The importance of 7/12 legal extract

The purchase of property is one of the most valuable decisions in the life of all; it contains lots of legal terms, fees and necessary documents. It is our duty to be clear about all the necessary documents involved in the property buying process. There is a 7/12 extract required for property purchase in Maharashtra. This is one of the most important papers, when the buyer is willing to invest in semi-rural areas of the state to buy a plot. We all know that Maharashtra has prohibited the use of this document in the urban areas of the state including the suburban areas of Mumbai, these document only matters in areas where land plots do not have city survey numbers. This document is traditionally called "Saath Baara Utara".

This document provides complete information about each particular land and is defined as an extract from the land register of any district in Maharashtra. This document is issued by the Tehsildar or the concerned land authority of the area concerned. This document contains some important details which are as follows:

Name of the owner and its cultivator

·     Survey number of land.

·     Size of the land.

·     Type of land irrigational.

·     Crops planted on the land.

·     Location of the land with respect to the infrastructure facilities like roads and water bodies.

·     Availability of the loan by the owner or cultivator.

·     Reason for the loan like the purchase of seeds, pesticides, and fertilizers.

·     Loan extended to the landowner by government agencies.

This document originated from the "Bombay Land Reclamation Act 1948". All the records of the land are maintained by the revenue department of the government.

Why is this document required?

This extract will serve as proof of land title. It can be used to check if there are any previous disputes related to the property. All of this is one of the most important documents for sale in the Registrar's Office and for the loan requirement. And also to define the exact location of the land along with all the activities done on the land in the past. For agricultural land, this document will have a description of all the crops that were grown on the land, mutation entries and outstanding debts. It also helps owners identify whether the land is arable or non-agricultural.

7/12 extracts are named after two forms that are used to collect information for extracts:

·     Village Form VII where it records complete details of owner and owner rights.

·     Village Form VII which records the agricultural aspects of the land.

Information on both these forms is set out and set out in the "Maharashtra Land Revenue Records of Rights and Register Rules, 1971". To obtain information, extracts of registers related to that land are given.

How to get 7/12 extracts online?

This document can be availed from the Tehsildar office and you can get the documents online either by following the steps given below:

1.  Visit Maharashtra government’s website.

2.  Select the division, district, taluk, and village name from the list given on the website.

3.  You can search any of the following details:

• Survey number/ group number of the property.
• First name of the owner.
• Ancestral owner of the property.
• Last name of the owner.
• Full name of the owner

The latest update about this document is that from May 1, 2020, zamindars will be able to print 7/12 land record receipts online, and to ensure that the document is provided with a digital signature on it.

Can you transfer a title to a 7/12 extract?

Industry experts state that this extract is not proof of any established title and therefore one cannot transfer title based on 7/12 as it does not serve as proof of ownership.

The comment of Section 43 Bombay Tenancy and Agricultural Land Act 1948.

In this extract the land will be purchased by the tenant under the related provision of the law, but now the tenant needs to obtain permission from the District Collector to transfer or sell the land. If this happens without the permission of the collector, the sale will be considered illegal.

The remark of section 36 Maharashtra Land Revenue Code 1966.

This section deals with tribal land transfer. This section states that if any land is occupied by tribal people, it cannot be transferred to non-tribal people without obtaining permission from the District Collector. This transfer has no legal stance and cannot be accepted.

Regarding fragmentation of land:

If certain portions have been sold by the title holder, the entry will be made in the right column, as it is transferred due to fragmentation of the land, this means that the land has been sold to the government and the rest of the land sold. Cannot be obtained without obtaining permission from government officials.

Entry of protected land:

Section 4-A of the Bombay Tenancy and Agricultural Land Act 1948, in this law, if a person lawfully cultivates any land belonging to any other person, it shall be deemed that the tenant, subject to the condition of any such land, shall be deemed to be the owner. In this case, the land cannot be transferred without the permission of the government if it is not a family member or servant of the landowner. These entries need to be carefully examined while purchasing any land.

How migrant labour of our country get back to work?

As India enters 4.0 lockdown, the Narendra Modi led government is looking in every possible way to slowly resume economic activities. The Center has withdrawn its lockdown directive and only broad central guidelines and allowed states to follow their strategies for the gradual establishment of the economy. Therefore, the Modi government will have to come up with a big financial package, which will put money in the hands of the people so that they start spending on their essential needs.

To do this, workers must be assured that precautionary measures have been taken that require a strong message. In addition, the transport service is also required to return to the workplace with all health protocols, including facilities for daily commuting.

The migrant labor population is widely engaged in the transport, construction and MSME sectors. Getting them back to work is a challenge as we get out of lockdown but we have to assure them of their safety and health. Most people want to return home due to uncertainties combined with fear. The industry can play a major role at this time. State governments have started working towards restructuring the economy to allow for a regular job or assisted living which in turn will help them earn income and reduce savings after one month of lockdown.

The basic minimum living conditions will encourage them to return to work quickly. Authorities are working with skill occupations in the states, which map the skills of available laborers and accordingly ensure that they reach the nearest places where these skills are required in the industry.

Some economic activities, such as construction, may still require local labor from non-containment areas, and initially in small numbers. In rural areas, long-distance demand and supply chains of essential commodities are being opened through digital platforms by some state governments. But both central and state agricultural agencies will need to coordinate with district-level marketing boards to reroute supply chains to organized retail chains in cities and towns.

The government is required to play the role of a market proponent to improve economic duration. Manufacturing and construction companies have to get on track with better credit availability. Once manufacturing and manufacturing improve, more jobs will be possible. Better credit for companies will add liquidity to the economy.

RBI extends EMI moratorium - latest update

As India struggles to get back on its feet in the rest of the world, the Reserve Bank of India is exploring ways to make the life of the common man less stressful.

The first EMI moratorium was announced on 27 March 2020 and was to cover debt repayment between March 1 and May 31. As the COVID-19 pandemic still continues, it was clear that postponement expansion was needed. That is why today (22 May 2020), RBI Governor Shaktikanta Das extended the moratorium on loan repayment saying - “In view of the expansion and continued disruption of lockdown due to COVID-19, the decision to allow lending institutions has been taken. From June 1 to August 31, 2020, another three months to extend the moratorium on term loan installments.

How does an extended EMI moratorium help?

About 122 million people lost their jobs due to the outbreak of COVID-19. To add to this, self-employed individuals are struggling to make ends meet due to loss of income during the epidemic. If you are wondering, about 51% of India's workforce is self-employed! This means that a large part of India's working population is now finding it difficult to manage its expenses and pay back its debts.

The additional 3-month extension would provide some much-needed relief to these individuals. They will now be able to take out their loans such as car loans, home loans etc. If they miss an EMI payment then they run the risk of negatively affecting their credit score.

Now that the loan is deferred for 3 months, and money is not deducted from their bank accounts, most people will have little money to watch them until things start appearing.

Important points to keep in mind about EMI moratorium

Although the RBI EMI moratorium is good news for many people, what should you know here-

· The EMI moratorium is not a mandate, it is a competent provision. Banks have the right to decide whether they want to follow it or not. Individual banks will also be allowed to decide whether this moratorium will be extended to all borrowers.

· If you have decided to avail the moratorium, the EMI will be extended with interest applicable to your outstanding principal amount during the unpaid time. This will increase your overall interest cost. If you have the money to manage your loan EMI, it is best to stick to the original repayment schedule, especially if you have a notable outstanding loan amount for a loan against a home loan or property.

· The moratorium prevents payments for principal and / or interest components; Bullet repayment; Equal Monthly Installments (EMIs) and credit card dues.

Repo rate reduction

Apart from announcing the moratorium, RBI also announced a drastic reduction of 40 basis points in the repo rate to 4%. The reverse repo rate has also been reduced by 40 basis points to 3.35%.

Repo rate is the interest rate that RBI charges for the funds to be given to banks. This drastic reduction in repo rates will also reduce the lending rates to banks. Lower lending rates will give people hope to think about reinvesting. It is also said that EMI will come down on home, auto, personal and term loan rates in the near future.

Increasing interest from house-buyers as families stay at house

Although the residential real estate sector was expecting zero sales from the first quarter of the new fiscal year, the lockdown has surprisingly brought people closer to the desire to buy a house.

The current epidemic has had an unprecedented impact on the residential real estate market. With families spending more time in the home, organized real estate players have seen increasing interest among buyers. Potential buyers also include NRIs, who are demanding digital presentations from developers in metro cities. Weak rupee depreciation and low interest rates are also factors contributing to the decision.

With work-from-house being the new normal, even existing buyers are changing their existing bookings as they look for larger apartments. While the numbers are still not comparable to March quarter sales, large developers say there is latent demand but for this to translate into sales, the job market and economy will have to respond better.

Many developers feel that there will be not only a recovery, but also a rebound in residential. The decision to favor decision-making has accelerated due to houses being closed for two months. Noteworthy recovery may take 6-12 months as real estate is a highly suppressed category, but expect first-time house buyers and mid-segment buyers to take advantage given the experience in the last two months will be encouraged.

According to research, demand was seen in the top two cities in India in the last two years, with unsold inventory levels falling 7% in 2018 and 4% in 2019.

In the first 40 days of the lockdown, the Maharashtra government has reportedly seen the sale of only 3,806 properties, which earned the state a nominal amount in registration fees. Typically, the state government earns Rs 25,000 crore per year from the real estate sector. While many state governments have allowed online registration, developers say they expect not only a return but a demand for rebound.

As far as demand is concerned, there are some very interesting patterns. Developers and real estate companies are questioning people who have never visited the site and are responding to digital advertisements. It can be said that consumers are realizing the importance of owning a house. People have started research and are ready for minimal transactions. A strong demand revival is expected once the lockdown is lifted, provided people have a fixed job.

Although the outlook is more promising for the residential sector than retail and commercial, a visual recovery is at least two years away. Developers believe that the digital sales trend will also grow in the coming years as innovative sales and marketing solutions are being worked on and drone shoots and virtual tours are becoming more and more common.