Monday, November 10, 2014

Unoccupied Property – Care to be taken

An NRI friend of mine called the other day and mentioned that he has a property which he had purchased some years back and was planning to sell. The property had really appreciated very well, but there was more scope for appreciation. Knowing his financial condition I asked him, are you really in need of money? The obvious reply was “NO”. Then why? The real reason was fear of encroachment. Then I realized than this is a real problem for a lots of people, not only NRI’s but many other persons who have purchased a property a bit far off, where it is not possible to go and visit it on a regular basis. Unless you check on a regular basis, the chances of encroachment are very very bright.

These land sharks who do encroachment know very well, that the purchasers do not have the time and it would be very difficult for them to fight a legal battle in absentia. So what should one do? One has already purchased the plot. Here are some thing which you could do.
  • Ensure that the documentation is completed and all records are transferred to your name. After transfer, put advertisement in local newspapers and keep copies of the same for future records.
  • Ensure that all taxes and water and electricity bills are in your name and paid on a regular basis, during that time make sure your name is still as per the records. Do not delay such payments, any delay in even receiving regular bills should send alarm bells ringing.
  • Get the property fenced and put a notice board which mentions the ownership. These boards have a life, so whenever you visit the site, make sure that the sign is visible, if not get a new one or paint it.
  • If given on rent/lease, make a rental/lease agreement, with proper renewal and termination clauses. Get police verification done. This acts as a notice to police as well.
  • There are many organizations which provides services of looking after property, get help.
You took all the above steps and yet encroachment has taken place, then
  • Get set for a tough battle, get your documentation out (Copies, original to be ready, in case required)
  • File a police complaint under Specific Relief Act 1963, along with your documentation.
  • Get good legal help
  • Be patient, this could be a long battle.
A Little care would help you really make some really good money.

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