Show list of builders with escrow accounts: Buyers to UP-RERA

NOIDA

Homebuyers on Tuesday submitted a letter to the Greater Noida Authority and the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera), asking them to make public the names of builders who have opened escrow accounts with the money deposited by investors. The move comes as buyers feel that many builders have not started this financial practice to protect their rights.

“We have written letters to both Greater Noida Authority and UP-Rera, asking them to disclose the names of all such builders with escrow accounts, on the website of UP-Rera for the sake of transparency,” co-founder of Noida Extension Flat Owners Welfare Association (Nefowa) Indrish Gupta told TOI.

The buyers’ group claimed, in its letter, that over the past few months they received complaints from various buyers on the issue of projects which are incomplete and where builders seem to have diverted funds.

“There are over 50-60 projects which are stalled. However, these builders have been taking payments from buyers and most of them have overstepped UP-Rera completion deadline. So, we have asked the regulatory authority to disclose an update on the status of the buyers’ funds with these builders,” Shweta Bharati, general secretary of Nefowa, said.

According to UP-Rera, over 700 builders in Noida and Greater Noida have overstepped completion headlines, with over 100 more expected to follow suit in the next three months.

“We just want to ensure that despite delays, the buyers’ funds are protected,” Gupta added.

When contacted, a GNIDA official said, “Buyers’ requests on the matter will be considered and they can find seek necessary answers from UP-Rera.”

Source: https://realty.economictimes.indiatimes.com/news/residential/show-list-of-builders-with-escrow-accounts-buyers-to-up-rera/69335097

Madhya Pradesh RERA tightens the noose on violators, plaints drop 40%

INDORE

Madhya Pradesh Real Estate Regulatory Authority (RERA) has witnessed a sharp drop in cases from Indore in the past two months with number of complaints dropping to 60 per hearing as against over 100.

Of the three RERA centres in the state, Indore gets highest number of complaints from customers, followed by Gwalior and Jabalpur. But in past few months complaints have reduced.

RERA member A D Kapaley said, “Cases have dropped significantly from over 100 to just 50 to 60 per hearing. This is a good sign indicating increased compliance resulting in fewer grievances from the customers.”

RERA hears cases thrice in a month in Indore as against once in a month in Gwalior and Jabalpur. Most of the cases in Indore are related to delay in possession for residential property, lack of development and unfulfilled promises under a deal.

Kapaley said, “Most of the cases in Indore were related to a few projects after the promoter duped hundreds of customers. As they are getting resolved gradually, new complaints are very few and this is really a good sign.”

Recently, the authority sent notice to an Indore-based realtor for not keeping promises made to customers even after receiving 80% of the payment.

Kapaley said, “Complaints were brought to our notice after which sent a notice to builder and denied registration in RERA for any future projects when he approached the authority for extension of his existing projects.”

In the total 45 cases received by the RERA against the realtor, it directed promoters to return money to customers. Until now over a dozen of customers have received demand drafts from the promoter.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/madhya-pradesh-rera-tightens-the-noose-on-violators-plaints-drop-40/69317729

UP-RERA directs authorities to start registration of projects

Noida

The Uttar Pradesh real estate regulator has asked local authorities to start the registration process of realty projects under the RERA Act for making builders accountable and addressing rising complaints from buyers in the state.

UP Real Estate Regulatory Authority chairman Rajive Kumar in a statement said the authority has received about a 1,000 complaints with respect to projects and promoters from outside the planning areas mainly from the districts of Lucknow and Barabanki.

The complaints vary from non-implementation of the projects to the promoter having run away with the money of the buyers, he said.

The RERA Act applies only to the real estate projects with area of 500 sq metres or more and with eight apartments or more in planning areas.

“RERA cannot extend relief to such buyers unless the project can be registered in Rera and invited the attention of the participating officers to the provisions of Section 3 of the Rera Act wherein a provision has been made that in order to protect the interest of the buyers it can direct a promoter to register in Rera a project outside planning area and that the provisions of Rera will apply to such a project from the date of its registration in RERA,” he added.

The UP RERA chief held a meeting at the RERA office in Greater Noida to discuss approval and regulation of layout plans of the real estate projects outside the planning areas.

The meeting was attended by Anurag Srivastava, Principal Secretary of Panchayati Raj, Mahendra Prasad, Secretary of Industrial Development and CEO LIDA, Preeti Shukla, Secretary of Panchayati Raj, Ajai Chauhan, Housing Commissioner, Masoom Ali Sarvar, Director of Panchayati Raj, MP Singh, Secretary of Lucknow Development Authority, among others.

Kumar, however, clarified that a project can be registered in Rera only if the layout plan of the project has been approved by the concerned local authority, which means zila panchayat in most of the cases.

Rera has already engaged UP Remote Sensing Application Centre for carrying out the site inspection of real estate projects within 10 km of LDA limits in the districts of Lucknow and Barabanki with the help of satellite data, according to the statement.

Anurag Sivastava, principal secretary, said in some of the Zila Panchayats the bye-laws relating to the approval of the projects have not been adopted so far.

However, he assured to direct the districts concerned to adopt the bye-laws soon.

“They will also work effectively to check the breaches of the sanctioned plans or the development of real estate projects without required approvals,” according to the statement. The progress would be reviewed next month, it added.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/up-rera-directs-authorities-to-start-registration-of-projects/69335068

Protect your child from injury – improper window size

Detect Issues

Window is of long size with low window sill height.

Describe Issues

This window due to current size and low sill height would be a tripping hazard – a safety concern especially for children in homes. If not taken care, can be a safety hazard in future. Its rectification is easy and must be done for safety.

Direct Solutions

We recommend client to review and suitable aluminium tube to be fitted to act as guard rail.

Meet Mr. Sukhiram, Lovely 3D Animation Video – MACJ Home Inspection!!

Buying a Home is everyone’s dream, and your Dream Home will probably be the most important and the biggest Investment of your Life Time. But when after sometime you realize that you lovely home has hidden issues like Improper Finishing, Faulty Electrical Wiring, Doors & Windows improperly Installed, hidden Damp / Leakage & Seepage, you feel cheated and that whole Home Buying process turns sour.

So this same situation is elaborated through our Lovely 3D video Presentation. And to save you and your valued Property from such worst case scenario we have Launched Professional Home Inspection Services.

MahaRERA still has jurisdiction over projects that have an OC

Housing regulator rules in favour of home buyer seeking damages from developer in lieu of a project whose possession was delayed by two years.

Housing regulator Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered a developer to pay a home buyer interest for delaying the project.

While ruling in favour of the home buyer, the authority stated that it has jurisdiction over an ongoing project even after an Occupancy Certificate was issued to the developer, adding that it can adjudicate the dispute despite an arbitration clause in the agreement.

The ruling came on a complaint filed by Suresh Swamy, who had booked flat No. 301 in Tower T8 of Emerald Isle project in Powai where he was supposed to move in by September 2017. He was seeking interest on the amount he had paid till actual possession. MahaRERA ruled in Swamy’s favour directing developer L&T Ltd to pay simple interest at 10.75 per cent on a sum of Rs 4.69 crore from October 1, 2017, for delayed possession.

Advocate Manish Gala, appearing for L&T Ltd had argued that the authority had no jurisdiction in the matter due to three key factors. Firstly, they argued that the Occupancy Certificate for Tower T8 had been received on December 21, 2018, well ahead of the December 31, 2018 revised possession deadline given to MahaRERA and hence there was no delay. The developer said the project is complete and since it is not an ongoing real estate project, the Authority does not have jurisdiction to entertain the complaint.

Secondly, the developer contended that the agreement for sale was executed under Maharashtra Occupation of Flats Act (MOFA) and Section 18 of RERA cannot be applied retrospectively. Thirdly, the agreement for sale had an arbitration clause and hence the dispute should be referred to the Arbitrator under Section 7 of Arbitration and Conciliation Act, 1996.

Adv Anil Dsouza, appearing for the home buyer pointed out that the OC was a Part OC issued by the BMC and the developer was erroneously using the term.

Rejecting the argument that it no longer has jurisdiction after OC is received or possession is offered, MahaRERA member Bhalchandra Kapadnis cited several sections in RERA to support his point. He said Section 7 and 8 of RERA obligates the Authority to carry out remaining development work if the registration of the projects gets revoked. He said section 14 (3) of RERA provides that if any structural defect or quality defect is found within five years from the date of possession, the promoter is duty bound to rectify such defects without further charge within 30 days.

“Therefore, I hold that the jurisdiction of the Authority is not lost only because of the receipt of the occupancy Certification or on completion of the project or when the possession is offered,” he observed. He cited the HC judgment in Neelkamal Realtors case to rule that RERA provisions are applicable to agreements executed even before it came into operation on May 1, 2017.

Source – https://realty.economictimes.indiatimes.com/news/regulatory/maharera-still-has-jurisdiction-over-projects-that-have-an-oc/69300982

Huge Skill Development & Business Opportunity, Be a Home Inspector!!

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We check standard codes for foods – why not for wires ?

Detect Issues

16A socket board fitted with non ISI marked 1.5 sq mm wire.

Describe Issues

As per standard 1.5 Sq mm is not advisable for 16 Amps socket. Additionally Non ISI marked wires are less fire resistant and have tendency to melt with high loads. They also do not have good insulation. Non ISI marked wires could have less longevity, are less safer and ecofriendly as compared to ISI marked wire. So, it is better to have ISI marked wires which will be a step towards safer home and also would be better in longer run.

Direct Solutions

We recommend to provide ISI marked wire with required gauge as per standard.

Tamil Nadu RERA to publish plaints against builders

Chennai

Homebuyers can now be doubly cautious and steer clear of dubious developers soon as the Tamil Nadu Real Estate Regulatory Authority (TNRERA) will list the complaints filed against developers on its portal.

Buyers can make use of the information made public. So far, only the final orders of the authority over issues with housing projects were available on the TNRERA website. “Currently, we are uploading only the final orders of the complaints. Now, the feature providing details of complaints will be made available for the benefit of homebuyers,” an official from TNRERA told TOI.

TNRERA sources said the information would be added to the ‘complaints’ link on the homepage of the authority’s website.

“We are looking at introducing this feature in another 15 days or by June. The purpose is to make the portal transparent, such that the consumer gets details of complaints at the click of a button,” the official added.

Details such as name of the complainant, nature of the grievance, the developer’s name and the name of the housing project would be provided in the link. The prayer for which the complaint has been filed would also be provided. This would help prospective buyers to take a considered decision on whether to invest in the project.

The realty regulator has received about 750 complaints against 55 housing projects since its inception in June 2017. More than 90% of the housing projects against which complaints were filed were in and around Chennai. The authority has delivered final orders for 40 complaints in the past two years.

TNRERA came into existence after the state government notified the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017. As per the rules, registration of all ongoing housing projects with a minimum of eight units and new residential layouts, is mandatory. Till April, 980 housing projects and layouts have been registered with the TNRERA since its inception. Majority of these projects are in Chennai and its periphery, Kancheepuram and Tiruvallur districts.

Source – www.realty.economictimes.indiatimes.com/news/industry/tamil-nadu-rera-to-publish-plaints-against-builders/69277392

What If Your Builder Opposes A 3rd Party Home Inspection?

A dream home is not just a home. It is not the only end goal of aspired living but also a security blanket. It is an important investment that needs to be well thought through. At the same time, new does not always mean perfect and old is not always gold. So, whether you are buying a new house, renting one, or maintaining one from overseas, you need to ensure it is safe and healthy. The best way to do that is by engaging a third-party home inspection service provider. If your builder or seller stops you from doing that get your logic straight and demand for a transparent check. Remember- getting an independent home inspection done is one of the fundamental rights of a home buyer. (Read thru www.legalmatch.com/law-library/article/home-buyers-rights.html)

Importance of home inspection for new constructions

While purchasing a house, a new property is always a preferred choice. This is because top builders in India are developing modern homes that make maximum use of space and the latest materials available. Like their international counterparts, they are now focused on maximizing energy efficiency in every project. Additionally, a brand new house doesn’t come with the baggage of maintenance issues like older properties. That being said, defects like faulty water-proofing and water seepage, civil, electrical or other related issues can be there in any property irrespective of its age. To detect those defects a third-party home inspection is crucial.

A pre-purchase home inspection is relatively new in India. Builders and developers haven’t warmed up to it yet. They feel a third-party home inspection may open up a can of worms they aren’t even aware of and thus, risky. Many builders will resort to complicating the situation to dissuade the buyer from engaging in a home inspection. These builders are likely to have compromised on the quality and are the ones to watch out for. On the other hand, trustworthy builders and developers will always welcome a third-party inspection as it will reinforce their reliability to the public.

As a buyer, you must understand that it is your right to carry out an independent home inspection/ appraisal. No builder in India can decline such a request, whatever be the case. If they do, then they should certify all the concerned areas have been addressed. Or else, in worst cases, you can escalate the matter to the consumer court or your state RERA (Read through the related note…… www.macj-abuyerschoice.com/home-inspection-rera-updates)

A home inspection checklist for new buyers

A home inspection is largely a non-invasive technique. It is a visual examination of all accessible areas which includes systems and components of a property. The third-party inspection team issues detailed pictorial reports of critical issues observed. Software-driven home inspection reports are generated for the complete assessment. Clearly, a home inspection prior to purchase is- knowing what you are walking in to. After all, nobody likes surprises down the road. Isn’t it?

Getting started, a checklist helps:

  • Building material types
  • Installation and finishing
  • Operations and functionality
  • Damp and seepage assessment with tools using thermal imaging technology
  • The state of waterproofing and damp-proofing
  • Electrical inspections
  • General safety

Why you should be extra cautious about leakage/ seepage

India is classified as a tropical landmass and such topography is associated with heavy moisture/ dampness. Ambient dampness leads to seepage in building structures having waterproofing defects for finishing issues, weakening them pretty fast. Other causes that worsen the situation are poor ventilation, rising and penetrating damp and plumbing failures, etc

You will notice rising moisture content creates a ripple effect in the house. There are rust and fungus in toilet tanks, water pipes, HVAC systems, and other machines. The insides of electronics and domestic appliances also start to corrode easily increasing the risk of short circuit. If not detected early, this damp leads to recurring expenses and in case of extensive damage, structural renovations become inevitable. This is also a significant health hazard to the residents (www.macj-abuyerschoice.com/damp-seepage-assessment-with-solutions-through-thermal-imaging-technology)

Depending on the year constructed and material used, moisture can speed up the deterioration process of your home and create an unhealthy living environment. By opting for a home inspection you can nip the problems in the bud. The non- invasive moisture testing helps you to find out the affected and/or vulnerable areas of the property. And you can take necessary action for a long term solution. The net result is no headache of recurring expenditure on things like patchwork waterproofing and repainting after every extreme weather events. Additionally, a well damp-proofed property earns you better returns over a longer period of time.

Why are builders wary of the home inspection?

It is human for people to be suspicious of and resistant to new things. Home inspection was not on the buyers’ agenda before and awareness about the process has been low until now. Times have changed. Properties are far bigger investments, buyers are savvier, NRIs are buying properties like never before and municipalities/governments (RERA) are imposing stricter quality control. This has created a professional buying and selling environment, thereby requiring a pre-purchase home inspection to come into play.

Many Indian builders regard third-party inspection as intrusive and a challenge to their abilities. Some of them may not have used quality compliant means and processes in their development and are at risk of being exposed. Others may not have an idea of the ideal stringent measures required for quality construction and development and are hence, wary of being caught out.

In this developing scenario, top builders in India have shown greater degrees of acceptance of home inspection and are not obstructive if requested.

For the buyers, a third-party property inspection is a better-to-be-safe-than-sorry proposition. It is certainly not a knock against the developers, builders or municipal inspectors to point out their defects. It simply reveals necessary repairs and cuts down on future unforeseen costs while stating the health and safety of their new or existing purchased property.

Builders should actually welcome home inspection

Indian Real Estate Developers should actually be open to having their properties evaluated by third-party home inspectors instead of opposing it. It is an opportunity for the inherent construction errors to be addressed before they become major problems. And it is also a free opportunity as it is being paid for by the buyer! Every seller should allow the buyer to have a home inspection done at their discretion and expense before the contract is signed. It is the same thing like buying a car which is a test-driven and inspected from every angle, both from outside and inside, before the final handover. So, why not you must insist for a safe and healthy home for your family which is far more expensive than a car?

Every buyer when buying a new standalone house should be allowed an inspection by the builder or the real estate developer. This should be prior during construction, prior to fittings (electrical / plumbing, doors, windows, floorings, etc) installation and then, before the final walk-through. In the case of apartments too, top builders in India should not oppose home inspection which helps identify minor issues that become bigger with time. This sets a good example for the smaller builders to follow. Also, inspection by the buyer at the construction stage itself can do away with huge unforeseen expenditures for the builder/ developer later. In fact, some of the leading developers in India are already conducting pre-delivery third-party inspections themselves. (www.macj-abuyerschoice.com/our-services-2/construction-finishing-inspection-for-real-estate-developers)

Some of the reasons why builders in India should allow inspection are as follows:

  • Senior management of building companies cannot physically control on-site construction and quality.
  • After the completion of the civil areas and structural elements, some defects may arise in the interiors which may have to be broken to be replaced.
  • There is a reduced dependency on contractors, floor managers, construction supervisors, and labourers and workers.
  • With periodic inspections, many problems are detected beforehand at significant cost savings to the builder.
  • Provides a third party assurance to the builder regarding the quality of his investment in the construction and finishing of units.
  • By allowing access to home inspection, the project’s value, developers’ credibility, and group brand name grows manifold.
  • Earns a better selling platform and bargaining position to the seller.
  • When a re-sale property is again sold or rented out with only minor repairs and cosmetic external beautification without addressing the root cause, it may later spoil the seller’s credibility in the market.
  • Interior designers can study blueprints and building codes and work accordingly. Professional home inspection firms can further aid them in ensuring the longevity of the house.

Home inspection, thus, is a win-win situation for all the parties in a real estate value chain as together they can have a clear understanding of the physical condition of the home in order to make a well-informed decision. A home buyer must explain to the builder or developers that they are all links in this same chain so what benefits one, will also benefit the other.

NRI/ Cross City Community property buyers must convince builders to allow a home inspection

Many home Inspection/property management companies offer one-stop solutions to the NRIs / CCCs for managing their property from a foreign land, whether it is at the construction stage or ready to move-in. From physical inspections of a home to doing the paperwork and filing taxations for both self-owned and rented premises, they do it all at a nominal fee. So, when faced with opposition from the builder, an NRI buyer needs to be firm and resolute about a pre-purchase inspection. The most accommodative way is to educate an unwilling builder about the non-invasive process of home inspection and the benefit it provides to the buyer and the builder alike. While it may take more than just an encounter, the time spent to obtain the permission will be worthwhile for sure.

Home inspection & beyond: NRI property management benefits

A Third party property inspection, for NRIs, comes with a host of other benefits. The service providers cover many essentials to give their clients complete peace of mind. For example, if you are buying a property and have engaged a property management team, it will conduct periodic visits to the sites of under-construction properties and keep sharing regular progress reports along with relevant pictures and videos with you. It will also coordinate with the developer about rectification matters and email you periodical MIS/updates. Before the handover, it will conduct a thorough final inspection and arrange for a walk-through so that you can move in with a relaxed mind.

Builders and developers must realize that high-end buyers and the lucrative NRI/ CCC customer base are more likely to insist for pre-purchase home inspections or else make their investment elsewhere. The NRI group, particularly, will turn their back on them as they fully comprehend the headaches that can come out of an un-inspected piece of property that they struggle to manage remotely.

A popular management mantra says: the customer is always right. The real estate industry is no different, and particularly so in a buyers’ market. When years of dreams and hard earned money are put together as an investment for a home and a security blanket, the buyer has every right to tick all the boxes prior to purchase. It is called peace of mind. So, as a buyer if you find your builder unwilling to cooperate on pre-purchase home inspection matters, first, try to convince him; if that doesn’t work, seek legal advice or go to your State RERA (RERA provides for 5 years free-of-cost guarantee from structural / workmanship defect or any other quality or provision of services or any other obligations of promoter as per agreement for sale from the date of handing over possession…… www.macj-abuyerschoice.com/home-inspection-rera-updates)