Who will be legally Entitle for Redeveloped Apartment
2 weeks ago
I am staying at Pagadi basis chawl system. The Rent receipt is coming in my Mother's Name and electricity and water bill is coming in name of deceseased chawl owner. If building is re developed then who can claim the apartment. In My case my mother is expired and rent receipt is still in name of My Mother. Can my sister also ask to make co-owner? If i take money by giving the room will i have to part money to my sister?
A.Dear Client,
The Pagdi system, rooted in pre-independence rental laws, grants tenants certain ownership rights over rented properties, including the ability to sublet or even sell with the owner's consent. While efforts are underway to modernize or abolish this system, it was legalized under the Maharashtra Rent Control Act of 1999, effective from 2000. In case the original owners sell the property to a new developer, tenants are entitled to a significant share of the sale proceeds to vacate the premises. These proceeds are considered capital assets, and reinvesting them in a new home can offer tax benefits on long-term capital gains. However, securing a home loan on Pagdi properties can be challenging due to lingering ownership issues. To facilitate loan approval, tenants must establish their ownership rights effectively.
The Pagdi system, rooted in pre-independence rental laws, grants tenants certain ownership rights over rented properties, including the ability to sublet or even sell with the owner's consent. While efforts are underway to modernize or abolish this system, it was legalized under the Maharashtra Rent Control Act of 1999, effective from 2000. In case the original owners sell the property to a new developer, tenants are entitled to a significant share of the sale proceeds to vacate the premises. These proceeds are considered capital assets, and reinvesting them in a new home can offer tax benefits on long-term capital gains. However, securing a home loan on Pagdi properties can be challenging due to lingering ownership issues. To facilitate loan approval, tenants must establish their ownership rights effectively.
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A.Dear sir
RIGHTS OF PAGDI HOLDER
Q1. What is Pagdi system in Mumbai?
Ans. The Pagdi system is a pre-independence rental law that gives the tenant certain ownership rights over the rented property, including the right to sub-let the property or even sells it while giving a share to the original owner.
Q2. Is the Pagdi system legal in India now
Ans. While there are efforts to modernize or abolish the archaic Pagdi system altogether, the system was made legal as per the Maharashtra Rent Control Act of 1999 and came into effect in the year 2000.
Q3. What happens if my owner wants to sell the Pagdi property I’m renting?
Ans. If the original owners choose to sell the building with its land to a new real estate developer, you as a tenant will be given a substantial percentage of the current sale amount to vacate the premises.
Q4. Can I save on taxes on the sale of a Pagdi property I am renting?
Ans. The amount received from the sale of the Pagdi property is a capital asset and you can save tax on such long-term capital gains by reinvesting in a new home.
Q5. Can I get a home loan on a Pagdi property?
Ans. Getting a home loan on a property under the Pagdi System can be difficult, as many ownership issues remain prevalent with old properties. If you want the property rights transferred to your name, you need to establish your ownership rights for the banks to approve your loan application.
RIGHTS OF PAGDI HOLDER
Q1. What is Pagdi system in Mumbai?
Ans. The Pagdi system is a pre-independence rental law that gives the tenant certain ownership rights over the rented property, including the right to sub-let the property or even sells it while giving a share to the original owner.
Q2. Is the Pagdi system legal in India now
Ans. While there are efforts to modernize or abolish the archaic Pagdi system altogether, the system was made legal as per the Maharashtra Rent Control Act of 1999 and came into effect in the year 2000.
Q3. What happens if my owner wants to sell the Pagdi property I’m renting?
Ans. If the original owners choose to sell the building with its land to a new real estate developer, you as a tenant will be given a substantial percentage of the current sale amount to vacate the premises.
Q4. Can I save on taxes on the sale of a Pagdi property I am renting?
Ans. The amount received from the sale of the Pagdi property is a capital asset and you can save tax on such long-term capital gains by reinvesting in a new home.
Q5. Can I get a home loan on a Pagdi property?
Ans. Getting a home loan on a property under the Pagdi System can be difficult, as many ownership issues remain prevalent with old properties. If you want the property rights transferred to your name, you need to establish your ownership rights for the banks to approve your loan application.
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