Property Mortgage Laws in India

The Transfer of Property Act, 1882 deals with the mortgage of immovable property in India. A mortgage is the transfer of an interest in real estate for the purpose of securing the performance of a loan or an engagement. Therefore, although the mortgage does not transfer the property to third parties, it generates interest in real estate. In this article, we look at some of the major laws and regulations regarding property mortgage in India.

Transfer of Property Act

The Transfer of Property Act deals with the mortgage of immovable property in India. A property mortgage is the transfer of an interest in a specific real estate to secure the payment of advanced funds in the form of a loan, an existing or future loan, or the performance of an engagement that may give rise to a peculiar liability.

Mortgagor - Mortgagee

Mortgagor: In a property mortgage transaction, a mortgagor is a person who borrows money in exchange for a mortgage on the property as an assurance to pay the loan.

Mortgagee: A mortgager person is a lender in a mortgage transaction. Usually banks or financial institutions.

Types of Mortgage In India:-

 

·    Simple mortgage

A simple mortgage occurs when a mortgage obligates the lender to pay the money according to the loan documents or gives the mortgagee the right to sell the property and act on the mortgage loan. In a simple mortgage, possession of the property cannot be given to the mortgagee.

·    Mortgage by conditional sale

A mortgage by conditional sale is when the mortgagee sells the mortgaged property to mortgage with a condition; the sale becomes absolute in case of default payment. In case of mortgage payment, the same property is void as per the terms.

·    Usufructuary Mortgage

The usufructuary is a mortgage when a mortgage saves possession of a property for the mortgage and authorizes the mortgagee to occupy the property until the debt is paid. Typically, the rent or profit of the property while in possession of the mortgage is applied in whole or in part towards the loan.

·    English mortgage

An English mortgage occurs when a mortgagee obligates himself to repay the loan on a certain date and has the property fully transferred to the mortgagee, subject to the provision that the mortgagee pays the property on payment of the loan amount. Will transfer back into the mortgage again.

·    Mortgage by title-deeds deposit

Mortgage by deposit of title deeds occurs when the mortgagee gives title to the real estate, with the intention of creating security until the payment of the loan, to the mortgagee.

·    Odd mortgage

Any mortgage that is not mortgaged by conditional sale or usury mortgage or English mortgage or title deed can be a simple mortgage.

Validity of property mortgage

Any mortgage other than a mortgage from the title deeds deposit is valid only when the mortgage is entered through a registered instrument that is signed by Mortgagor and verified by at least two witnesses.

You Should Know Before Buying Vastu Compliant House

The ancient science of Indian architecture, Vastu Shastra places great emphasis in choosing the right direction of the house, the size of the plot, air and ventilation to help the residents live a happy, healthy and prosperous life. Although most Indians still look for Vastu-compliant homes, the truth is that not all apartments follow the principles of Vastu Shastra. Rather, real estate developers in India only focus on optimal use of space. But many builders promise to provide architectural-friendly flats. Well, your decision to buy a house should not be influenced by attractive advertisements by real estate developers. Rather, you should flat check whether everything is designed perfectly. In this blog, we've shared some excellent tips to help you test whether a flat is Vastu-compliant.

1) Check the entrance or Main door.

By the way, most people think that the north-eastern entrance is the best, but there are actually 32 entrances in Vastu Shastra. And each direction has its own importance. East, west and north-facing entrances are always good. But south facing doors can either be extremely beneficial for housework.

· The main gate should not be in the southwest, northwest and southeast.

· While most Vastu experts suggest that northeast entrance is most beneficial.

· Others say that it can be extremely dangerous in some cases.

· The main gate should not be placed directly in front of the lift or stairway.

2) Kitchen Location.

· The kitchen should be in the right direction to balance the fire element of the house. Fire signifies wealth and cash flow.

· Having a kitchen in the north-east and south-west areas should be avoided.

· Vastu Shastra suggests that the kitchen should be kept in the south-east direction. However, this may not always be possible in modern homes. In such a case, make sure that the gas burner is in the south, west or northwest corner of the flat. And, while cooking, you should face east or north.

· The kitchen should not have black or blue tiles, floors or slabs. And, avoid granite under the gas burner. A marble slab is highly recommended.

· The cabinet should be placed on the southern wall.

3) The rooms.

· The master bedroom should be in the southwestern direction of the flat. And, the children's room should be in the east or north direction.

· The living room should be either in the east area or central area of ​​the house.

· There should be no bedroom between the east and south-east area of ​​the house as it may affect the health of family members.

· Bedrooms on the southern and western side are to be used by sons and are perfect for daughters who are on the northwest side.

4) Toilet or Bathroom.

· Modern homes have one or more toilets, which are connected to a bedroom or living room. Ideally, the washroom should be in the northwest direction. And, toilets in the north, north-east, south-east, and south-west directions are considered inauspicious.

· The bathroom or toilet door should not be faced in the kitchen.

General points you should know when purchasing property:-

· The land on which your apartment is built must be either rectangular or square in shape. Irregular shaped plots are considered inauspicious.

· There should be no pond near the south and west direction from the house. You should check if there is any swimming pool in these directions of your flat.

· Avoid balconies or courtyards in the western or southern direction.

· Apartments in red, black or sky colors should be avoided as these colors attract negative energy.

· The puja room should be either in the northern or eastern direction.

· According to the guidelines of Vastu Shastra, the ladder should not be in the north-east corner as it troubles the residents.

· The total number of doors and windows should be 2,4, 6 etc.

· All the doors of the flat should open inwards.

How to make your house burglar proof?

Buying a house is every Indian's dream. And, after years of effort, when we buy it, we want to be there safely without worrying about the threat of criminal intrusion. Being burglar can be a life-shattering experience that affects everyone in the family. But the harsh reality is that despite strict law and order conditions, housebreaking is a common occurrence. To secure your home and make it burglar proof, you need to install a state-of-the-art home security system. Here are some simple tips that you can apply to protect your home against potential criminals.

1. Secure the doors

The doors of the house must be strong and properly fastened. Instead of using traditional locks, you should use smart locks that will let you open the door using a keypad, finger scan, or your mobile device. With smart locks, you can keep your doors locked, without the need to carry keys. For added security, you may consider locking the interior doors.

2. Ceiling Your Property

If you have an independent house or villa, consider fencing it with high, strong walls. This will protect your home from trespasses and provide you with a high sense of security. In addition, proper boundaries will make the interiors of your home invisible to outsiders. While making the boundary wall of your house, take care that there is no scope to cross or break it.

3. Install motion detector

Today, you can find AI-based security alarms that can sense any criminal intrusion such as theft. You are not required at home to receive alerts from fire alarms. Rather, you can get this information through your mobile phone at a distant place as well. The windows of your house can provide easy access to the house. So, you can consider installing motion detector alarms at these points.

4. Install Burglar Bar

Burglars can break through windows and balconies. To make these points burglar-proof, you can install burglar bars. Installing burglar bars may not be aesthetically pleasing, but they provide an extra layer of protection to your home. They are effective in keeping intruders out of your home. To add an extra layer of protection, you can fit your windows with safety glass or laminate of the window.

5. Install Security Cameras

Installing CCTV cameras is the most strategic way to keep an eye on people walking or moving around your home. You can set up the camera in all the areas you want to monitor. These days, you can find a home alarm system with a camera. If you have young children, installing CCTV cameras can be useful to keep an eye on them when they play in the garden or live alone at home.

6. Get Video Doorbell Camera

It is one of the most effective elements of a home security system. A doorbell camera can provide you with up-to-date monitoring of your home. You can get live footage of security cameras anytime.

7. A high quality safe

To keep your valuables safe, you should buy a strong, fire proof. It is best to purchase a code-based locker so that it can only be accessed by you. Make sure you create a strong passcode and do not reveal it to anyone. Also, whenever you buy an expensive item, take its receipt and keep it in the vault. Keeping a receipt will help you process an insurance claim if something is stolen.

With the above tips at hand, you can make your home burglar-proof, keeping your family and property safe. While there is no up-front limit on how much you can spend on keeping your home safe, all of the above mentioned techniques are still inexpensive. Remember that most burglars target homes they can reach easily. The longer it takes them to enter a house, the more likely it is that you will have time to notice them and call the police.

Builders Priority to Clean Ready-to-Occupancy Inventory During COVID-19 Outbreak

Real estate sales in India were improving in the first quarter of 2020, until the social distancing advisory was implemented by the government, with the outbreak of the COVID-19 virus continuing, reducing site visits. Subsequent lockdown forced house buyers to postpone the decision to buy their home until the government and the market had more clarity than stability.

The economic relief measures announced by the government are extremely positive for the real estate sector on a large scale. This measure will compensate for the short-term impact of the crisis and increase liquidity, thereby easing credit flow and reducing the pressure of delivery deadlines. This will allow real estate developers to reorganize their business strategies and focus on high priority operations without additional financial burden. It will also ease home buyers' concerns and accelerate the completion of delayed projects. This step highlights the magnitude of the realty sector in India. Being the second largest employer in India, it is mandatory to protect the welfare and interests of all stakeholders.

Currently, the priority of most builders is to sell ready-to-occupant inventory. Now that the government has relaxed the lockout, the market may pick up momentum again, with more buyers entering the market. Although sales will be comparatively slow, it is unlikely to affect real estate prices overall, which has also maintained flexibility during demonetization and other reformist changes previously announced by the government .

In these challenging times, as people have realized the importance of owning a house, the demand for residential properties may increase in metro cities.

Better demand for property is likely to have a positive impact on property prices.

The place for price appreciation in real estate as the city offers quality housing options at affordable rates. Although the lockdown caused a short period of delay in construction activities, a reduction in prices is unlikely.

Which is a better option for investment? Luxury flats or villas..!!

With the increased economic status, everyone wants to lead a luxurious lifestyle, and a well-designed comfortable home is essential for this. As the real estate market is growing immensely, today's buyers get a lot of options to choose from. And, among so many options, they feel confused about buying a flat or villa. Well, we all wish for a grand villa in a great location in the city. But more often, sky rocketing prices of independent homes in home buyers to look for more cost-effective options i.e. luxurious flats. Yet another group of people, especially young couples and retirees, consider luxury residential apartments as more convenient and safer accommodation. There are pros and cons to either option. So, analyze the major factors that should be considered in this regard.

1) Facilities that come along

An apartment property comes with many additional features, such as parking space, power back-up, security guards, and fire protection mechanisms. On the other hand, to enjoy all these facilities in an independent villa, you will have to spend an additional amount. While living in an apartment, all these facilities come at a low maintenance fee. Thus, many people prefer to buy a luxury flat instead of an independent villa.

2) Maintenance costs                        

Repair and maintenance is a never ending process that begins the moment you live in your new home. The cost of maintaining an independent house can be much higher than that of a flat. When you buy a flat, most maintenance is taken care of by the apartment welfare association. Thus, you do not have to try for repair and maintenance. The couple advances a large number of home buyers to take a luxury flat above a grand villa.

 

3) Mortgage

Although millennial are not afraid to be themselves for years, taking a large loan can have many adverse effects. Remember the money you are paying because the interest on your loan can be used in many ways. Therefore, avoid taking unnecessary amount of home loan. In this regard, we suggest that you opt for a more affordable option, i.e., luxury flats rather than buying a grand villa.

4) Location

When deciding between a villa and a flat, location is an important factor. Generally, villas are built in a suburban location. On the other hand, apartments are usually located in a central location. If you are living a comfortable life with all the amenities in the surrounding area, make sure that you purchase a property which is located in the central business district.

5) Freedom of adaptation

If you are someone whose choice continues to evolve over time, it is better to buy a villa instead of a flat. Independent homes provide freedom of modification with interiors and exteriors. You can easily customize it according to your taste, vision or style trends. But when it comes to apartments, exercising that degree of freedom becomes a bit more challenging. It is difficult to renovate or expand an apartment whereas, with a villa, it is quite straightforward. But changing the interiors of an apartment is in your hands. In addition, most interior designers have a plan ready for the interiors of a luxury flat, which means remodeling for any major interior design, so you don't have to wait for months.

6) In context of investment

Currently, any real estate property can be great for investment. Villas and flats both provide healthy options for passive and active income generation. But flats offer a better option to rent or lease for a longer period due to their high demand. Conversely, renting a villa is difficult because it is difficult to maintain. Also, for renters, it is difficult to afford the additional amount spent on security.

When it comes to reselling, flats can be sold more quickly. Conversely, to sell a villa, you may have to wait for years.

Both apartments and villas have their fair share of advantages and disadvantages. But if you prefer a classy lifestyle in an entire social setting, then flats is a better option. Additional amenities that come with a flat are one of the major reasons for preferring it over a villa. Also, it requires low maintenance costs. Also, from an investment point of view, it is a better option as it can be rented and sold easily.