What Is Proptty?
What Is Proptty?
Propety is an estate planning firm in Bangalore who also offers property management services in Bangalore. Propety has been in the process of acquiring a commercial lease agreement from the current owner of Bolitho Retail Park, which includes retail, restaurant and parking space. With the acquisition, Propety will manage the commercial spaces for lease for their clientele, while the current owner focuses on the ongoing improvements to the park. The new lease will run until the earlier lease ends, with the option to renew the agreement at any time up to the current time.
During the process of the acquisition, the ownership structure was discussed with the current tenants as well as the property tax department. It was decided that a common friend arrangement was preferable as this helped the parties involved in the transaction focus on the business aspects rather than the property tax bill. It was felt that an Escrow/leasing agent would be best suited for the property, with the Propety company retaining the Escrow account. An agreement was reached on the amount of money that would go towards the purchase price of the property and the balance going to the Escrow agent.
The deal was finalised after the submission of a detailed offer by the buyer, which included the description of the collateral, description of the property, address, and contact numbers for the Propety company and the loan officer. Upon acceptance, the seller provided documents relating to his income, residential status, and identity. A title company was sent to verify these details. Once all the information was verified, the title company issued its final approval and the buyer was ready to close the deal. The closing date was set for one week from the time the offer was received by the Propety.
When the property was transferred to Propety through cash in hand, the title insurance was performed at the same time to secure the purchase agreement. This covered the borrower’s interests of the property taxes as well as the homeowner’s interest in the property. Both parties were required to sign the title insurance policy once the property was transferred. Title insurance coverage usually includes protection from third party liens, escrow fees, buyer’s closing costs, appraisal, and repair costs.
The homeowner was responsible for paying the closing costs unless alternative arrangements were made. At that point, the title company would make a determination of the homeowner’s liability. This was done based on the information submitted by the buyer and the loan officer. If it was found the homeowner was financially liable for closing costs, the title company would require the buyer to pay them. If the homeowner could not afford to make payment, the title company would revoke the purchase agreement and require the buyer to look for a new mortgage lender.
The new lender would require the borrower to pay the special assessments, property taxes, and closing costs at closing. Although the buyer paid for the purchase price in cash, the sale price of the property did not include the special assessments, property taxes, or any other fees and payments. The homeowners were required to pay these amounts on their own.