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Kabza of Property


Kabza of Property

Last updated: April 25 2012
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  • #11


    Re : Kabza of Property

    Originally posted by anuj.mca View Post

    The correct way of renting your property is to get the Rent Agreement Registered in Court, Note: Not just stamped by nottery, but get it dully Registered in the Court, this will take 1 hearing, in which you have to submit the photo copy of original rent agreement in the court, The total cost of a registered rent agreement must not be greater than 1~2 thousand. But the peace and security it gives is of far more worth.

    Even this doesn't make that no-one can do a kabza. This just means that you'll be ULTIMATELY able to recover your property but only after a LONG court battle.
    Remember that there are 3 crore+ cases pending in court and yours will be just one of them. The enforcement of contracts is very poor in India.


    • #12


      Re : Kabza of Property

      Looks like this kabza issue is serious there. I should consider under construction projects or may be just forget investing in India altogether....I was just hoping to get hold of increasing price now. Things might go out of reach when I planned to return in 4-5 years from now :-(


      • #13


        Re : Kabza of Property

        Earning returns from Rent in India is a zero sum game ,average rental yields in India is in the range of 2.5-3.5% for residential properties. RE is all about capital appreciation.


        • #14


          Re : Kabza of Property

          If you haven't bought in NCR yet..then go for it assuming you can handle loan payments. Just don't plan to give your house on rent if going for RTM...AFAIK, in empty builder flats in good society..there is no issues of least I haven't heard any such case yet.
          Of course, it will help if some folks you know are already living in that society.
          Good luck!.


          • #15


            Re : Kabza of Property

            Thanks! Leaving it empty could be an option if there is no kabza issue as I am not looking for rental income. My goal is just to hold the property now lest it should be out of my reach in 4-5 years. I will continue gathering more inputs before reaching at a final decision though.


            • #16


              Re : Kabza of Property

              If does not know anyone then better not to buy. Or buy in coopration with someone who stays there. Renting it to someone whom you very well know for 10% less rent rather than renting to unknown. Also profile of people also matter....

              IT people/related people might be safe bet... avoid to be renting locals...or lock a room with your own stuff...

              Someone long back suggested that have rent agreement with condition like 25% increase in rent after 11 months..


              • #17


                Re : Kabza of Property

                Kabja is a serious issue in India due to socialist policies of our country and sheer lack of any enforcement agency.

                It depends on states and areas .. in some states it can happen in matter of 1/2 years or in some state it may take 10 years plus.

                In general empty land has more issue in comparison to apartment in large complex.

                A person staying on your house for a longer time has more claim on that house than you do .. LEGALLY.

                It can be easily proved that someone is staying at your property just by arranging electricity or telephone on his/her name ... does not even cost Rs 200. If you like, you can have your ration card, voter id or even passport ... what else do you need to prove that you are staying for XX years?

                Why do you think there are so many old buildings in Mumbai or Kolkata?? People are paying rents (if you are extremely lucky) like Rs 4 for a 2/3 bhk house or a prime shop.

                It all depends on who has more POWER, CONNECTION and who is more UGLY.

                It depends on who has more VOTE and who really cast their VOTES.

                Sometime your trusted/known relatives or people will be the one to take over your property.

                There is absolutely no safeguard. You may read it as many times you like. Original copies can be made as cheap as Rs 100. Their original copies may be more genuine and authentic than your original .. go to a court and spend money to prove that.

                Surprisingly, your neighbor will vouch for the squatters than you as they STAYS there!!!

                Further complication happens when the squatters sell your property to a third party LEGALLY .. Registry office does not check anything ... or you can show them Gandhiji and deal done!!

                You will never be able to agree with the menace of kabja if you are powerful or you never owned properties elsewhere than where you are staying.

                Neither, you would like to experience this to agree ...

                But many sharif people, specially who need to be away from their house has so many horrible stories to share ... and many a times they hide it from rest of the people as the cheating was done by some of their close relatives only.

                As many said, you want property, keep it empty and locked if you do not have someone to monitor for you. Your rental income may not be enough to cover your air ticket ... forget about legal fees and donations.!!

                It is sad state of affair. ... I can go on discussing this but in essence, unless you have someone to closely monitor, it is RISKY. In India, everything is SALEABLE!!


                • #18


                  Re : Kabza of Property

                  Kabja can be serious issue as pointed rightly by Gharondabhai and in-spite off all due diligence there can be serious issues.

                  I had heard same stories in my in laws relationship where landlord had to cough up big amount to get their house evacuated.

                  Also when I was searching for a flat to rent in Gurgaon, landlord was specific about getting lease agreement registered for 11 months. I was ok with that but he had many other restrictions which made me to look elsewhere.
                  When I asked about this to the broker, he told me that previous tenants has illegally occupied the flat and landlord was being extra careful this time.

                  At the same time not all tenants would come with the sole intention of doing Kabja.
                  If that was so people like us would not find any accommodation in city where we work.

                  Rental income in city like Gurgaon or whole NCR for that matter is too hard to ignore.

                  To play safe its better to keep the house empty if its flat in a apartment.

                  Or you can let it out to some genuine users who have good backgrounds and working in decent companies at suitable JOB profile. The risk would always be there but we can minimize it to some extent.

                  The best ting to do is to to scan the tenants carefully and not rely on brokers.
                  In my case my landlord found me from the ad I placed in a website, completely bypassing brokers.


                  • #19


                    Re : Kabza of Property

                    Originally posted by nriinvestor View Post
                    I am thinking of buying a RTM Flat in Noida/GNoida and renting it out since I will not personally use it for next 4-5 years.

                    I do not have good network in NCR who can take care of my property. Is there any fear of "Khosla ka Ghosla" (unauthorized kabza) if I buy a Flat and rent it out or the fear is just for plots?

                    Would appreciate people's thoughts on above.
                    if you purchase a property do let me know i'll take care for your property for around 2-2.5 years with assurance no kabza because i am looking for a property for rent till the time i get possession of my own flat


                    • #20


                      Re : Kabza of Property

                      GBhai, if Mr X have a home loan on property then how can someone register home on other name ?
                      I mean I can have home loan of say 10 Lakh for 20 years then how can someone else register my property on their name ?

                      baseline is if you bought your property with white money and take little bit caution then atleast for Flats in city like NOIDA will be tough to Kabza...

                      If I am paying home loan on property then how can some one else own it because Bank has first right on property until loan not cleared. And in age of IT it's not possible to get Fake NOC from bank.

                      In general anything is possbile ... someone was telling me that a tenant got a car loan by showing fake property papers and loan was of 5 lakh and bank sealed apatment and police was asking 2.5 lakh to clear it while bank was asking 2 lakh to unseal it and start court case...

                      Seems like having home loan on property is safe bet..A 10 lakh loan spread accross 20 years will save your property for 20 years.. Experts can comment.


                      Have any questions or thoughts about this?