Archive for May, 2011

Property Barristers and Planning Laws

Posted on May 30, 2011 | Real Estate Law.

Property barristers are commonly called in to work with planning law. In fact, although barristers specializing in property are a subset of the barrister profession in general, there are also property barristers who specialize in planning. These barristers are loosely known as planning barristers.

There are famous ‘planning chambers’, such as Landmark Chambers, who employ a number of well-trained barristers who specialize in planning law. These planning chambers typically have between 10 and 20 barristers, which specialize in planning law. The higher profile the planning chamber, the more likely they have dealt with high profile cases in the past. This, in turn, usually means that the highest profile chambers will be employed to deal with the largest planning law cases in the country.

Large planning law cases that a property barrister may be called in to deal with could for example include the building or change of a football stadium or other large sporting arena. They may be required to fight the case for the developer who wants to expand. They may for example, be called to examine and make sense of the planning laws regarding nationwide or even international rail networks. Large constructions like airports require a huge deal of planning, and property barristers skilled in this type of planning law will be used to deal with it.

Not all law cases related to planning are huge though. Property barristers can appear for a client at a planning hearing or a planning enquiry, or even a parliamentary committee.

Barristers specializing in property can be employed to simply give advice, albeit expensive advice, on planning laws and how they could affect a business. Property barristers cover a wide range of laws such as those that govern how businesses effect the environment or the countryside or community. They can deal with planning appeals and give advice on how a business must deal with its waste.

Some property law covers items such as nature reserves, listed buildings and conservation zones. When new plans are made for buildings and features within or near these elements, then these laws can get very complex, and will include a healthy number of bodies who have a vested interest. Without adequate representation by a property barrister, then the project will never get off the ground, as the client will have no idea what is expected of them to keep within the law and get the permits they require to begin construction.

Tax Involved While Gifting A House

Posted on May 28, 2011 | Real Estate Law.

While you plan to gift a house, you must know about the corresponding provisions in the Income Tax Act. If you wish to buy property in the name of any of your family member, you should mention his name clearly in the agreement to sell and the sale deed. The legal ownership of a particular property is totally based upon the name in which the property is finally registered during the day of registration. If the property is purchased in the name of two different peoples, the percentage of ownership should also be mentioned in the agreement clearly.

You should also ensure that the person in whose name the property is being purchased has enough funds. This is very much important in order to avoid some income tax issues. If the person does not have sufficient funds, he can also receive a monetary gift or he can take a loan. A person must avoid taking a gift of property from the spouse. A lady must not receive a gift of money to buy property from her husband or parents-in-law.

The Gift Tax Act was abolished few years ago. So, now there is no gift tax on a gift of either a house or funds to buy a house. But, an income earned from such a gift is taxed in a different mode. Before deciding on the options for funding within the family, you must keep in mind the provisions relating to clubbing of income.

According to Section 64 of the Income Tax Act, while calculating the total income of an individual, all incomes that comes directly or indirectly from the assets that are transferred without an adequate consideration are included.

If a person transfers a house without his spouse or minor child’s consideration, the transferor is deemed to be the owner of the house and will be taxed accordingly. But, if a person transfers his house without consideration to his son’s wife or child, he can’t be deemed owner of the house. However, the income earned from that property will be included in his income.

You should also ensure that the person in whose name the property is being purchased has enough funds. This is very much important in order to avoid some income tax issues. If the person does not have sufficient funds, he can also receive a monetary gift or he can take a loan.A person must avoid taking a gift of property from the spouse.