Month: August 2017

RERA Rules For Realty Portals Are Elusive

RERA ticks off strict rules for every real estate stake holder, barring the property portals. Modern realty business is partial without property portals. Buyers don’t utter a single word without exploring property details. However, The Real Estate Regulatory and Development Act, hasn’t mention any particular rule regarding the registration process of the property portals. The owners of the property portals are yet to distinguish whether they would register as ‘agents’ or the ‘middleman’.
According to the legal desk, real estate portals too have to be registered under RERA, whereas portals don’t consider themselves functionally as real estate agents. To conclude these ambiguity real estate authorities suggested that one has to research on the nature of business of these real estate portals to make a call.

The definition of realty agents as given in the RERA Act, property portals doesn’t fall under real estate brokers’ category, as it is not involved in property transactions, neither does it offer any related services to the property buyers. Again there is information with the purpose of selling. Directly or indirectly when it comes to real estate selling, as a stake holder one needs to be registered with RERA.
Real estate portals act as a property advertising platform for individuals/brokers and developers. As stated in the IT act, a property portal falls under the definition of an ‘intermediatary’. As of now, no leading property portal in India could register under RERA due to this whole lot of confusion and most of them are taking legal advice for the future performance.
However, the FAQ’s came out from the sources of the Ministry of Housing and Urban Poverty Alleviation states that all electronic advertisements via the internet/e-mail/SMS shall fall inside the definition of “advertisements” under RERA. Though, this absolutely depends on how state authorities infer the same.

Again state RERA authorities can penalize any real estate portal on the ground of advertising real estate properties with a selling intention without getting registered with RERA authorities. Thus, web property portals should seek clarification from the respective state RERA authority regarding the registration procedure to continue their services up and coming. While, under RERA a ‘middleman’ should also be registered in every state for any real estate business conduct. States that have not come up with an official RERA website, property portals should seek for the guidance of state RERA authority in person for the future steps.

“These days, property portals are the preface of Indian real estate market. People don’t visit to a professional broker without doing online research on the kind of project that he/she requires. Be it suburb or the metro cities, internet and the property portals hold an important role in deriving the buyers’ sentiment. Now under which category it will be registered under RERA, is until unclear,’’- said Mr. Mahesh Somani, The Chairman – National RERA Committee, National Association of Realtors India (West Bengal).

–LNN (Liyans News Network) – Buy flats in Kolkata. Stay updated with real estate news and market updates of Kolkata. Buy/Sell/Rent property online. Visit www.liyans.com to avail discount on luxury properties.

What Happens If You Check In Your Dream Home Without Occupancy Certificate?

The current market demand trend is heavier on the side of occupancy certificate ready apartments. In the whirl of timely deliverance, developers are scheduling the possession without property possession certificate/occupancy certificate. Property investment is centred on the sentiments of a homebuyer. Buying a new home definitely adds some moments of pride and self esteem in the buyers; but this is another ploy of the developers to wreak your emotions. Without occupancy certificate handing over a property actually can be could hallmark your entire real estate purchase illegal. In case any buyer accept any property with a pending occupancy certificate that person endangers own investment.

Importance of Occupancy Certificate
Occupancy Certificate should be always issued by the local civic body or the government-run agencies and planning authorities. It’s given after an entire real estate project completion in the very locale. An OC ready property is the parameter of a legitimate construction. It means the building has been developed complying with all construction rules and laws which includes approved floor area, project planning, fire safety standard, building standard and environmental criterion. As per the industry standards, if a building is developed adhere to all these measurements, then the developer gets occupancy certificate from the local governmental authority within a month maximum.

It’s largely observed that a first time homebuyer is unaware of the importance of the OC. It’s not just another piece of paper. Building without OC means you are not allowed to access better civic facilities; it could even stack up your tax burden. This document is necessary for applying your Khata or for buying resale real estate units. Resale properties won’t return profit without a valid OC.

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Barin Midya, a potential homebuyer in Kolkata asked us on our forum, “I have been looking for affordable flats in Kolkata, over past couple of years. Finally got an apartment in ready-to-move in condition, where as the developer is keep on delaying for handing over the occupancy certificate. Should I buy the property?”

Let’s brief you the real reason behind the delay from your developer–

The project plan might not approved by the local civic body.
Your chosen apartment might not have sanction or commencement certificate as well
If it’s not giving you full-length amenities that means it’s not even ready for obtaining a completion certificate.
It might not have received NOCs from pollution boards and airport authorities etc.
Builder should have all prior tax receipts to obtain OC.

In prime metros in India it’s mandatory for a builder to obtain the OC before handing over the possession to the buyers. In certain cases partial OC might also be considered. Without OC access to electrical connection, water supply and sanitary connection gets difficult. Leaving these minor issues aside if any civic body asks an inhabitant to leave the apartment, that hasn’t obtained OC, occupants have no other options than to empty the apartment. Thus, it’s really important to seek OC before taking the possession.

–LNN (Liyans News Network)

West Bengal Gives The Nod To RERA

inally, West Bengal Govt. professes The West Bengal Housing Industry Regulation Bill 2017 after missing the time-stretched granted by the central ministry. July 31, 2017 was the deadline for all the states for their respective state RERA notification, cited the central government. West Bengal was one of those states that fell short in meeting the mentioned time frame. However, sticking to the previous disclosure, The West Bengal Housing Industry Regulation Bill 2017 was passed by the state assembly on Aug 16, 2017.
The bill was moved by West Bengal Housing Minister Sovon Chatterjee. The opposition party CPI (M) claimed that it should be spelled out by the select committee, which was declined. Despite all the oppositions of the came from the real estate stake holders for sidelining most of the ongoing projects state chose to prioritize the central norms. The state Housing Minister also declared that construction developments that will be structured on filling up any wetland, state government will take strict action against those. He too pointed out in the Assembly that the Chief Minister has given a clear instruction on this subject and no housing complexes will be permitted without going through the clearances issued by various departments.

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Reportedly, all the housing projects above 500 square metres or consisting of eight apartments are required to be registered with the state regulator Housing Industry Regulatory Authority (HIRA), after overall completion of the notification. The bill recommends forming the HIRA within the next 60 days of the notification.

At a glance of the West Bengal Housing Industry Regulation Bill 2017–

Ongoing projects without occupancy certificates should apply for the same to HIRA within a period of three months from the commencement of the Act. A promoter has to maintain 70% of the received fund to the escrow account for the existing project development purpose. If a developer is incapable of delivering timely possession, then buyer has the right to cancel the agreement. Under this circumstance the builder has to pay off the booking amount with interest within 45 days of time period. After possession if there is any constructional dispute and the promoter refuses fixing it, then he has to reckon the interest along with the compensation amount. An agreement of 20 pages will be signed between builder and the buyer. If one party evades any rule, then the other owns the authority to cancel the deal. The agreement should contain the details of project delivery and mention the time slots of partly payments made by the consumers.

Asking on the West Bengal state RERA notification, Mr. Mahesh Somani, The Chairman – National RERA Committee, National Association of Realtors India said, “A homebuyer saves his every penny for purchasing his dream home. Implementation of RERA in its true law and spirit will definitely recover primeval buyers’ sentiment to the real estate market of the state. Being the biggest reform of Indian realty market RERA will sentence all the loop holes and double-dealings of the developers and realtors for whom the industry had lost its transparency and saleability. It’s expected that residential property sale in Kolkata will perk up post RERA.”

–LNN (Liyans News Network)

Ban on sale deeds of unauthorized plots under smart city area in Nagpur

The Smart City special purpose vehicle (SPV) — Nagpur Smart and Sustainable City Development Corporation Limited (NSSCDCL) have enforced prohibition on sale deeds of unapproved layouts and plots in the Smart City area based development (ABD) area, covering Pardi, Bharatwada, Punapur and Bhandewadi in east Nagpur. This was settled at a NSSCDCL meeting presided by additional chief secretary to CM Praveen Pardeshi. 12 other proposals were also discussed in this meeting as per the report.

Reportedly, NSSCDCL called shots to put a ceiling on sale deeds of illegal layout and sub-division of land in ABD areas. SPV chief executive officer Ramnath Sonawane affirmed, “Large chunk of land is falling in no development zone and agriculture zone in ABD region. The Ahmedabad-based HCP Design, Planning and Management Pvt Ltd, which is preparing draft of town planning scheme for the SPV, informed us about selling of plots in the ABD region by few owners. We have no problem in selling of entire khasra as a whole but no sale deeds of sub division of land will be permitted. The SPV will send a letter to stamps and registration department asking it not to entertain sale deeds of unauthorized layouts and plots in ABD region.”

The CM of Nagpur, directed the municipal commissioner Ashwin Mugdal, the SPV director to confirm public notification and the clout of this imposition on sale deeds. Before the outset of this meeting, east Nagpur MLA Krishna Khopde along with some corporators met the CM and requested him to put up an additional area of 490 acres in the ABD region. According to the reports SPV gave its nod to expand the ABD region from initial plan of 951 acres to 1730 acres. In the same way SPV increased the charges to be paid to the consultants for protracting the ABD regions. Hence, the Smart City project will be developed on 1,730 acres of Pardi, Bharatwada, Punapur and Bhandewadi.

Total 12 directors were present in this meeting with Mayor Nanda Jichkar, commissioner of police K Venkatesh, NIT chairman Deepak Mhaisekar, municipal commissioner Ashwin Mudgal, collector Sachin Kurve, ruling party leader Sandip Joshi, and leader of opposition Tanaji Wanve, standing committee chairman Sandip Jadhav and others.

NSSCDCL is going to have its own human resource policy, as the first ever SPV of the country. The slogan of the HR policy will be- ‘Perform or perish’. Employees will be hired on a contractual basis for three years. If found underperformed, then can be downsized in the second year of recruitment. Payment will be divided in two categories; of which 50% will be according to the performance. Also, there will be appraisal in every six months.

The SPV is going to have its annual meeting in this coming December. Giant companies like- HCP gave presentation of process of setting up draft of town planning design. Grant Thornton India LLP of preparing comprehensive project report of works to be commenced in ABD region. L&T gave presentation of status of Rs520 crore — the Smart City solutions project.

-LNN (Liyans News Network) – Buy property in Kolkata with www.liyans.com. We offer free real estate listing and free property solution. Buy/Sell/Rent real estate units across 100+ cities of India. The recent updates of real estate market of the country are just a click away.

RBI Cuts Rate To Boost Affordable Housing To Boost Affordable Housing

Even RBI has come to the line to promote PMAY flagship project ‘Home for all by 2022’. Real estate experts consider that the apex bank of Indian economy has cut the repo rate at the onset of the Indian festive season just to boost the demand for affordable housing sector. A good monsoon in progress, low inflation numbers, favourable global environment and overall uptick in industry sentiments- bank has pointed out these facts as the catalyst of the recent rate cut.

RBI slashed the repo rate by 25 basis points to 6% at its third bimonthly policy check. The revised repo rate will go well with the two major policy reforms by the government ‘RERA’ and ‘GST’ which will eventually be favourable for the both buyer and the developer, during the investment in affordable housing. A rightly measured rate cut is the appropriate mediator to push the realty business. Affordable housing sector is not beyond that. By far the Central Bank has reduced their short-term lending rate 175 bps since 2014. With this revised rate cut the sluggishness of Indian real estate market will be recovered to a great extent.

Affordable housing in fact fed the real estate during the post demonetization season; while the entire market had fallen flat. The sector has been kept out of GST purview. The rate cut couldn’t have come more right time than this, when the affordable housing sector is expecting to be soared. Banks even relaxed the home loan percentage on purchasing affordable flats. Luring with the input tax credit by the government, market is expecting some major cash inflow from the domestic and overseas investment sector. The repo rate is beneficial at this moment as the current inflation rate is hanging at low levels less than 2%. Real estate sector has been on the way to be recovered by the means of low construction rate, supervision of RERA, lower price of ready to move apartments post GST and now with revised repo rate by RBI.

Real estate industry is hoping some positive come back as RERA is set to bring the accountability and visibility of the real estate business. RERA won’t allow any fraudulence in realty business. This move will surely able to bring back an investment boost along with the primal sentiment of home-buying. There is a temporary market slowdown observed after RERA enforcement. New project launches have been significantly shortened. This revised repo rate is a 7 year low. Nevertheless, the rate cut announcement sends out positive signals to the foreign investors and PE firms. With various progressive measures government will set affordable housing sector the big ticket of future investment. Indian real estate market is stepping towards progress with the deployment of RERA and GST rollout. Moreover rate cut comes as amen to Indian realty growth.

_LNN (Liyans News Network)- Visit www.liyans.com- the leading property portal in Kolkata to keep yourself updated with the latest news on Indian real estate and track every move of the market from the inception.