Legal Advise Q & A :

Q1. I am an Indian. I would like to buy a house in Goa with using Housing Loan Scheme. What kind of procedure/formalities will be needed and if there is a lawyer who is specialises with housing loan etc. Could you tell me how he/she can help me?

A. There are several Housing Finance Institutions and Banks providing Housing Loan facility in Goa. To name a few of them: LIC Housing Finance Ltd, GIC Housing Finance Ltd, Goa Co-operative Housing Finance Ltd, ICICI Housing Loans, HDFC several Nationalised and Co-operative Banks. The detailed procedure and formalities of disbursement will vary from institution to institution.

Broadly, the loans are sanctioned on Equitable or Registered Mortgage of the property sought to be mortgaged.

Goa State Co-operative Housing Finance Federative and the Co-operative Banks generally create their mortgage by registered (English) Mortgage. Since the Co-operative institutions are exempted from stamp duty, the mortgage can be registered without the expenditure on stamp duty.

The Housing Finance institutions create Equitable mortgage by deposit of original registered documents Evidencing Title of the Borrower and execution of other relevant documents as required by the Bank or Finance Institution.

Irrespective of Registered mortgage or Equitable mortgage, the applicant has to obtain the following documents from their Seller/Builder:-

Certificate of Description and Inscription of the property.
Survey Record (B-Form) in case of Urban area and Form 1 and XIV in case of rural area)
Title document of the original owners.
Agreement between the Owners and Builders/Developers (in case of a plot or flat).
Sanad for conversion of land.
Approved from Town Planner or Planning and Development Authority.
Agreement between Owner and Applicant/Builder and Applicant.
Construction Licence with up-to-date renewal.
Occupancy certificate (if ready unit)
House Tax Receipts (if ready unit/second sale)
Nil Encumbrance Certificate.
Site plan / Approved Plan.
NOC for mortgage from the Builder/Owner/Seller.

The Bank/Finance Institution will consider the value of the place proposed to be mortgaged and also scrutinise the repaying capacity of the Applicant on the basis of the income and age of the Applicant and confirm the period for repayment and amount of loan that can be sanctioned.

The rate of interest varies from institution to institution as well as from the amount that is borrowed.

The repayment is by Equated monthly installments inclusive of interest OR by separate monthly or quarterly installment of interest and separate monthly or quarterly installment of interest and separate installments of Principal amount.

After the loan is sanctioned the file will be forwarded to Panel Lawyer of the Bank or Financing institutions for scrutinising title and issuing Legal Scruting Report/Title certificate. The file will also be forwarded to the Panel Valuer for valuation of the property.

There are several lawyers in Goa who undertake this work, but it is adviceable to approach the panel lawyer of the Bank/Housing Finance Institution from where the loan is sought since he/she is conversant with the requirements/formalities of the respective Bank or financial Institution.

The lawyer can help the Borrower in examining the documents, obtaining if need be, drafting of the Agreement/Deed if need be. In fact, the Bank Panel lawyer, even in the interest of the Bank or Financial Institution, ultimately helps the Borrower to get a clear title for himself from the Seller/Buyer.

Q2. I'm an NRI, I bought a 500m2 plot in Calangute close to the beach, some years ago. As I am retiring soon, I was preparing to build a house. But I understand that I cannot build a house within 500m from the coastal line. Believe me that I had no such information from either the agent or property owner. I paid everything and now I can't do anything with the land I bought. I feel cheated. This is hard earned money. What can I do? Please help me.

A. The Central Government issued a Notification dated 19th February 1991 u/s 3(1) and section 3(2) (v) of the Environment (Protection) Act, 1986 and rule 5(3) (d) of the Environment (Protection) Rules 1986 declaring Coastal Stretches as Coastal Regulation Zone (CRZ) and regulating activities in the CRZ.

If the concerned plot is within 500 metres from the high tide line and within Calangute area which is classified as CRZ - III under the classification of Coastal Regulation Zone for regulating development activities in the coastal stretches within 500 metres of High Tide Line on the landward side, the development or construction activities in the category of CRZ-III are regulated in accordance with the following norms:-

(1) The area upto 200 metres from the high tide line is earmarked as "No Development Zone". No construction is permitted within this zone except for repairs of existing authorized structures not exceeding existing FSI, existing plinth area and existing density. However, certain uses such as agriculture, horticulture, garden pastures, parks, play-fields, forestry and salt manufacture from sea water may be permissible in this zone.

(2) Development of vacant plots between 200 and 500 metres from the high tide line in designated areas of CRZ-III with prior approval of the Ministry of Environment and Forests is permitted for construction of hotels/beach resorts for temporary occupation of tourists/visitors subject to the conditions as stipulated in the guidelines given under Annexure II of the Coastal Regulation Zone Notification as amended on 16/8/1994.

(3) Construction/reconstruction of dwelling units between 20 and 500 metres of the high tide line is permitted so long as it is within the ambit if traditional rights and customary uses such as existing fishing villages and gaothans. Building permission for such construction/reconstruction will be subject to the conditions that the total number of dwelling units shall not be more than twice the number of existing units; total covered area on all the floors shall not exceed 33 percent of the plot size; the overall height of construction shall not exceed 9 metres and construction shall not be more than 2 floors (ground floor plus one floor)

(4) Reconstruction/Alterations of an existing authorized building is permitted subject to (i) to (ii) above.

Since you have already purchased the plot of land you may either have the same utilized for any of the activities as may be permitted under the above mentioned regulations or you may sell the same to anyone who may be interested in utilizing the same for such permitted activities or to any adjoining property owner who may be interested in amalgamating the same with his own land for better development. As also said plot could be used for the business of a Beach Shack if it is close to the shore. The necessary licence can be procured from the Department of Tourism.