Deemed as one of the most active real estate regulatory authorities in India, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has over 25,000 registered projects. And 23,000 registered property agents, as of February 27, 2020. The Authority has also got over 10,000 complaints, out of which 71% have been disposed of. These statistics stand out when compared to other state authorities, where the rules are yet to be notified or the real estate portal is yet to be launched.
Maharashtra RERA has some of the most active real estate markets under its jurisdiction, which include the Mumbai Metropolitan Region (MMR) and Pune. The quantum of investment in these markets is much more, as compared to other cities, which affects the life of home buyers, as well as investors. To ensure transparency and accountability, the MahaRERA portal has a number of features to help buyers make informed decisions.
How to check registered agents on MahaRERA?
Visit the MahaRERA portal and click on ‘Registration’ from the top menu.
Click on ‘Registered Real Estate Agents’ and you will be redirected to an external website. Make sure pop-ups are allowed on your browser.
Enter the agent’s name or agent registration number, to find the details.
How to check MahaRERA registered projects?
Visit the MahaRERA portal and click on ‘Registration’ from the top menu.
Click on ‘Registered Projects’ and you will be redirected to an external website. Make sure pop-ups are allowed on your browser.
Feed in the project name or promoter name or RERA number. The details will appear & you can check the RERA certificate and all other details provided by the builder to the Authority.
How to report unregistered projects?
As a vigilant consumer, you can also report unregistered projects to the Authority. Here is the step-by-step procedure to file an online request.
Visit the MahaRERA portal and click on ‘Non-registration’ from the top menu.
Choose ‘Inform Non-Registration’ from the drop-down menu.
You will be redirected to a new page where you have to provide all the information about the complainant and the unregistered project. A SI number will be provided, for tracking the progress of your complaint.
How to file complaint on MahaRERA?
MahaRERA has made complaint registration simple, for the ease of home buyers and investors. Follow this step-by-step process to register a complaint against a developer/agent/promoter.
Select ‘User Type’ as ‘Complainant’ and fill the required information. Once your user registration is successful, login to the system.
Now click on ‘My Profile’ under ‘Accounts’. Fill in the required information.
Select the ‘Complaint Details’ options and click on ‘Add New Complaints’ from the drop-down menu.
You can now add a complaint, where you have to mention the division, registration number, project or agent name. The promoter name will appear automatically.
Add details about the complainant such as name, type, nature of interest in the project and address of the complainant.
Add details about the respondent such as name, type and the address.
Upload documents to support your case and reliefs sought.
Pay the fees to get your complaint registered.
What is procedure of conciliation?
The buyer needs to register on the conciliation forum application portal and complete the form, to raise a request.
The respondent will be intimated regarding the request.
Once the respondent confirms for the conciliation process, the allottee needs to make the payment for the conciliation process.
After successful payment, a conciliation bench will be allocated, based upon availability.
In case of successful conciliation, both parties will be required to sign a conciliation agreement, which will be uploaded for closing the request.
The role of conciliator is limited to assist the parties in an independent and impartial manner, in their attempt to reach an amicable settlement of their dispute.
What is MahaRERA Conciliation Forum?
Recently, the MahaRERA established a Conciliation and Dispute Resolution Forum, to facilitate the resolution of disputes amicably, thereby, saving cost and litigation time of parties and promoting greater public satisfaction with the legal system and dispute resolution. Here is the list of conciliators who can mediate between the parties.
How to register projects on MahaRERA
Visit MahaRERA portal and click ‘Online Application.
Click on ‘New Registration’ as a new user.
Create new account and select the user type.
Select respective state or UT from the drop-down. Fill in the remaining info like username, mobile number, and registered email address. Click on ‘Create User’.
A verification link will be sent on your registered email address. Click the link to verify your credentials.
Login with your new username and password.
Fill in the required details upload all the necessary documents.
Documents required for project registration
Name, address, mobile number and photograph of the promoters (in case of individuals)
In the case of Company or Partnership Firm, Registration documents
Approved Building Plan
Approved Building Layouts
RERA Bank Account details
1st Form – from Architects
2nd Form – from Structural Engineer
3rd Form – from Chartered Accountants
Name, address, mobile number and photograph of the promoter (people in management, in the case of entities)
PAN card copy of promoter
MahaRERA latest judgements
Maharashtra RERA directs buildeer to pay interest for 21 months of delay
Recently, the MahaRERA directed developer Acme Housing India Pvt Ltd to pay interest for delayed possession for 21 months, to home buyers of its Alpinia project in Thane, under Section 18 of the Real Estate (Regulation and Development) Act (RERA).
According to the complaint filed, the buyer booked a flat in the project in December 2014 with the promise of possession by December 31, 2017. The buyer paid a sum of Rs 1.11 crores but the developer failed to deliver possession as per the registered agreement for sale.
In its order the MahaRERA said that the buyer would get interest at 9.3% for every month of a delay from July 1, 2018 till March 2020. The project got the OC in March 2020. However, the buyer did not take possession and filed the case with MahaRERA.
Consent of 51% flat buyers needed, to tweak project, extend deadline
Builders will no longer be allowed to get away with sketchy details or shoddy paperwork, when they register their projects with the MahaRERA. A new circular issued by the state housing regulator. It mandates that developers must now submit the list of all their flat buyers, along with their signatures in a proper format, when seeking various permissions.
Moreover, the builder will require the consent of at least 51% of the allottees if he wants an extension of the completion date of the project. The consent will now be required with their names, flat numbers and signatures.
Apart from this, if the title report is not in the name of the developer, then, he should add the name of the land owner, the memorandum of understanding between them, the development agreement, the area and revenue sharing agreement.
The developer will have to clearly reveal the investors or equity partners in the project.
More than 2/3rd buyers must consent to building plan changes under MahaRERA
The MahaRERA, in a fresh ruling, has stopped a builder from making any changes to a sanctioned plan under Section 14 of the Real Estate (Regulation and Development) Act, which necessitates prior consent of at least two-thirds of the buyers.
The MahaRERA also ordered the builder to pay interest on the amount paid by the buyer, due to delay in handing over the possession. Section 14 of RERA holds the promoter liable to complete the project as per the sanctioned plans and not make any alterations, without the buyer’s consent.
For modifying the plans for common areas also, the builder needs the written consent of two-thirds of allottees.
Right to make a request for flat reservation includes the right to cancel the reservation: MahaRERA Appellate Tribunal
The Maharashtra Real Estate Regulatory Authority (MahaRERA) Appellate Tribunal has ruled that an allottee’s right to reserve a flat, includes his/her right to cancel the reservation.
Consequently, a builder cannot force the allottee to forfeit the booking for cancelling his reservation. The order is likely to provide relief to numerous flat allottees who are forced to sign one-sided clauses.
MahaRERA Appellate Tribunal panel members Sumant Kolhe and SS Sandhu, made the observation in a case by Dinesh and Ranjana Humane, a couple from Kalwa, against Piramal Estate Pvt Ltd. The couple had cancelled the flat they had reserved in Thane, due to a medical emergency in the family.
However, as per a clause in the flat reservation form, they were asked to forfeit 10% of the flat’s price or the amount paid.
While passing its order on March 17, 2021, the panel observed that the “Right to make request for reservation of flat includes the right to withdraw such request for reservation of flat.
Clause 17 providing forfeiture of 10% amount of the total price of flat or the amount paid till date whichever is lesser in case of withdrawal by allottees is ex facie unreasonable, unfair and inequitable.
Existence of such a condition in the printed form of ‘request for reservation’ to be filed in by allottees is against the object and purpose of RERA.”
MahaRERA directs buyers to pay interest for delayed payments to the builder
In what may be called an unprecedented move, the MahaRERA has directed a home buyer to pay a penalty to the developer, for payment delay. Usually, such directives are targeted towards developers, asking them to pay penalties for delays in granting possession.
In this case, the developer had approached the authority, to file a complaint against a home buyer who had been delaying payments, in spite of several demand letters. The authority ruled that if the buyer committed any default in timely payments as per the agreement for sale, he/she would be liable to pay interest at the rate of the marginal cost of funds-based lending rate (MCLR) of SBI plus 2%, as prescribed under the RERA.
The authority also directed the home buyer to make the payment within a month, failing which the agreement for sale would be terminated.
The Maharashtra Real Estate Regulatory Authority (MahaRERA), was established under the Real Estate (Regulation and Development) Act 2016 (RERA), through Notification No.23 of the state government. The state’s rules under the RERA were formulated as the Maharashtra Real Estate (Regulation and Development)(Registration of real estate projects, Registration of real estate agents, rates of interest and disclosures on website) Rules, 2017.
What is MahaRERA?
MahaRERA is the Maharashtra Real Estate Regulatory Authority. It comes into existence on 2017, 1st May.
What is the conciliation mechanism under MahaRERA?
Maharashtra was the first Indian state to initiate the conciliation mechanism under section 32 (g) of the RERA. The conciliation forum provides for alternative dispute resolution, which can be invoked by any aggrieved allottee or promoter.
More generations are living together under one roof since the pandemic, but that always hasn’t led to a increased desire for a multigen home.
Buyers are mostly split on the need for a home with features to accommodate multiple generations. Thirty-nine percent of buyers said they would prefer a multigen home but another 39% would not, according to the report What Home Buyers Want, 2021 Edition, published by the National Association of Home Builders based on responses from more than 3,200 prospective buyers. Twenty-three percent of respondents said they were not sure how they felt about a home designed for three generations, the survey shows.
Researchers said the responses varied by race and ethnicity. For example, 53% of Hispanic buyers favored buying a multigenerational home, followed by 50% of African Americans and 46% of Asian Americans. However, only 35% of Caucasian buyers would prefer a home designed for multiple generations.
Multigenerational homes usually consist of larger spaces and two owner’s suites, one of which is typically on the first floor, and can include separate entrances and kitchens.
Since the pandemic, the number of multigenerational households has been growing. About 16% of buyers have opted for multigenerational homes since the start of the COVID-19 outbreak compared to 11% the previous year. The most common reason for moving into a multigenerational home was to care for and spend more time with older parents, followed by cost savings and the ability to pool several incomes.
Generation X is the most likely age group to purchase a multigenerational home. Eighteen percent of buyers between the ages of 41 and 65 purchased a multigenerational home during the past year, according to a separate NAR study, the Home Buyer and Seller Generational Trends report.
Watch Jessica Lautz, NAR’s vice president of demographics and behavioral insights, as she discusses with The Washington Journal and C-SPAN about additional homebuying trends from the 2021 Home Buyers and Sellers Generational Trends Report.
Some housing analysts have grown concerned about what will happen to the real estate market when temporary foreclosure moratoriums are lifted. Will it spark a wave of new foreclosures and lead to a crisis?
Already, foreclosure activity is on the rise, even though the moratoriums are still in place and the government has relaxed requirements for mortgage forbearance due to the COVID-19 pandemic. Foreclosure filings in March rose 5% compared to the previous month, according to ATTOM Data Solution, a real estate analytics firm.
But that slight uptick could be a good thing, analysts note. “The foreclosure moratorium on government-backed loans has virtually stopped foreclosure activity over the past year,” says Rick Sharga, executive vice president of RealtyTrac, an ATTOM Data Solutions company. “But mortgage servicers have been able to begin foreclosure action on vacant and abandoned properties, which benefits neighborhoods and communities. It’s likely that these foreclosures are causing the slight uptick we’ve seen over the past few months.”
Homeowners with federally backed loans could receive up to 18 months of forbearance, but those who received such assistance at the beginning of the pandemic could see those protections lift after September. The Consumer Financial Protection Bureau estimates that could put about 1.7 million homeowners at risk of losing their homes. “There is a tidal wave of distressed homeowners who will need help,” CFPB Acting Director Dave Uejo said in a recent statement.
But high home prices and growing homeowner equity likely will prevent another foreclosure crisis, housing experts say. Also, a historic housing shortage will keep demand for homes high. For homeowners who are unable to make their house payment, they could sell—potentially for a high profit. “We can’t have indefinite forbearance, and we can’t have an infinite foreclosure moratorium,” Marina Walsh, vice president of industry analysis at the Mortgage Bankers Association, told realtor.com®. “As things get back to some sense of normal, people have to move on.”
However, the percentage of homeowners who are seriously behind on their mortgage payments or in foreclosure was 245% higher in February than a year earlier, according to data from Black Knight. The states with the highest foreclosure rates are Delaware, Illinois, Florida, Indiana, and Ohio, according to ATTOM Data Solutions. On the metro level, the areas with the highest foreclosure rates are Lake Havasu City, Ariz.; Provo, Utah; McAllen, Texas; Shreveport, La.; and Atlantic City, N.J.
The Real Estate (Regulation and Development) Act, 2016 (RERA act) is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector. The Rajya Sabha passed the RERA bill on March 10, 2016, followed by the Lok Sabha on March 15, 2016.
And it came into force from May 1, 2016. 59 of its 92 sections were notified on May 1, 2016 and the remaining provisions came into force from May 1, 2017. Under the Act, the central and state governments, are required to notify their own rules under the Act, six months, on the basis of the model rules framed under the central Act.
States and union territories with active RERA websites
State/ union territory
Registered projects, as on April 2019
Andaman and Nicobar Island
Dadra and Nagar Haveli – Daman and Diu
Delhi (National Capital Territory of Delhi)
RERA registration in states and union territories, as on April 2019
State/ union territory
Notified (Website yet to be launched)
Notified (Website yet to be launched)
Notified (Website launched)
To be notified soon
To be notified soon
To be notified soon
To be notified soon
To be notified soon
Notified (Website yet to be launched)
Notified under HIRA
Notified (Website yet to be launched)
Notified (Website yet to be launched)
For long, home buyers have complained that real estate transactions were lopsided and heavily in favour of the developers. RERA and the government’s model code, aim to create a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market.
RERA, it is hoped, will make real estate purchase simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act. The RERA will give the Indian real estate industry its first regulator.
The Real Estate Act makes it mandatory for each state and union territory, to form its own regulator and frame the rules that will govern the functioning of the regulator.
How will RERA impact home buyers
Some of the important compliances are:
Informing allottees about any minor addition or alteration.
Consent of 2/3rd allottees about any other addition or alteration.
No launch or advertisement before registration with RERA
Consent of 2/3rd allottees for transferring majority rights to 3rd party.
Sharing information project plan, layout, government approvals, land title status, sub-contractors.
Increased assertion on the timely completion of projects and delivery to the consumer.
An increase in the quality of construction due to a defect liability period of five years.
Formation of RWA within specified time or 3 months after majority of units have been sold.
The most positive aspect of this Act is that it provides a unified legal regime for the purchase of flats; apartments, etc., and seeks to standardise the practice across the country. Below are certain key highlights of the Act:
Establishment of the regulatory authority: The absence of a proper regulator (like the Securities Exchange Board of India for the capital markets) in the real estate sector, was long felt.
The Act establishes Real Estate Regulatory Authority in each state and union territory. Its functions include protection of the interests of the stakeholders, accumulating data at a designated repository and creating a robust grievance redressal system.
To prevent time lags, the authority has been mandated to dispose applications within a maximum period of 60 days; and the same may be extended only if a reason is recorded for the delay.
Further, the Real Estate Appellate Authority (REAT) shall be the appropriate forum for appeals.
Compulsory registration: According to the central act, every real estate project (where the total area to be developed exceeds 500 sq mtrs or more than 8 apartments is proposed to be developed in any phase), must be registered with its respective state’s RERA. Existing projects where the completion certificate (CC) or occupancy certificate (OC) has not been issued, are also required to comply with the registration requirements under the Act.
While applying for registration, promoters are required to provide detailed information on the project e.g. land status, details of the promoter, approvals, schedule of completion, etc. Only when registration is completed and other approvals (construction related) are in place, can the project be marketed.
Reserve account: One of the primary reasons for delay of projects was that funds collected from one project, would invariably be diverted to fund new, different projects.
To prevent such a diversion, promoters are now required to park 70% of all project receivables into a separate reserve account. The proceeds of such account can only be used towards land and construction expenses and will be required to be certified by a professional.
Continual disclosures by promoters: After the implementation of the Act, home buyers will be able to monitor the progress of the project on the RERA website since promoters will be required to make periodic submissions to the regulator regarding the progress of the project.
Title representation: Promoters are now required to make a positive warranty on his right title and interest on the land, which can be used later against him by the home buyer, should any title defect be discovered. Additionally, they are required to obtain insurance against the title and construction of the projects, proceeds of which shall go to the allottee upon execution of the agreement of sale.
Standardization of sale agreement: The Act prescribes a standard model sale agreement to be entered into between promoters and homebuyers. Typically, promoters insert punitive clauses against home buyers which penalised them for any default while similar defaults by the promoter attracted negligible or no penalty.
Such penal clauses could well be a thing of the past and home buyers can look forward to more balanced agreements in the future.
Penalty: To ensure that violation of the Act is not taken lightly, stiff monetary penalty (up to 10% of the project cost) and imprisonment has been prescribed against violators.
Impact of RERA on real estate industry
Increased project cost.
Rise in cost of capital.
Increase in project launch time.
Initially, a lot of work is to be done to get the existing and new project registered. Details such as status of each project executed in last 5 years, promoter details, detailed execution plans, etc., needs to be prepared.
With the advent of RERA, specialised forums such as the State Real Estate Regulatory Authority and the Real Estate Appellate Tribunal, will be established for the resolution of disputes pertaining to home buying and the aggrieved party will have no recourse to other consumer forums and civil courts, on such matters.
While the RERA sets the groundwork for fast-tracking dispute resolution, the litmus test for its success, will depend on the timely setting up of these new dispute resolution bodies and how these disputes are resolved expeditiously with a degree of finality.
RERA definition of carpet area
The area of a property is often calculated in three different ways – carpet area, built-up area and super built-up area. Hence, when it comes to buying a property, this can leads to a lot of disconnect, between what you pay and what you actually get. Gautam Chatterjee, Maharashtra RERA chairman, explains that “It is now mandatory for the developers of all ongoing projects, to disclose the size of their apartments, on the basis on carpet area (i.e., the area within four walls).
This includes usable spaces, like kitchen and toilets. This imparts clarity, which was not the case earlier.” According to the RERA, carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area.
But includes the area covered by the internal partition walls of the apartment’. Rahul Shah, CEO of Sumer Group, points out that as per the RERA guidelines, a builder must disclose the exact carpet area, so that a customer knows what he is paying for. However, the act does not make it mandatory for the builders, to sell a flat on the basis of carpet area.
RERA in states
As on July 31, 2017
23 states and union territories (UTs) have either established their permanent or interim regulatory authorities. Under the RERA, every state and UT must have its own regulator. Developers will not be able to market their ongoing or upcoming projects, till they register either with the permanent or interim regulator in states.
For ongoing projects, where completion or occupancy certificate has not been given, the deadline for registration ended on July 31, 2017. Only four states – Gujarat, Maharashtra, Madhya Pradesh and Punjab – have established their permanent Real Estate Regulatory Authority, while 19 states/UTs have established interim authorities, an official with the Housing and Urban Affairs Ministry said.
Only 23 States/UTs have notified the rules under the Act, while six states have drafted the rules but have not yet notified. A total of nine states/UTs have appointed interim Appellate Tribunals under the Real Estate Act, while only seven states have started the online registration under the Act.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) came into existence on May 1, 2017. Deemed as one of the most active real estate regulatory authorities in India, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has over 25,000 registered projects and 23,000 registered property agents, as of February 27, 2020. The Authority has also got over 10,000 complaints, out of which 71% have been disposed of.
Maharashtra becomes the first state to initiate conciliation mechanism
Aggrieved home buyers in Maharashtra, may be able to look forward to an early and amicable resolution of their disputes with their developers, with Maharashtra becoming the first state in India to initiate the conciliation mechanism under Section 32 (g) of the RERA, by way of Alternative Dispute Resolution (ADR).
The conciliation process will go online from February 1, 2018 and hearings before the conciliation benches are expected to commence from the first week of March 2018. Any aggrieved allottee or promoter (as defined under RERA) can invoke the conciliation mechanism set up by MahaRERA. For this purpose, a dedicated website has been created and one can have access to it even via the MahaRERA website.
Uttar Pradesh RERA
Uttar Pradesh includes important real estate micro-markets like Noida, Greater Noida, Ghaziabad, etc. There are two centres for the Uttar Pradesh RERA, one in Lucknow and another in the NCR. The Uttar Pradesh RERA Rules were notified in 2016 and the state’s RERA website was launched on July 26, 2017.
In a first-of-its-kind order by RERA across states, the UP RERA, deregistered Unnati Fortune Holdings Ltd project Aranya Phase 3, 4 and 5 in Sector 119 in May 2019, it said in a statement. “The process after deregistration will commence in consultation with the state government,” it said.
Adding that the decision was taken after the promoter could not provide a satisfactory response to the deregistration notices before it. “UP RERA has found that in the project there have been severe financial irregularities, diversion and siphoning off funds and double allotment,” the authority said.
The Karnataka RERA Rules, 2016, was approved by the cabinet on July 5, 2017. According to the Karnataka RERA Rules, every promoter, ongoing project and real estate agent has to register with the Karnataka RERA before it can reach out to the common public. According to the Karnataka RERA website, around 3,803 projects, 2,101 real estate agents and 3,775 complaints have been registered, till February 2020.
Tamil Nadu RERA
The Tamil Nadu RERA Rules were notified on June 22, 2017. TNRERA has jurisdiction over Tamil Nadu as well as Andaman and Nicobar Islands. Exclusion/inclusion of projects for registration depends on whether they lie within the Chennai Metropolitan Area (CMA) or outside the CMA, among other factors.
The Haryana Real Estate (Regulation and Development) Rules, 2017, came into force on July 28, 2017, while the Haryana RERA portal (www.haryanarera.gov.in) was launched on October 4, 2018. The RERA Haryana has separate jurisdiction in Panchkula and Gurugram.
The Rajasthan RERA Rules have been notified and the website was launched on June 1, 2017. The government of Rajasthan constituted the Rajasthan Real Estate Regulatory Authority (Raj RERA) on March 6, 2019, with Nihal Chand Goel as it chairman.
The official portal of RERA Delhi was launched on June 24, 2019, by Lt Governor Anil Baijal. “Launched official portal of RERA, Delhi (https://rera.delhi.gov.in). The website will help promote transparency & accountability in real estate sector. Advised to provide an interactive forum for knowledge sharing with other RERAs.
I congratulate the RERA team for the initiative,” the L-G tweeted after the launch. The Delhi RERA Rules have been notified. The vice-chairman of the Delhi Development Authority (DDA) was initially designated as the regulatory authority for the National Capital Territory of Delhi, under the RERA. In November 2018, Delhi got a full-time real estate regulator under the RERA, with Lt Governor Anil Baijal appointing retired IAS officer Vijay S Madan to the post.
According to an RTI reply, by May 2019, as many as 72 complaints were received against builders in Delhi, under the central real estate law, . According to the Delhi Real Estate Regulatory Authority (RERA), out of 72 complaints, 24 have been resolved till last week. Only 16 real estate projects have so far been registered under RERA in the national capital, it said.
The Telangana government notified its RERA rules on July 31, 2017. The state’s rules will be called the Telangana State Real Estate (Regulation and Development) Rules, 2017. They are applicable to all real estate projects, whose building permissions are approved on or after January 1, 2017, by the competent authorities.
A host of services are provided for homebuyers, developers as well as real estate agents. Also known as the TSRERA, the authority is looking at encouraging ease of doing business in the state. However, it is yet to appoint its permanent chief.
Andhra Pradesh RERA
The Andhra Pradesh government notified the Andhra Pradesh Real Estate (Regulation and Development) Rules on March 27, 2017. The Real Estate (Regulation and Development) Act came into force in AP from May 1, 2017. The government has also launched an online website, for registration of projects and agents and for filing of complaints under the AP RERA.
West Bengal RERA
The West Bengal Housing Industry Regulation Bill 2017 was passed by the state assembly, on August 16, 2017. Once notified by the West Bengal government, all housing projects above 500 sq metres or eight apartments, need to be registered with the state regulator, the Housing Industry Regulatory Authority (HIRA).
The bill proposes to bring the HIRA in place, over the next 60 days. In the wake of West Bengal notifying its own real estate act, union housing and urban affairs minister Hardeep Singh Puri, on September 18, 2018, made it clear that there is no ambiguity when it comes to the implementation of the central law and states have to conform to it.
Puri said that a letter has been written to the state government on the issue. Sources said that the centre has asked the West Bengal government to repeal its real state act, as there is already a central law on the same subject.
The Gujarat government notified the general rules for Gujarat Real Estate (Regulation and Development) rules in May 2017 and ever since, the Gujarat RERA has been in force.
The Punjab government notified the Real Estate (Regulation and Development) Rules, 2017 on June 8, 2017. The Punjab RERA was established on August 10, 2017. Punjab’s Mohali has the largest number of RERA-registered projects so far.
The Bihar government came up with its own law and notified the Bihar Real Estate (Regulation and Development) Rules, 2017, on April 28, 2017. As of May 13, 2020, the Bihar RERA has 833 approved projects.
Chhattisgarh was among the first states to implement the Real Estate (Regulation and Development) Act, 2016 (RERA), when it enforced the Chhattisgarh Real Estate (Regulation and Development) Rules, 2017, in November 2017. As of May 2020, the Chhattisgarh RERA had 1,124 approved projects and 473 approved agents. In a first, the real estate authority in Chhattisgarh, on May 12, 2020, started to hear cases through video-conferencing, in the wake of the Coronavirus pandemic.
After a long delay in notifying the rules, the Kerala Real Estate Regulation and Development Rules were notified in 2018. Previously, the Kerala RERA rules were repealed by the state government, as it seemed to favour the builder fraternity. However, the dedicated portal was re-launched in early 2020 and is now fully operational.
The state government had notified the ruses under the Real Estate (Regulation and Development) Act in February 2017 and set up the Odisha Real Estate Regulatory Authority (Odisha RERA) in October of the same year.
Madhya Pradesh RERA
One of the states in India, which has been very active in terms of implementing the rules and regulations of the Real Estate Act is Madhya Pradesh, which has over 2,640 registered projects and 244 projects for which the registration is under progress. There are as many as 1,897 promoters and 677 real estate agents registered with the Madhya Pradesh Real Estate Regulatory Authority (MP RERA), as of June 4, 2020.
On October 8, 2020, Ladakh became the 34th state/union territory to notify its rules under the Real Estate (Regulation and Development) Act.
Hailing the move, Durga Shanker Mishra, secretary, Ministry of Housing and Urban Affairs (MoHUA) said that the Ladakh RERA would open up new avenues for development of the UT and foster efficient and transparent transactions. The move will also ensure timely delivery of projects and quality of construction.
Jammu and Kashmir RERA
The union territory of Jammu & Kashmir notified the rules under the Real Estate (Regulation and Development) Act 2016 on August 1, 2020. It is the 33rd region to notify its rules. Authorities are hopeful that the Jammu and Kashmir RERA will usher in a new wave of development and transparency in the local real estate market. Real estate developers in Jammu and Kashmir have already been asked to file the application in Form A in written.
What is interesting is the fact that on October 26, 2020 the centre paved the way for all Indians to buy property in J&K. The Ministry of Housing Affairs removed all legal difficulties by amending or repealing existing land laws under the provisions of the Jammu and Kashmir Reorganisation (Adaption of Central Laws). In short, Indians will not need a permanent resident or domicile certificate to buy non-agricultural land in Jammu, Kashmir.
The MHA notification read, “With immediate effect, the Acts mentioned in the Schedule to this Order shall, until repealed or amended by a competent Legislature or other competent authority, have the effect, subject to the adaptations and modifications directed by the said Schedule, or if it is so directed, shall stand repealed.”
How can a builder be RERA compliant
Withdrawal – POC method.
Website updation/ Disclosures.
Alteration in project – approval of 2/3 allottees.
Project accounts – Audit.
70% of the funds collected from allottees needs to be deposited in the project account. Withdrawals to cover construction and land cost.
Withdrawals to be in proportion to the percentage completion method.
Withdrawal to be certified by an engineer, architect, and CA.
Provision for RERA to freeze project bank accounts upon non-compliance.
Interest on delay will be same for customer and promoter.
What information does a builder need to provide under RERA
Number, type and carpet area of apartments.
Consent from affected allottees for any major addition or alteration.
Quarterly updating of RERA website with details such as unsold inventory and pending approvals.
Project completion time frame.
No false statements or commitments in advertisement.
No arbitrary cancellation of units by promoter.
Which projects come under RERA
Commercial and residential projects including plotted development.
Projects measuring more than 500 sq mts or 8 units.
Projects without Completion Certificate, before commencement of the Act.
The project is only for the purpose of renovation / repair / re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartments, plot or building in the real estate project, will not come under RERA.
Each phase is to be treated as standalone real estate project requiring fresh registration.
How to register projects under RERA
Authenticated copy of all approvals, commencement certificate, sanctioned plan, layout plan, specification, plan of development work, proposed facilities, Proforma allotment letter, agreement for sale and conveyance deed to be given when
Applying for project registration with RERA.
Mandatory registration of new and existing projects with RERA before launch.
Registration of agents/brokers with RERA.
Dispute resolution within 6 months at RERA and RERA appellate tribunals.
Separate registration of different phases of a single projects.
Developers to share details of projects launched in last 5 years with status and reason for delay with RERA.
Timely updating of RERA website.
Maximum 1 year extension in case of delay due to no fault of developer.
Annual audit of project accounts by a CA.
Conveyance deed for common area in favour of RWA.
Construction and land title insurance.
Project completion time period.
How will RERA impact insurance cost for construction and land title
Land and approval costs to be meted out of internal accruals as prelaunch concept may end. It may lead to a shift in equity financing from debt financing prevailing currently. The cost of capital may go up as developers may now have to fund the land and approval cost through equity.
With frequent delay in obtaining approvals, debt funding may not be an ideal route for developers. With entry in the sector made difficult, the sector may witness consolidation.
Strong financial and execution capability is required to launch a project. The development model/agreement may gain prominence.
The project launch time may increase since a lot of time will be involved in finalizing finer details before launching a project.
Details such as complete drawings, utilities layout, etc., needs to be finalized before project starts.
How will RERA impact real estate agents
Under the Real Estate (Regulation and Development) Act (RERA), real estate agents will need to register themselves, to be able to facilitate a transaction. The broker segment in India, is estimated to be a USD 4 billion industry, with an estimated 5,00,000 to 9,00,000 brokers. However, it has traditionally been unorganised and unregulated. “It will bring a lot of accountability in the industry and the ones who believe in professional and transparent business, will reap all the benefits.
Now, the agents will have a much larger and responsible role to perform, as they will have to disclose all the appropriate information to the customer and even help them chose a RERA-compliant developer,” says Sam Chopra, founder and chairman of RE/MAX India. With RERA in force, brokers cannot promise any amenities or services that are not mentioned in the documents.
Moreover, they will have to provide all information and documents to the home buyers, at the time of booking. Consequently, RERA is likely to filter out the inexperienced, unprofessional, fly-by-night operators, as brokers not following the guidelines will face hefty penalty or jail or both.
How can brokers become RERA compliant
Section 3: Promoter cannot advertise, book, sell or offer for sale, without registration with RERA.
No agent can sell any project without obtaining RERA registration.
Agents’ RERA number needs to be documented in every sale facilitated by him.
Registration needs to be renewed.
Registration can be revoked or blocked if any breach is made to conditions of registration for a specified time.
No agent can sell a project not registered.
Maintain books and records.
Not be involved in unfair trade practices.
Make an incorrect statement – oral, written, visual.
Represent that services are of a particular standard.
Represent that the promoter or himself has approval or affiliation which such promoter or himself does not have.
Permit publication of advertisement in the newspaper or otherwise of services not intended to be offered.
Agent needs to facilitate possession of all documents to the allottee at the time of booking.
How to file a complaint under RERA?
Digbijoy Bhowmik, head of policy, RICS, explains, “Complaints can be filed under Section 31 of the Real Estate (Regulation and Development) Act, 2016, either with the Real Estate Regulatory Authority or the adjudicating officer. Such complaints may be against promoters, allottees and/or real estate agents.
Most state government rules, made appurtenant to the RERA, have laid out the procedure and form, in which such applications can be made. In the case of Chandigarh UT or Uttar Pradesh, for instance, these are placed as Form ‘M’ or Form ‘N’ (common with most other states and union territories).” A complaint under the RERA, is required to be in the form prescribed under the respective states’ rules.
The complaint can be filed with respect to a project registered under RERA, within the prescribed time limit, for violation or contravention of provisions of the act or the rules or regulations framed under RERA. “For cases pending before the NCDRC or other consumer fora, the complainants/ allottees can withdraw the case and approach the authority under the RERA.
Other offences (except complaints under Section 12, 14, 18 and 19) can be filed before the RERA authority,” explains Ajay Monga, partner at SNG & Partners law firm.
Applicable penalties under RERA
Section 9 (7)
Registration secured through misrepresentation or fraudBreach of terms for which registration obtained
Revocation of Agent Registration Number
Contravention of Section-9 & Section 10
Penalty of INR 10,000/-day during which the default continues extending up to 5% of cost of unit sold
Contravention of orders of RERA authorities
Penalty up to 5% of cost of unit sold
Contravention of orders of Appellate tribunal
Imprisonment for up to 1 year or with fine extend up to 10% of cost of unit sold
Benefits of RERA
Governance and transparency Project efficiency and robust project delivery Standardization and quality Enhance confidence of investors Attract higher investments and PE funding Regulated Environment
Common and best practices Increase efficiency Consolidation of sector Corporate branding Higher investment Increase in organised funding
Significant buyers protection Quality products and timely delivery Balanced agreements and treatment Transparency – sale based on carpet area Safety of money and transparency on utilisation
Consolidation of sector (due to mandatory state registration) Increased transparency Increased efficiency Minimum litigation by adopting best practices
Can RERA overturn ‘forced consent’ agreements procured by builders for changing project plans?
Section 14 of the RERA prohibits developers from making any amendments to the sanctioned plan of the project, without the prior consent of the home buyers. As per Section 14, any alteration in the plans and specifications of an individual apartment, is permitted only with the prior written consent of the concerned home buyer.
On the other hand, alterations in the layout of the entire project and the common areas of the building, cannot be effected unless the developer obtains the prior written consent of two-thirds of all the home buyers (or allottees) in the project. The Bombay High Court, in the case of Madhuvihar Cooperative Housing Society and others vs Jayantilal Investments and others, 2010 (6) Bom CR 517, had the opportunity to interpret Section 7 of the Maharashtra Ownership of Flats Act (MOFA), 1963, which is similar to Section 14 of the RERA.
It held that the consent of a home buyer must be an ‘informed consent’, i.e., one which is freely given after the flat purchaser is placed on notice by complete and full disclosure of the project or scheme that the builder plans to implement. Further, the consent must be specific and relatable to a particular project or scheme of the developer which is intended. The bench further added that blanket or general consents, obtained in advance by developers, particularly during signing of agreements, were legally invalid.
As Section 7 of the MOFA is analogous to Section 14 of the RERA, the ruling of the Madhuvihar Cooperative Housing Society case will hold good for all cases that come before the Real Estate Regulatory Authority and the Real Estate Appellate Tribunal.
Market situation after one year of RERA
There have been fewer project launches and the focus has been on execution.
Developers have tried to adhere to compliances, to avoid litigation.
Relaxed delivery timelines for existing projects has granted developers an escape window.
The market is yet to witness any landmark judgement that could set a precedent.
Latest news about RERA
SC and Delhi HC rule that home buyers can register a complaint with both, NCDRC and RERA
The Supreme Court (SC) has ruled that aggrieved home buyers can take their cases to both, the state’s real estate regulatory authority, as well as the National Consumer Disputes Redressal Commission (NCDRC), since their jurisdiction is concurrent. The apex court rejected a developer firm’s contention that once the RERA is operational, all enquiries and complaints regarding construction and completion, must be addressed to the regulatory body.
Proceedings that come to the NCDRC are judicial, said justices UU Lalit and Vineet Saran but the commission cannot be considered a civil court. Clarifying further, Justice Lalit said that Section 79 of the RERA Act does not in any way bar the (Consumer) Commission or Forum under the provisions of the Consumer Protection (CP) Act to entertain any complaint.
In 2019, the Delhi High Court (HC) had given the same verdict. Waiting for the possession of his Noida-based property for over three years, Kapil Wadhwa, was part of many big and small groups of aggrieved home buyers, all of whom had approached various advocates to represent their case. Like many home buyers, Wadhwa had approached only the NCDRC.
In fact, many builders sought relief on the basis that pending cases against them should be put to rest in the NCDRC in case home buyers had registered complaints against them under the RERA, as well. However, in what comes as a big win for buyers, justice Prateek Jalan dismissed 62 such petitions from developers.
It is important to note that the RERA allows home buyers to withdraw previous/ pending cases that come under the Consumer Protection Act (CPA) and the same argument was taken up by developers. However, Delhi HC has said that the verdicts of both, NCDRC and RERA are ‘concurrent’ and that in previous similar cases, the Supreme Court (SC) and the NCDRC have upheld that for buyers’ benefit, cases can run parallelly.
Centre plans to set up common online platform for RERA authority of all states, UTs
The centre has planned to set up a common online platform for the real estate regulatory authority of all states and union territories, to provide an opportunity to home-buyers, builders and authorities to exchange views
June 26, 2019: Housing and urban affairs secretary Durga Shanker Mishra, has said that the central government is planning to set up a common online platform for the real estate regulatory authority of all states and union territories, which will make the real estate law ‘more strong’.
Under the Real Estate (Regulation and Development) Act, 2016, all states are mandated to constitute their respective real estate regulatory authorities (RERA act), which provides proper protection to home buyers. “We are working to introduce a common platform, where RERA of all states and union territories (UTs) can exchange their views. With this, RERA will be more strong,” he said.
Mishra said that on the online platform, any state RERA can study an order of other states, in a particular matter. Also, home-buyers and builders can give their views on this issue. Giving details about real estate projects on the fourth anniversary of PMAY (U), AMRUT and Smart Cities Mission, the secretary said that till now, over 42,000 projects had been registered under RERA, while more than 32,000 real estate agents had been registered.
According to the ministry, as per the norms of Pradhan Mantri Awas Yojana (Urban), home buyers will not be able to avail of the Credit Linked Subsidy Scheme (CLSS) under the mission, if real estate project is not registered under RERA. Under PMAY (U), home-buyers can avail an interest subsidy of up to 2.67 lakhs.
On his part, housing and urban affairs minister Hardeep Singh Puri said that wherever the central real estate law had been implemented, it has made a ‘very big difference.’ RERA is a real estate regulator and it gives an opportunity to home buyers, to register their complaints against builders, Puri said. Mishra said that 30 states and UTs had notified RERA act but West Bengal had notified its own real estate regulator – Housing and Industrial Regulation Act, 2017 (HIRA).
What can a buyer do, if the agreement does not mention the possession date?
There have been several cases, where developers have even gone to the extent of not mentioning the date of possession in the agreement, leading to mental and financial trauma for the home buyers. While taking a serious note of the issue, the Maharashtra Real Estate Regulatory Authority (MahaRERA), in a recent judgement, directed Skyline Construction Company to refund Rs 1.06 crores, along with an interest of 10.55 per cent to actor Vrajesh Hirjee, for failing to hand over possession and keeping the date of possession clause empty in the registered agreement.
In another case, Aparna Singh, who had purchased a flat in a residential project in Thane, was not able to claim interest relief under Section 18 of the Real Estate (Regulation and Development) Act (RERA) rules, due to the absence of the possession date in the sale agreement.
In her case, the RERA tribunal ordered the developer to pay interest to her, even though the date was not mentioned in the agreement. Sulaiman Bhimani, an RTI activist and president of Citizens Justice Forum, who has been fighting many cases related to this issue says: “This a trick adopted by developers, to escape the laws by not mentioning the date. Now, home buyers can approach the consumer court or RERA and file a complaint regarding the promise made by the builder or regarding unreasonable delay.”
If the buyer is not satisfied with the order, s/he can challenge it in the appellate tribunal, within 60 days. The next appeal against the order of the appellate tribunal can be filed in the high court of the respective states.
Government forms committee, for ‘effective’ implementation of RERA
The government has constituted a committee, to suggest recommendations to strengthen the Real Estate (Regulation and Development) Act (RERA) and to remove difficulties in its implementation, an official said, on December 31, 2018.
The decision to form the committee, to be headed by union housing and urban affairs joint secretary Shiv Das Meena, comes months after the ministry organized four workshops where stakeholders, including home-buyers, had given suggestions for effective implementation of the Act.
As of now, 28 states and union territories have notified the rules under the real estate law. “The ministry has formed a committee under its joint secretary Shiv Das Meena. The panel will look into the suggestions received at the four workshops on RERA and then, submit its recommendations to the ministry.
The committee will also consider whether there is a need for changes under removal of difficulties of the central law’s clause,” the official told PTI. If needed, the committee may suggest amendments to the RERA, he said, adding that the panel will hold its first meeting on January 3, 2019.
The Government of India enacted the Real Estate (Regulation and Development) Act 2016 on 26th March 2016 and all its provisions came into effect, from May 1, 2017. Developers have been given until the end of July 2017, to register their projects under RERA.
Likewise, real estate agents, who also fall under its ambit, are still in the process of registering themselves. Several states still need to notify the rules under the Act and most importantly for buyers, developers/promoters need to register their projects under RERA.
28 states and union territories notify RERA
As of October 24, 2018, 28 states and union territories (UTs) have notified the Real Estate (Regulation and Development) Act (RERA) in the country, Housing and Urban Affairs Ministry spokesperson, Rajeev Jain said. According to the ministry, 20 states and UTs had established real estate appellate tribunals under the legislation, of which, seven were ‘regular’ tribunals, while there were 13 ‘interim’ real estate appellate tribunals. “As many as 22 states have fully-functional web portals under the legislation,” Jain added.
He said that 27 states and UTs had established the real estate regulatory authority and out of these, there were 13 ‘regular’ regulatory authorities, while 14 were ‘interim’ authorities. Six north-eastern states – Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland and Sikkim – have not notified the Act or are yet to notify the RERA and its rules, due to land and other issues, while West Bengal, on the other hand, has notified its own real estate law – the Housing and Industrial Regulation Act, 2017 (HIRA), instead of the RERA.
Nearly two years after the Real Estate Regulation Act (RERA) was enacted by the Parliament, six north-eastern states have finally agreed to implement the law, paving way for protecting the interest of home buyers in these states.
Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland and Sikkim had failed to notify the RERA, due to land and other issues. The development comes, after a team of the Union Housing and Urban Affairs (HUA) Ministry visited the north-eastern states on, October 26, 2018 and held a workshop with their representatives and discussed the issues coming in the way of notifying the Act.
What is RERA Act?
The Real Estate (Regulation & Development) Act 2016, RERA is an act passed by the Indian parliament to protect the interest of home buyers and also boost investments in the Real Estate sector.
How to check RERA Registration Number?
Buyers can check the RERA Registration number from the respective states’ portal. Every web portal has a list of registered projects along with RERA Registration number, approvals & other Documents.
What is RERA Approval?
RERA approval means RERA Registered. There are few guidelines that every builder has to follow to register its project with the authority. This includes approvals, land titles & insurance etc.
Since home ownership may sometimes be inconvenient or unaffordable, a majority of the migrant working population in India’s major cities live in rented homes. For this, the tenant signs a rent agreement with the landlord, which includes the terms and conditions that shall be binding on both the parties.
Draft model tenancy act
To promote rental housing in India, the government has formulated a draft policy, the draft Model Tenancy Act, 2020, to make the transaction beneficial for both, landlords and tenants. The provisions laid under this model policy, are intended to serve as guiding principles while drafting a rent agreement. According to the union housing secretary, the policy, which is likely to replace the existing laws on rental housing across India soon, will unlock over one crore units in India’s rental housing markets.
With the expiry of the October 31, 2020, deadline to send their suggestions on the policy document, the draft model tenancy act may soon become a law. The Chandigarh union territory administration has already started the process to implement the model act.
Rent agreement format in English and Hindi
Click Here to check out the format of a rental agreement in English.
Click Here to check out the format of a rental agreement in Hindi.
To save costs, tenants and landlords sometimes reach a verbal agreement about the tenancy and avoid executing a rent agreement. Some may also document the arrangement and put terms and conditions with respect to the tenancy. But decide not to register the document.
This is because both parties will be responsible to pay a registration charge if a rent agreement is created and registered. The landlord will also be obliged to report his rental income, once the rent agreement finds legal validity. However, entering into a rental agreement without registration is illegal. And could prove to be a risky business for both parties, especially in case of a future dispute.
Until a rent agreement is registered with the sub-registrar’s office, it has no legal validity. It is in the favour of both the parties, to draft an agreement with specific terms and conditions and to get it registered.
After drafting the rent agreement, the landlord should print it on stamp paper. Once the tenant and the landlord sign the documents in the presence of two witnesses, they should register it at the sub-registrar’s office, after paying the required fee.
After states set up rent authorities in cities following the implementation of the draft law. Landlords and tenants would have to be present before the authority to get the rent agreement registered.
Documents needed for rent agreement registration
Two passport-sized photos.Aadhaar card.Identity proof (driving licence, voter card or passport).
Two passport-sized photos.Aadhaar card.Voter ID card.Passport for people from outside India.
You have to pay a stamp duty while registering the rent agreement. It will vary, depending on the city where it is registered. This amount is paid, by purchasing the stamp paper of value you owe to the government.
In Delhi, the stamp duty is payable at 2% of the average annual rent, in the case of lease agreements for a term of up to five years. In Noida, one has to pay 2% of the annual rent as stamp duty, for rent agreements of up to 11 months.
Key details included in a standard rent agreement are:
Names and addresses of the tenant and the landlord.
Signatures of the tenant and the landlord.
Monthly rental amount.
Period of stay.
Responsibilities/rights of the landlord.
Responsibilities/rights of the tenant.
Rent agreement: Important terms and conditions
Security deposit and token amount: The agreement must clearly mention the security deposit and what happens to it, when you leave the premises. It should also mention the token amount that the landlord has received from you.
Number of occupants: The agreement must state what happens, if your family members join you in future.
Repairs: The agreement must mention who will bear the costs associated with wear and tear.
Maintenance: The agreement must clearly state who will be liable to pay the monthly maintenance charges.
Visitors: The agreement must include a clause on who can visit you and at what time.
Pet policy: Do check out if your landlord will allow you to keep pets, if you were to adopt one.
Conditions to vacate your property.
Damages to property and its consequences on the tenant.
Rules on subletting.
e-stamping of rent agreement
In some states, where the e-stamping facility for rental agreements is available. You do not have to physically buy the stamp paper. You can log on to the Stock Holding Corporation of India Ltd (SHCIL) website and check, if the state where you reside offers this facility.
Presently, Assam, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Delhi-NCR, Tamil Nadu, Uttarakhand and Uttar Pradesh, allow e-stamping of the agreements.
Is it compulsory to register a rent agreement?
Note here that notarised rent agreements are not the same as registered documents. In case of a dispute between the landlord and the tenant, the court will not admit a notarised agreement as proof. Hence, it is important to get the rent agreement duly registered.
Under the provisions of the Draft Model Tenancy Act, 2019, landlords cannot implement any hike in the pre-fixed rent for the entire period for which a rent agreement has been signed. If the agreement expires after 11 months, for example, the landlord cannot hike the monthly rent during this period.
It is only after this period and at the time of the registration of the new rent agreement that the landlord is legally empowered to effect a hike in rate, typically not exceeding 10% of the existing amount. Also, the landlord will have to give three months’ notice to the tenant, before increasing the rent according to the draft act.
Penalty for delay in rent payment
The draft law also states that tenants extending their stay in a rented accommodation as mentioned in the agreement. It’ll be liable to pay double the rent amount for the first two months. And four times the rent in the subsequent months.
What should be included in a rental agreement?
The rent agreement should include the names and address of the landlord & tenant, terms of the tenancy, period of tenancy, rent and security deposit amount, restriction on both parties, conditions for termination of the agreement, conditions for renewal and details of who should bear other charges such as maintain charges, repairs etc.
Why rent agreement is for 11 months?
The Registration Act, 1908, makes it mandatory for a lease agreement to be registered, if the leasing period is more than 11 months.
The Competition Commission of India (CCI) has given its approval to the Blackstone-Prestige Estates deal. It is under which the global private equity major will purchase certain assets of the Bangalore-based builder.
Under the deal, worth USD 1.5 billion (Rs 11,000 crores), Prestige Estates will sell premium commercial and retail properties to the US private equity major, spanning an area of 21 million sq ft.
These include six completed and four under-construction office spaces, nine malls and two hotels, spread across Bengaluru, Chennai and Gujarat. The assets that will be sold include up to 100% stake in six completed office assets and 85%-87% stake sale in nine entities owning nine malls.
The company will also transfer up to 50% of its rights and interest in four under-construction office assets. And sell up to 100% stake in hotel Aloft and 85% stake in hotel Oakwood Residences.
Prestige signed the term sheet for the deal with Blackstone Group on November 10, 2020. In October 2020, the builder had signed a non-binding letter of intent with Blackstone-Prestige Estates, for the sale of certain indirect. And direct interest in some of its commercial offices, retail and hotel properties and malls.
CCI said in its order that the principal activity of the acquirers (affiliates of Blackstone Group Inc) is that of investment holding and related activities. However, at present, they do not have any business operations in India or worldwide. The acquirers are affiliates of funds advised or managed by the affiliates of the Blackstone Group Inc.
With this transaction, Blackstone’s investments in India’s real estate sector have grown to USD 10 billion. As it is, the global PE giant is the biggest office space owner in India, through its joint ventures with leading commercial real estate developers including Panchshil Realty, K Raheja Corp, Salarpuria Sattva, etc.
Buyers and sellers need a common platform, to initiate a home purchase or sale. The same is true for landlords and tenants, who want to rent properties. The business of real estate brokerage came into being, to act as that common platform for all the parties mentioned above.
Traditionally, individual realtors or agents helped the buyers and sellers to get in touch with each other. Later on, the business also saw the emergence of mega brokerage firms. As the Indian housing market started to see unprecedented growth from the 1990s, with the economic liberalization.
Today, there are a large number of real estate brokerage firms in India. It’s cater to every need of buyers, sellers, landlords and tenants in various residential and rental markets. These firms have, in fact, been instrumental in enabling home sales during the Coronavirus-induced phased lockdown period in India, when most transactions took place online.
In the residential segment, brokerage firms and property agents typically ask for 2% of the transaction value as the brokerage charge. The charges are much higher in the commercial realty brokerage business.
It is worth mentioning here that when compared to the trends seen in more mature markets like the US. It’s property brokerage charges are quite low in India. In the west, brokers typically ask for 6%-7% of the transaction value as the brokerage fee or commission.
Licensing and training for real estate brokerage in India
Unlike the west where the property brokerage business is highly evolved. The real estate brokerage market in India is still developing. This is why agents seldom opt for formal training, to enter into the brokerage business. It is a precondition in the west, where all brokers have to undergo training and pass a certificate programme. Before they are allowed to liaison for a buyer or a seller client. Brokers in the US, for example, have to invest time and money to get a real estate licence.
In India, you can get into this highly competitive field without any certification. However, achieving success here would prove to be a tough task. Unless you have excellent communication skills. And solid knowledge of the real estate market dynamics in the area you are operating.
Can a real estate agent own a brokerage?
Yes, a real estate agent can own a brokerage firm.
Who makes more money a real estate agent or broker?
A broker and an agent are the same.
What is brokerage in real estate?
Firms that act as a medium for buyers and sellers to get in touch with each other and enable them to complete transactions, are known as real estate brokerage firms.
In a majority of states, buyers have to visit the sub-registrar’s office to register their properties, some states have launched services to help landlords register their properties online with an aim to offer hassle-free and time-bound services. Flats as well as plots could be registered using these online facilities.
You only have to buy e-stamp papers and make online payment of for the stamp duty and registration charge. All the documents have to be presented in front of the sub-registrar for verification.
Information you will have to provide online for property registration
Here are some details you will need to fill in while registering property online:
Property description: Number, area, pin code, etc.
Property type: Flat, plot, agricultural, etc.
Mode of ownership: Purchase, gift, lease, etc.
Owner’s personal details: Name, age, occupation, parent’s name, etc.
Proof of property: Title deed, power of attorney
Register property online
If you live in a state that offer online property registration services, here a certain facts you need to be aware of:
Only certain parts of the process can be completed online: Do note here that only a certain part of the property registration process can be completed online even if you state offer online property registration facilities.
You can calculate the stamp duty and registration charge amount.
We can pay stamp duty and registration charge online and get a receipt for the same.
You will then have to make an appointment, and visit the sub-registrar’s office at the appointed hour for the final property registration.
The payment must be paid online: An appointment for property registration can be booked only after you have paid the required stamp duty and registration charges online. The payment has to be done using your debit card, credit card or net-banking.
TDS had to be paid online: In case the deal value exceeds Rs 50 lakhs, the buyer will have to pay 1% TDS on the property value online, and get a print out of the receipt. This paper would be needed at the time of physical verification.
Your mobile holds the key: As you proceed with the online process, you mobile number will hold the key to its completion. Not only would you get on SMSs one-time passwords (OTP) during the course of registration, a message would also be sent with regard to your appointment, and process completion.
Documents required for sub-registrar’s office
*Duly prepared sale deal on non-judicial stamp worth the deal value.
*Two passport size photographs on both copies of documents (seller and purchaser).
*E-stamp paper with correct value of stamp duty.
*E-Registration fee receipt of registration fee with undertaking.
*Copy of PAN card.
*Original ID proof of all parties (seller, purchaser and witness).
*Receipt of TDS if property is worth more than Rs 50 lakh.
* In case of land as well as house property, the buyer has to present documented history of ownership transfers.
When will I get the registered property document back?
It takes nearly two weeks days for your property documents to get registered. You will have to visit the sub-registrar’s office to get your documents back.
Other tips to follow when registering land and property online
Even though a large part of the property registration work can be completed online using the official portals of the authorities concerned, for the final signing and bio-metric verification, all parties involved in the transaction have to make an appearance at the sub-registrar’s office. For this, one has to book a slot online, to complete this formality.
As is true of most transactions, you will have to take two witnesses along with you, to get the formalities completed. These witnesses must carry with themselves the originals and photocopies of their identity and address proofs.
‘Conveyance’ refers to the act of transferring the title, ownership, rights and interests in a property, from one entity to another. The term ‘deed’ refers to an instrument, like a written document that is signed by all the parties to a contract, in this case, the seller and buyer. It is a binding contract that is enforceable in a court of law. A conveyance deed is, therefore, a contract in which, the seller transfers all rights to the legal owner. The purchase of a property is not complete without a valid deed.
The terms conveyance deed and sale deed are often used interchangeably. While they refer to the same contract, there is a subtle difference between the two. All sales deeds are conveyance deeds but this deeds can also include gift, exchange, mortgage and lease deeds.
It is important to note the difference between an agreement for sale and a sale/conveyance deed. An agreement for sale contains a promise to transfer a property in question in future, on satisfaction of certain terms and conditions. An agreement for sale does not, in itself, create any interest in or charge on a property. Therefore, the sale of a property is not complete without a conveyance deed.
Contents of Conveyance Deed
The actual demarcation of the property.
Other rights annexed to the property and its use.
The full chain of titles, that is, all legal rights up until the present seller.
The method of delivery of the property to the buyer.
A memo of the consideration, stating how it has been received.
Any further applicable terms and conditions for the full transfer of ownership rights.
Important things about this Deed
The seller is required to certify that the property is free of any legal encumbrance.
If a loan was taken against the property in question, then, the mortgage must be cleared before the deed is signed. Buyers have the option of having this checked at the local sub-registrar’s office.
The conveyance deed should state the exact date on which the property will be handed over to the buyer.
Within four months of the execution of the deed, all the original documents related to the sale of the property, need to be produced for registration before the local registrar.
The deed is required to be signed by at least two witnesses.
Procedure for obtainingthisDeed
The Conveyance Deed is executed on non-judicial stamp paper and registered by presenting it at the nearest Registrar’s office. Once the registration is done, the Stamp Duty and Registration Fee have to be paid. The Stamp Duty and registry charges are different state-wise.
Types of conveyance deeds
There are three types of conveyance deeds:
Deed of conveyance of freehold property: A property can be converted into freehold status by the concerned authority, such as the Delhi Development Authority (DDA) or any state authority. The deed is given to the owner as a final document.
Deed of conveyance of leasehold property: The leasehold ownership of a property means the owner has the right to everything within the four walls of the property but it does not include the external or structural walls. The landlord is the owner of the structure, the common areas of the building and the land it is built upon.
Deed of conveyance subject to mortgage: In this case, subject to the said mortgage the purchaser can, from time to time, enter into and possess or enjoy the land in question and its premises.
*Registered Agreement for sale entered into with the seller *Mutation entries/ Property card, *Location Plan *City survey plan or survey plan from the revenue department. *Layout Plot plan approved by the local authority *Architect certificate about the entitlement of undivided interest in the entire Layout Plot, common areas and the facilities by each of the entity or the structure constructed or to be constructed on such Layout Plot. *Certificate under Urban Land Ceiling Act, 1976 *Building/ Structure Plan approved by the appropriate authority *Commencement Certificate *Completion Certificate, *Occupancy Certificate (exempted if not available), *List of owners *Proof of payment of Stamp Duty *Proof of Registration *Development agreement or power of attorney or agreement for sale, if executed by the seller *Draft conveyance deed / Declaration proposed to be executed in favour of the applicant.
Conveyance deeds are governed under the Registration.
Sale deeds and gift deeds are different types of conveyance deeds.
To be created on a non-judicial stamp paper, the deed follows the blueprint set under the agreement to sell.
Difference between Conveyance Deed and Sale Deed
Any legal document that acts as a legal proof of transfer of property rights, fall in the broad category of this deeds. That way, a sale deed is also a conveyance deed. Other property transfer documents that fall under the category of deed include gift deed, exchange deed, relinquishment deed, etc. This also means that while all sale deeds are conveyance deeds, not all deeds are sale deeds.
Can Conveyance Deed be cancelled?
According to Sections 31 to 33 of the Specific Relief Act, 1963, cancellation is possible when and if an individual feels that the deed is voidable or has a doubt that such a deed will cause him injury if left outstanding. If the deed was registered according to the laws prescribed in the Indian Registration Act, 1908 the cancellation may be executed by mutual consent of all parties.
What is Conveyance Deed?
A conveyance deed is a contract in which, the seller transfers all rights to the legal owner. The purchase of a property is not complete without a valid conveyance deed.
What is the difference between Conveyance Deed and Sale Deed?
The terms conveyance deed and sale deed are often used interchangeably and while they refer to the same contract, there is a subtle difference between the two. All sales deeds are conveyance deeds but conveyance deeds can also include gift, exchange, mortgage and lease deeds.
When you buy a home, there are several taxes like property tax that the purchaser has to pay. While stamp duty and registration are one-time charges, the tax is a recurring charge that the owner has to pay every year.
How do you calculate property tax
The owner of a property is liable to pay the tax levied by the local body (for example, the municipality) and such a tax is called the property tax. This tax may vary from one location to another and there are various other factors that determine the amount of tax payable, such as:
Location of the property.
Size of the property.
Whether the property is under-construction or ready-to-move.
Gender of the property owner – there may be discounts for female owners.
Age of the property owner – there may be discounts for senior citizens.
Civic facilities provided by the municipal body in the locality.
Importance of paying tax
According to the recent property valuation conducted by the municipal body, property tax is calculated. Only the owner of the property is liable for paying the tax. Hence, if you are a tenant, you need not be concerned about it.
In case of a property dispute, the tax receipt plays a crucial role, to prove ownership of property. Consequently, when you buy a property, the title of the property should be updated in the municipal records. However, until all the outstanding arrears are cleared, the name cannot be transferred to the new buyers. If the record is not updated in the municipal records, then, the name of the previous owner will continue to show in the tax receipt.
While getting the property registered in your name at the local municipal records, you may be asked to provide documents to prove the ownership of the property. The list of documents that you may need to include, to get the property name updated, are the sale deed copy, clearance from the society, duly filled application, photo and address proof, copy of receipt of the last paid property tax, etc. The tax receipt is also a key document, for availing of loans, such as a loan against property.
Hence, you must make the property tax payments on time and keep your records updated, at the local municipal bodies. Certain establishments, such as places of worship, government buildings, foreign embassies, etc., are usually exempted from the tax. Clean land is also exempted from tax charges.
These above links are taken from the websites of the respective authorities, as on August 8, 2017.
Why do we have to pay property tax?
The local municipal body provides certain important services, like cleanliness in the area, water supply, maintenance of local roads, drainage and other civic facilities. Property tax allows the municipal bodies to get revenue, for funding all the services that it provides.
It is one of the major sources of revenue for municipal bodies. If you do not pay this tax, then, the municipal body can refuse to provide the water connection or other services and it may also initiate legal action, to recover the due amount.
Property tax in Chandigarh
To calculate the tax for plots in Chandigarh, only the vacant plot area outside the plinth area of ground floor is be counted. This means that if the plot area is of 500 sq yards and the plinth area is 300 sq yards, the vacant plot area will be 200 sq yards, on which the tax will be calculated.
On residential lands and buildings of up to 300 sq yards, which are self-occupied, no tax is levied on persons, who had served, or are serving in the naval, military or air force, widows and differently-abled people.
Residents in Chandigarh can make online payment by searching the property details with their property ID. You can also make online payment by searching your property details with the house and sector number. Tax can also be deposited at all e-Sampark Centres.
Exemptions on this tax
Even though the rules are different from one state to another and one city to another, certain types of property owners enjoy rebates on their overall tax liability.
Across states, properties that belong to religious organizations or governments, are not liable to pay any tax.
Exemption is provided to:
People with disabilities
Former army, navy or any other personnel employed by defence services
Families of martyrs from the Indian Army, BSF, police service, CRPF and fire brigade
Property tax calculation
Tax in Pune
The PMC offers an online property tax calculator, in which you can enter the following details and ascertain the amount of tax you need to pay on your property: Location, Area, Usage, Type, Total plinth area, Construction year.
Tax in Bengaluru
The BBMP follows a Unit Area Value (UAV) system, for calculating the amount of property tax.
Tax (K) = (G – I) x 20% Where, G = X + Y + Z and I = G x H/100 (G = Gross unit area value;
X = Tenanted area of property x Per sq ft rate of property x 10 months;
Y = Self-occupied area of property x Per sq ft rate of property x 10 months;
Z = Vehicle parking area x Per sq ft rate of vehicle parking area x 10 months; H = Percentage of depreciation rate, which depends upon the age of the property)
Tax in Mumbai
The BMC uses the Capital Value System (CVS) to calculate property tax. The tax can be calculated as follows: Capital value of property x Current property tax rate (%) x Weight for user category
The Maharashtra cabinet, on March 8, 2019, approved a proposal to exempt residential properties up to 500 sq ft, within the Mumbai municipal area limits, from tax.
Where Annual value = Unit area value per sq metre x Unit area of property x Age factor x Use factor x Structure factor x Occupancy factor
Tax in Chennai
The Greater Chennai Corporation (GCC) adopts the system of Reasonable Letting Value (RLV), for calculating the annual rental value of a property. The GCC takes the following factors into consideration, while assessing tax:
Basic rate of the street in which the property is located
Usage of the building (residential or non-residential)
Nature of occupancy (owner or tenant)
Age of the building
Tax in Hyderabad
The rate of property tax in Hyderabad depends on the annual rental value, and the Greater Hyderabad Municipal Corporation (GHMC) adopts a slab rate of taxation for residential properties.
The GHMC uses the following formula to calculate tax:
Annual tax = Plinth area x Monthly rental value per sq ft x 12 x (0.17 – 0.30) depending on MRV and based on slab rate of taxation – 10 per cent depreciation + 8 per cent library cess
In March 2017, the new Unit Area Assessment (UAA) system for property tax calculation, was passed in the Kolkata Municipal Corporation (KMC). The tax calculation utilizes the concept of multiplicative factors (MFs), to account for the many critical differences in houses within the same block.
The annual tax is calculated using the following formula under the UAA system:
Annual tax = Base Unit Area Value x Covered space/Land area x Location MF value x Usage MF value x Age MF value x Structure MF value x Occupancy MF value x Rate of tax (including HB tax)
(Note: HB tax refers to Howrah Bridge tax, which is applicable on properties lying in specific wards.)
Where, f1 = weightage given to the location of the property f2 = weightage given to the type of property f3 = weightage given to the age of the property f4 = weight assigned to residential buildings fn = weight assigned to the user of the property
Tax in Gurugram
The tax payable on properties in Gurugram is based on two factors – area and use (residential/non-commercial and commercial). The best way to make your property tax payment is online, on the Municipal Corporation of Gurugram (MCG) website. When you enter your unique Property ID number or your name and address, you will be shown the amount that you need to pay.
Tax in Chandigarh
To calculate tax for plots in Chandigarh, only the vacant plot area outside the plinth area of ground floor is be counted. This means that if the plot area is of 500 sq yards and the plinth area is 300 sq yards, the vacant plot area will be 200 sq yards, on which the tax will be calculated.
On residential lands and buildings of up to 300 sq yards, which are self-occupied, no tax is levied on persons, who had served, or are serving in the naval, military or air force, widows and differently-abled people.
Residents in Chandigarh can make online payment by searching the property details with their property ID. You can also make online payment by searching your property details with the house and sector number. Tax can also be deposited at all e-Sampark Centres located in Chandigarh.
Penalty on non-payment of property tax
Authorities across the country impose penalties, on delays in tax payments. Depending on the city where you reside, you will be liable to pay between 1% and 2% of the outstanding amount, as monthly penalty.
The Brihanmumbai Municipal Corporation charges 1% penalty per month on outstanding tax while the penalty is 2% in Bangalore. A long delay in payments may also force authorities to attach your property and sell it, to recover losses.
Land is a state subject and every city, based on the size of population and geographical area have deduced different property tax calculation formula for evaluating property tax amount.
Do I have to pay property tax on agricultural land?
Agricultural land is free from property tax payment liability in India.
How to pay property tax online?
Most of the civic authorities now accept online payment of property tax. This can be done through their official website. You should have your Property ID number to avail this service so that the payment can be mapped to your property.