Property Conveyance: KRERA Asks Developer to Hand Over Possession of Common Areas to Homebuyers

While real estate experts in Bengaluru applauded handing over possession of common areas to the association, they flagged several issues affecting homebuyers.

The authority notes that most of the allottees had moved into their apartments in Mahendra Aarna located in Anekal by 2019, however, the developer had failed to form an association.

In one of the first such rulings, Karnataka RERA has ordered a developer to hand over the possession of common areas to the homebuyers’ association in a south Bengaluru project.

In this case, the developer Mahendra Homes Pvt Ltd obtained the occupancy certificate and completed the project. However, KRERA pointed out in its order dated May 16 that according to the RERA Act, the developer should transfer the possession to the association.

The authority noted that as per section 17 of the RERA Act, the developer must hand over actual possession of the common amenities and other titles to the association of the allottees within three months of obtaining OC. “The Act clearly states that the respondent must maintain the common areas until it is handed over to the association. Thus, the developer is ordered to hand over the possession of common areas within two months of the order date,” KRERA said.

Moneycontrol has earlier reported a lack of clear state guidelines on the conveyance of properties had left several owners in a lurch. Experts say Karnataka developers fail to convey the common areas to the homebuyers thus retaining ownership in the property even after being sold.

The Case

The authority noted that most of the allottees had moved into their apartments in Mahendra Aarna located in Anekal by 2019, however, the developer had failed to form an association.

Thus the homebuyers accused the developer of charging unreasonable maintenance costs, including threats of disconnecting essential services like electricity in case the homebuyers defaulted on the fines levied.

Among the other allegations against the developer in the project, homebuyers said the developer is providing electricity through a commercial line — without applying for a residential connection.

However, the developer contended that it had already completed the project and obtained the occupancy certificate. “They have formed an association of allottees according to the state real estate laws by executing the deed of declaration (DoD) in 2023,” the order mentioned.

A DoD is a legal document used in the transfer of ownership of property from one person to another.

The Order

The authority mentioned that the DoD has been executed so that the association is formed, according to the laws. However, a KRERA inspection in January 2024 found that several amenities remain incomplete — including a multi-purpose hall, eight borewells, lifts, and car parking.

Additionally, the developer has not provided the individual Bangalore Electricity Supply Company Limited meters to each apartment as promised. Thus it ordered the developer to complete the promised amenities and provide the electricity meters.

A Problem at Large

While real estate experts in Bengaluru applauded the order for handing over possession of common areas to the association, they flagged several issues affecting homebuyers.

Dhananjaya Padmanabhachar, director, Karnataka Home Buyers Forum, said, “Today in Karnataka after the registration of the DoD, the builder exits the project without executing the registered conveyance deed. As the DoD mentions the undivided share of land, homebuyers are left under the impression that the land title has been transferred to them and they are the owners.”
Thus, without a conveyance of common areas, the land records at the land revenue department continue to reflect the names of the previous landowner, Moneycontrol had reported.

Additionally, Padmanabhachar pointed out, “The state government has submitted its response in public interest litigation to the Karnataka High Court, dated 2021, that registration of the DoD does not amount to the registration of the association. Unlike, the authority order in this case.”

Source: https://www.moneycontrol.com/news/business/real-estate/property-conveyance-krera-asks-developer-to-hand-over-possession-of-common-areas-to-homebuyers-12734680.html

MahaRERA Suspends Registration Of 20,000 Real Estate Brokers

Maharashtra’s realty regulator on Thursday said it has suspended the registration of 20,000 real estate brokers, leaving only 13,000 such registered agents in the state. There were a total of 47,000 agents registered with the regulator, which began the registration of the middlemen for property transactions in 2017.

Earlier this year, it cancelled the registration of 13,785 agents for not renewing their licenses.

The registrations of an additional 20,000 agents have been suspended for one year for not obtaining MahaRERA’s real estate agent certificate of competency or not uploading the certificate on the watchdog’s website, an official statement said.

Licenses of these 20,000 agents can be renewed if they complete training, obtain the certificate of competency, and upload the same on the portal within a year, it added.

According to an official, about 5,500 new candidates are likely to appear for the examination to get registered as agents next month. The body’s chairman Ajoy Mehta said an agent plays an important role and it is essential for them to be well-versed with the Real Estate (Regulation and Development) Act, 2016 regulation.

“MahaRERA has made it mandatory for agents to undergo training, clear the examination, and obtain certification. This decision was taken on January 10, 2023, and was extended multiple times before finally becoming binding for all agents on January 1, 2024,” he said.

Despite this, around 20,000 agents operating are still unqualified and their approval was suspended, he said, warning that the regulator will not hesitate to cancel the registration of developers who will continue to engage with the unqualified agents.

Source: https://realty.economictimes.indiatimes.com/news/rera/maharera-suspends-registration-of-20000-real-estate-brokers/110366477

MahaRERA Introduces Minimum Specifications For Retirement Homes And Senior Citizen Housing Projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced comprehensive regulations and specifications for retirement and senior citizen housing, applicable across Maharashtra. These guidelines, detailed in a recent circular, focus on essential aspects such as building design, green building principles, lifts & ramps and safety and security.

Compliance with these minimum physical specifications is mandatory for executing these projects. Developers will now need to incorporate these provisions in the agreement for sale, as the regulation takes effect across Maharashtra.

Previously, in February, MahaRERA had issued a circular on draft model guidelines for retirement and senior citizen housing projects, inviting suggestions and views from stakeholders. The positive response led to the inclusion of several useful suggestions, enhancing and strengthening the final guidelines.

The draft guidelines were based on model guidelines issued by the Ministry of Housing and Urban Affairs. MahaRERA’s objective is to ensure a standardised code for all senior citizens’ housing projects, according to officials.

Key provisions include the requirement for all buildings with more than one floor to have an elevator accessible for wheelchairs and
mobility equipment.

Internal and external building designs that facilitate the free movement of wheelchairs, including ramps, door openings not less than 900 mm with a preference for sliding doors, lifts equipped with audio-visual signage, at least one elevator large enough to accommodate a stretcher and paramedic staff, and staircases with a width of not less than 1500 mm, among others.

These guidelines are now in effect in the state. Any future project proposal for senior citizen housing must comply with these guidelines during implementation, MahaRERA states.

Source: https://indianexpress.com/article/cities/mumbai/maharera-specifications-retirement-homes-senior-citizen-housing-9333631/

Punjab RERA Penalises Developer For 5-year Delay In Flat Possession

Shimla couple had paid ₹64 lakh for the flat in 2015, with assurance of possession by 2018; but it was not handed over even after 5 years

The Real Estate Regulatory Authority, Punjab, has directed a developer to pay interest to a Shimla-based family for an over five-year delay in handing over possession of a flat in New Chandigarh.

The complainants, Kavita Gupta and Manohar Lal Gupta, had filed a case against Omaxe New Chandigarh Developers Private Limited, Mohali.

The couple submitted that on March 17, 2015, they were allotted a residential unit, measuring 1,885 square feet, at “The Lake” project developed at Omaxe, New Chandigarh.

The basic sale price was around ₹68 lakh of which they paid around ₹64 lakh.

The possession was to be delivered on September 17, 2018. However, even after five years, the possession has not been handed over to them.

Alleging that the developer has violated various provisions of the Real Estate (Regulation and Development) Act, 2016, they filed a complaint, seeking payment of interest against the delay in handing over possession.

In their response, the developer alleged that the Act was not violated. “The complainants tried to mislead by stating that the period of handing over the possession to be 42 months, but it is 48 months with six months’ grace period,” the developer claimed, further alleging that the instalments were not paid on time.

Hearing both sides, the Real Estate Regulatory Authority, Punjab, ordered that the complainants were entitled to payment of interest from the developer for the period of delay in handing over possession.

Thus, it directed the developer to pay interest on ₹64.91 lakh at the rate of 10.85% per annum from May 9, 2019, as prescribed in Punjab State Real Estate (Regulation and Development) Rules, 2017, till a valid offer of possession is made after occupancy certificate.

MahaRERA Invites Suggestions On Draft Regulation For Quality Assurance

INTRODUCTION: The Maharashtra Real Estate Regulatory Authority (MahaRERA) is soliciting feedback on its Draft Regulation for Quality Assurance, emphasizing the importance of proactive measures in ensuring the quality of construction. Under the Real Estate (Regulation and Development) Act, 2016, MahaRERA is empowered to enforce standards that safeguard the interests of homebuyers.

DETAILED ANALYSIS

1. LEGAL FRAMEWORK: Section 14(3) of the Act mandates promoters to rectify defects within a specified period. However, MahaRERA seeks to go beyond mere rectification by instating measures to prevent defects in the first place.

2. PROACTIVE APPROACH: MahaRERA’s focus is on quality assurance as a preemptive measure rather than a reactive one. By ensuring strict adherence to quality standards throughout the construction process, the aim is to minimize the occurrence of defects and subsequent rework.

3. QUALITY PARAMETERS: The proposed Quality Assurance Certificate encompasses four key parameters: Structural Design, Stability, and Testing Quality of Input Materials Quality of Workmanship Miscellaneous Factors

4. RESPONSIBILITY: The certificate, to be submitted annually, holds the promoter accountable for maintaining standards prescribed by MahaRERA. It emphasizes the importance of structural integrity, material quality, skilled labor, and adherence to regulatory requirements.

5. CONSULTATION PROCESS: MahaRERA invites stakeholders to provide suggestions and views on the draft regulation, underscoring the collaborative effort to enhance quality standards in the real estate sector.

CONCLUSION: MahaRERA’s initiative to solicit feedback on the Draft Regulation for Quality Assurance signifies a proactive stance towards ensuring high standards in real estate development. By incorporating preventive measures and rigorous quality checks, MahaRERA aims to instill confidence in homebuyers and elevate the reputation of the industry. Stakeholder participation is pivotal in shaping regulations that promote sustainable and quality-centric practices, ultimately benefitting both buyers and developers.

MahaRERA Makes Mandatory To Include All Details Related To Parking In Legal Documents

Complaints that MahaRERA receive are of various nature, such as, building’s beam obstructing parking of vehicle, vehicle cannot be parked in the parking, vehicle door cannot be opened to exit, manoeuvring space inadequate, etc.

Mumbai: Several complaints have been received by the Maharashtra RealEstate Regulatory Authority (MahaRERA) with regards to parking spaces sold and allocated by the developers. Taking serious cognizance of this and to prevent a recurrence, the housing regulator has made it mandatory to include all details related to parking as part of annexures to the Allotment Letter and Agreement for Sale.

The complaints that MahaRERA receive are of various nature, such as, building’s beam obstructing parking of vehicle, vehicle cannot be parked in the parking, vehicle door cannot be opened to exit, maneuvering space inadequate, etc.

MahaRERA has issued a model draft clause as per of circular’s annexure, to be included in the legal documents, which includes all the details regarding the parking lot number, parking length, height, width, location of the parking block, etc. in the building. This
standard clause is to prevent any ambiguity or disputes at a later stage and is mandatory for promoter to annex this with Allotment letter and Agreement for Sale.

Details of model agreement for sale, issued in december 2022

In the Model Agreement for Sale, issued in December 2022, mention of Force Majeure, Carpet Area, Defect Liability Period and Transfer Agreement have been made mandatory in every agreement for sale. Now, parking in another aspect that has been made non-negotiable and any changes made despite the consent of a homebuyer, will not be accepted by MahaRERA.

Therefore, MahaRERA insists on strict adherence to the circular and the standard draft clause stating complete details about a parking slot. This will prevent any inconvenience and agony over parking premises that a homebuyer otherwise faces after moving into a new residence.

Kerala Real Estate Regulatory Authority issues notices to 63 real estate projects for not filing tri-monthly report

The Kerala Real Estate Regulatory Authority (K-RERA) has issued notices to 63 real estate projects in the State for not submitting online tri-monthly reports for the current calendar year. Out of 582 projects only 519 filed their reports, said K-RERA.

Sources in the authority said that tri-monthly reports are part of the process of building transparency in the real estate business. The reports give a clear idea about the progress of works for consumers and ensures confidence in the builder.

The State government had recently issued a circular instructing local government bodies about the procedures to be followed to get plot development projects registered with the regulatory authority. The circular, issued on March 16, said the rules governing the registration of plot development and sale of the plots should be displayed for the public in the offices of local bodies.

The circular instructed the secretaries of local bodies concerned to issue stop memos in cases where plot development and sales were done without regulatory sanctions or permission for layouts. The stop memos are to be issued under the Panchayati Raj rules of 1994 or Kerala Municipality Building Rules.

There has been a surge in the number of real estate projects during the last calendar year. The numbers had increased 32.70%. While a total of 159 projects were registered in 2022, the number rose to 211 in 2023. A total of 191 real estate projects reported their completion during the year 2023.

The largest number of registrations in 2023 fell under the residential apartments category, accounting for 122. There were also 56 villa projects. Twenty-one plots of land were registered. Commercial-cum-residential projects registered during 2023 totalled 12.

Source: https://www.thehindu.com/news/cities/Kochi/kerala-real-estate-regulatory-authority-issues-notice-to-63-real-estate-projects-for-not-filing-tri-monthly-report/article68091143.ece

Rera Orders Ground Checks As Realtors Fail To File Reports

H-Rera investigates 100 projects for missing reports, initiates action against delays. Inspections and warnings issued. Arun Kumar leads efforts, threatening penalties for non-compliance, including management seizure.

GURGAON: The Haryana Real Estate Regulatory Authority (H-Rera) has sought a ground report on around 100 housing projects on which developers have not been submitting the quarterly reports.

The developers have to submit quarterly reports to the authority on the construction status of the projects. The regulator, through its police wing, has started doing fact checks to push developers to comply with the norms.

Also, the authority plans to cleanse the database based on the ground reports.

According to a senior Rera official, the authority has initiated action as most projects are running behind schedule and developers haven’t submitted quarterly progress reports and annual audit reports to the regulator. Acting on the direction, a Rera team inspected around 14 residential and commercial projects in various sectors and took stock of the situation.

In Feb, H-Rera chief Arun Kumar had started the initiative to act against such lax builders. The authority also warned of strict action if developers did not follow the rules and conditions.

“Filing of quarterly progress report and annual audit report by real estate promoters is mandatory under the Rera Act 2016, but even after this, several builders have not submitted the report. Quarterly progress report gives info on the status of a project’s construction so that attention can be paid to the project in time,” said an HRera official.

According to the norms, if a builder doesn’t follow the rules and conditions, there is a provision of imposing penalty against the management, seizing its Rera accounts and confiscating properties among others.

The realty companies who don’t intend to complete the projects do not file quarterly reports and annual reports or delay them, said the official. On Feb 14, Kumar himself had inspected all stalled projects to know the ground situation and assured thousands of innocent allottees about action against the erring developers.

Source: https://timesofindia.indiatimes.com/city/gurgaon/rera-orders-ground-checks-as-realtors-fail-to-file-reports/articleshow/109145812.cms

MahaRERA To Launch Project Grading System To Enhance Homebuying Experience

MahaRERA’S project grading system aims to empower homebuyers with transparent insights into real estate projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) had suggested last year, a project grading system in order to help homebuyers make an informed decision. That plan may soon see the light of the day, as MahaRERA is expected to launch the grading system soon.

The grading will be based on four key parameters—technical, financial, legal, and project overview; and will evaluate projects every six months in a bid to keep homebuyers aligned with the construction progress. As a part of this process, all projects launched from January 2023 onwards will be graded.

However, since this is still a pilot project, MahaRERA is expected to first provide project information/analysis without assigning a grade to the project. This information would enable homebuyers to evaluate if the project is on the right track; the actual grades could take a few more years to be rolled out.

Industry experts, however, also feel that a few more parameters should be taken into account in order to provide a holistic overview.

Some of the key parameters are as follows:

Construction Quality: Assessing the track record of the developer in terms of construction quality, materials used, and adherence to building codes and regulations.

Environmental and Sustainability Factors: Considering the project’s impact on the environment, its compliance with sustainability standards, and the incorporation of energy-efficient measures, waste management systems, and green building practices.

Track Record of Developer: Assessing the reputation and past performance of the developer, including timely completion of previous projects, compliance with regulatory norms, financial stability, and adherence to customer commitments.

Customer Feedback: Incorporating feedback from existing customers of the developer or similar projects to assess customer satisfaction, and after-sales service, and address any potential issues.

– Ritesh Mehta, senior director and head (North and West), residential services and developer initiative, JLL India

Promptly updating grades assigned to each project on MahaRERA’s website, explaining how each parameter is assessed and graded, ensuring that the website’s interface is user-friendly enabling homebuyers to check grades with ease, and an effective feedback mechanism for homebuyers to raise concerns or grievances related to project evaluations should be implemented to make this grading system more robust and effective. Additionally, engaging competent third-party agencies for these audits will make them more authentic,” adds Ravi Shankar Singh, managing director, of residential transaction services, at Colliers India.

“MahaRERA could also take initiatives to educate buyers on how to interpret these grades and reports, helping them understand what these evaluations mean for their investment. There should also be a clear and fair process for developers to appeal their grades if they believe the evaluation was not accurate or fair. MahaRERA could consider incentives for projects that achieve high grades, such as faster approval processes or recognition in MahaRERA publications, to encourage quality and compliance,” suggests Prashant Sharma, president, NAREDCO Maharashtra.

Developers are optimistic about this move, however, there are a few concerns, “The process of information seeking from developers for this rating should be minimalistic in its philosophy, as developers are already providing a vast amount of data for RERA registration. An ideal way would be to integrate the data requirement in one place rather than two separate data requirements. It should also be mandatory for every developer to display the project rating prominently along with the RERA registration number,” suggests Harmohan Sahni, CEO, Raymond Realty. “Overall, the sector will benefit from this proactive approach, which fosters responsible practices and builds trust between buyers and developers,” concludes Manju Yagnik, senior vice president, NAREDCO Maharashtra.

Uttar Pradesh Real Estate Regulatory Authority Passes 5 Orders To Safeguard Homebuyers’ Interests

UPRERA has asked realtors to sell housing units only on the basis of carpet area and register projects with the same name as recorded in the sanctioned map.

The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interest of homebuyers. It has directed real estate developers to sell housing units only on the basis of carpet area and has also asked them to register their projects with the same name as recorded in the sanctioned map. Another order is to do with the inclusion of names of co-allottees in homebuyers’ complaints.

The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interest of homebuyers. The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interest of homebuyers. The RERA Authority has also directed real estate developers to print the QR code loaded project registration certificate and display it at a prominent place in its office and the project site marketing office so that it is visible to prospective and existing homebuyers of the project from a distance. This is similar to a MahaRERA order that has been in force since August last year.

Hindustan Times – your fastest source for breaking news! Read now. ALSO READ: Real estate sector will contribute 15% to the GDP and will reach a market size of $1 trillion by 2030: Puri It has also made it mandatory for the real estate developers to prove their title on the land on which they propose to develop a real estate project.

1. DEVELOPERS MUST MAINTAIN THE SAME NAME FOR PROJECT BRANDS AS MENTIONED IN THEIR MAPS

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has ordered real estate developers to maintain the same name for project brands as mentioned in their maps approved by local authorities and registered with RERA to avoid confusion among homebuyers.

UP RERA said in a statement that the promoters need to register their projects with the same name as recorded in the sanctioned map and the names of towers and blocks must also be the same as in the sanctioned map.

“RERA had to issue these directions because in the wake of differences between the name of the projects and the towers registered with it and the names in the OC (occupancy certificate) or CC (completion certificate), it was finding difficult to ascertain the completion status of the projects as also to decide the promoter’s application for closure of the project accounts,” it said in a statement.

“It was also observed that promoters were using project brand names which were different from the names registered with RERA and this was creating doubts amongst the existing and prospective home buyers. Therefore, to address such anomalies, RERA has now directed the promoters to market the projects with the same name as registered with RERA,” it added.

2. HOMEBUYERS MUST INCLUDE NAMES OF CO-ALLOTTEES IN THEIR COMPLAINTS

UPRERA has asked homebuyers to include the names of co-allottees also in their complaints. It observed that in some cases the complainants had not included the co-allottees as co-complainants and the RERA Benches had disposed of the complaints after hearing the respective parties which in such cases meant hearing only one of the allottees.

“… UP RERA has decided that the name of the co-allottee shall henceforth be included as co-complainant in the complaints filed by the allottees. Necessary facility is being provided on the portal for this purpose,” UP RERA said in a statement.

It said it has observed that joint allotment of houses or shops is a common practice in which husband and wife, father and son, brother and sister and other blood relations are co-allottees and there are cases where a person other than blood relation, such as partner, and sometimes more than two persons are co-allottee.

“Their interests do not necessarily coincide always and disputes between such co-allottees or co-owners do sometimes arise. The absence of the name of the co-allottee in the complaint lodged in RERA is a lacuna due to which resolution of complaints, execution of orders and further proceedings takes more time than required,” UP RERA observed.

UP RERA has created a facility on its portal where a complainant can file such an application online using his dashboard, it added.

3. UPRERA TO TRAIN NEW AND EXISTING REAL ESTATE AGENTS

The state RERA authority has said that it will train new as well as existing real estate agents across the state and will provide them certificates. It said that it will start a special training and certification program for agents where they will be taught the provisions of RERA Act and UPRERA rules. This is similar to a MahaRERA circular issued last year that had made it mandatory for real estate agents to undergo training and appear for an exam.

4. UP RERA ASKS PROMOTERS TO PROVIDE QR CODE WITH PROJECT DETAILS TO HOMEBUYERS

UPRERA has also asked real estate developers in the state to provide project registration certificates embedded with QR code to existing and prospective homebuyers.

“The registration certificate includes relevant details of the project, including its name, name of the promoter, registration number with details of month and year, its duration, including the start and completion date, the project and the promoter addresses,” it said in a statement.

“The QR code is also loaded with the important conditions of registration like the obligation of the promoter to deposit 70 per cent of the amount realized from the allottees and all the moneys raised through project finance, in a separate bank account for being utilized only to cover the cost of construction and that of the project land,” it said.

UP RERA has directed the promoters to print the QR code loaded project registration certificate and display it at a prominent place in its office and the project site marketing office so that it is visible to prospective and existing homebuyers of the project from a distance, it said.

“The homebuyers can scan the QR code of the certificate using their mobile phones and see the details of the project, including details relating to the land, approvals, quarterly progress report, etc, on the web portal of the authority. The project registration certificate is being issued in Form-C,” it added.

5. UP RERA DIRECTS HOUSING PROJECT DEVELOPERS TO SELL UNITS ON CARPET AREA BASIS

UPRERA has directed real estate developers to sell housing units or apartments as per carpet area only. As per the provisions of the RERA Act and pursuant to other legal agreements and contracts, there is no justification of ‘Super Area’, UP RERA said in a statement.

The sale of apartments on this basis will be considered illegal and according to the provisions of RERA Act, buying and selling of apartments is legal only on the basis of carpet area, it said in a statement.

“There is no abbreviation or definition of Super Area in the RERA Act. It is indeed necessary for allottees to consider Carpet Area as the actual area of the unit or apartment and pay the promoter according to this area,” UP RERA Chairman Sanjay Bhoosreddy has said.
For an agreement for sale between a promoter and an allottee, a model agreement for sale has been provided on the UP RERA portal. This model agreement for sale is also based on carpet area. In this way, selling apartments or units on the base of ‘Super Area’ is contrary to the provisions of the RERA Act, according to the statement.

“Hence, promoters must ensure the sale of units according to the Carpet Area only. Violation of this provision may cause legal action,” the UP RERA added.

A few weeks back, Forum for People’s Collective Efforts (FPCE), a pan-India homebuyers’ association had suggested that a unit within the housing ministry be set up to monitor the functioning of all state real estate regulatory authorities (RERAs).