Real Estate Regulator Bill gets stronger

Real Estate Regulator Bill gets stronger

The Real Estate Regulator bill ,which was pending in the Upper House (Rajya Sabha) received a boost on Wednesday 9th December 2015 when the Select Committee of Rajya Sabha recommended strengthening its key provisions based on the feedback received from the general population of the country.The 20 recommendations were approved by the Union Cabinet.

These are the changes accommodated in the revised bill…

  • Projects constructed on 500 sq mtrs plot area or with a minimum of 8 flats will also have to be registered with the Real Estate Regulator.Earlier this limit was for projects on 1000 sq mtrs and above.
    With this change,almost all builders and projects will be under the scanner.
  • The Regulatory Authority will now have only 3 months to frame the rules of this law and States will get a max of 6 months to frame the laws after the notification of this Act.Earlier this limit was 1 year.
  • Flat buyers will now be required to take possession within 2 months of the project receiving Occupancy Certificate.
  • All cases and appeals will have to be decided within 60 days instead of 90 days.
  • The Bill also provides an option to set up adjudicating officers and Appellate Tribunal for fast-track dispute resolution.
  • Builders will now have to pay equal rate of interest in case of default or delays as home buyers.
  • The liability of builders for structural defects that has been increased from the earlier two to five years now.
  • Real estate developers will now have to deposit 70% of the project cost in a separate escrow account, from 50% proposed earlier.
  • The revised bill also includes an enabling provision for arranging insurance of land title, which will protect buyers and developers from frauds.
  • Promoters of the project are now barred from changing plans and designs without the consent of the consumer.

However,strangely,the bill has not addressed the bottlenecks and delays created by govt officers in the Town Planning dept who often delay projects unless they are paid their pound of flesh.

The Final proof will be in the pudding and will depend on how efficiently and quickly all these provisions are implemented.

The final effect of this bill will take at-least another year to take effect.

New branch of Registration office opens in Nerul,Navi Mumbai

New branch of Registration office opens in Nerul,Navi Mumbai

There is good news for real estate buyers/renters in Nerul.The Registrar has opened a new branch of the Registration office in Nerul,Navi Mumbai.This office is located on the 2nd floor of the MTNL exchange building located opposite the Nerul Railway Station (East).

This office is open from 8 am in the morning to 2 pm in the afternoon.

All sale/purchase/rent agreements can be registered here. Finally,the biggest node of Navi Mumbai has its own registration office !

Registration office in Nerul

Sky properties is located right opposite the Registration office and can provide the following services:

  1. Payment of your stamp duty and registration charges (48 hrs in advance)
  2. Registration of your Purchase/Sale agreements (Rs 3500 per document)
  3. Drafting and printout of all your agreements
  4. Data Entry of all your agreements before you go to register the documents so that all your data is already entered and you only have to click your photo,sign and finish the formalities
  5. Email and Fax of your agreements in PDF format

Please contact us at:
H-108,1st Floor,Above Dwaraka Hotel,
Nerul Railway station complex (West)

Call: 9833802522

Home loan survey results

Recently,BNP Paribas conducted a survey of the home loan Market in India.

Interest Rates

Home loan interest rates,India

The conclusions were as follows:

  1. Interest Rate Range:9.95% to 13.75%
  2. Rates offered by banks:9.95% to 11.75%
  3. Rates offered by NBFC (Non banking finance companies):10.75% to 13.75%
  4. Stronges Brand/Trust value:HDFC,SBI and LIC housing finance
  5. Most preferred among banks:ICICI,Axis,SBI.
  6. Most preferred among others:HDFC,LIC.
  7. Best due diligence:HDFC
  8. Best in efficency:HDFC (Less than 6 days to process)
  9. Rate difference between finance firms and banks:20 basis points.
  10. Who gives max commission to agents:MNC banks (1%) followed by NBFC’s and Banks.
  11. Who sells the max home loans:Agents account for 50% of loans being sold.Direct sales and cross selling teams sell the rest. 
An article on property rates in Navi Mumbai-April 2013

An article on property rates in Navi Mumbai-April 2013

From Times of India April 9,2013.
Original article
: Investors, politicians, builders and land traders who speculated on property and drove up rates in Navi Mumbai are in a bind because hopes are fast receding of the new airport coming up anytime soon. A major shake-up in the Navi Mumbai property market appears to have already commenced after chief minister Prithviraj Chavan announced that the government was in no position to fix a timeline for start of construction work.

A local source told TOI of a price correction that is based merely on the CM’s statement. “A builder in Ulwe (behind Seawoods) suddenly dropped the rate for his land from Rs 60,000 a square metre to Rs 45,000 in the past two days,” said the source. “Earlier, buyers were queuing up for this land. Suddenly, the tables have been turned. They are expecting a further downward correction despite the builder reducing the rate to Rs 45,000.”

Ulwe is considered a hot property destination because the planned Nhava-Sewri road-link is also expected to touch there. However, work on both the international airport and the link are not expected to start anytime soon.

Last week, TOI reported that Cidco, the nodal agency for the project, is yet to acquire 475 hectares of private land for the airport, which is to be spread over 2,072 hectares. Of the 475 hectares, about 291 are required for aeronautical purposes. The CM told the state assembly that work on the airport cannot start without completion of land acquisition.

“Speculators are nervous. Many politicians, and builders fronting for them, bought large chunks of land in Navi Mumbai hoping the returns would be astronomical once the airport came up,” said a local developer. But with national elections barely a year away, these political heavyweights may be forced to sell their holdings at cheaper rates to raise cash to fight the polls.

A source in the Navi Mumbai branch of Maharashtra Chamber of Housing Industry (MCHI) said, “It’s a setback for several developers. On Palm Beach Road, builders quoted Rs 18,000 to 22,000 a square foot (super-built-up) for flats and said that the price would double when the airport came up. Today, there are no buyers.”

Cidco tenders for commercial plots in Khargar reached up to Rs 1.25 lakh to Rs 1.41 lakh a square metre. These plots were barely half-an-acre to one acre in size. Tenders for residential plots (half-an-acre each) fetched bids of over Rs 2 lakh a sq m a year ago.

A successful bidder for a residential plot failed to pay Cidco because the price he quoted was too high and few clients showed interest in his project. “Such high rates in a super-slow market were mainly in anticipation of the new airport,” said the official. Land prices in Dronagiri touched Rs 35,000 to Rs 45,000 a sq m, although it has virtually no infrastructure.

Market sources said developers and hoteliers were eyeing investment in Navi Mumbai. Arvind Goel, president of MCHI, Navi Mumbai, said almost a dozen five-star hotels have come up in the region and another five to six are expected. “People feel cheated, especially those who bought apartments here,” he said.

The international airport was first announced by Cidco in 1993. “Since the last many years, Cidco displayed the new airport in its booklets, because of which land prices shot up,” Goel said.