UP, Gujarat dilute new realty law

States led by UP and Gujarat have begun diluting provisions of the Real Estate (Regulation & Development) Act, which notify the rules for regulation of the sector. Both states have let off most ongoing real estate projects which have been delayed for long and remain a worry for thousands of home buyers awaiting delivery.

While UP has come up with four exemptions to exclude incomplete projects from the category of “ongoing projects”, Gujarat has exempted all projects launched before notification of the rules. This means such projects won’t have to be registered with the real estate regulator in these states.

On the contrary, the law enacted by the Centre earlier this year provides for mandatory registration of all “ongoing projects” that have not received completion certificate.

“The central law, which is binding on all states, does not differentiate between ongoing and future projects for registration. However, it provides for registration of incomplete projects within three months from the commencement of the Act,” said an official here.

The norms notified by UP excluded projects in which services had been handed over to the local authority for maintenance, common areas and facilities that had been handed over to RWAs for maintenance and where development work had been completed and sale and lease deeds of 60% houses executed.

“This dilutes norms laid down in the law and will help builders avoid the mandatory regulatory provisions,” the central government official said.

Source:http://timesofindia.indiatimes.com/india/UP-Gujarat-dilute-new-realty-law/articleshow/55235807.cms

Occupancy certificates to be processed by Noida under new RERA rules

 

The Noida authority on Tuesday said it has stopped accepting builders’ occupancy certificate applications for group housing buildings without the required documents, as laid down under the Uttar Pradesh Real Estate (Regulation and Development) Rules, 2016.

The Noida authority on Tuesday said it has stopped accepting builders’ occupancy certificate applications for group housing buildings without the required documents, as laid down under the Uttar Pradesh Real Estate (Regulation and Development) Rules, 2016 .
As per the rules, if a builder has submitted an application before the local government body (such as the Noida or Greater Noida authority) to obtain occupancy certificate and the same is accepted then that particular project will not be governed under new real estate regulatory authority.

“We have made it very clear to all developers that they will have to provide fire clearances, necessary environmental approvals, no-due certificates and documentary evidence to prove that a particular building is eligible to be occupied and given an occupancy certificate. Our staff will examine whether all required papers are in order. If even a single paper is missing, we will not accept the application,” said SC Gaur, chief architect and town planner of the Noida authority.

Officials said that the authority has issued instructions to its planning department and also informed developers on the issue. The move is to ensure that developers do not misuse the provision to get away from regulatory authority’s strict rules.

As per the process of the Noida authority, a developer’s certified architect submits a completion certificate detailing the building for which an occupancy certificate is required and ready to be handed over to homebuyers. Then, the planning department of the Noida authority examines the documents and conducts an on-site inspection.

Official said that the authority issues occupancy certificates only after it is satisfied that the builder has completed all required facilities.

“Earlier, in many cases, we used to demand missing documents from the developer during the processing of an application. But now we will begin the processing of an application only if all required documents are in place,” Gaur said.

The Greater Noida authority may also adopt Noida’s method to make sure developers do not cheat.

“I will check it with the Noida authority on the procedure it is applying. If I find it necessary, then I will adopt the same,” Deepak Aggarwal, chief executive officer of the Greater Noida authority, said.

Source:http://www.hindustantimes.com/noida/occupancy-certificates-to-be-processed-by-noida-under-new-rera-rules/story-V9YMtVwsEotxRXv8FU5u8K.html

Chandigarh sets up realty regulatory body

The development comes as the central government is set to notify the RERA Act, asking all Union territories to implement the act in the first phase.

The city has become one of the first in the country to set up a temporary Real Estate Regulatory and Development Authority (RERA) to address hardships homebuyers face due to delay in possession of flats and plots.

It handed over charge to 1989-batch IAS officer and Chandigarh Housing Board (CHB) chairman Maninder Singh Bains.

The development comes as the central government is set to notify the RERA Act, asking all Union territories to implement the act in the first phase.

“We have formed temporary RERA in the city. UT housing secretary Maninder Singh Bains will head it as the chairman. He will listen to grievances and complaints of plot owners till the formation of a permanent authority that we will be set up by the stipulated period in April 2017,” said UT adviser Parimal Rai.

Sources said since its formation needs the intervention of the centre, the UT administration has prepared a full-fledged case to be sent to the government in a day or two. Besides private builders and real estate giants, government agencies will also come under the new act.

“In the current scenario, government agencies dealing in construction of houses are also under the act. However, deliberations are being held whether government agencies like CHB and others need to be part of it or not as they are more trustworthy as compared to private builders,” said Bains.

Source:http://realty.economictimes.indiatimes.com/news/regulatory/chandigarh-sets-up-realty-regulatory-body/55171999

Govt notifies real estate regulatory Act rules for Union Territories

The ministry of urban development is working on similar rules which would be applicable for the National Capital Region of Delhi.

The government on Monday has 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, put in the public domain by the Ministry of Housing and Urban Poverty Alleviation (HUPA) three months back for suggestions, will be applicable for five Union territories without legislature of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Chandigarh.

The ministry of urban development is working on similar rules which would be applicable for the National Capital Region of Delhi, while state governments and other Union territories with legislature will either come out with their own rules or have the option to adopt the HUPA-notified rules.

In a major relief for lakhs of home buyers affected by delay in their projects, developers will now be required to refund or pay compensation to the allottees 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, according to a statement from the ministry. This would effectively come to around 11%.

Builders will now have to make public the details such as original sanctioned plans of the ongoing projects 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, duly certified by an engineer, architect or practicing chartered accountant.

They also need to deposit 70% of the amount collected and unused for ensuring completion of ongoing projects with the real estate regulatory authority in a separate bank account within three months of applying for registration of a project.

However, what may come as a major relief for builders, the requirement of disclosing income-tax returns proposed earlier has been withdrawn in the final rules keeping in view the confidentiality attached with them.

Also fee for registration of projects and real estate agents with regulatory authorities has been reduced by half.

“We had given our suggestions to the government and we feel almost 80% of the issues have been addressed. I wish to thank the government for their support and understanding the problems of homebuyers. The rules to deposit 70% of the amount collected and unused will be big boost for stalled projects,” said Abhay Upadhyay, national convener of homebuyers’ body ‘Fight for RERA’.

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.

Promoters of real estate firms 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 during registration of projects.

Developers will also have to declare size of the apartment based on carpet area even if it was earlier sold on any other basis.

They also has to declare information regarding the number of open and closed parking areas in the project.

The final rules direct companies to upload on the webpage of the project the information regarding number and type of apartments or plots, garages booked, status of the project with photographs floor-wise, status of construction of internal infrastructure and common areas with photos, status of approvals received and expected date of receipt, modifications in sanctioned plans and specifications approved by the competent authority within 15 days of expiry of each quarter.

As per the Act, the Real Estate Rules were required to be notified by all the concerned by October 31,2016. In view of the delay in this regard, the Ministry of HUPA has sought time from the Committee on Subordinate Legislature of Rajya Sabha for notifying the Rules.

The state governments of Rajashthan, Maharashtra, Karnataka and Gujarat have already put the draft rules in the public domain for suggestions, while the others are likely to follow suit.

Real Estate (Regulation and Development) Act, 2016, Real Estate Regulatory Authorities are required to be put in place by April 30, 2017 before full Act is brought into effect on May 1, 2017.

Source:http://realty.economictimes.indiatimes.com/news/regulatory/govt-notifies-real-estate-regulatory-act-rules-for-union-territories/55155984

Builders to timely complete projects this festive season: RERA

With festive season round the corner, RERA has come ahead with a good news of forcing builders to complete their long due projects. The builders have now been asked to complete the projects and concentrate on selling of their house stock to home owners. In the past few years, when demand was strong builders came up with series of projects. However, this shall not be the case this year. Real estate (Regulation and Development) Act 2016 shall put more focus on old project completion rather than starting with new ones.

Builders of delayed projects are thinking of joining hands with buyers by opening an escrow account. The money collected in the account, shall be dedicatedly used for completion of buildings and then offering the place to buyers. Lotus Zing project company, is also planning to open escrow accounts by associating with 2500 homeowners. The escrow accounts shall be opened with the welfare association, wherein close monitoring shall be done to complete the project and provide homeowners with immediate results. Even Noida and Greater Noida authority, have come up with the procedure of opening joint accounts with real estate developers that shall ensure faster delivery and building of property.

Samantak Das, chief economist and national director at Knight Frank (India) Pvt. Ltd. confirms that there are more than 2 lakh of unsold units within Delhi NCR. Hence the new supply or launches in the market shall be dedicated only to locations after analyzing the unsold inventory area. Areas with high unsold inventory may not see any new launch in the coming time. Further he adds, buyer should only invest in projects where developer has shown the capability in history to deliver projects within time, in spite of stressful market conditions.

Talking about new launches, Praveen Jain chairman and managing director of Tulip Infratech and president of NAREDCO said, that market in Gurgaon is going to witness more focus on completing and handing over units to buyers. Moreover, for projects which have witnessed delay in completion like Tulip Violet shall be offered at a discount of 10% to the buyers. Hence this festive season buyers can approach to buy units, which earlier seemed to be out of reach for them.

The new projects shall only be launched in areas, wherein the builders have already gained possession of land, or where demand of units is much more than the availability of unsold units. One of the developers i.e. Lotus Green Developers Pvt. Ltd. is going to launch a new project in Noida Sector-150 which shall spread over 300 acres. The project shall be initiated in Joint Ventures with Tata Housing and Godrej companies. Hence in near future, people can expect to see the launch of 800 apartments, having 2 and 3 BHK accommodations.

With so many things on going in the real estate market, it is recommended that buyers should be careful while choosing builders and their projects. A careful study should be done about the builders and how many projects they have completed till date. Such steps are necessary to take, in order to ensure safety of money and have possession of property within due time.

After RERA – Is now the right time to buy?

Real Estate Regulatory Authority – RERA is one of the most debatable topic in last couple of months in Indian real estate market. As soon as it became a law, it received a lot of applause from buyers. In the sales pitches, the agents have already started making a claim that the project they are selling would be a RERA compliant project. Amidst this entire buzz, the moot question for the buyers remains the same whether it is a right time to buy or not? General buyer is still in confusion about the actual impact of this regulation and about his own home buying decision.

If we talk about the market dynamics, this move shall undeniably change demand and supply scenario in the real estate sector. Demand should benefit from new expectations raised by the Act. Indeed, sentiment among buyers already appears to be turning more positive. This is good for the market in both the short and the long term. On the supply side, expect a drop in new project launches in the short term. This is because of the fact that developers will wait to see how the new norms pan out and how other projects fare. Secondly, fewer projects will be ready for registration, as it typically requires 6 to 24 months for projects to get all approvals necessary to commence construction of a project. The increased demand and limited supply will actually help to ensure equilibrium in all the major cities suffering from high-unsold inventory. Though end-users have been waiting patiently for more price correction, the fact is that, the prices have already bottomed out and any further correction is unlikely.

The Act mandates that every state have to draft its own respective regulations within 180 days and establish a Real Estate Regulatory Authority and an Appellate Tribunal within a year. However, only a few states have started working on these guidelines. It is prudent to know for a buyer that although it is a right step in right direction, it will take some time to be a reality. Thus, waiting to get it implemented may not be a wise decision as it may result in potential loss of opportunity.

Improvement in macroeconomic sentiments coupled with better job prospects have started bringing in returns for the commercial sector and it is only a matter of time before the residential sector revives too. Investors too have started pumping funds into the residential sector and some developers in cities such as Bengaluru, Hyderabad, Pune, and Chennai have already received funds for future supply pipeline. With interest rates already all-time low and there are plenty of options available in the market, this festive season seems to be the apt timing for buying a home. A prudent approach would be to do your own due diligence about the credentials of the developers, approvals, and title of land before executing a deal.

Source from: http://www.moneycontrol.com/news/real-estate/after-rerais-nowright-time-to-buy_7507961.html