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Freehold And Leasehold Property In Chandigarh![]() The Chandigarh administration in an attempt to put a check on transfer of property as it has been done in Himachal Pradesh so as to prevent the loss of revenue, artificial boom created by the dealers and the investors and also to plug other malpractices, is laying stress on the use Power Of Attorney (POA). Keeping this in view, in Chandigarh maximum commercial properties are on leasehold which means that these properties cannot be sold under the law of the land and registered with the Estate Office but can be transferred through POA only. Flats in certain sectors like sector 41 to 52 and also in 38 west are also on lease and can be transferred on POA only. This is done by the administration in order to control the boom in the real estate sector. And to some extent the government has been successful as these properties are not sold openly and thus the rates are controlled. The POAs are very effective in cost control. For e.g. a 2 bedroom flat in MDC is for 35 lakhs whereas on lease it can be available for 21-22 lakhs. A power of attorney (POA) is an authority given by way of a formal instrument whereby one person, who is called the donor or principal, authorises another person, who is called the donee, attorney or agent, to act on his behalf. Whereas. Section 1-A of The Powers of Attorney Act, 1882 defines Power of Attorney as "Power of Attorney includes any instrument empowering a specified person to act for and in the name of the person executing it". A freehold property (plot or a flat) is one where there is a whole and sole owner(s), ownership is full and unconditional (within the provisions of the laws of the land) and there is no lessor / lessee involved. Where as leasehold property is the one where the government or the authority remains the owner of the property for a specific time period usually 99 years. A specific lease is paid by the lesse to the lessor who in this case is the government, which may be changed from time to time. It can be transferred through a POA only and no registry can be done on it. But POAs can be done on leasehold as well as a freehold property. This means that freehold property can be transferred on POAs and Registries but the leasehold can be transferred through POAs only. The Administration is also trying to find out a way of eliminating power of attorney sales as there are risks and malpractices associated in buying a flat on Power Of Attorney (POA) basis because purchasing a property on a POA basis is not permitted under the law of the land and also person can sell a property to more than one buyer on POA basis which is not possible in the case of registry. For example if Mr. A sells a flat to Mr. B on POA and the same to Mr. C also, and then Mr. C sells a 2 bedroom flat to Mr. D on a registry bypassing Mr. B completely. Here Mr. becomes the owner of the flat and Mr. B ultimately is at complete loss. Though the party at default can be sued, then the court proceedings are time consuming and expensive also. POA can be either revocable or irrevocable, depending on what sort of a POA one has made. Though instruments like Agreement to Sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty on market value of the property, the amount of stamp duty in the case of POA is less than the Registry. The time limit of a POA can vary depending upon the will and the potential of the buyer. But usually the properties are on lease for 99 years which means that till 99 years these cannot be sold on registry, no loan can be taken on such property and also no construction or renovation can be done on such property. A specific amount of rent is to be paid on the leasehold property which can be percentage of the basic price. For e.g. say if a property of 1 kanal in Mohali whose freehold rate is 1.3 crore then the leasehold rate would be around 70 lacks which would be paid as rent in equal amounts. | Contacts: admin@gonorar.orgA to Z of Indian Age of Authoritarian Democracy Communication Effect Communication Skills A Vehicle On The Road Corporate Governance Investing in the Emerging Daily Politics Blog How to Find Democracy at Its Best E Governance Election of the President of Pakistan Five Tips For the Best Queen Friendship and Politics Can They Mix Government Bids Top 10 Tips Government Contract Proposal Writing Tips Handle the Argumentative Communicator and Difficult How Ancient Greek Democracy Worked How Does a Bee Become the Queen If President Obama Were My Patient Ignoring Importance Of Communication Is A Direct Importance of an Effective Community Relations Introduction and Brief History Is President Obama Channeling President Richard Issues Which Are Plaguing Local Self Government In New Jersey Monkey Cage Democracy Moving to Queens New York O P Bhatnagar A Poet Perestroika and Democracy in Russia Political Discourse and Participatory Politics The Ugliest Fascination on Earth Post capitalist Free Market Economy President Barack Obama Must President Bush and Pyramid Numerology Problems In Managing Government Purim Why Did the Womanizer Queen Bee Rearing Queen Hatshepsut Egypts Queen Queen Honeybees Are Made Not Born Queens of Amsterdam Quest for Democracy in Ethiopia Secrets to Becoming a Master Serious Defects in Modern Democracy Seven American Presidents Have Uranus Six Myths of Effective Communication The 2008 Election Results Dysfunctional The Art of Communicating The Government GIP The History of Cornish Independence The Meaning Of Queen The Pope And The President The Role of Government The Significance of the Queen The Top Five US Presidents Top 10 US Presidents True Democracy US Government Sales Marketing US Presidents That Went to Harvard Understanding the Communication Process The Key to Organisational What Is The Best Suitable What is Political Science Where Now For European Why Workplace Politics Charts the Path 5 Major Benefits of Leasing A Basic Guide To Generating Revenue Apartment Property Management Audi Business Leasing Automated Recoveries Key Can Property Management Make a Finance Difference Commercial Agents Sales Presentation Commercial Property Management Commercial Property Contract Hire Information Do You Need Property Management Does Employee Leasing Make Sense Dubai Property Management Employee Leasing Lover Employment Leasing HR Management Expediter Truck Service Financial Analysis for Workplace Lease Five Considerations of Hiring Property For Property Management Jobs Freehold And Leasehold Property Government Bidding Glossary (pt 1 2) Green Car Scheme How Property Owners Benefit How To Break Apartment Lease How To Evaluate Management Software Importance of Lease Abstraction Internet Based Lease Accounting Is Pre-Pack Administration Right for Finance Lease Administration Software Lease Management Software Lease Or Get Property Lease Your Next Car or Fleet Leasing Office Equipment Leasing Software And Fleet Management Let The Property Management Do the Job Make Finding a Property Easier Make Finding a Property Management Company Make Property Management Effective Oklahoma City Property Management Companies Property Management Company for Business Property Management Fees Explained Property Management on the Rise Renegotiating a Commercial Lease Shopping for a Property Tenants Obligations Under Commercial Property The Best Atlanta Apartments The Evolution Of Property Top 9 Questions to Ask Uncover Which Property Management Jobs Waterloo Property Management What Is Staff Leasing What Type Of Property Owners Look For What You Will Get From Property Why It's Important to Get Property Why You Need Property Managers orleans Property Management Company Why You Should Hire Manager Workflow Automation In The Leasing Empirian property management - Law |
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