WHAT IS COLLECTORS LAND

INTRODUCTION:

Collector’s properties are often distributed on a 99-year leasehold basis. The people who live in such leasehold premises are referred to as Class II occupants. As Class I owners of freehold homes, these residents’ rights are restricted.

The owner needs the collector’s approval before they can rent, lease, gift, or sell the item. The owner must pay transfer costs to the collector if the property is to be sold. Following the implementation of the rise in transfer fees, the rates of collector’s properties climbed four times.

Five years after buying the collector’s property, the buyer must pay the transfer fees, which are either Rs 1,000 per square foot or three percent of the ready reckoner rate, whichever is higher. The sum twice the transfer amount is due in this situation if the transfer occurs more than five years after the property was finished.

If the collector’s authorization wasn’t sought in the right manner, it can be difficult to transfer the property. To put an end to the practice of without first obtaining the collector’s approval, the registrar’s office has temporarily suspended registering properties constructed on collector-owned land.

The buyer will be required to pay the set sum of money once the lease expires in order to renew it. The decision to approve or reject the lease application rests solely with the collector. In order for adequate development to occur, societies have been requesting that leasehold homes be converted to freehold holdings.

Nearly 1282 of Collector’s properties in Mumbai have been approved for development and are under lease. According to the most recent data, leases on 517 properties have expired, with 149 of those properties being in Mumbai.

This land was provided by the government for a pitiful annual lease rent. Therefore, on October 5, 1999, the government issued a policy for an increase in ground rent. This was contested, and instructions were granted to give people whose leases had expired a hearing and the chance to convert their occupancy to Class II residents for one-time fees in accordance with the Circular. The Maharashtra Land Revenue Code, 1966 (“Said Code”) and the Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971 (“Said Rules”), among other laws, provide for the leasing of land for purposes other than agriculture.

CONCLUSION:

Although these homes are frequently found in upscale neighborhoods, one should keep in mind that the transfer and rental costs are significantly more than those in other neighborhoods. Such properties have more documentation since additional approvals are needed. Positively, obtaining a loan for such properties is considerably simpler than for other properties. Since these projects are covered by the RERA gambit, the buyer may contact the RERA authorities if there is a problem with the builder.

SOURCES:

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