Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |8204 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jun 27, 2024Hindi
Money

For the last 1 1/2 years I have a tenant. Though he was regularly paying rent but he was very secretive person. He never talked much with us. Everyday he leaves the flat at 6 am and returns after 11 pm. He told us that he has a warehouse of a reputed company and for that he remains very busy. Last year he showed immense interest to buy our flat. We were also ready to sale it. He assured us that he will surely buy the property so we have not entertained any other buyer. But for the last 4 months he was behaving suspiciously. Everytime we asked him about the tentative date when he is ready to take possession, he unnecessarily avoided the question saying that his lawyer is very busy. When we contacted his lawyer, he said that he has no connection with that person for the last 4-5 months. When we crossed him, he behaved very rudely and told that he will not purchase it and from that night he has not returned in his flat. Now we want to send him an eviction notice as per our agreement as we are in urgent need of selling the property as my father is seriously ill and need to do some costly medical procedure. We do not have any duplicate key of the flat so now it is not possible also to show the flat to someone. Also he is not picking up the phone. Please help. Our agreement will end on 9th October, 2024.

Ans: I'm sorry to hear about the difficult situation you're facing. Dealing with a tenant who is uncooperative and has disappeared can be quite challenging, especially when urgent medical needs are involved. Here's a step-by-step approach to handle the situation effectively:

Understanding Your Agreement
Firstly, review your rental agreement thoroughly. Pay special attention to clauses related to eviction, notice periods, and tenant obligations. This will guide your actions and ensure you remain within legal boundaries.

Sending an Eviction Notice
Given the tenant's behavior and your urgent need, issuing an eviction notice is the right step. Here’s how to proceed:

Draft the Notice: The eviction notice should be clear and precise. Include the following details:

Tenant’s name and address
Reason for eviction (e.g., non-payment of rent, breach of contract)
The date by which the tenant should vacate the property
Reference to the specific clauses of the agreement being violated
Signature and date
Legal Considerations: In India, a minimum notice period is usually stipulated in the rental agreement. If not specified, a 30-day notice is typically considered reasonable. However, consult with a lawyer to ensure compliance with local laws.

Serving the Notice
Personal Delivery: If possible, deliver the notice personally. Ensure you have a witness present during delivery. This could be a neighbor or a friend.

Registered Post: If personal delivery is not possible, send the notice via registered post with acknowledgment due. This ensures there is a record of delivery.

Legal Recourse
If the tenant does not vacate after the notice period, you may need to initiate legal proceedings. Here’s what you can do:

Consult a Lawyer: Engage a lawyer who specializes in rental disputes. They can guide you through the process of filing an eviction suit.

File a Case: The lawyer will help you file an eviction suit in the appropriate court. This process can take time, so it’s essential to act promptly.

Court Order: If the court rules in your favor, they will issue an eviction order. The police can then assist in evicting the tenant if necessary.

Handling the Locked Flat
Given that you don’t have a duplicate key and the tenant is unreachable, you may need to take additional steps:

Legal Permission: Before attempting to access the flat, get legal permission. Unauthorized entry can lead to legal complications.

Police Assistance: If you have a court order, the police can assist in gaining access to the flat. They can also help ensure that the process is smooth and without conflict.

Addressing Urgent Medical Needs
Since your father’s medical needs are urgent, consider alternative financial arrangements while the eviction process is underway:

Loans: Explore options for a personal loan or a medical loan. Many banks offer these with quick disbursement.

Family Support: Seek financial support from family or friends temporarily until the property is sold.

Insurance: If you have any health insurance policies, check if they cover the medical procedures required.

Future Precautions
To avoid similar situations in the future, consider these precautions:

Tenant Screening: Conduct thorough background checks on prospective tenants. Verify their employment, check references, and ensure their credibility.

Clear Agreements: Ensure your rental agreements are clear and legally sound. Include clauses for regular inspections and maintenance visits.

Duplicate Keys: Always keep a duplicate key for the flat. This ensures you have access if the tenant becomes uncooperative.

Genuine Compliments and Empathy
Your proactive approach to solving this issue is commendable. It’s not easy to handle such stressful situations, especially with urgent medical needs. Your concern for your father’s health shows your dedication and love.

Final Insights
Handling a difficult tenant requires patience and legal guidance. Issue an eviction notice, consult a lawyer, and follow legal procedures to regain possession of your flat. Simultaneously, explore financial options for your father’s medical needs. Being proactive and seeking professional help will ensure a smoother resolution.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |8204 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 15, 2024Hindi
Money
Dear Sir We had booked a flat in one of the projects in Karnataka ( 15 + years back) but when the project is about to complete the land owner of that apartment filed the case against the builder because the builder had constructed few flats illegally in that project.. The land owner had demanded few crores from the builder for illegally constructing the flat...During that time we were in abroad and 3 flats werent registered in this project one is ours and 2 more flat owners were in abroad too..Thats out of 35 flats... Hence the builder had registered three flats in their name for the safety..But till now we havent got registered of that flat in our name becos there is case in the court. Hence there is no completion certificate issued for that project..etc.... and no flat owner can sell their flat due to the court case. However the builder had given us a power of attorney for the flat for rent it out or stay... And we have rented the flat and are getting the rent... we have been regularly followed up with the builder, he everytime promises today tomorrow....like this 15+ years passed...last year we asked for a replacement flat in one of their new project and he agreed to give us a replacement flat provided we pay some extra bucks as per the rate...We agreed for that and got the agreement signed and also got the sale deed of the land etc.. we have paid the payment in cheques.Its a huge project and completion of the project is bit slow and got delayed.... Recently, the builder had sent an email to all flat owners to register their flats but when we consulted for registration the builder said he had to transfer the payment done by us from the previous project to this new project...hence it would take time (by the way thats their internal issue) everytime we consulted for registration he says it would take one months time and his legal team is working on it...Sometime he says the court case should get over of the other project and then only he can help to register the the present flat..(though the previous flat is in their name itself) we have nothing to do with case (as the Case is between land owner and builder) also the previous flat registration al in their name..we have only agreement and receipts.of payment done...hence so far the flat is not registered...most of the flats got registered in the new project...The project is not completed yet it would take one more year... My question is why the builder is delaying the registration process of our flat and why is he not doing the internal issues solved and help us to register our flat in our name... Should we register the flat ourselves provided we get required documents from the builder? Or consult a lawyer in this regard...Pls guide...
Ans: You booked a flat 15+ years ago in Karnataka. The project faced legal issues due to illegal construction. You haven’t been able to register the flat in your name.

Builder’s Delay
The builder registered three flats, including yours, in their name. You have a power of attorney to rent it out. The builder promised a replacement flat in a new project, but the registration is still delayed.

Key Questions
Why is the builder delaying registration?
Should you register the flat yourself?
Should you consult a lawyer?
Builder's Delay Analysis
Internal Issues
Fund Transfer: The builder needs to transfer payments from the previous project to the new one. This seems to be causing delays.

Legal Complications: The builder indicates that the ongoing court case may affect the registration process. However, you have no involvement in this case.

Project Completion
Project Delay: The new project is not yet complete. This might also contribute to the registration delay.
Recommendations
Consult a Lawyer
Legal Advice: Consult a lawyer to understand your legal standing and options.

Documentation: Ensure all your documents are in order. The lawyer can help review and prepare necessary paperwork.

Registration Process
Self-Registration: With the required documents from the builder, you might register the flat yourself. This requires legal guidance.

Follow-Up: Continue to follow up with the builder regularly. Ensure all communication is documented.

Legal Action
Notice to Builder: Your lawyer may suggest sending a legal notice to the builder for delaying registration.

Court Case: If the builder doesn’t cooperate, consider filing a case against them. This might expedite the process.

Insightful Evaluation
Assessing Risks
Builder's Reliability: Evaluate the builder’s past projects and their completion rates. This helps in assessing the likelihood of further delays.

Legal Risks: Understand the legal risks associated with the ongoing court case. Your lawyer can provide a detailed assessment.

Future Steps
Replacement Flat: If the builder provides a replacement flat, ensure all legal aspects are clear before agreeing.

Backup Plan: Have a backup plan in case the registration process faces more delays. This might include exploring other housing options.

Communication
Transparent Dialogue: Maintain open and transparent communication with the builder. Document all discussions and agreements.

Legal Assistance: Have your lawyer involved in all major communications with the builder. This ensures legal backing.

Final Insights
Proactive Steps
Consulting a lawyer is crucial. They can guide you through the legal complexities and help expedite the registration process.

Keep all your documents organized. This will be helpful during any legal procedures.

Regularly follow up with the builder. Ensure you have written records of all communications.

Evaluate the reliability of the builder and the legal implications of the ongoing court case. This helps in making informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8204 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 08, 2025

Listen
Money
I am 51 years want to park 10 L recieved from LIC. I have Nippon liquid and Axis Short term funds. Where should I keep this,in these debt fund or some other for max return and least risk . Or some balanced advantage funds?
Ans: Since you're 51 years old and the Rs. 10L is from an LIC maturity, I’ll assess this from a 360-degree perspective with low risk and reasonable return focus.

Let us structure this under simple and clear headings:

Understand the Nature of the Rs. 10L
This is a one-time amount, not a regular income.

So, capital protection is important.

Also, some growth is expected, but not with high risk.

Evaluate Your Existing Funds
Nippon Liquid Fund is very low risk.

Good for short-term parking, like few months.

Returns are around 5.5% to 6% yearly.

You can use it if you need money anytime soon.

Axis Short Term Fund is slightly better return.

Slightly higher risk than liquid fund, but still low.

Returns can be around 6% to 7% yearly.

Suitable if you are okay to stay invested for 2-3 years.

Should You Switch to a Balanced Advantage Fund?
These funds invest in both equity and debt.

They adjust the mix based on market conditions.

They give better return than debt if held for 3-5 years.

But, they carry moderate market risk.

Return range can be 8% to 10% per annum.

Not guaranteed, but historically stable.

Suitable if your risk tolerance is moderate.

Also, you must stay invested for at least 3 years.

What You Can Do Now (Allocation Suggestion)
Here is a simple, low-risk and flexible suggestion:

Rs. 2L in Nippon Liquid Fund: For immediate needs.

Rs. 4L in Axis Short Term Fund: Safe with better return.

Rs. 4L in Balanced Advantage Fund (via MFD with CFP): For better growth.

Choose an actively managed regular plan.

Avoid direct plan. They lack support and monitoring.

Regular plans offer advisor support and rebalancing guidance.

Why Not Direct Plan?
Direct plans look cheaper.

But they don’t guide you during market falls.

Many investors panic and exit early.

This leads to poor returns.

With MFD + CFP support, you stay invested longer.

Long-term behaviour matters more than cost.

Why Not Index Funds?
Index funds blindly follow the market.

No protection during market fall.

No fund manager to adjust strategy.

Active large-cap or balanced funds adapt better.

At your age, protection is more important than chasing index.

Important Tax Point
Debt funds and balanced advantage funds are taxed as per income tax slab.

If you hold for 3+ years, tax is less due to indexation benefit in earlier rules.

But now, for debt funds, tax is same as your slab.

So, choose based on your tax slab also.

But do not let tax alone decide. Safety is first.

Final Insights
Your Rs. 10L should grow slowly and stay safe.

Split into 3 buckets: short-term, mid-term, and medium-risk.

Liquid fund for liquidity.

Short-term debt for capital stability.

Balanced advantage for gentle growth.

This mix gives you flexibility, return and low risk.

Please review once a year with a Certified Financial Planner.

He/she will help you shift the mix if your goal or market changes.

No need to chase high returns. Protect capital, grow steadily.

You already took a right step by asking before investing.

That clarity helps avoid mistakes.

With this structure, your money can stay safe and still grow.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x