Are you looking to buy a home which is already funded by a home loan and someone else is paying the EMI?
Does it make sense to rely only on the bank for verification process or should you take the second legal opinion? Most customers have this query when they are buying a property and availing a home loan.
They are well aware that the FIs (financial institutions) have a panel of lawyers that do this day in and day out but still want to satisfy themselves by getting an opinion from that one ‘recommended’ lawyer that their uncle knows.While it is a harsh truth that no property can be legally proofed to a 100%, there are a couple of things which need to be considered while deciding to take a second legal opinion.
Let us consider two kinds of properties – one where there is a large apartment complex and second where it is an individual plot or a small apartment complex.
Case #1 : Large Apartment complex
When a corporate real estate developer intends to purchase a large parcel of land and develop it, they know they are going to invest a huge amount of time and money.
They already have the experience to pick up the right projects. They also have a tried and tested lawyer or legal department to check details and guide them through all the steps till they reach the point of selling apartment units.
It’s at this ‘late stage’ that the bank receives the set of papers and the em-paneled lawyer comes in and usually it is a matter of checking off the title, EC’s (encumbrance certificate) and other revenue records.
Such developers also have the financial might to settle any disputes that can be a legal hassle.In the unlikely event that there is a problem in the title / parent documents, then the owners can join together to fight against the developer or any other party.
Division of costs and burden
The financial costs can also be distributed, reducing the burden. However, this is likely to be an unwieldy and argumentative coalition so this is not a major advantage. To sum it up, these kinds of properties developed by a reputed builder are ‘less risky’.
In any case, it is a good idea for all buyers to keep a copy of documents pertaining to legal such as the legal opinion, copies of all documents including sanction plan and other statutory documents as far as the land on which the project has come up is concerned.
Case #2 : Individual House on a plot
Coming to the other classification of property – individual house / plot or small apartment complexes, it is worth taking a second opinion. The first and basic reason is that it is good to have a legal opinion in place.
The FI treats its legal opinion as confidential and does not share it with the customer. So, if the customer wishes to understand the intricacies of the property and also have a document to refer to at a later date, this is necessary. Even if the property is to be sold, the potential buyer would have more confidence considering that the legal clearance had been taken earlier.
However, one has to consider the cost of the opinion. It could be prohibitive considering there are payments to be made including the FIs processing fees, insurance premium and stamp duty of 0.25% to the government for availing the loan.
Hire a lawyer to do title search
The next best option is to commission a lawyer to conduct a title search on the property and give a clear report. This is different from what the FI em-paneled lawyer does (which is a title clearance report, checking the EC (encumbrance certificate) and an additional check of the approved building plans).
A title search report essentially consists of going to the sub registrar’s office and verifying the revenue records, ensuring there aren’t any open encumbrances or claims by any party. Usually, this is done for a period of 30 years. This will be an additional and strong check for a clear title to the property.
You will find a lot of articles out there detailing the list of documents one needs to check before purchasing a property. Many of the common issues are also listed. These are definitely worth perusing and acting upon. It is important to remember that purchasing a property is not the only important aspect, having peaceful possession of it is equally important.
This is a guestarticle by Pravin Mathew from Bangalore, who is a reader of this website. Incase you have any questions, we will be happy to answer it in comments section.
Government has decided to make it compulsory for every individual to link their Aadhaar Card with PAN card by 31st July, 2017. This is part of the digital India campaign and an attempt to digitalize everything.
Why it is mandatory to link Aadhaar with PAN?
There is a great chance that there are a lot of fake PAN cards in India, because it can be easily applied online with fake identities and anyone with a little luck can get a duplicate PAN card. Hence in order to identify those fake PAN cards, govt wants to link Aadhaar card with PAN.
Because each person will have only one Aadhaar card, they will only be able to link it with a single PAN. Rest other PAN cards will be of no use after this process. This is an important move and is necessary for an orderly society and also to keep pace with the technology.
Importance of linking Aadhaar with PAN
PAN card and aadhaar card are the unique identification cards which can be used for verifying a person’s income and address respectively. Let’s have a quick view why this linking is important.
Some reasons behind linking aadhaar with PAN in details are as below:
Fraud PAN cards– Because of this linking a person can use only one PAN card wherever it is necessary which is linked with his aadhaar card. Though he has any fraud/duplicate PAN card, it will be of no use.
Tax Evasion – with the help of this, government will be able to track on the taxable transactions of an individual or an entity.
Tracing money launders- Aadhaar card is a full-proof identification of an individual and it cannot be duplicated easily so that linking of aadhaar with PAN can also be useful for tracing money launders.
There are fewer chances to have a duplicate aadhaar card as it is a more secured source of identification. Because Aadhaar card is the only identity proof which has all the possible information including Bio-metric. So it is little bit difficult to have a fake aadhaar card as compared to PAN Card and voter ID.
Curb corruption: This is also useful to curb corruption to a significant level as the record of each transaction will be verified by the government.
Also, the government wants to get every individual identified by their Name, Address and also their income. A lot of PAN cards were very old, and many people have changed their address, contact details etc which were given to govt at the time of applying for the PAN card decades earlier. With this linking, all the data will also get updated.
What is the process to link aadhaar card with PAN?
If you are unable to link your aadhaar card with PAN, no need to worry. Here are the steps to link your aadhaar card with PAN.
Visit the page of Income tax e-filling portal & register if you are not registered with it. If you have your registration already then just login.
Login with the details i.e. registration ID, Password or date of birth.
Your PAN no. will be your registration ID
once you login you will immediately get a pop-up to link your aadhaar with PAN
If you don’t get a pop message then check the blue bar above and click on “Profile setting” and then on “Link aadhaar” in the list.
Or you can also see the option “Link Aadhaar” on the left side of the site when you open it without logging in. Simply click on it.
The details like your name, gender and date of birth will be given there already as per the registration. Just check that the details available there are same as on your aadhaar Card.
If the details match with aadhaar card then fill your aadhaar card number and captcha code and click on “Link Aadhaar”.
Once you submit you will get a pop-up that your aadhaar has been linked with your PAN successfully.
What happens in case of name mismatch between Aadhaar and PAN?
UPDATE:Now you can link your aadhaar card with PAN without changing your name as the option “Name on Aadhaar” has given there.
Now it’s suggested that you first decide what is the exact name you want to keep for future, in case you have different names on various documents.
If your aadhaar card has the name which you want to keep, then you should change your name in PAN. However if your PAN has the desired name, then change it in Aadhaar card.
Now, for those who want to change their name in aadhaar card, they can follow this process or watch the video below.
We really feel that one should have the proper name in Aadhaar card, because it’s going to be the universal documents in future.
UPDATE: New Feature by IT department
Besides this, there is also a new option on the e-filling site from where you can link you Aadhaar card with you PAN card without changing your name.
Only date of birth, Name and Gender on both the documents should match, however we feel that as a long term solutions it’s a good idea to have the same name on both the documents.
What to do if I don’t have one of the documents (Either PAN or Aadhaar)
Now a days, almost all the people at least in urban areas have both aadhaar and PAN, very rarely it happens that someone does not have both the documents. However incase one of the documents is missing, here is what you should do ..
For those who do not have PAN
If you don’t have PAN card, then this rule is not applicable to you right now. You don’t need to take any action at the moment.
When you apply for PAN in future, at that time you can give your Aadhaar details as the address proof while applying for PAN offline or you can choose an option called digital e-kyc and e-sign, where you will be asked for aadhaar number and it will be automatically linked to your PAN. Below is a snapshot of the e-KYC looks like.
What do you if you don’t have Aadhaar?
If you don’t have Aadhaar card then you should apply for it soon, because anyways it’s going to be the universal mandatory documents very soon and every PAN has to be anyways linked with aadhaar. You can apply for aadhaar card by online or by visiting its office and providing you essential documents.
How to Check whether your PAN card is linked with Aadhaar card or not?
For some people their PAN might be already linked with Aadhaar card. To check this you just have to visit the official page of e-filling and click on the login button on the right corner of the site. Fill your PAN number and captcha code and click on OK.
If your card is already linked then it will show “Your Aadhaar is already linked with PAN” and if your card is not linked then it will show “User ID does not exist”.
Below is the demo of this process
Is it safe to link your PAN details with Aadhaar?
Recently there was a news that M. S. Dhoni’s Aadhaar details were leaked somehow, which shows that aadhaar details are not 100% secured. If this can happen to a big celebrity, this can happen to anyone.
Many people are wondering if it’s safe to link their Aadhaar with their PAN?
Will their bank details be exposed ?
Will there be any fraud involved?
Will others get access to their income tax data ?
Will others get access to my personal data like Mobile number, Email and Bio-metric details?
But, you don’t need to worry!
The solution to problem is here. There is no need to worry about the security of your PAN after linking with Aadhaar. UIDAI has introduced safety features of aadhaar Card.
Now there is a facility of “Lock” and “Unlock” of aadhaar details.
If you “Lock” your aadhaar details, all your data will be freezed and the access to any third party will be blocked. All you will need to do is, verify the OTP which is sent to you when you apply for this “Lock” feature online. If you want to get details about all the safety features, you can download this PDF.
What will happen if your Aadhaar card is not linked with PAN card?
As per this amendment if a person do not link his aadhaar with PAN card then there is possibility that he could lose his access to the PAN card after December 31,2017 as per Hindustan Times.
You will be unable to file IT returns and pay the dues or claim the IT returns.
It’s been also said that the use of PAN cards may stop in upcoming days as Aadhaar card will be the unique Identity proof. So if you don’t link it now you have to link it with your PAN in future in any ways.
Because your PAN card will be blocked, and for higher value transactions PAN is mandatory, you will not be able to do many high value transactions online as the bank will keep asking for PAN
UPDATE:What if I have both the documents but don’t have any Income Tax Returns?
If you don’t file any Income Tax Return then this rule is not for you. It will not affect either you link your Aadhaar card with PAN or not.
But if you have both the documents, we suggest to link the documents.
UPDATE: What if I’m an NRI and have only PAN card?
NRI’s can also apply for the Aadhaar card. The procedure and documents required for NRI and Foreigners are same as Indian residential’s. Only thing is they have to be physically present at any of the Aadhaar card center in India.
But it is not mandatory for NRI’s till date because as per Indian Government Aadhaar is an unique identity for the person who is living on Indian soil. Read this PDF by UIDAI.
How can I apply for Aadhaar if I’m out of India?
If you are not in India currently and wanted to apply for Aadhar crad then the procedure is almost same. But you should have an introducer who can introduce you by providing his/her own Aadhaar card.
The verification of your identity will then become the responsibility of the introducer.
So, what are you waiting for ?
You should quickly complete this whole process as it’s just a 5-10 min work. Not completing this can impact you in negative way, so do not wait for the last minute.
Also you should spread this news among your friends and help others to complete this important step in their financial life.
In case you have any questions, I will be happy to answer them in comments section
In next 7 min, you will read how you can secure your family with just Rs 1. I am going to teach you that. IRCTC has made it compulsory for every train traveler to take a Personal Accident Insurance Policy which has been applied from September 2016.
Railway minister Mr. Suresh Prabhakar Prabhu had announced in his speech that from the month of September 2016, railways will provide an optional travel insurance of Rs.10 Lakh to the passengers while booking tickets from its website, which can be opted by paying an extra 92 paisa.
UPDATE:Now while booking for train ticket you will see the prize “Rs.0 per person” in the option of insurance. So there is a possibility that the insurance amount have been added with the ticket fare.
Travel insurance policy by IRCTC is now mandatory
Earlier this accidental insurance policy was optional but now IRCTC i.e. Indian Railway and Catering Tourism Corporation Ltd. has decided to make it mandatory for the safety purpose of the passengers. Now if you book your tickets, you will not get an option to choose if you want the insurance or not. It has recently become mandatory as it was hinted some time back as per this article.
You can see the snapshot below
This policy is just like a travel insurance policy where a train traveler or passenger who books a train ticket from IRCTC’s website will get the insurance up to Rs.10 Lakh by paying an amount of less than Rs.1 extra while confirming the ticket. This amount will be provided to the family/nominee/heir of the person if he/she gets injured or dies in train accident.
3 companies which provide IRCTC policy
IRCTC has a tie up with 3 insurance companies which are providing this policy. These insurers are Shriram General, Royal Sundaram and ICICI Lombard. We recently tested it to see which company is providing the insurance and we got a message with Royal Sundaram. It might be different in your case.
Initially this scheme was introduced on a trial basis, but now it’s compulsory. The passengers having confirmed tickets, RAC (Reserved Against Cancellation) or are on waiting list can have benefit if this insurance.
This facility is not available for the sub-urban trains. Only Indians can get this policy. Children and Foreigners are not eligible for this policy. The insurance will be valid in cases like train accident, riots, terrorist attacks, shoot-out or arson in train, on platform or on the route to its destination.
What is covered under IRCTC Travel Insurance policy
Unlike common belief, the travel insurance with IRCTC goes beyond cover on death and provides various other benefits like disability insurance in various conditions.
Below are the details
10 lacs for death
10 lacs for permanent disability
7.5 lacs for partial disability
Upto 2 lacs for hospital expenses
Upto 1 lacs for transportation of mortal events
Who can claim compensation of accidental insurance policy by IRCTC?
If the deceased is married then his wife, son or daughter can claim for the compensation. The daughter or son should not be minor if they are claiming. If the deceased is not married then his or her parents can apply for compensation. In other case, if the deceased has nominated someone else like other relative or any friend then he/she can also claim for the compensation.
In short we can say that the person whose name and details have been filled in the application by the deceased while booking the ticket can claim the compensation. The only thing is that he/she should have ID proof.
As per rules, within 4 months the insurance claim has to be filed from the date of insured event. All the terms & conditions, benefits and exceptions of this policy are mentioned in this pdf, download it and read it in detail.
Please watch the video below to learn about this topic ..
How to apply for the compensation of IRCTC accident insurance policy?
The nominee or the claimant can apply for the compensation to the nearby office of the insurer company which the deceased had selected at the time of booking ticket. You has to visit the insurance office and fill the compensation form and attach all the documents essential for the claim.
Why this Policy is Important?
In last 6 years around 800 train accident cases were registered in India in which near about 600-620 people died and 1850 were injured. More than 15000 people are killed in railway accidents per year as per some reports
Just imagine, you could have been one of those. What financial impact it can have on your family?
But many people just ignore the travel insurance thinking that it can never happen to them, as if they are GOD. Anyways the irctc insurance charge is just Rs. 92 paisa, which is nothing compared to the benefits it provides.
Disability in case of train accidents
For an ordinary person, if such accidental case happens then it will be too much difficult to arrange money for hospitalization. And the cost of this policy i.e. 92 paisa is negligible as compared to the total train fair and the compensation.
The big reason to worry is many times these accidental victims die just because they couldn’t get proper medical treatment or even immediate help also.
