MACJ-ABCHI, Author at Professional Home Inspection, India

May 24, 2019

UP-RERA plans to adopt projects left midway by developers

Noida

Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has resolved to adopt projects that have been abandoned by builders midway and whose completion date has expired. The regulatory body has estimated that there could be 100 such abandoned projects in the state’s NCR cities.

Following a meeting with officials of the Greater Noida Industrial Development Authority (GNIDA), the UP-Rera officials announced on Thursday it will draw a true estimate of the number of projects which have been left midway by builders and have exceeded their completion dates so as to draw a resolution.

“There are about 100 such abandoned projects where the builder has deserted a project midway and is untraceable. Many of these have also expired their completion dates. We will now find a way to adopt them and resolve their fates. Work on this will start soon,” UP-Rera member Balwinder Kumar said.

Moreover, UP-Rera has also appealed to all developers who have not come forward to get their projects registered with the real estate regulator to do so at the earliest, else a fine to the measure of 10% of the project cost will be imposed.

“So far, we have not exercised this clause in NCR, but there is provision in the UP-Rera Act to impose a 10% fine for not registering a project and we have now decided to start sending notices. By our estimates, there could be 300 projects that have dodged UP-Rera registration and would be sent notices,” Kumar added.

According to the UP-Rera officials, there are 4,850 NCR-based cases pending before the regulator. The Greater Noida office of UP-Rera has recently set up a third bench to accommodate cases faster.

Source – www.realty.economictimes.indiatimes.com/news/industry/up-rera-plans-to-adopt-projects-left-midway-by-developers/69261297

May 23, 2019

MahaRERA to focus on 70 ‘stress’ projects in Maharashtra

Pune

The Maharashtra Real Estate Regulatory Authority (MahaRERA), which completed two years on May 1, will shift its focus on housing projects that are under stress and incomplete for various reasons.

The regulator has identified 60-70 such “stressed” projects in the state — mainly in Pune, Mumbai and Thane — and has chalked out a plan to reach out to the members of such projects; to guide them in forming an association and help them complete the project.

In March this year, MahaRERA had issued a standard operating procedure (SOP), allowing homebuyers to remove a developer in case the project was delayed, and hand it over to an expert panel for completion — with the regulator monitoring the proceedings. This step could be initiated only if at least 51% of the homebuyers affected by the delayed project gave their consent.

Over the last two years, more than 20,000 projects have been registered with MahaRERA in the state — the highest in the country. However, the number of completed projects stands at a little over 4,500.

Among these registered projects, there are many yet to be completed despite the issuance of orders and even recovery warrants, allowing the revenue authorities to auction the property and return the money to homebuyers.

“The (March) order was issued to benefit those affected by such stressed projects, where the developer has not been able to complete the project due to a paucity of funds or any other reason, and homebuyers are stuck with the project for long periods of time. We have assessed 60-70 projects in three cities and now plan to reach out to the complainants as well as the remaining members,” MahaRERA secretary Vasant Prabhu said. The regulator is planning a workshop for affected buyers.

MahaRERA had issued the order under Section 37 of the Real Estate (Regulation and Development) Act (RERA). Under Sections 7 and 8 of RERA, a regulator can revoke the registration of a project as well as remove the developer, provided 51% of the project allottees agree on such an action. A separate panel under MahaRERA, with the help of experts, would carry out the remaining development work and take the project forward to completion.

However, there’s a caveat: this process will be possible only for non-litigated projects.

Once the revocation orders are issued, the developer will lose all right to the project. The authority will set up a panel to prepare a project report within four months to decide the future course.

Source – www.realty.economictimes.indiatimes.com/news/regulatory/maharera-to-focus-on-70-stress-projects-in-maharashtra/69184915

May 22, 2019

Property Registrations Under RERA Rise Across The Country

After 2 years since the onset of RERA, property registrations across the country have risen and buyers are coming forward in large numbers to seek relief from dubious builders.

Property registrations under RERA are increasing continuously. The registrations across the country have increased especially between November 2018 and April 2019. According to Anuj Puri, Chairman of ANAROCK Property Consultants, 307 projects have been registered under RERA in Andhra Pradesh. In November 2018, Andhra Pradesh RERA had recorded only 61 property registrations. Maharashtra leads with more than 20,718 projects registered and 19,699 RERA-registered real estate agents. In the southern state of Karnataka, 2,530 projects have been registered while 1,342 real estate agents have been registered under RERA.

Gujarat boasts of 5,317 RERA-registered projects and 899 registered agents and agencies. After two years since RERA was implemented, the property registrations across the country has been rising. The north-eastern states of Manipur, Meghalaya, Mizoram, Nagaland and Sikkim are soon going to notify RERA rules. The north-eastern states have been earlier reluctant to comply to RERA rules. However, these states are soon going to adopt RERA regulations to increase transparency across the sector. West Bengal has framed its own real estate law under the West Bengal Housing Industry Regulatory Authority (WBHIRA). As of now, 22 states and 6 Union Territories have already implemented RERA. 19 states have active online RERA portals while West Bengal has its own portal.

Anuj Puri said that each of the states with active portals have recorded a rise in project and agent registrations since November 2018. He noted that even while fretting about the dilution of the rules notified, buyers have been bestowing their faith in the law and coming forward in large number to lodge complaints against developers for various reasons including project delays.

MahaRERA has registered 6,631 complaints until April. According to the state authority, 64 percent of the complaints have been disposed. Also, there are cases of developers delaying payments and not attending hearings which need to be resolved. A huge number of consumers are registering complaints across the country which shows the increasing faith in the redressal system among buyers.

Source: www.realtynxt.com/2019/04/30/property-registrations-under-rera-rise-across-the-country

May 21, 2019

Do you have access to False Ceiling? It is needed!

Detect Issues

No trap door provision at false ceiling.

Describe Issues

Ceiling trap door is used in false ceilings to access plumbing pipes or valves, electrical conduit, AC gas pipe for service, maintenance, and repairs. It might appear a small problem but it is important to provide trap door in false ceiling as there can be chances of leakage in pipe or some problem in AC gas pipe insulation & electrical conduit, which can be easily repaired by providing for it. This will provide access to plumbing pipes, electrical conduit or AC pipe lines during repair which will be saviour for residents in future.

Direct Solutions

We recommend to provide a trap door provision of suitable size.

May 21, 2019

Testimonial from Senior VP, Urbana Residential Projects | A Happy Customer

Ms. Debjani Mukherjee, is a Senior VP of Urbana Residential Projects. Standing proudly, the tallest & premium Residential Project – Urbana has changed the Skyline of Kolkata, and has set a Benchmark in the City. It has been successfully delivered with around 650 happy families staying and some more to move soon. Phase 2 of the project with another 600 units will be launched soon. Urbana is a joint enterprise of the Government of West Bengal along with 6 leading business houses of Kolkata, namely, Emami, Sureka, Shrachi, MKJ, JB and Nahata Groups.

MACJ – A Buyer’s Choice has conducted home inspections of around 250 apartments in Urbana residential project.

May 18, 2019

11-Point Checklist to Simplify Home Buying

The idea of buying a house or an apartment has undergone a sea change. It is no longer only about owning a space where one can live comfortably in a city for years; home buying has evolved as an investment decision that today’s ‘anywhere generation’ takes to reap good returns, irrespective of where they are stationed for work.

Nevertheless, the decision to buy a home is an important one and it demands in-depth research, proper guidance, and a lot of legwork. From applying for the home loan to getting a final home inspection done, every step requires the home buyer’s active participation. If you’re getting into the process anytime soon, here’s a checklist you can bank upon:

1. Research

Internet is a treasure trove of information for home buyers. Browse thoroughly and make a list of upcoming, new real estate properties that are already open for advance booking. Get to know about each of the properties, where it is located, the neighbourhood, and the security. Don’t forget to take a virtual tour of it to get a feel of the place. Calculate the acreages and then, depending on your budget, you shortlist the properties. You can also consider looking up the property selling websites for a good deal. Going old-school is also advisable in the case of home buying. Keep an eye on the Real Estate page of the newspapers and magazines so you don’t miss out on a lucrative deal. Some of the prominent websites for research include www.magicbricks.com, www.99acres.com, www.makaan.com, www.housing.com/in/buy, www.proptiger.com, www.regrob.com, www.remax.in, www.commonfloor.com, www.nkrealtors.com, www.squareyards.com, www.jll.co.in, etc.

2. Site Visit

Plan a visit to each of the shortlisted property sites but not before you have made a checklist of amenities you would wish to have in there! If the house/housing complex is at its Phase Zero or under construction, take a tour of the site, talk to the realtor and try to know if the property actually has those amenities or not. Also, note down the details of the price and the payment/ loan options. Mark ‘right’ if you like the property and move on to check the next.

3. Builder/ Seller’s document verification

Once you have zeroed in on a property, ask your builder/ seller for the clearness certificates and other legal documents. A builder’s credibility is a crucial factor in home buying and so, you must consult a lawyer who can guide you in the matters of paperwork. Get the builder’s document verified by the lawyer. This will protect you from any possible breach of trust and breach of contract in the future. In case it is a new project check the State RERA website for project detail/ status/ approvals, etc. Any project with a land area over 500 square meters or includes eight apartments or more must mandatorily register their project along with all the relevant details on the State RERA website. Some of the State RERA websites are www.hira.wb.gov.in (West Bengal), www.maharera.mahaonline.gov.in (Maharashtra), www.tnrera.in (Tamil Nadu), www.rera.karnataka.gov.in (Karnataka), www.dda.org.in/rera (Delhi), www.up-rera.in (Uttar Pradesh), www.haryanarera.gov.in (Haryana), www.rera.goa.gov.in (Goa), etc.

4. Check your neighbourhood

Do a review of your neighbourhood development, the availability of basic amenities/ utilities, like grocery, fruits & vegetables, logistics, computing resources (autos/ bus/ cabs/ metro), etc. The developments in and around your apartment are very important to be checked thoroughly.

5. Home Inspection

If you’re buying a resale property, the next important step will be a home inspection. Get a complete health and safety checkup of the property you are buying. This is the step that helps you to take an informed home buying decision by assessing the property against parameters such as Moisture Content and/or Dampness, Electrical Wiring condition, and condition of Water Pipeline, Cracks, Electrical issues, etc. There are possibilities that the seller will try to convince you about the worthiness of the property and somewhat discourage you also from getting the home inspection done. But you being the buyer must go for it.

A property, in all likelihood, will have mild to a severe damp problem and other issues like leakage and seepage, crack, electrical/safety issues, other construction related issues. Due to finishing/ renovation, they may not be visible from outside. A professional home inspection can help you detect this problems and save you from future harassment. All the elements like wall, ceiling, floor, doors, windows, plumbing, electrical, etc have to be check properly.

6. Organizing home buyer’s credentials

Once you get a nod from the third party property inspection company, proceed to organize your KYC and financial documents and credentials. When you apply for a home loan advance, the first thing a home loan provider asks for is your financial reports. These include your KYC documents, credentials, income tax returns, bank statements, etc.

In case you’re not sorted out, finding these reports can turn out to be tedious and faulty at the end. So, organize everything in a folder that you can access it easily. The sooner you find and forward the files to the home loan provider, the sooner your application is accepted and you get endorsed by the bank for a credit.

7. Credit score check

You may think you have an astounding credit score, but the actual report can paint a different picture. To avoid getting last minute surprises (read ‘shocks’), check your credit report in advance. In India, companies, like CIBIL, CRIF High Mark, Equifax, and Experian provide such reports. You can get your free credit score generated from any of these companies, once in a year.

Check the report for any mistake and initiate the process for a new record generation if there’s any indication of possible fraud. Remember, any mistake on your credit report can bring down your credit rating and imperil your home loan approval.

8. Getting Pre-Approval Loan

After assessing your credit score, the bank releases a confirmation (virtual) of loan approval. The pre-approval loan gives you the initial financial support with which you can make down payment for booking the property. However, the loan comes with a time window within which if you fail to purchase the property, the bank cancels it. Do read our related blog for more information on this…… www.macj-abuyerschoice.com/guide-take-home-loan-dream-home

9. Construction monitoring

If you’re buying an under-construction property, visit the site periodically to check if all the commitments made by the builder are being fulfilled properly. If you’re staying abroad or in a different city and is not possible to visit the site in person, delegate the duty of checking to a professional home inspection company. They will report you from time to time and coordinate with the builder for any real-time modification.

10. Completion of purchase

Complete the legal diligence followed by the signing of the sale agreement. If you’re an NRI, your property manager will help you prepare the agreement papers. Recheck the sale deed so as to make sure all the specifications of your home are met.

11. Pre-handover home inspection

Finally, get a professional home inspection done to make sure the property is ready for moving in. Once ‘Okayed’ by the company, proceed to further activities like doing your home interiors.

There’s nothing more exciting than purchasing a home. But, the tonnes of paperwork and issues like appraising a property’s health can make it less gratifying. Follow the above tips to make the complicated home buying process smooth sailing for you.

May 17, 2019

Gujarat second in number of works under RERA

Ahmedabad

Gujarat has left behind all other Indian states except Maharashtra in registration of projects under the new realty law — Real Estate (Regulation and Development) Act (RERA) — which had come into effect almost two years ago.

As many as 5,317 real estate projects have so far been registered with Gujarat’s real estate regulatory authority, the number being the second highest in India after Maharashtra, shows data compiled by ANAROCK Property Consultants. Apart from this, 889 real estate agents and agencies have registered themselves with the RERA authority in the state.

Maharashtra tops the list of states in RERA compliance with 20,718 registered realty projects and about 19,699 real estate agents. According ANAROCK, project and real estate agent registrations have been on the rise across most states from November 2018 to April 2019. Maharashtra leads the race followed by Gujarat.

“The compliance in Gujarat is very strong due to the laying of a well thought-out regulatory regime. There were technological and transitional issues, but the state regulator proactively provided handholding support to promoters and professionals,” said a real estate industry expert.

The credit should also go to the state’s realtors and professionals, said experts, for their willingness to adopt the new regime. Professionals swiftly understood the requirement of the regulator and guided the promoters in the right direction.

At present, 22 states and 6 Union territories have already notified their RERA rules, out of which 19 states have active online portals. West Bengal too has an active portal for its own real estate law.

Source: www.realty.economictimes.indiatimes.com/news/industry/gujarat-second-in-number-of-works-under-rera/69107187

May 16, 2019

Be more vigilant of developers’ escrow accounts: UP RERA asks banks

Noida

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) said it has sent letters to the zonal heads of all 42 banks to be more vigilant of the escrow accounts of the promoters and developers.

A copy of the letter has also been sent to the director general of the Directorate of Institutional Finance, Government of Uttar Pradesh, UP RERA said in a statement.

The authority has asked banks for strict compliance of the provisions of Section-4 (2) (I) (D) of RERA Act, 2016, which warrants 70 per cent of amounts realised for real estate projects to be deposited in a separate account and to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for limited purposes.

UP RERA Chairman Rajive Kumar said, “It has come to the notice of the Authority that some of the promoters are not complying with the statutory provisions of the law and withdrawing the amount from the designated account without submitting the requisite certificate. This is grave violation of the mandatory provisions of the Act.”

UP RERA Secretary Abrar Ahmed said the separate accounts related to 2,651 projects registered in RERA are being maintained in 962 branches, some of them are based out of Uttar Pradesh. “We have sent separate individual letters to all the 962 branches by speed post.”

It has also come to the notice of the Authority that some of the banks, especially the ones that have sanctioned loan to the promoter, arbitrarily adjust the entire amount deposited in the account against the outstanding loan of the promoter instead of transferring 70 per cent of the money collected to the escrow account for the purposes of construction and payment of the cost of land of the project, the statement said.

“The banks are requested to issue necessary instructions to all of the regional managers, deputy general managers, assistant general managers (and) branch managers to strictly comply with the provisions,” Ahmed said.

It is further clarified that if the banks do not adhere to the provisions of the Act, the matter will be brought to the notice of the chairman of the respective banks and the secretary of the banking department of the Government of India for appropriate action in the matter.

In total, there are 42 scheduled commercial banks — 21 each public sector and private sector lenders.

Source – www.realty.economictimes.indiatimes.com/news/regulatory/be-more-vigilant-of-developers-escrow-accounts-up-rera-asks-banks/68748179

May 14, 2019

RERA Turns 2

It’s been two years since the deployment of the Real Estate Regulatory Authority (RERA) across India and the Centre’s aim of enforcing it in each state is gathering visible momentum. Even the north-eastern states including Manipur, Meghalaya, Mizoram, Nagaland, and Sikkim – which earlier shied away from it – have agreed to officially notify RERA rules soon. West Bengal is the only state which notified its own real estate law under West Bengal Housing Industry Regulatory Authority (WBHIRA).

Rohit Poddar, Joint Secretary, NAREDCO West and Managing Director, Poddar Housing and Development Ltd. states, “RERA has been a huge success in Maharashtra, the trust gap between the developer and the seller has largely been bridged. RERA has been very quick to address the issues of the developers and giving judgments on the conflicts between the buyer and developers. Reconciliation process through arbitration cell has become faster and convenient for the customers in case of delay in possession, which has consolidated the confidence of the buyers in the market. MahaRERA is the best RERA in India.”

It may be recalled that RERA intended to cover developers as well as real estate agents seamlessly across the country. As it stands now, 22 states and 6 Union Territories have already notified their RERA rules, out of which 19 states have active online portals. West Bengal too has an active portal for its own real estate law.

Manju Yagnik, Vice Chairperson, Nahar Group & Vice President NAREDCO (MAHARASHTRA) – “One of the biggest and most important action in the industry was implementation of RERA. The challenge of bringing it in the ambit of regulation has been a journey that is still progressive in nature as many questions still do not have the answer. However the real estate machinery has changed with this development.”

Things are changing for the better. Generally, players are far more accountable and cannot easily get away with breaking the RERA rules.

“There are ample amount of reasons to celebrate the second year anniversary of the much needed RERA, the implementation of which was envisaged to bring in transparency in the industry, has definitely achieved what it was set out for. Developers today are committed more than ever on the delivery of the projects; it has also brought discipline in the usage of funds. All in all RERA has brought in some positive changes amongst the industry, along with increased accountability, transparency and efficiency.” Rahul Grover, President Sales and Operations at Sai Estate Consultants.

Amit Ruparel, Managing Director, Ruparel Realty on RERA completing 2 years, shares “The Real Estate Regulation & Development Act (RERA) is a landmark legislation poised to catapult the sector into its next phase of growth, laid on the foundation of being transparent, competitive, hassle-free and consumer-centric, which certainly benefits corporate developers like us and most importantly the home buyers.”

Source: www.realtyplusmag.com/rera-turns-two

May 14, 2019