.

Prerequisites of a Will

• A person must be major, of sound mind and willing to write a Will.
• He/she should be the sole owner of the self acquired property.
• Any ancestral property cannot be bequeathed through Will.
• Any person capable of holding property can be a legatee under a Will.
• A Will being a testamentary document comes into effect after the death of the testator.
• If the person dies without writing any Will then he is said to have died intestate.
• The person in whose favor the testator bestows the benefits is called beneficiary or legatee.
• The Will should have witnesses

There have been times when we have heard of a number of stories about wrongful confinement of the properties or misuse after the death of the original owner, causing lot of issues within families. To avoid such issues one should consider certain facts mentioned below:

Characteristics of a valid Will

• A valid Will should have the name of the testator.
• The testator should have appointed a beneficiary of the Will.
• A Will from the testator can take effect only after his death.
• A Will can be revoked or altered during the lifetime of the testator, any amendment in the Will are called as Codicil.

Course of action while making a Will

• A Will should carry all the details of the properties or all the documents
• The value of all these properties should be mentioned.
• The details of benefits to the beneficiary or beneficiaries from the Will should be clearly stated.
• The Will should have been attested by at least two independent witnesses.
• Post the lifetime of the testator, the executor of the Will has to apply for probate.
• A probate is the only conclusive evidence for authenticity of the Will.

The above provides some basic information on Will, which if considered by testators, would help them avoid making basic errors while writing for a beneficiary.

Original publication at Content.magicbricks.com by AtulayNehra