PropertySimplified Home AboutUs OurTeam Subscribe to ournewsletter Want to be notified when our article is published? Enter your email address and name below to be the first toknow. Name Email Send CustomeristheKinginRealEstate September7,2017 RealEstate Customer is the King in RealEstate, CustomerKing in Real Estate, King in Real Estate, Stabilize housing prices, Will builders be benefitedFavistaAdmin Facebook Favista RealEsta… LikePage Like0 Do you plan to buy a house? With the Real Estate Regulation and Development Act, the home buyers are getting benefited and there is a complete reshape that can be seen in the real estate sector. The act aims to put the real estate bullies to an end and make the customers the realkings. Here is how it benefits the buyers: No unnecessarypenalties The developers generally keep uneven penalties in their agreement. If there is a delay from developer’s side, they either don’t really mention any penalty that they will provide to the home buyer or keep it as low as only one or two percent in a year. At the same time, the penalty for the delay from buyers ranges between 1824%. Even the national consumer court has taken grasp of such disparity in the penalties, in some cases as the buyers have filed against the developers in the National CapitalRegion. Favista Real Estate PvtLtd onWednesday #Favista #realestateagent Register yourself to our #agent programtoday! click : www.favista.com Call : 1800 2121000 RERA has put an end to all such practices. It has standardized and nicely defined the interest rate that both the parties would get in case of any delays. It is kept at 2% above the State Bank of India’s Marginal Cost Lending Rate. Presently, it is11.05%. No fakepromises TwitterTimeline Developers generally show one sanctioned plan to the home buyer and the buyers pay as per the plan that is shown to them. Later, the plan is changed by the developer. He might end up reducing the area, change the configurations, and change some amenities and so on. Tweets by@FavistaRealty
Numerous buyers end up with the lower area than the one they have paid for or found that some of the promised amenities are missing when the project is actually delivered. Generally, the developer blames the government agencies for all the changes and easily gets away with it. Favista RealEstate @FavistaRealty #Favista#realestateagent Register yourself to our #agent program today! click : favista.com Call : 1800 2121000 But now, the developer will have to report every time he makes changes to the original plan and provide a fresh deadline for project’s completion after the changes. Also, he will have to declare the complete amount that has been collected from the home buyers and the amount that is being used. All this needs to be certified by an architect, an engineer and a practicing chartered accountant. With the public record, the home buyers can easily take a developer to task and claim the refund on the basis of the changesmade. Even when registering the project with any regulator, the developer needs to submit genuine copy of the PAN card, balance sheet, annual report having audited profit and loss account, cash flow statement and the auditor’s report of promoter for immediate 3 continuous years, genuine copy of legal title deed, a copy of the collaboration agreement if promoter is not owner of the land or plot. Also, the promoter has to declare the information regarding a number of open and closed parking areas in theproject. 20h Transparency andaccountability Favista RealEstate @FavistaRealty #Home How to Design your Family #Roomwith Embed View onTwitter The bill makes it compulsory for all the residential and commercial real estate projects where land is more than 500 square meter or eight apartments need to register with the regulator before launching any project. By making registration of project necessary with regulatory authority, the bill basically aims to give better transparency in the project execution and marketing. Failure to do so will have a penalty which can be up to 10% of the complete cost of the project and a repeated offense could land the developer in jail. The buyers don’t have to rely completely on the words of the developer on the progress of construction. Potential home buyers can look at the progress of project before buying an apartment there. The act basically requires the developers to make a complete host of information public as well as report quarterly progress on the project. Also, within 15 days of quarter ending, developer will have to report information regarding the numbers and type of plots or apartments, status of project, garages booked with photographs floorwise, construction status and common areas with photographs, status of the approval received and expected date of receipt, modifications in the sanctioned plans (if any) and specifications that are approved by competentauthority. RecentBlogs Customer is the King in Real Estate September 7,2017 How to Design your Family Room with Sectional Sofa September 6,2017 How to Redo your Home During Monsoons September 5,2017 Fun Ways to Design Study Room for Kids September 4,2017 No misuse offunds Nowadays, common practices among the developers are to raise money from the home buyers for one project but not use to complete that one. Moreover, money is diverted to use the purchased land which would enable them to launch another project and raise some more money from new home buyers. Now, the developers, however, will have to put 70% of the money collected from the home buyer in a different account to meet the cost of construction of the project. The states can increase the ceiling but certainly cannot lower it. This will make sure that the construction is completed ontime. Obsessed with Pandas? Here are Ways to Incorporate them into your Home Decor September 2,2017 Disputesresolution If there is any dispute, the home buyer can make an appeal to Real Estate Appellate Tribunal by paying fees of Rs 5,000 and for every complaint made to the regulator, the fee is Rs 1,000. Real estate appellate tribunals require adjudicating cases in 60 days as against 90 days in the previous proposal. The Regulatory Authorities will have to dispose of the complaints in 60 days while there is no time limit that was indicated earlier. Stabilize housingprices As per the government, the bill will bring muchneeded confidence that would infuse more investment and in return, stabilize the prices ofhomes. Will builders bebenefited? Of course, yes. In case any allottee does not pay the dues on time, there will be a penalty that will be imposed on him/her. The builder will have the chance to approach the regulator in case there are issues with thebuyer.
The act has hailed as a landmark piece of the legislation for the regulating the real estate sector. While the act does execute onerous as well as time bound obligation on the promoters, it seems that act is retribution on the promoters’ for the obvious abuse of the power in the past. On one hand, the rights of the customers are intended to be protected by bringing in a fair play, standardization of the best practices, and establishment of efficient complaint redressal mechanism. On the other hand, the government intends to encourage FDI (foreign direct investment) into the development sector. The effective implementation of the act brings in accountability and transparency in the real estate sector. About FavistaAdmin Sanjit is working with Favista real estate since last 2 years as digital marketing manager. View all posts by Favista Admin→ ← How to Design your Family Room with SectionalSofa Leave aReply Your email address will not be published. Required fields are marked* Comment Name* Email * Website PostComment Favista is a Real Estate Advisory Firm based in Gurgaon, India. Favista believes in making every property transaction experience simple and successful. The aim is to bring transparency, professionalism and simplicity to the complex world of real estate. Favista takes pride in keeping the needs and concerns of the customers in highest regards. Favista Real Estate has been founded by IIT + IIM/INSEAD alumni with experience in strategy consulting, internet marketing, venture capital having been part of companies such as McKinsey, Capital One, PartyGaming and SSGCapital. Favista is a full service brokerage helping buyers/investors buy, sell, rent or lease property in India. Favista offers best realty advice for Apartments and Flats for sale in India, land/plots for sale, New Residential & Commercial Projects in India and also assists selling properties at best rates. Favista.com is the only Property Site in India that lists 100% verified properties. Favista currently operates in Gurgaon, DelhiNCR, Noida, Mumbai and Bangalore.Those intending to sell property in India will also find this website very useful owing to the extensive reach, high brand recall and trustworthiness in the real estatespace. In order to make our customers happy and for us to reach our goals, we follow the key tenets of transparency and consistently maintain integrity in everything that we do. With this professional attitude, we are set to become your preferred choice for all real estate services inIndia. ABOUT QUICKLINKS CONTACTFAVISTA
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