Thursday, November 24, 2022

How To Buy Government Property

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The Maharashtra Housing And Area Development Authority Scheme

Real Estate Investing-How To Buy Property From The Government(Real Estate Investment Tips)

To provide affordable homes, MHADA or Maharashtra Housing and Area Development Authority has housing schemes that operate through a lottery system. A certain number of houses are set aside for this scheme and allotted on the basis of income. For example, MHADA Mumbai has 1,300 homes ranging from Rs.14.6 lakh to Rs.5.8 crore. In 2019, 63 apartments priced under Rs.20 lakh were reserved for EWS or Economically Weaker Section applicants, 126 flats priced from Rs.20 to Rs.30 lakh were for Low-Income Group applicants, 201 flats priced up to Rs.60 lakh were for Middle-Income Group applicants and 194 flats priced up to Rs.5.8 crore went to High-Income Group applicants.

Who is eligible to apply?

A resident of Maharashtra with a valid domicile certificate, over the age of 18 years, who is salaried and possess a PAN card can apply.

Which category can you apply for?

Income Category of flats

  • Visit the official MHADA website for the city you want to apply for

  • Fill out the form and as per your income group, select the lottery and scheme

  • Print your application acknowledgement

  • Make an online payment

Some Other Things To Know About A Tax Deed Sale

This is the local government lien-holder doing the same thing as a lender would in a foreclosure: selling the property and using the proceeds to pay off the tax lien or liens .

“More often than not, you cant even go in the house at all until after youve purchased it. This is the single biggest reason these types of homes sell for 30% to 50% less than their peers: only an idiot would pay as much for a house they cant inspect as one they can,”says this blog on MoneyTalksNews.

Also, be aware of the need to check for other issues surrounding the property before you submit a binding bid. For example, there could be other liens — from contractors, lenders, government bodies — that could cloud ownership of the property and wont be apparent without some research either by you or a professional title search firm.

Who Is This Guide For

  • This guide is for people who are thinking of purchasing a home. First-time buyers may find it particularly useful, but as the buying process can change, even more experienced buyers can benefit from understanding the latest key steps.

  • It is focused on freehold properties.

  • It includes a short overview of how to buy a leasehold property more detailed information is available in governments How to lease guide.

  • It covers purchasing a property which is currently rented out, but only if you plan to live in it yourself. If youre looking for more information on buying to let, details are available in governments How to let guide.

  • It is intended for people purchasing a home in England or Wales. More information on buying property in Scotland or Northern Ireland is available through the links.

  • It is intended as a helpful overview of the process it is not a definitive statement of the law and not all of the steps are mandatory for all cases. If you are thinking of buying a property, you should seek independent financial and legal advice.

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Where To Get More Information

Contact these agencies for more information about real property for sale from the government.

For FmHA sales, contact the Farmers Home Administration county office in the county where the property is located. Look under Federal Government, Farmers Home Administration in the government pages of the phone book for the area. If the property you are looking for is not in the area covered by your local phone book, you often can find phone books for other cities and states at your local library.

To contact some of the other federal government agencies which sell real property, you also find the local office in the government pages of the phone book for the area in which the property is located. Look under Federal Government, and then for the offices name such as the U. S. Army Corp of Engineers , U.S. Marshals Service , or the V.A. .

For V.A. and HUD properties, check with licensed real estate brokers in the area where the property is located. You can also contact HUD directly at 1-800-767-4483.

The Federal Deposit Insurance Corporation has three regional offices that handle real property sales depending on where the property is located. These offices are: the Northeast Service Center, 101 E River Dr. East Hartford, CT 06108 , the Western Service Center, 4 Park Place, Newport Beach, CA 92714 , and the Field Operations Branch, 1910 Pacific Avenue, Dallas, TX 75201.

From there, look for a page containing information about real property sales.

Will I Be Reimbursed For My Attorneys Fees

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Your instincts may tell you that the answer should be yes, but this is complicated and varies from state to state. You may be entitled to have the condemnor pay your attorneys fees. In Colorado, if the final award of just compensation is at least 130 percent of the final written offer the government gave you to voluntarily acquire your property prior to filing the condemnation lawsuit, the government must pay your reasonable attorneys fees. Many other states have similar mechanisms in place. For example, in California, the landowner may be awarded attorney fees if the court determines that the landowners final demand for compensation was reasonable and the governments final offer was unreasonable in light of the ultimate compensation awarded.

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How To Buy Real Property From The Government

Although there are often very specific procedures you must follow in order to participate in the sale of real property by the government, here are some general guidelines you should follow.First, before you attend a government auction or submit a sealed bid for a piece of property, do your homework. Contact the appropriate agency and find out basic information about the property and the auction. Get a copy of the invitation for Bid or similar document if it is available. Make sure you understand what it tells you as most sales are final.

Specifically ask when the sale or auction will take place and where, what sales method will be used, if there are any special restrictions or requirements, and how payment is to be made. Although some agencies such as HUD and the VA assist the buyer with financing, most agencies expect you to pay for your purchase with a money order, certified check, or cash. If you are hoping to finance your purchase, be sure to ask if that is allowed, and how soon your lender will need to provide the agency with the full funds. Then make sure you have already qualified for the loan and received permission from the lender to make a bid for the property.

As with private property for sale by owner or through a broker, you may need permission to enter and inspect the property. If so, be sure to get that permission. You can ask the agency selling the property whether you need permission, and if so, who to get it from if it isnt them.

Pros And Cons Of Buying A Foreclosed Home

As we mentioned, foreclosures and sales of foreclosed homes are rare in Canada and are more common in the United States. That said, it does happen and there are ways that you can buy a foreclosed property, which involves a different procedure than a traditional mortgage. However, before you start looking into buying a foreclosed home, its important to understand the inherent benefits and risks involved.

Pros:

  • The lender, eager to recuperate their loss, will want to sell the property quickly. They may even sell it at a lower price than it was initially. If you buy the house at auction, its sometimes possible to get an even lower price.
  • Any liens, backdated taxes, or outstanding mortgage payments remaining on the property will be expunged, as these factors would make it harder for the lender to resell the home.
  • This option can be beneficial if youre a landlord with plans to buy and fix up cheaper properties and then rent them out.
  • If the property goes for a cheaper price, you can use the money youve saved for maintenance purposes or to making home improvements, thereby increasing its value and your home equity in the process. You may even be able to sell the property at a profit some day.

Cons:

Heres what you should know about land transfer taxes in Ontario.

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The Government Says They Need Immediate Possession Of My Property Can They Do That And How Does It Work

In the event negotiations are not successful, the government will likely file a lawsuit seeking to condemn your property. Once that lawsuit is filed, the government can generally seek some form of what is often called immediate possession or a quick take of your property. In Colorado, for example, this is an expedited procedure in which the government can seek an order from the court to obtain possession to your property upon the deposit of an amount that the court is satisfied constitutes a reasonable estimate of the fair market value of the property to be taken. Many other states have similar procedures.

Use Of Government Property On Independent Research And Development Programs

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The contracting officer may authorize a contractor to use the property on an independent research and development program, if-

Such use will not conflict with the primary use of the property or enable the contractor to retain property that could otherwise be released

The contractor agrees not to claim reimbursement against any Government contract for the rental value of the property and

A rental charge for the portion of the contractors IR& D program cost allocated to commercial work is deducted from the claim for reimbursement of any agreed-upon Government share of the contractors IR& D costs.

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Responsibility And Liability For Government Property

Generally, contractors are not held liable for loss of Government property under the following types of contracts:

Cost-reimbursement contracts.

Labor-hour contracts.

Fixed-price contracts awarded on the basis of submission of certified cost or pricing data.

The contracting officer may revoke the Governments assumption of risk when the property administrator determines that the contractors property management practices are noncompliant with contract requirements.

A prime contractor that provides Government property to a subcontractor shall not be relieved of any responsibility to the Government that the prime contractor may have under the terms of the prime contract.

With respect to loss of Government property, the contracting officer, in consultation with the property administrator, shall determine-

The extent, if any, of contractor liability based upon the amount of damages corresponding to the associated property loss and

The appropriate form and method of Government recovery .

Any monies received as financial restitution shall be credited to the Treasury of the United States as miscellaneous receipts, unless otherwise authorized by statute ).

Buying Federal Undeveloped Land

  • 1Contact the regional office of the Bureau of Land Management . The Department of the Interior’s BLM has responsibility for undeveloped land, most of which is located in the western United States. Any sales to the public are coordinated by the nearest regional office with jurisdiction over that property.XTrustworthy SourceUSA.GOVOfficial website for the United States federal governmentGo to source
  • Keep in mind that undeveloped land is offered for sale to the general public rarely. These tracts typically are small, isolated parcels, and very few have any agricultural potential.
  • Land also may be sold that was acquired by the government for a specific purpose or public objective and is no longer suited or needed for the reason it was originally acquired.
  • Almost all land for sale by the BLM is located in Alaska, Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, or Wyoming.
  • There are other small tracts occasionally for sale in other states in the western and mid-western United States.
  • 2Evaluate sale information. Each BLM regional office has brochures for any undeveloped land in its jurisdiction that is available for public sale. These brochures provide detailed information about the property, including its precise location and basic characteristics of the property.
  • Land types vary widely almost all are isolated tracts that are difficult to manage. A few of these parcels are several hundred acres in size.
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    A Tax Deed Sale Is A Sale Indeed A Tax Lien Sale More An Investment

    That first method well discuss is a tax sale. That occurs when the property tax has not been paid for a long enough period of time that the tax collector — usually a county but that can vary from place to place — slaps a tax lien on it and eventually puts it up for sale if the lien is not satisfied.

    A tax deed sale gives the winning bidder ownership of the property.

    Then theres a tax lien sale, which grants the winning bidder a tax lien certificate, entitling them to pay the back taxes themselves in return for collecting the unpaid taxes, interest, and penalties from the property owner.

    The ownership remains with the property owner, unless it otherwise ends up in foreclosure or is sold.

    Abandonment Or Destruction Of Personal Property

    3 Ways to Buy Government Surplus Land

    When contractor inventory is processed through the reutilization screening process prescribed in 45.602-2 without success, and provided the property has no commercial value, does not require demilitarization, and does not constitute a danger to public health or welfare, plant clearance officers or other authorized officials may without further approval-

    Direct the contractor to destroy the property

    Abandon non-sensitive property at the contractors or subcontractors premises or

    Abandon sensitive property at the contractors or subcontractors premises, with contractor consent.

    Provided a Government reviewing official at least one level higher than the plant clearance officer or other agency authorized official approves, plant clearance officers or other agency authorized officials may authorize the abandonment, or order the destruction of other contractor inventory at the contractors or subcontractors premises, in accordance with FMR 102-36.305 through 325 and consistent with the following:

    The property is not considered sensitive, does not require demilitarization, has no commercial value or reutilization, transfer or donation potential, and does not constitute a danger to public health or welfare.

    The estimated cost of continued care and handling of the property , exceed the estimated proceeds from its sale.

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    Which Agencies Sell Real Property

    Not every government agency sells real property. Some Federal agencies turn over any real property they have to the General Services Administra-tion which sells the property for them. The Federal Property Resources Service of the GSA sells a significant amount of surplus Federal Government real property. The GSA is the governments largest disposer of real property, so it might be the first place you want to look.

    If you are looking primarily for undeveloped land, another agency you will want to contact is the Bureau of Land Management . If you are looking to buy a farm, the Farmers Home Administration of the U. S. Department of Agriculture sells this type of real property.

    The Federal Deposit Insurance Corporation also sells real property which once belonged to failed banks. Of primary interest to the homesteader would be the FDICs offers of undeveloped land and single-family homes.

    The Department of Housing and Urban Development has foreclosed single-family homes, townhomes, condominiums, and fixer-uppers available for purchase, most of which are sold for fair market value, but you can sometimes pick up a pretty good deal.

    Other Federal agencies which sell single family homes, vacant land, farms, and commercial property include the U. S. Marshals Service, the U.S. Small Business Administra-tion , the Tennessee Valley Authority , U.S. Customs , the Department of Veterans Affairs , and the U. S. Army Corp of engineers.

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    Who Can Help Me

    During the home buying process a number of specialists can offer you advice or assistance:

    • Lender able to lend you money to purchase the property
    • Insurer able to provide the building insurance policy you need in order to purchase a property and the contents cover to protect your belongings
    • Legal representative/conveyancer able to carry out the legal work needed to buy a property
    • Surveyor able to assess the physical condition of the property and can give an independent valuation
    • Mortgage broker or adviser able to advise which mortgage is best for you
    • Specialist professional or tradesperson able to advise on any maintenance or building works that are identified in the survey
    • Energy assessor able to answer queries on the Energy Performance Certificate

    The estate agent will help guide you through the buying process and work with other parties to help the sale progress. But remember – their primary role is to help the seller sell their property.

    Find The Right Location

    Army surplus/ Military surplus: Learn how to buy at huge discounts on Army and military surplus.

    The last thing you want is to be stuck with a rental property in an area that is declining rather than stable or picking up steam. A city or locale where the population is growing and a revitalization plan is underway represents a potential investment opportunity.

    When choosing a profitable rental property, look for a location with low property taxes, a decent school district, and plenty of amenities, such as parks, malls, restaurants, and movie theaters. In addition, a neighborhood with low crime rates, access to public transportation, and a growing job market may mean a larger pool of potential renters.

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