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Happy to say that my journey on the path of mutual funds is going well. I am now slowly accumulating quality mutual funds whenever my finances permit. And I am also reducing my debt successful at my wife's insistence. I will always be thankful to her for that.
It has been 26 years since I became a rationalist. I have seen many bad days in my long secular career but I came over them with the help of my immediate family ( my brother, mom, wife, father and uncle). I will always be grateful to them for what they did to me.
I faced a lot of financial troubles during the present TDP Government due to the late payments. I took many loans and suffered a lot as I had to support three families. So, I am not at all comfortable with the government.
I predict no national party is going to form the government on its own at the centre. Only the party which gets the support from the regional parties ( the YSRCP, the TRS and the DMK etc) can form the government. The exit polls may predict an ND…

Beware of Brokers!

Buying a land or house is not an easy task. That's why there is a proverbial saying in Telugu " Illu katti choodu, pelli chesi choodu" ( Building a house is as difficult as arranging a marriage between two people ).  But nowadays the brokers who make matches and property deals have become high-tech.
Let's see how the real-estate brokers cheat us

1. Most of the real-estate brokers supply you with fake documents. You better not believe them at the face-value

2. Brokers always try to charge 2% or 3% commission on a deal. They usually quote the higher price for any property as they want to get more commission. They always work for sellers and for themselves.

3. They don't want you to meet the real owner of the property

4. In order to find out the real owner of the property, we should always get the EC from the concerned registrar office

5. Try to approach the real owner of the property by seeing the photo and address of the owner that are given on the EC

6. Always try to keep the duration of the sale agreement more than three months. Never give more than ten per cent of the agreement amount to the owner.  It will be very difficult to get back the amount if the agreement is cancelled

7. Sometimes your friends or relatives misguide you and try to get secrete commissions from the brokers

8. Suppose there are two brokers called Mr A and Mr B. If you approach Mr A for a property, he will take you to Mr B and they will tell you that Mr B has an agreement with the owner of the property. Here the crux of the matter lies.

Assume the price of the property is Rs 1,00,000. Mr A and Mr B had already entered into an agreement with the owner that if they could find a buyer who affords more than Rs 1,00,000, they (the brokers) would take the amount that is higher than Rs 1,00,000. That's why the brokers always try to inflate the price of the property.

9. As said earlier, the brokers always try to hide the identity of the real owner. They often say the owner is out of station or abroad. Never trust them

10. Don't depend on brokers for documents. They often show fake documents. It is better if you approach a lawyer dealing with properties

11. Most of the times the size of the land shown in the documents differ with the original size of the land. So, take extra care while measuring the land. Call all the neighbours to the property while measuring it

Documents required during buying a property:

1. Main Sale Deed

2. All link documents

3. If the buyers and sellers differ in some documents, we should get their family tree and search for the signatures of all the heirs

4. If any court seal is there on the front page of the document, it means it's in legal tangles

5. EC ( Encumbrance Certificate )

6. Mother Deed Certificate

7. Record  of Rights, Tenancy and Crops if it is an agriculture land

8. Survey Sketch

9. Layout Approval

10. Katha Certificate

11. DC Conversion Certificate ( Agriculture to Non-agriculture land conversion )

12. Property Tax Certificate

13. We should not touch the lands that the government gives to the poor SC or ST population

14. We must never buy the lands given to the poor

15. Building Plan Approval is a must while buying a house

16. Always get the EC before the agreement day and before the registration day. Sometimes a property is sold to different people at the same time. It's wholesale cheating

17. Always try to find out whether any power transmission lines or any drainage system is on the property

18. Online registration is a newly introduced system and it's just fifteen years old. Perhaps some frauds may have happened before that time. Please look closely at both online and offline documents

Frauds that may happen while taking loans:

1. Never take a loan from the bank suggested by the owner or broker of the property. Some murky understanding may have taken place between the bank and the broker

2. Banks always ask for perfect documentation. So, always try to involve the banks in your deal

3. Banks sanction only 70% or 80% of the registration value of the property. If the government's estimated value of a property is Rs 5 lakhs, the market value of it will be Rs 30 lakhs. So we must show the value of the property at Rs 20 lakhs in the registration document in order to get Rs 15 lakhs loan amount

4. If you show the value at Rs 20 lakhs, the registration charges also rise. Then, the owner of the property needs to pay a lot of Index-Based Tax. So, he may not agree to the deal

5. You must remember banks always charge the processing fee while sanctioning a loan. The minimum processing fee will be Rs 10,000. Besides, you must take insurance against the loan which may be 1.5% of the loan amount. Some banks charge heavily around 5% without giving any prior notice

6. Revenue Stamp Agreement is always better than Mortgage registration

7. Bank agents will take all the original documents relating to the property on the day of registration. So, it is better to take photocopies of them before the event

8. Never execute the sale agreement before the bank sanctions the loan

9. The processing of bank loan will take not less than 20 days, so, always keep at least 3 months execution time for the agreement

10. Remember, the insurance against personal loans is just optional not compulsory

( The author of this article is unknown and it is taken from a Whatsapp group and translated into English by Venugopal Bandlamudi.  )

Venugopal Bandlamudi

                         M.A., B.Ed.

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