RERA rules: 10 important facts to know

The government notified the final rules to implement the Real Estate (Regulation and Development) Act, 2016 (RERA) that aims to bring transparency and set accountability in the sector and help in completion of stalled projects. The rules will be applicable for five Union territories without legislature of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Chandigarh.

Here are the key points you should know about:

  1. Pay Compensation: Developers will now be required to refund or pay compensation to the allottees for delay in projects with an interest rate of the State Bank of India’s highest marginal cost of lending rate plus 2% within 45 days of it becoming due. This would come to around 11% to 12%.
  2. Deposit Money: For the completion of ongoing projects, developers will have to deposit 70% of the amount collected and unused within three months of applying for registration of a project with the Real Estate Regulatory Authority in a separate bank account.
  3. Punishment: The rules also contain clauses providing for compounding of punishment with imprisonment for violation of the orders of Real Estate Appellate Tribunal against payment of 10% of project cost in case of developers and 10% of the cost of property purchased in case of allottees and agents.
  4. Sale of Properties: Discrimination in sale of properties on any grounds will also not be entertained under the new rules. Adjudicating Officers, Real Estate Authorities and Appellate Tribunals shall dispose of complaints within 60 days.
  5. Certification: In respect of the ongoing projects that have not received completion certificate in specified time, developers will have to make public the original sanctioned plans with specifications and changes made later, total amount collected from allottees, money used, original timeline for completion and the time period within which the developer undertakes to complete the project.
  6. Carpet Area: Promoter shall also declare size of the apartment based on carpet area even if it was earlier sold on any other basis.
  7. Registration: For registration of projects with the authorities, developers will be required to submit authenticated copy of PAN card, annual report comprising audited profit and loss account, balance sheet, cash flow statement and auditors report of the promoter for the immediate three preceding years, authenticated copy of legal title deed, copy of collaboration agreement if the promoter is not the owner of the plot. Promoter also has to declare information regarding the number of open and closed parking areas in the project.
  8. Income Tax Returns: The requirement of disclosing Income Tax returns proposed earlier has been withdrawn in the final Rules keeping in view the confidentiality attached with them and as pointed out by legal experts and promoters.
  9. Fee for Registration: To incentivize registration of projects and Real Estate Agents with Regulatory Authorities, fee for the same has been reduced by half based on suggestions from promoters for reduction of fee.
  10. Information about Details: To enable informed decisions by buyers, Real Estate Regulatory Authorities will ensure publication on their websites information relating to profile and track record of promoters, details of litigations, advertisement and prospectus issued about the project, details of apartments, plots and garages, registered agents and consultants, development plan, financial details of the promoters, status of approvals and projects etc.

Sources – www.realty.economictimes.indiatimes.com/slide-shows/rera-rules-10-things-to-know-about/55156347

Safety Hazard – Light point above gas stove provision

Detect Issues

One wall light provided above cook top gas stove provision.

Describe Issues

Light above gas stove position is unsafe as oil vapour from cooking will damage wire & fixture. If chimney is placed, light point will be unusbale. If not rectified at proper time, this can cause electrical & safety hazard for occupants.

Direct Solutions

We recommend to provide waterproof light fixture or changing the location of light before painting.

Size of Real Estate Market to grow to USD 650 billion by 2040: Niti Aayog

New Delhi

Indian real estate market is expected to jump over fivefold to USD 650 billion by 2040 and its share in the country’s gross domestic product (GDP) is set to double from the current seven per cent, Niti Aayog Vice-Chairman Rajiv Kumar said Friday.

“The government is committed not only to real estate sector but all aspects of it. The government is very conscious and cognisant of what happening in the sector and how it contributes to the economy,” he said while addressing a global luxury realty conclave organised by India Sotheby’s International Realty.

Kumar said the recent Interim Budget has demonstrated that the government would take steps to make sure that the real estate sector grow and develop further so that this industry contributes even more to the economy.

The Centre has offered a lot of tax incentives to developers building affordable houses and also tax sops to homebuyers looking to purchase second homes.

Highlighting the importance of this sector, the Niti Aayog vice-chairman said the real estate sector is contributing seven per cent to the country’s GDP and its share is expected to double by 2040.

The current size of the real estate market is already USD 120 billion dollar and this will grow to USD 650 billion by 2040, he said, adding that the industry employs 55 million people now and this number will rise to 66 million as it grows.

“This sector is heart of the economy. It has backward linkages with 200 other industries,” Kumar said.

He also said the real estate sector would contribute more with rapid urbanisation.

Kumar said the two legislations — the goods and services tax and the RERA — implemented by the government would help in organised growth of this sector.

He asked real estate companies to blend best of Indian culture and best of global facility and technologies in their future development of properties.

Speaking on the sidelines of the event, Embassy group President (Residential Business) Reeza Sebastian said there is a good demand for completed housing units in all categories including luxury homes.

Tata Housing Managing Director and Chief Executive Officer Sanjay Dutt said the demand for luxury houses is slow and this has given an opportunity to better our product portfolio in terms of design and other services.

Colliers International National Director Gagan Randev said: “Luxury real estate market has become much more discernible with a preference in most markets for gated communities offering a luxury lifestyle. Developers are differentiating their high end products and this has resulted in success of branded residence.”

Gaurs Group MD Manoj Gaur said the luxury housing is looking up and its demand is growing because of a growing number of high networth individual in the country.

Amit Goyal, CEO of India Sotheby’s International Realty, said this is the third edition of global luxury real estate conclave, which provides a platform where all the stakeholders come together to discuss the ever-changing luxury property market.

India Sotheby’s International Realty is part of the of US-based Sotheby’s International Realty, which operates a global network of over 22,000 affiliates with 970 offices across 72 countries, dealing in luxury real estate properties.

Sources – www.realty.economictimes.indiatimes.com/news/industry/size-of-real-estate-market-to-grow-to-usd-650-billion-by-2040-niti-aayog/68114021

Even door frames have specific hinges

Detect Issues

Wooden door hinges used in aluminium door frame.

Describe Issues

Due to usage of wooden door hinges in aluminium door frame, stability of frame will get reduced with air pressure. Hence frame will get loose and panel will rattle. Moreover aluminium doors are designed to move door both ways, but due to usage of wooden hinges it will be not able to move both ways. It can create problem for residents in future.

Direct Solutions

We recommend review and replacing with aluminium door hinges / floor spring.

Home Electricals System – Some Basic Questions Answered

As a home owner, one should know the basic parameters of the electrical system of the home one lives in.

Electrical system is a huge system divided into generation, transmission and distribution system, all the parts being taken care off by respective departments. The wiring inside a house can be a complicated matter for the owner but some basic things are easy to be kept in mind by the owner. Firstly in a home the standard voltage is 220V.

Here are answers to some of the basic home electrical system questions:

Q-1. Should a home have a DB and what are the components inside the DB?

Ans. Every home must have a DB. A DB stands for Distribution Box. DB is a component of an electricity supply system that divides electrical power and feeds into subsidiary circuits, with protective circuit breaker for each circuit in a common enclosure. One must ensure that each DB is with MCB for each circuit and also RCCB is installed. Once you are assured that DB with accessories are present then get it inspected for proper amperage, operation, safety and even load distribution.

Q-2.Why RCCB is a must?

Ans. RCCB stands for Residual Current Circuit Breaker which has been designed to protect a circuit from leakage fault. RCCB is a must because it provides protection even from a small leakage current generated by human touch or insulation failure of wire. MCB does not provide this level of protection. So the home owner / seller / buyer must ensure that RCCB has been installed at the home.

Q-3. What is electrical wire colour code and why is it important?

Ans. One must have got confused at some time on the sight of different colour wires in electrical wiring. Questions arise for the different colours of wires such as why different colours and why not same colour? For your information the wire colours used, are based on the Electrical colour code for wires which defers from country to country. In India for a single phase (220V) electrical wiring, the code followed is RGB i.e. Red colour wire for Phase, Green colour wire for earthing and Black colour wire for neutral connection. In case of three phase, two more colours are followed – Blue and Yellow, in which case, Red, Blue and Yellow coloured wired are used for phase connection, Green for Earthing and Black for neutral. So now you know which colour wire stands for phase, neutral and earthing in your wiring system.

Q-4. Earthing connection provided at which of the three-pin socket points?

Ans. The first thing that comes to mind is that at which terminal / hole in a 3 pin socket is the earthing terminal? Generally Earthing terminals are of a higher diameter. Hence checks to be done for earthing connection, which is a must as it protects against the leakage current causing shocks.

Changes in RERA need of hour to achieve growth: Madhya Pradesh RERA chief

Indore

With changing times, lot of technical advancement is happening in real estate sector and maximum utilization of the advancements will set the direction of real estate sector, said head of MP Real Estate Regulatory Authority (Rera) on Friday. “These changes or technical advancement may be a challenge for developers but need of the hour to accept these changes to achieve growth,” Rera chairman Anthony De Sa said on Friday at a seminar on ‘Amendments in RERA’ conducted by Institute of Chartered Accountant Indore branch.

De sa said the aim of Rera is to ease and smoothen real estate market by bringing transparency and responsibility.

Addressing realtors and chartered accounts, he said, “Through Rera, we aim to increase investment in real state sector and protect rights of consumers. Higher investment in the sector will help in recovering from the tough phase.”

Rera chairman said chartered accountants also play an important role in ensuring the norms are followed and true documents are submitted by developers. He said a new format for developers report has been drafted by authorities after suggestions from chartered accountants.

“The pace of any project will be monitored on basis of quarterly return that shall be attested by chartered accountant,” said De Sa.

In Rera, audit of accounts is mandatory for developers. He said as per Section 4(2), it is the role of chartered accountant to check that money received from a particular project is spent only on that project and debit from the account is in accordance with site expenses.

CA should collect all information about project well in advance from developer before handing over certificate to authorities. Institute of Chartered Accountant Indore branch chairman Abhay Sharma said, “Rera has been implemented since past 21 months but still there is lack of awareness. For smooth implementation of real estate act it is important that people are fully aware of their rights and role of Rera that it plays in regulating real estate market.”

Fastener is key to Window Stability

Detect Issues

Screws used for fastening of window frame into wall.

Describe Issues

Usage of screws will reduce stability of the window frame as they are not designed for wind pressure. This can cause displacement of window frame which can create path for moisture and cause further damage. Additionally screws get easily rusted due to quality of its material. Hence this will add to the repair cost.

Direct Solutions

We recommend fitting of SS mechanical fastener with nylon plug.

Proper filling of gap can save floor from moisture intrusion

Detect Issues

Discolouration noted at wooden laminate flooring in bedroom near balcony door.

Describe Issues

Floor of bedroom & balcony is at same level and balcony door is placed over balcony floor; no sill / concrete barrier / level difference is given in between balcony & bedroom floor. Due to this sealant gets damaged when rainwater seeps inside or during washing of balcony. Additionally sealant application was not adequately done. Hence this can further deteriorate floor and can get affected by termite also; if not taken care in proper time can also cause damages to associated ceiling below the floor due to moisture. Thereby will create difficulty for residents by adding a cost and inconvenience due to repair.

Direct Solutions

We recommend :
1. Existing sealant to be scrapped off completely.
2. Gap under the door frame to be packed with backer rod of suitable size & sealed Glazing Silicone Sealant as per manufacturer’s specification.

Advantage Home Buyers: Home Inspections in the light of WB HIRA / RERA | Press Conference by MACJ – A Buyer’s Choice Home Inspections, 23rd of February, 2019 at Kolkata Press Club

Advantage Home Buyers: Home Inspections in the light of WB HIRA / RERA
Home Inspection Industry booming across various Indian cities. Industry Leader, MACJ – A Buyer’s Choice, expands PAN India

Kolkata Kalling – MACJ – A Buyer’s Choice Home Inspection hosted a Press Meet at Kolkata Press Club last Saturday on 23rd February, 2019. The event was well covered by various Media Houses.Find some glimpse of the event……

The Speakers on the dais includes:

  1. Mr. Varun Goenka, Managing Director AG Group, Real Estate Developer
  2. Mr. Anup Dalmia, President RECA(Realtors Association, Kolkata) & Vice President, NAR, India
  3. Ms. Harleen Kaur, Interior Designer, Glamour School of Fashion & Interiors
  4. Mr. Kamal Prakash, Industrialist, Promoter – Jiwanram Sheoduttrai Group
  5. Mr. Mahendra Sureka, Founder & CEO, MACJ – A Buyer’s Choice, India

Dawn of a Sun-Shine Industry – Multiple Home Inspection companies start operating across various Indian cities
A new era has been born in India with the initiation of Professional Home Inspection Services Industry. Seeds have been sown for the development of a potentially multi-billion US Dollars Home Inspections Industry in India. Leading professionals (from IIT / IIM / Google / SAP / Wharton / ICAI) have started multiple home inspection companies in various cities of India.

Formation of Home Inspection Association of India – A Milestone achieved in the country
MACJ – A Buyer’s Choice, has taken the lead in bringing the founders of key home inspection companies operating in India, come together to form the Home Inspection Association of India (HIAI). The Association has been formed with the objective to have a common platform for the growth, development & regulation of home inspection industry in India. It will also further the RERA / WB HIRA objectives of the government.

Mahendra Sureka (Founder -CEO, MACJ, India) said the implementation of WB HIRA / RERA has further boosted the Home Inspection Services industry. He was confident that home inspection services in India will develop into a multi-Billion US Dollar industry over the next decade helping both the developers and home buyers in the process. This will also help in skill development and creating huge employment opportunities.

Speaking to the press, Mr. Varun Goenka, Promoter AG Group, city based real estate developer, said that the advent of the West Bengal Housing Industry Regulatory Act, 2017 (WB HIRA) will give a big boost to the real estate market. In the light of RERA, the home inspection services will not only boost the morale of the consumers but will also provide the real estate developers peace of mind by assuring quality control over work done by contractors / workers even when they or their senior management cannot always actually be on-site. This will enable developers to deliver pre-inspected quality homes to their home buyers.

Mr. Anup Dalmia, President of Realtors & Estate Consultants Association, Kolkata (RECA) & Vice President, National Association of Realtors, India said, “WB HIRA will go a long way in creating awareness, the real estate agents will have a much larger and responsible role to perform and it will bring in professionalism in the sector. He added that with Home inspections, realtors can potentially sell the home for more money by providing pre-inspected quality homes to their customers.

Ms. Harleen Kaur, Interior Designer and owner of Glaamour School of Fashions & Interiors stressed on the importance of home inspections before interior designing and added that it opens up a totally new segment for skill development, certification courses and employment generation.

Mr. Kamal Prakash, Industrialist, JS Group mentioned that they have been using MACJ – A Buyers Choice Home Inspections services for their residence, office, School NGO regularly & were very happy with the services and professionalism of the team.

MACJ, India has collaborated with the leading US, MNC – A Buyer’s Choice Home Inspections (ABCHI) to pioneer professional home services in India for the first time from the city of Kolkata, West Bengal. ABCHI, USA is presently having over 200 franchises spread across 19 countries on a path to become the world’s largest home inspection company. MACJ, India has been co-promoted by Mahendra Sureka & Arvind Kumar Bhotica along with investors Kamal Prakash of Jiwanram Sheoduttrai Group and Ravindra Chamaria, Infinity Group.For more information about MACJ – A Buyer’s Choice Home Inspections in India, call +91-8584855470, email at info@macj.in or visit www.macj-abuyerschoice.com

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by MACJ-ABCHI News