Know About The Meaning Of Caveat In Law And Its Other Aspects
Any other Legal Issue

Know About The Meaning Of Caveat In Law And Its Other Aspects

Caveat meaning in law: India

The Latin phrase "caveat" means "let a person be aware". In the context of law, it can be interpreted as a request not to act in a certain way without first alerting the person who issued the warning. Section 148A of the Civil Procedure Code, 1908 (“CPC”) talks about caveat.

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Although the CPC does not define caveat, the court described it as a warning provided to the court that no order or judgment shall be passed without giving notice to or hearing the caveator in the case of Nirmal Chand v. Girindra Narayan[1]. The individual who files a caveat is referred to as the caveator, and the person who has already filed a lawsuit or is likely to do so is known as the caveatee. Section 148A also lays down the rights and duties of the caveator, court and applicant as well.

A third-party may also file a caveat petition with the court if they are somehow connected to the lawsuit. The same rule was established in Kattil Vayalil Parkkum Koiloth v. Mannil Paadikayil Kadeesa Umma[2], which states that a caveat cannot be filed by a person who is completely unrelated to the matter.

However, several High Courts have held that the application of caveat cannot be accepted during an appeal (whether first or second) or during the execution proceedings. Yet, the Supreme Court noted in the case of Chandra Aggarwal v. State of Uttar Pradesh[3], that the term "Civil Proceeding" under section 141 covered all types of proceedings that are not original proceedings. Thus, CPC enables the filing of caveat in all suits, appeals, and proceedings. A caveat may be filed in the Supreme Court, the High Courts, the Appellate Courts, and the primary Civil Court of Original Jurisdiction. The court for small causes is included in this.

Caveat Petition V.  Legal Notice

Particulars

Caveat Petition

Legal Notice

Meaning

When the caveator anticipates that the opposing party will file an application in any lawsuit or proceeding against them, the caveator files a caveat petition.

When someone has an issue and wants to initiate legal action against the other party, they issue a legal notice.

Section

Section 148A of the CPC explains the Caveat petition.

A legal notice is filed in accordance with Section 80 of CPC.

Details Included

A caveat petition details the anticipated application that may be made against the caveator in a lawsuit or other proceeding that has already been started or is about to be started against them.

A legal notice details the complaints the person providing the notice has and asks the other party for relief.

Purpose

The caveat petition is an action done by the caveator as a safeguard against the anticipated application that the opposing party will file.

Before commencing legal action against the opposite party, a legal notice serves as a warning to that party.

Filing

The caveat petition is filed in the court by the caveator.

The person issuing the legal notice serves it on the opposing party.

Role of Court

When an application is made against a caveator, the court will notify that person by serving notice of the application. The applicant/opposite party will also get service of the caveat petition from the court.

A legal notice is directly delivered by the person issuing it to the opposing party by registered post.

What is the effect of filing a Caveat?

A caveat's primary objective is safeguarding the caveator's interests and preventing the court from making ex-parte orders. Additionally, caveat reduces the number of proceedings, which decreases the burden on the court and ends the dispute.

Also read CAN HOMEBUYERS TAKE LEGAL ACTION AGAINST BUILDER FOR DELAY IN POSSESSION OF PROPERTY?

The court shall notify the caveator of any application made in a lawsuit or legal proceeding after the caveat has been filed. After receiving a notice, the applicant is expected to send the caveator a copy of his application as well as any supporting documents that may have been included. This must be done at the caveator's expense. The decree or judgment entered is void if the court or applicant disregards the caveat and does not notify the caveator.

How long is the Caveat valid?

Following the court's issuance of a judgment or an order, a caveat is filed. A caveat is, however, lodged prior to the pronouncement of the verdict or the issuance of the order in a few specific instances. According to Section 148A (5), the caveat will be in effect for 90 days starting from the day it was filed. Fresh Caveat can be filed after 90 days.

In Yaseen and 4 Others v. Mahendra Yadav, Naib Tehsildar[4], the Allahabad High Court held that the lockdown period and the time during which the operation of courts and tribunals was suspended or disturbed are not included in the 90-day timeframe specified by Section 148A.

How do you break a Caveat?

An answer to the petition must be filed as the first step in breaking a caveat. By filing this, you can give the court proof that you are aware of the petition and present your defence.

Additionally, one should file a motion to dismiss the petition. In this, it is argued that the petition should be dismissed due to lack of merit or improper service.

Let's say one is successful in breaking the caveat petition. In that situation, they will be permitted to proceed with the divorce, annulment, legal separation, or any other case.

However, if one is unsuccessful, you will have to wait until the petitioner takes additional action before you can move forward with your case.

Also, one can break the caveat by filing a motion for summary judgment. Without contested facts, the case can be decided as a matter of law.

How many times can a Caveat be filed and renewed?

For 90 days, one caveat is in effect. When the first caveat expires, you can lodge a new one. Therefore, there is no point in submitting multiple caveats for the same cause of action. The caveat must be lodged to every court in existence.

There is no restriction on how many caveats may be filed up until the respondent opposes it, and they may be renewed indefinitely.

 


[1] AIR 1978 Cal 492, 82 CWN 1026

[2] AIR 1991 Ker 411

[3] AIR 1966 SC 1888

[4] 7 October, 2020

What Is Legal Aid? Know More About It
Any other Legal Issue

What Is Legal Aid? Know More About It

Legal Aid: What Does It Mean

Legal aid means giving legal services to the poor and underprivileged. Legal aid is a method adopted to ensure no one is deprived of justice and equality just because they cannot afford a lawyer's fee and other legal expenses related to litigation. Therefore, the main objective to provide equal justice is to be made available to the poor, downtrodden and weaker sections of society.

Also, read What are the legal compliances required for a Start-up?

Aims and Objectives

1. To provide legal representation to the underprivileged and marginalized sections of the society in whatever manner required.

2. To provide legal aid free of cost in all the country's courts, right from the lowest court to the highest court.

3. To advance the state of human rights and civil liberties in the country.

4. To spread legal literacy amongst the citizens, especially, the weak, down-trodden and underprivileged, irrespective of race, caste, sex, colour, creed or any form of discrimination

5. To impart knowledge about various welfare schemes introduced by the government.

6. To conduct surveys or research-based programs to further the goal of providing legal aid.

7. To arrange legal aid camps to settle disputes amicably amongst the citizens and to set up alternative methods of resolution to redress of grievances, especially, by voluntary consent of the parties.

How Does Legal Aid Help?

Unresolved or inadequately resolved legal issues can have far-reaching consequences in a person's life. It may influence their health, as well as their capacity to make a living, live in dignity, and be a contributing member of their community. For people who cannot afford legal representation, having access to legal counsel and aid can help them handle their legal issues and prevent them from negatively influencing other aspects of their lives. Assisting a vulnerable person in resolving a tenancy dispute with a landlord, for example, can help prevent homelessness, disruption of employment, and disruption of their children's education, as well as reduce the prevalence of health and family problems (including family relationship breakdowns) associated with exposure to prolonged stress and anxiety.

As a result of their legal situation, an individual may face unemployment, health problems, a lack of education, and homelessness, putting a financial strain on the state as they seek social assistance and utilise the health system more frequently. Aside from the benefits to the person, legal assistance for the poor and disadvantaged serves to lessen the state's fiscal effect from unresolved or badly addressed legal matters. For example, legal help may result in the award of alimony or child support, allowing the beneficiary to live off of their earnings rather than relying on government assistance. Legal assistance may also achieve the release of a person who has been wrongfully jailed, saving the government money on detention costs and allowing the individual to continue providing economic value on the job market.

People are less prone to take matters into their own hands when they feel safe in the hands of the legal system. When they are the source of societal dissatisfaction and suspicion of the capacity to access the judicial system, unresolved or badly addressed legal matters negatively influence a society's social and democratic fabric. Access to justice through legal assistance, on the other hand, improves the rule of law, builds faith in the court system, and lowers public unrest. People are less prone to take matters into their own hands when they feel safe in the hands of the legal system.

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Who is eligible for free legal aid in India?

The Constitution of India under Article 39-A mandates free legal aid to the poor and weaker sections of society. The Legal Services Authorities Act, 1987, as amended by the Act of 1994 which came into force on 9th November 1995, aims to establish a nationwide network for providing free and comprehensive legal services to the weaker sections. It makes it obligatory for the State to ensure equality before law and a legal system which promotes justice on a basis of equal opportunity to all. Legal aid strives to ensure that constitutional pledge is fulfilled in its letter and spirit and that equal justice is made available to the society's poor, downtrodden and weaker sections.

Every person who wants to institute a suit whether civil or criminal is entitled to legal services. Section 12 of the Legal Services Authorities Act, 1987 prescribes the criteria for giving legal services to eligible persons. Under the act, if a person is-

a) any member of Scheduled Tribe or Scheduled Caste;

b) any victim of human trafficking or beggar as per Article 23 of the Indian constitution;

c) any child or any woman;

d) any person who is suffering from mental illness;

e) any person who is a victim of any natural disaster i.e. earthquake, flood, drought or any other kind of disaster whether mass or industrial disaster or any ethnic violence;

f) a worker working in the industry;

g) in any custody, within the meaning of custody in a protective home as defined under Section 2(g) of Immoral Traffic (Prevention) Act, 1956.

h) A person who has annual income less than rupees nine thousand or any other higher amount as the State govt. may prescribe, if the case is produced other than before the Honourable Supreme Court, & annual income less than rupees twelve thousand or any other higher amount as the central govt. may prescribe, if the case is produced before the Supreme Court.  

Who Provides Legal Aid?

Under the Legal Services Authorities Act, 1987, the National Legal Services Authority (NALSA) was established to provide free legal services to the poorer sectors of society and to arrange Lok Adalats for the peaceful resolution of disputes.

New Delhi is home to NALSA. State Legal Services Authorities have been established in each state to carry out the NALSA's policies and orders, provide free legal services to the public, and hold Lok Adalats. The State Legal Services Authority is led by the Hon'ble Chief Justice of the relevant High Court, who also serves as the Authority's Patron-in-Chief.

A District Legal Services Authority has been established in each District to carry out the District's Legal Services Programs. Every District Legal Services Authority is led by the District Judge of the corresponding district and is located in the District Courts Complex.

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What are the legal compliances required for a Start-up?
Startup

What are the legal compliances required for a Start-up?

Startups & Law

Entities incorporated under the Companies Act, 2013 as a private limited company or registered as a partnership firm under section 59 of the Partnership Act, 1932 or a limited liability partnership under the Limited Liability Partnership Act, 2008 in India are regarded as start-ups ten years from their incorporation.

Also read How to Register Your Startup in India: 5 Simple Steps for Registration

These start-ups are expected to follow certain legal requirements. Various legal, regulatory, and annual compliance deadlines, laid down by the Acts which govern start-ups, must be complied to. Non-compliance may lead to start-ups facing penalties, closer inspections and may even lead to disciplinary actions against its directors. Additional fees may be imposed if there is a delay in any submissions; these costs keep going up as long as they are delayed. To avoid these complications all compliances must be adhered to.

Annual Compliances required by a start-up:

One of the foremost legal requirements for startups are Annual Compliances that each startup is required to comply with.

  • Annual General Meeting: Every start-up is required to have a general meeting once a year. The annual compliance deadline for the same should be no later than September 30th, six months after the conclusion of the fiscal year. The approval of financial statements, the announcement of income, the registration or nomination of auditors, the appointment and compensation of directors, and the appointment and compensation of officers all take place during this annual general meeting.
  • Director’s Report: Having a director’s report is another crucial annual compliance. The Director's Report ought to be publicly disclosed each year. The report should be signed by the company's chairperson who has been given permission by the board. The directors are required to submit an annual written statement to the corporation in the format required for the directors' report.
  • Annual Filing of Returns and Financial Statements: E-form MGT-7 is the electronic form allocated by the Ministry of Corporate Affairs (MCA) for companies and start-ups to file their annual returns and financial statements to the Registrar of Companies (“ROC”). All businesses are given access to this computerised form to submit the specifics of their annual return. The annual compliance deadline for every corporation to submit its annual return is within 60 days of the annual general meeting. For new start-ups, these returns should be filed with the new Company registration.
  • Income Tax Filing: Income tax is to be filed by all individuals, start-ups and other companies annually. Even if a start-up company does not produce any money during the fiscal year, filing an income tax return is required. It is mandatory to make financial statements, prepare income tax returns, and file income tax returns.
  • GST Return Filing: Even if they no sales are made during the month or year, all companies, start-ups and individuals selling goods and services in India are required to register for GST and file GST returns. GST registration is are a necessary annual compliance for start-ups selling goods and services in India.  
  • Statutory Audit Compliances: At the conclusion of the fiscal year, every firm is expected to prepare its accounts and have them audited by a Chartered Accountant. In order to determine if an organisation is giving a clear and accurate picture of its financial condition, the statutory audit looks at data such as account balances, bookkeeping records, and banking transactions. Therefore, start-ups must also appoint an in-house auditor to ensure that there are no discrepancies in records.

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Legal Requirements for a Start-up:

  • The First Board Meeting- The first meeting of the board of directors is a regulatory compliance that is mandatory for newly incorporated companies and should take place within 30 days of the incorporation of your company. After that, there should be a total of four Board meetings throughout the year. At least two board meetings should be held annually for new small businesses. A board meeting is a requirement that should not be skipped.
  • Internal Company Compliance: Monthly and Annual audits of financial statement must be carried out diligently since they are an essential part of the regulatory compliance. The holding of the annual general meeting, conducting a business analysis, discussing findings with the top staff, etc. It is necessary to update and review firm policies and practises, as well as to keep track of legislative changes and compliance requirements.
  • Maintenance of Required Registrations and Records: Maintaining registration and recordkeeping is a legal requirement for start-ups. The documents must be kept current and accessible to company personnel. A register of directors, a register of company members, a register of shares, a register of chairs, and so on should all be included in the registration. Additionally, the business is required by law to maintain the records. The following documents must be preserved and updated on a regular basis: Transactions statements, Minutes Book of Board Meetings/AGM or other meetings; Books of Accounts; Financial Statements; ROC File etc. Records include decisions made by the board of directors, board meeting minutes, the results of the annual general meeting, and the company's articles of incorporation. It is necessary to keep all of this data.
  • Obtaining Licenses and their Renewals: In India, seeking licenses within 40 days of incorporation is a legal requirement for start-ups. All start-ups must have the following licences: Trade License, Import and Export Code, Shop and Establishment Act License, etc. These licences, depending on their nature, must be renewed annually, before the licence expires, or as instructed by the licence authority.
  • Other Statutory Compliances: Compliance to various acts such as the Employee Provident Fund Scheme, 1952; The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013; The Industrial Disputes Act, 1947 The Employee’s State Insurance Act, 1948; Minimum Wages Act 1948; Trade Union Act. 1926 are essential legal requirements for start-ups.

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It is pertinent for startups to know the various legal requirements applicable to them. Annual compliance deadlines should not be missed, as failure to abide by the compliance regulations, may lead to punitive liability, that may include monetary or other impositions.

 

Pro Bono Legal Service - Know About Free Legal Services
Others

Pro Bono Legal Service - Know About Free Legal Services

About Pro Bono Legal Service

'Pro bono legal service implies free legal service by lawyers. In a country like India that is overwhelmed by poor and underprivileged undertrials, pro bono legal services can immensely contribute to the fast disposal of cases and reduce the burden of pendency from the judiciary.

The expression ‘pro bono’ is derived from the Latin expression pro bono public which means ‘for the public good’. The pro bono services' beneficiaries need not pay their lawyers professional fees.. Article 39A of the Constitution directs the State to provide free legal services to the weaker sections of society to facilitate justice based on equal opportunities. Additionally, Goal 16 of the United Nations Sustainable Development Goals underlines the obligation of the Member States to ensure equal opportunities of justice to all without discrimination. The concept of pro bono legal consultation was formally given a statutory shape under the Legal Sevices Authority Act, 1987, and the wings of the Legal Services Authority were set up with a three-tier system i.e the National Legal Services Authority (NALSA) in New Delhi along with State and District Legal Services Authority in each state and districts respectively. The Chief Justice of India is the ex-officio patron-in-chief of NALSA while the second seniormost judge serves as its ex-officio executive chairman.

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Objectives of the Pro Bono Legal Services

The motto of this program is to promote the pro bono culture of legal consultation and it seeks to develop the institutional structure for the same. The program serves dual objectives, firstly, it seeks to address the legal needs of the underprivileged and deprived section of the society, and secondly, it duly acknowledges and recognizes the lawyers who volunteer for this program and invest their time and effort. This initiative aims to expand the accessibility of justice to the last man standing in the queue. This initiative provides a platform for the lawyers to demonstrate their social awareness abilities, enhance their network, promote professional development, and ensure publicity for the volunteer lawyers.

The major objectives include:

  1. Encouraging lawyers and legal professionals to render pro bono legal services for society.
  2. Recognizing and appreciating pro bono legal work by lawyers and legal professionals.
  3. Creation of a database to maintain a bank of lawyers and legal professionals for appropriate positions in the relevant field.

Additionally, the Department has launched a Pro Bono Club Scheme, to strengthen the pro bono scheme, by including law schools and students under its domain. This initiative aims to enhance the quality of pro bono legal services by assisting pro bono advocates by selected law students. The selected law students, known as ‘Pro Bono Associates’ become a part of the Pro Bono Club and the Legal Aid Society of their law school.

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Eligibility to apply for legal help                                  

The government has specifically launched a Nyaya Bandhu Application and this Application serves as a connecting link between the needy and the experts, i.e the Applicants and the Advocates. Any person intending to benefit from the Nyaya Bandhu initiative must be covered under Section 12 of the NALSA Act, 1987. It lays down the eligibility criteria for availing of the benefits of this scheme. Marginalised sections of the society can also avail of free legal aid.

Registration for the Applicants

Any applicant aspiring to become a beneficiary of this scheme and get free legal advice can register themselves on the UMANG portal, Nyaya Bandhu App, or the Nyaya Bandhu web portal. The Applicants need to complete their profile and add the relevant details of their case on the portal. Once the details of the case are uploaded, any advocate from the database is randomly allotted that case, subject to the satisfaction of two parameters, first, the area of practice of the advocate and the jurisdiction in which the case is pending or is to be heard.

Thereafter, the Applicant is, either navigated to ‘Assign Advocate’ page with a list of advocates shortlisted as per the case details, or sometimes, the Applicant is directly notified that an advocate will be assigned to the case by the Department itself. When an advocate accepts a case, that case shifts to ‘Ongoing Cases’. It also facilitates the exchange of information between the Applicant and the Advocate. Lastly, the Advocate can mark the case as closed if he is satisfied with the court's final judgment.

Eligibility for lawyers and legal professionals to register for the service

The lawyers and advocates intending to provide pro bono services must be enrolled with any Bar Council of the country. He/She must be a practicing advocate. This scheme does not create any age limit for the advocates willing to contribute and enrich the pro bono culture in the legal practice. However, advocates aged 44-54 years are provided the opportunity to serve in different capacities for which they need to provide additional details.

The advocates must be registered with ‘Service Plus’, a government portal, and have a ‘Service Plus’ ID. The lawyers must log in through their ‘Service Plus’ ID, register themselves, and create their profile for pro bono services by furnishing the required details. The registered advocates are then included in the database and are notified of any requirement when requested by the registered Applicants.

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Understanding RERA and How to File a Complaint under RERA
Property

Understanding RERA and How to File a Complaint under RERA

For a long time, the real estate sector had no regulation. If the consumers faced delays, there was no recourse. Most buyers were at the mercy of the builders as court cases would drag on for long. With the coming of RERA, a proper complaint mechanism has come into existence. Let us see how one can file complaints under RERA.

RERA Complaint Against Builder

RERA imposes certain obligations on the builder or the developer. As a homebuyer, you have certain rights under RERA. If the builder fails to discharge his obligations or violates your rights, then you can file a complaint against the builder. Under RERA, a homebuyer can, in addition to the builder, file a complaint against the following: 

  • Promoter

  • Real estate agent

  • Contractor

  • Intermediary

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If any of the above are found guilty of contravening the RERA, they would have to pay heavy penalties. Key penalties in the RERA are: 

  • Non-registration with RERA attracts a heavy penalty of up to 10% of the project's estimated cost or imprisonment up to 3 years. Sometimes, RERA may impose both imprisonment and a fine. 

  • Furnishing false information also attracts 5% of the estimated cost of construction as a penalty. 

Hence, heavy penalties may be imposed on the builder, promoter, real estate agent, etc., if they are in non-compliance with the RERA.

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RERA Complaint Registration

A homebuyer should have the following details if they wish to register a complaint against the builder: 

  • Details such as name, address etc. 

  • Registration number of the project and the address where it is situated. 

  • The response of the builder. 

  • The relief the homebuyer is requesting.

A buyer may file a complaint with the RERA Authority for any violation or contravention of the provisions of the RERA Act by a builder, developer, promoter or real estate agent. Conditions under which a buyer can file a RERA complaint include:

  • Delay in Possession: If a builder delays delivery of possession of the property, the buyer can file a complaint against the builder to get immediate delivery of possession or get a full refund along with interest.

  • False Advertisement: A complaint can be filed against the developer, promoter, and even the endorsers if false advertisements misled a buyer based on which he/she decided to deposit a sum with the promoter.

  • Advance Payment: A builder can ask for only up to 10% of the cost of the building, apartment, or plot as advance payment. If a builder asks for more than 10%, the buyer can file a complaint against the builder.

  • Improper Registration of a Project: All projects must be registered under RERA. If a builder has sold or is trying to sell an unregistered project, the buyer can file a complaint against the builder.

  • No details about the Project: All details regarding the project including project plan, layout, and government approvals need to be updated on the RERA website. One can file a complaint if a builder or developer doesn't adhere to this provision.

  • Structural Defects: In case of any structural defects in the workmanship and quality of the services, the promoter will have to compensate the amount paid by the allottee. If not compensated, the buyer can file a complaint.

  • Ownership Transfer: A promoter cannot transfer majority rights to any third party. In case he/she is found transferring majority rights to a third party without the consent of the two-third majority of allottees, one can file a complaint.

Typically, a homebuyer has to file a RERA complaint form along with the requisite fee to register his/her complaint. You can follow the given steps to file a complaint under RERA:

  • You can file a RERA complaint form along with the requisite documents and the fee before a RERA or an adjudicating officer. 

  • Once the authorities receive the complaint, they constitute an inquiry bench to hear both the parties involved. 

  • The matter is typically settled within 60 days of the filing of the complaint.

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RERA Online Complaint filing

Many states like Gujarat, Maharashtra, and Karnataka now provide online complaint filing under RERA. The method of filing an online complaint almost remains the same in most states. However, the procedure, applicable fees are different.

To register a RERA complaint online in Gujarat, a complainant must comply with the following steps:

  • Go to the Gujarat RERA portal. On the home page, there will be a link for complaint registration.

  • Once you click on the link, you will be redirected to another page to provide relevant details of the complaint. These details are the same that one would provide in a physical complaint.

  • After filling in the personal details like name, address, contact details, etc., there will be an option for the complainant to attach supporting documents.

  • The complainant must pay a registration fee of Rs. 1000 to be able to submit the complaint. One can avail of any net banking or mobile banking facility for payment. After payment, one has to click the Submit button to successfully register the complaint.

In order to register a RERA complaint online in Maharashtra, a complainant must comply with the following steps:

  • Go to the Maharashtra RERA portal. On the home page, click on the Online Application Menu.

  • One must first log in to be able to access the online complaint form. Therefore, the complainant must create a new registration with an appropriate username and password.

  • Once registration is completed, the complainant must file his/her personal information to proceed with the complaint.

  • After providing relevant personal details, the complainant should find and select Add New Complaints. Here, the complainant would be able to fill in relevant details of the complaint.

  • The complainant must pay a registration fee of Rs. Five thousand to be able to successfully submit the complaint.

For all online portal complaints, once a complaint is successfully registered, both the parties would be called to express their facts and figures surrounding the dispute. The RERA will listen to both parties and will give a verdict on the merits of the case.

The aggrieved party would be given the option to challenge RERA's decision if they are not satisfied with such an order. The aggrieved party must challenge RERA's decision before the High Court.

Legal Considerations to Keep in Mind Before Selling Your House
Property

Legal Considerations to Keep in Mind Before Selling Your House

Selling anything is a tedious task, let alone selling a house. What are the requisite documents for sale? What is the correct procedure? Are there any risks involved in the process? If one does not have answers to such questions, selling a house can become an ugly affair.

Law relating to Sale of Houses

Houses are a tangible piece of immovable property. The main legislation which governs the sale and transfer of property in India is the Transfer of Property Act, 1882 (hereafter referred to as "TPA"). Chapter III of TPA deals with the sale of immovable property.

  • Sections 54 and 55 of the TPA are of enormous relevance in our context. Let us discuss the crux of these provisions under the following headings:

Rights and Liabilities of the Seller - Section 55 of TPA

There are several rights and liabilities mentioned for both the buyer and seller. There are rights and duties regarding the seller, before and after selling his/her property. Let us discuss them under the following headings:

Before Sale of Property

The duties of a seller before selling his/her property are as follows:

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After-Sale of Property

There are a few duties of the seller after the sale of the property. They are as follows:

  • The seller is bound to deliver the possession of the property after the sale to the buyer.
  • Through the contract with the buyer, the seller's interest has professed to transfer to the buyer will exist, and the buyer will have the right to transfer the same.
  • If all of the purchase money has been paid by the buyer, the seller is bound to deliver all documents of title relating to the property in the seller's possession.

Documents required for selling your house

As already mentioned above, under TPA, the seller is mandatorily required to produce all the relevant documentation before the buyer. A bunch of property-related disputes arises due to the lack of proper documentation. Thus, it is crucial from both the seller's and buyer's perspectives to give the requisite attention to the documentation of the deal.

  • The documents required for the selling of a tangible immovable property (such as a house), are as follows:
  • Letter of allotment: This is the document that conferred the allotment of the property which is in possession of the seller, who had purchased this property from a relevant society or authority.
  • Sale Deed: All the original sale deeds from the previous owners of the property who have handed it down to the current owner (the seller). This helps in tracing the property title chain. The seller should have an original sale deed. It is compulsory under the law that the seller needs to have all the previous agreements.
  • Sanctioned Plan:  The seller also needs to have the approved building plan and occupation certificate by the local municipal authority or any other competent authority.
  • Society Documents: The seller must seek the permission of the relevant competent authorities (development authority or society) before selling the house. For example, if the seller lives in a gated community, then he/she must obtain a NOC (no-objection certificate) from the housing society or governing body.
  • Encumbrance certificate: This certificate is required as an indication of free title. This is because while buying a house or apartment, the buyer wants to ascertain no legal dues.
  • Sale Agreement: Lastly, but most importantly, after both the parties have arranged the documentation, the terms and conditions for the agreement for selling the property can be laid down. This agreement shall be the blueprint and precede the execution of the sale deed and hence is extremely important.

The procedure of selling your house

We've already discussed the documentation process, one of the most important parts of the procedure. There are other practical and/or legal aspects to the procedure, which includes the following:

  • Valuation of Your house: Make a good estimate of the value of your house. For this purpose, you can either consult a real estate agent or self-assess the property by researching the prevailing market rate in the society or locality where your house is located.
  • Find a buyer: The next step is to find a person who is ready to buy your house.
  • Intimate your intentions to the governing body: As mentioned already, you must seek approval from the housing society where the house is located by getting a NOC.
  • Prepare the house: You can now stage your house for potential buyers to visit. For this purpose, ideally, you should vacate the house and do renovation or repair work on the same.
  • Finally, list the property: Now, you can finally list the property for sale on online platforms or seek the help of brokers who can help you find buyers.

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Conclusion

Every seller needs to know such intricacies before proceeding to sell their house. Unless the seller is well-informed regarding such details, they can be taken for a ride by the buyer. The whole idea is to avoid being in that position as a seller.