Property Purchase. (Reply from builder)
 

I recently posted a thread on this site about buying a property in Goa. I have put down £13,000 with the remaining £50,000 to be paid over two years, on a apartment in Arpora with a company called Riviera Construction, and after reading this forum and the problems people were having I asked for opinions and advice of what to do. After some really nice and helpful replies I emailed the construction company to see what his view was of the situation. This is the reply I got, I would be grateful for opinions of the reply below:confused:

You were in Goa some time back and are perhaps aware about the investigations regarding foreigners, mostly Russians buying agricultural land, and in some cases by filing false affidavit claiming residency without staying in India for 182 days.



This has forced the Government to put on hold registration of Sale Deeds. Also several political groups have reacted to it, and are trying to get some mileage for monetary gains.



So far there has not been a case wherein foreigners have faced eviction. Real Estate lobby in Goa is approaching Courts to clarify these matters, as the laws for foreigners to acquire property have not changed. They could buy it under Residency route or Company route.



At the outset we would like to assure you that you need not worry. There is lot of misinformation and rumours floating around without having any basis in law.



The summons are being sent to persons who bought property without complying the requirement of the law. Nobody who has purchased a house property after complying with the requirements of the law has been evicted. Action is being taken against persons who bought agricultural property, without a house therein and those who had not completed with the requirements of law. You do not fall in that category.



To clear the doubts created in the minds of the foreigners, the Builders Association (CREDAI, Goa Branch) is in the process of filing a Writ Petition in the High Court by funding a foreigner in challenging the refusal of the Registrar in registering a deed. The lawyers who are dealing with the matter are absolutely sure that all those persons who have complied with 182 days residence in India prior to the purchase are entitled to purchase a house property.



In the case of your apartment, the Sale Deed is not completed and therefore you do not attract any penal provisions. Rest assured that we will do everything to safeguard your interest and investment.




Thanking you


Yours Sincerely,
For Riviera Constructions Pvt. Ltd.

Re: Property Purchase. (Reply from builder)
 

[QUOTE=mikcon;6656335]I recently posted a thread on this site about buying a property in Goa. I have put down £13,000 with the remaining £50,000 to be paid over two years, on a apartment in Arpora with a company called Riviera Construction, and after reading this forum and the problems people were having I asked for opinions and advice of what to do. After some really nice and helpful replies I emailed the construction company to see what his view was of the situation. This is the reply I got, I would be grateful for opinions of the reply below:confused:
You were in Goa some time back and are perhaps aware about the investigations regarding foreigners, mostly Russians buying agricultural land, and in some cases by filing false affidavit claiming residency without staying in India for 182 days.
This has forced the Government to put on hold registration of Sale Deeds. Also several political groups have reacted to it, and are trying to get some mileage for monetary gains.
So far there has not been a case wherein foreigners have faced eviction. Real Estate lobby in Goa is approaching Courts to clarify these matters, as the laws for foreigners to acquire property have not changed. They could buy it under Residency route or Company route.
At the outset we would like to assure you that you need not worry. There is lot of misinformation and rumours floating around without having any basis in law.
The summons are being sent to persons who bought property without complying the requirement of the law. Nobody who has purchased a house property after complying with the requirements of the law has been evicted. Action is being taken against persons who bought agricultural property, without a house therein and those who had not completed with the requirements of law. You do not fall in that category.
To clear the doubts created in the minds of the foreigners, the Builders Association (CREDAI, Goa Branch) is in the process of filing a Writ Petition in the High Court by funding a foreigner in challenging the refusal of the Registrar in registering a deed. The lawyers who are dealing with the matter are absolutely sure that all those persons who have complied with 182 days residence in India prior to the purchase are entitled to purchase a house property.
In the case of your apartment, the Sale Deed is not completed and therefore you do not attract any penal provisions. Rest assured that we will do everything to safeguard your interest and investment.QUOTE]

Personal opinions/suggestions here and nothing more::(
The overview of the history of this problem is in the main correct. There are many builders/politicians/advocates out to make a quick killing but some may be qenuine.
However do you want to invest another £50K on a property that may or may not be yours in the future? You also have to consider furnishings, upgrading the interior, security and maintenance costs. Plus utility costs which although minimal to the EU are sometimes not very functional. If you do not want to live there 12 months of the year consider the cost of paying someone to look after it when you are not resident. Do you have someone you can trust to look after it? If you let it out as a business concern do you have a trustworthy accountant and advocate who will advise you on the changes in the law and make sure you have paid your tax? If you want to sell the property and take your money out of India are you free to do so? Will the registry be available to FN's in the future?
The bottom line is can all these postings, from many people, situated throughout the world, of many age groups and financial situations, plus the publicity now appearing in the press and other media be so wrong?
Only you can really decide mikcon!!
Good luck:thumbup:

Re: Property Purchase. (Reply from builder)
 

hi,
i do feel deeply sorry for you,but at least you had a courage to talk about it,sincerely,if i was in your situation,just stop paying,and try to get your money back as soon as you can,because in future time,you will not gonna get a visa of 1 year or more if you tell them,you already bought a property,this is against the law,if you buy a property on tourist visa,now forget all this,imagine you had your visa sorted,when expired,it will be difficult to get another one,not in goa ,but in england as well,please go to any thread and read carefully what happening with people who got to travel back after 5 years in goa,to england with cross fingers to get a visa of 1 or 2 or 5 years(impossible).
what i´m trying to say is to get in touch with the builder again in nice way and try to get your money back,or ask him to write on black and white,a lease of 99 years (no exist),or to guarantee you a 5 years visa in england all sorted from him,without you lifting a finger
.
good luck and don´t think you are the only one in this situation,they ´re people who lost a the lot.

Re: Property Purchase. (Reply from builder)
 

Thanks for your honest opinions guys, will try and get money back.Will let the forum know howI got on
Regards Mikcon

Re: Property Purchase. (Reply from builder)
 

Hi Mikcon

We have two properties bought from Riviera Construction, and we know lots more (as we live out on a Riviera place for 4-5 months each year), and our opinion is different from the other people who have responded.

Lots depends on how much you want to use the place.

If you DO want to sell up and live there permanently, or even stay out in Goa / India for more than 6 months per year, then the advice you've received is probably good. Things ARE uncertain, and it is not only the proprty issue- it is the visa one as well. So, if you DO want (say) a 5-year visa, then that will certainly be difficult - we know some people who seem to be getting them, but most do not.

BUT if you want to do what we do, and a lot of others who we know - which is to go out in (say) November and return in (say) March - then our opinion is that you are OK. We do this on a 6-month tourist visa - no problems. Of course, they could stop 6-month tourist visas, but visa regulations are matters for the Indian Govt not the Goan State one, and given their attempt to make India a major tourist destination it seems to us uinlikely that they will move to a different system.

In terms of looking after the place when we are not there, we use a good company (run by UK ex-pats) to look after our apartment when we are not there - costs about £10/month, so not a deal-breaker.

We HAVE decided to sell our second apartment, as we don't want to have too much tied up in India as things are uncertain, but we have no intention of selling our main place. Because we expect it to be difficult to sell to Europeans due to the bad publicity, we will probably sell to Indians, of which there are quite a lot wishing to buy and who have none of the problems that are being put up for foreigners.

If you want to talk more about this, I am happy to send a longer e-mail or to chat on the phone - let me know how to contact you.

Best wishes

Richard

Re: Property Purchase. (Reply from builder)
 

I agree to a certain extent,as i know alot of people who do the same thing.They have bought apartments (almost all in a local's name) and come to stay for a short while only.So treat is as a holiday home and nothing more.

As for selling your other apartment,that's a different matter.Do you have the deeds,did you buy it legally,was the purchase money transfered with permission from the RBI.

Also why the hell would you want to sell it to Europeans when you know it's illegal to do so.

I had a meeting today with a Delhi builder (unplanned) who is building a complex of 75 apartments and 10 Villas in the area i live.Despite telling him the illegalities of selling to foreign nationals it was like talking to a brick wall.The one thing they all say is that there is a way round things as this is India afterall.He is trying to get me to market them for him.. but no chance,he will get willing foreign buyers ,as people are so naive they will believe anything they are told.

Re: Property Purchase. (Reply from builder)
 

I really thought buying anything (property,cars,bikes etc.) in a local's name was a thing of the distant past.
I have known so many disillusioned people who have gone down this route and in doing so destroyed their faith in human nature,it's just not true.
I would never advise anyone to do this.
If you want to fly by your seat pants , buy in your own name on an agreement,at least your name is on a legal document and you won't be subject to any official scrutiny as agreements are not registered anywhere of importance.You do not need a sale deed until you want to sell,and sometimes not then, as Indians will buy just on an agreement.
Risky in some ways as indicated ,but useful in others.

Choppy Waters I feel !:confused:

Re: Property Purchase. (Reply from builder)
 

Hi Richard, thanks for the info, it would be grat to talk more about this subject.Will PM you my email adress
Regards Mikcon

Re: Property Purchase. (Reply from builder)
 

Hi thanks for info, I think I will try and get my money back, it a shame because I really enjoyed Goa

Re: Property Purchase. (Reply from builder)
 

Hi thanks for info, its been a great help
Regards Mikcon

Re: Property Purchase. (Reply from builder)
 

Since 2005 (iirc) Agreements of Sale are required to be Registered (and are routinely refused by the Registrar, the same as Deeds.

AndyD 8-)#

Re: Property Purchase. (Reply from builder)
 

Thanks for the information regarding Agreements, I didn't know that.
Any idea what date in 2005 this came into force ?
I presume it's not retrospective ?

Re: Property Purchase. (Reply from builder)
 

The change was made by the Registration and Other Related Laws (Amendment) Act,. 2001 (Act 48 of 2001) - I have been told that this didn't come into force in Goa until (iirc) 2005 - but you would need to ask a lawyer about the exact date (or toil through the Goa Official Gazette to try and find it).

AndyD 8-)#

Re: Property Purchase. (Reply from builder)
 

I will see what I can find out,from my friendly Advocate.
I did complete one Agreement in 2005,which certainly wasn't registered, if it it involves the same procedure as a Sale Deed i.e.visit to Registrar at Mapusa, fingerprints etc.
Thanks for the reply

Re: Property Purchase. (Reply from builder)
 

Unfortunately, the system seems not to allow me to read private messages - when I try to open it it says that 'The administrator has restricted use of the private message system to members with more than 3 posts' and I only have 1 post (I only joined so as to be able to respond to you, as I felt that so much of the advice you were getting was just incorrect - and indeed many of the responses to my own post have also been wrong!)

At the risk of getting inundated from others - my e-mail is so e-mail me with yours and we can discuss this at greater length.

Best wishes

Richard