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.

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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
mayur@sky-properties.in

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
MUMBAI
: 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.

CIDCO transfer charges: Everything you wanted to know

CIDCO transfer charges: Everything you wanted to know

 

CIDCO officeWe recieve a lot of queries regarding CIDCO transfer charges and whether it is applicable to new flat purchases directly from the builder.

The short answer to that question is…..
If you buy any property in Navi Mumbai,you are liable to pay transfer charges to CIDCO.,when you buy from the builder as a first purchaser,you are not liable for transfer charges.

Why?

Because all land in Navi Mumbai belongs to CIDCO.They only give land on lease (long lease) and hence they are like a giant landlord.Now logic should tell us that if we are sitting on a property that belongs to a giant landlord (in this case its CIDCO),it is but obvious that if you want to leave and make someone else sit in your place,you will need the approval of the landlord.Period.

What happens if you dont pay CIDCO transfer charges?

Well,that depends on whether you are the buyer or seller of the property and whether you and the buyer before you has paid the stamp duty or not.If the buyer before you has paid the transfer charges,then you dont have to worry.Just pay the transfer charges and youre ok.But if the buyer before you has not paid the transfer charges then you are liable to pay it when you purchase it..sorry but that’s the hard fact.
So make sure that you purchase a flat only after checking that the previous owner has paid the CIDCO transfer charges.If you buy from the builder,you don’t have to pay transfer charges as it will be applicable after the formation of the society and at the time of conveyance.Sometimes even the banks are not aware of these transfer charges,and the builders don’t want to tell you at the time of selling the flat to you as they don’t want any additional expenses to come in the way of their sale.

What do transfer charges depend upon?
They depend on the carpet area (not built up area) of the flat.

Note
For property above 100 sq.mtrs. the applicant should submit the required documents to Asst.Estate Officer, CIDCO Bhavan, CBD Belapur.

Are transfer charges fixed?
No,they change from time to time.So please check for the latest rates.

Still confused?

Call Us !
Sky properties
9833802522
We can handle all your documentation needs for purchase of property in Navi Mumbai.

Latest CIDCO Transfer Charges – 2016

Download PDF CIDCO TRANSFER CHARGES 2016
Latest CIDCO Transfer Charges

 

1% TDS on sale of flats priced 50 lakhs and above from June 2013

1% TDS on sale of flats priced 50 lakhs and above from June 2013

tdsTDS to become compulsory from June 2013

Come June 2013,buying and selling a flat will become all the more cumbersome for the parties concerned (Buyers and sellers).
The Union Budget Finance Bill 2013, makes it mandatory that the buyer of a flat priced Rs 50 lakh and above will have to deduct 1% of the amount and pay it to the govt’s kitty.For this the buyer will have to open a TDS account with the tax authorities,register himself and obtain a TAN number,which he will have to quote on every deduction he makes from his payment to the builder or owner.This rule does not make a distinction between under construction or ready to move flats.It does not apply to agricultural land.Almost 5 lakh homes are set to be delivered in 2013.Even if people have made part payment before june 2013,they will be forced to deduct 1% of the total amount from the remaining installments.There is no clarity on whether the deduction will have to be made by the buyer or his bank (if the buyer is taking a loan).
This is another classic example of the total mess created by such measures in the past too.We had the service tax and vat issue in which the govt just passed a rule without giving any indication of how the vat would be calculated.Then came the property tax issue where the BMC was sending provisional property tax bills on the basis of a property’s rateable value.Earlier the tax was calculated on the basis of rent paid by tenants.Rateable value is calculated on the basis of age,area and the nature of construction of the building,ready reckoner rates etc.This was liable with retrospective effect from 2010.The last date for payment of this property tax was fixed at 31st march but was extended by 3 months after protest from the citizens who were suddenly faced with paying property tax arrears of the past 3 years at one go.
All these issues really makes the people wonder whether the govt really applies any thought before altering policy.

 Important update:

TDS payment has been simplified and can be paid online at the link below…
Pay TDS on this site

Impact of budget 2013 on real estate sector in India

The Union budget of 2013 presented by Chidambaram has had the opposite effect on real estate industry.Already facing a severe slowdown,the finance minister has made life even more difficult for the real estate industry.

The following are the main points of the budget with respect to the real estate trade.

  1. 1% TDS (tax deducted at source) on all real estate transactions over Rs.50 lakhs
  2. Service tax raised to 3.7% against the earlier 3.09% if the house is worth more than 1 crore or the area is over 2000 sq ft.
  3. Excise duty on marble increased from Rs 30 per sq ft to Rs 60 per sq ft.
  4. No ‘infrastructure’ status to real estate sector.This would have enabled real estate companies/builders to get sops like cheap loans etc from the govt and banks.
  5. The only ‘benefit’ that the budget has for a buyer is an additional 1 lakh rupee deduction for interest payment on a first time housing loan.But the catch is that the loan amount has to be less than 25 lakhs.
    So basically,it means nothing.

So all said and done,the going is only going to get tougher for the housing industry post the 2013 budget.

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