Legality of Lease Hold Property Transactions

law1By Advocate S R Agarwal

Accommodation Times News Services

LEGALITY OF LEASE – HOLD PROPERTY TRANSACTIONS

A person interested in the purchase of a flat or an

apartment or any property needs to satisfy himself about

the title of such property. In Maharashtra, a Promoter has

to make full and true disclosure of the nature of his title,

duly certified by an Advocate of not less than three years

standing, and has to attach a copy of his Certificate with

the Agreement for Sale as per the provisions of Sections

3 and 4 of the Maharashtra Ownership Flats ( Regulation

of the Promotion of Construction, Sale, Management and

Transfer) Act, 1963, hereinafter referred to as the MOFA.

The title of such Property may either be free- hold or lease-
hold. In case of a lease-hold property, it is in the interest

of such person to satisfy himself that the terms and

conditions of the Lease Deed have been complied with,

so as to avoid the possibility of invoking the right of re-
entry or the cancellation of the lease by the Lessor.

In exercise of the Powers under Sub-Section (1) and (3-

A) of Section 113 of the Maharashtra Regional And Town

Planning Act, 1966, the State Government has set up the

City And Industrial Development Corporation of

Maharashtra Ltd., popularly known as CIDCO, as the New

Town Development Authority for the area designated as

a site for the new Town of New Bombay and in pursuant

to Section 113 (A) of the said Act, the State Government

has been acquiring land and vesting such lands in CIDCO

for development and disposal. The CIDCO lease out the

developed plots for a term of 60 years by inviting tenders

or by way of allotment to the various categories of the

Allottees as per the rules and the guidelines framed from

time to time. In this Article, the lease conditions pertaining

to the Properties on Tender Plots have been discussed.





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