The complainant, Palvinder Singh, had sought various reliefs, including a full refund with interest and compensation for mental harassment, as well as the resolution of persistent structural issues such as water leakages, tile cracks, and wall cracks in his flat.

MahaRERA, however, denied the request for a refund under Section 18 of the Real Estate (Regulation and Development) Act, 2016. The Authority observed that the Occupancy Certificate (OC) for the project was issued on January 17, 2020, prior to the stipulated possession date (including a six-month grace period) of June 30, 2020, as per the agreement for sale. Furthermore, the complainant took possession of the flat on March 8, 2021, well after the two-month period mandated by Section 19 of the Act for allottees to take possession after OC issuance. MahaRERA concluded that the project was completed within the agreed timeline, and any delay in taking possession was not attributable to the promoter, especially since possession was accepted without protest.

Despite denying the refund, the Authority found merit in the complainant’s plea regarding structural defects. A survey report dated October 26, 2024, submitted by the complainant, evidenced the presence of wall cracks and joint openings. Citing Section 14(3) of the Act, MahaRERA reiterated the promoter’s duty to rectify such defects within five years from the date of handing over possession, without additional charge, and within thirty days of being notified.

Given that the complaint was filed on May 1, 2024, well within the five-year statutory period from the possession date of March 8, 2021, MahaRERA directed Mohan Lifespaces LLP to rectify the identified structural defects in the flat within thirty days from the date of the order, bearing all costs.

All other reliefs sought by the complainant were rejected, and no order as to cost was made. This ruling underscores MahaRERA’s commitment to ensuring developers address post-possession structural issues, providing crucial relief to homebuyers facing such challenges.

Also Read: In Mumbai Around 50% Structures Do Not Have An OC

The post Homebuyer Wins Relief: Developer Ordered to Fix Structural Issues in Flat appeared first on Square Feat India.

Background of the Complaint

The complainant, Shah, is the promoter of a real estate project, while Chavare is the allottee who entered into an Agreement to Sale on December 31, 2014, for a flat priced at ₹20,40,000. At the time of the agreement, Chavare paid an earnest amount of ₹2,08,000, with the remainder due in stages as construction progressed. Despite repeated demand notices from Shah, Chavare failed to fulfill his payment obligations, leading to the complaint being filed on May 12, 2022.

Hearing Details

The hearing was scheduled on multiple occasions, with the last occurring on August 13, 2024. Notably, Chavare did not attend any hearings, prompting MahaRERA to proceed with the case ex-parte against him on May 30, 2024. His absence raised concerns about his commitment to the agreement, as he did not contest Shah’s claims.

Key Findings

1. Payment Discrepancies: The complaint highlighted inconsistencies in the total sale consideration and the earnest money paid, which varied across documents. The registered agreement was treated as the primary reference.
2. Legal Obligations: The order emphasized the responsibilities of the allottee under Section 19 of the Real Estate (Regulation and Development) Act, 2016. Chavare’s failure to make timely payments constituted a breach of these obligations.
3. Claim for Relief: Given the established facts and the respondent’s absence, the authority found in favor of the complainant, affirming his right to claim the outstanding sale consideration along with interest.

Final Order

MahaRERA ordered Chavare to pay the outstanding amount of ₹16,32,080, along with interest calculated at the State Bank of India’s highest Marginal Cost of Lending Rate (MCLR) plus 2%. He is required to make this payment within 30 days from the date of the order.

In the event of non-payment, Shah is entitled to cancel the Agreement to Sale and refund the earnest money after deducting applicable dues, thereby allowing him to resell the flat to a third party.

Conclusion

This case underscores the importance of adhering to contractual obligations in real estate transactions. MahaRERA’s decision serves as a reminder for all parties involved in such agreements to fulfill their commitments to avoid legal repercussions. As the industry continues to evolve, regulatory measures like these are crucial in safeguarding the interests of both promoters and allottees.

Also Read: MahaRERA Temporarily Reverts to Old Website Amid Technical Challenges

The post After a Decade of Waiting, MahaRERA Orders Homebuyer to Settle Remaining Payment for Flat Booking appeared first on Square Feat India.

It is mandatory that every real estate agent has this registration number with them before they start the profession too.

Recently even MahaRERA Introduced an examination that checks how much a real estate agent is aware about the real estate industry
.
Passing this exam is mandatory for a real estate agent to get registered with MahaRERA.

However, MahaRERA came out with a list of 13,785 real estate agents who have lost their validity.

The list can be accessed here. The list was issued on MahaRERA website under the tag Real Estate Agents whose Registration validity has lapsed.

There are many real estate agents in the list hailing from Mumbai Metropolitan Region.

Also Read: Project deadline is extended only after receiving Guarantee of completion: MahaRERA

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This measure will prevent home buyers getting cheated

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided on the “One Stand-alone Project: One MahaRERA Number” policy.

This important step has been taken to prevent cheating of homebuyers as certain instances have surfaced of developers obtaining two or more MahaRERA registration numbers for the same or part of a real estate project.

MahaRERA has issued an order in this regard which has come into force with immediate effect. As per the latest order, henceforth, every promoter applying for new registration of a housing project will have to submit Declaration-cum-Undertaking in the prescribed format on their letter head that neither the site of the proposed project nor any part of it have MahaRERA registration number; or is any application pending. This is applicable for stand-alone as well as multi-phased housing projects on large plots.

The prescribed format will contain details such as CS number, CTS number, final plot number, survey number, Hissa number, GAT number, Khasra number, etc.

If information submitted is found wrong, incorrect or misleading, MahaRERA will initiate appropriate action against such promoter.

It has come to the notice of MahaRERA that some promoters are applying for additional MahaRERA registration number for various reasons, without disclosing the same to the Authority, despite the plot or project already having a MahaRERA registration number. It has been observed that in some places the land owner, the promoters are different and they work independently and in some places the land owner contracts with more than one promoter. This creates multiple challenges and confusion in project’s completion. Such buildings face difficulties in getting Occupancy Certificates (OC). Resultant, the homebuyers end up facing difficulties in securing water supply and other basic civic facilities. To prevent such occurrences, MahaRERA has introduced the new policy of “One Stand-alone Project: One MahaRERA Number”.

Incase of a project on a large plot separate registration number for the project or phases can be obtained. However, any reservation on the plot as declared by the Government and Local Planning Authority cannot be changed without the formalities as prescribed by the authorities concerned, time-to-time. This includes legal consent of the Allottees as well. These legal measures are to avoid any complaints, disputes with regards to common or special amenities such as recreation, playground, parking, internal roads, swimming pool, club house, gymnasium, etc. All these need to be categorically and unambiguously specified for every project’s phase in each of the applications submitted for a new MahaRERA registration number.

Also Read: Record 3,927 housing projects completed in 2023 Highest Since MahaRERA inception

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The effects of GST (Goods and Services Tax) and RERA (Real Estate Regulation and Development) on the home-buying process are two significant government policies that have revolutionized the real estate industry in India. GST aims to establish a standardized and neutral taxation system, while RERA addresses issues such as delays and fraudulent practices in the industry to bring about transparency and better management.

The implementation of GST has had transformative effects on property transactions. Previously, developers used to transfer tax costs to homebuyers, leading to potentially fraudulent activities. However, with GST, all applicable taxes have been replaced by a unified tax system, ensuring clarity and eliminating fraud. The introduction of an Input Tax Credit (ITC) allows for the refund of excess taxes paid and must be passed on to homebuyers.

The current regulations for GST in property transactions depend on factors such as the type of property and its approval under GST/RERA. Affordable housing options attract a GST rate of 1% without ITC, while non-affordable housing has a GST rate of 5% without ITC. There are additional charges based on the construction status, with ready-to-move houses having no additional fees and properties under construction attracting a GST rate of 12% with full ITC.

RERA has had significant implications for property transactions by ensuring transparency and safeguarding the interests of homebuyers. Real estate agents and developers are required to register under RERA, reducing the chances of fraud and delays. Home loans for RERA-approved projects can result in faster approval and lower interest rates. The state RERA’s web portal provides real-time updates on registered projects, enhancing convenience and transparency for property buyers.

Benefits of GST and RERA

Under the GST regime, the tax rate on under-construction projects has been reduced to 12%, resulting in tax equality and improved tax compliance. RERA has established regulations and regulatory authority, enhancing transparency and buyer confidence. The simplified process and reduced logistics costs have benefited both developers and buyers.

For developers, the implementation of GST and RERA has eliminated various taxes and improved the overall situation, although they are subject to a 15% tax on services. For buyers, the introduction of GST and RERA has improved transparency and simplicity in real estate investments.

GST has played a significant role in reducing federal tax barriers, leading to tax neutrality in the real estate sector. Previously, different states had complex tax structures, but GST has standardized taxation across all states, simplifying property registration.

In conclusion, understanding the impacts of GST and RERA empowers individuals to make property purchases with confidence. GST streamlines the taxation system, while RERA ensures transparency and buyer protection, ultimately shaping the home-buying process in India.

Note: The views expressed in this article are that of the author, and do not represent the views of SquareFeatIndia

Also Read: Highest home sales recorded in MMR amongst the top 7 cities in Q3 2022

The post <strong>GST is applicable when a home buyer buys a home- everything you need to know about</strong> appeared first on Square Feat India.

On April 20, the properties of Bhupesh Babu of NK Garden were successfully auctioned in Morbi Gram Panchayat of Panvel area. The proceeds from this auction were recently distributed among the 34 complainants in the case.Rs 31.57 lakh is the highest compensation amount and Rs 3.48 lakh is the lowest amount. Apart from this, 30 out of 34 complainants have been awarded a total of Rs 6 lakh cost towards complaint.

While the base price was Rs 3.72 crore, the auction fetched a bid of Rs 4.82 crore. As a result of which the principal amount of compensation was paid to 34 complainants in this case. This is the first instance of recovery of money from the auction and compensation to the complainants.

There is a possibility that property seizure and alternative auctions will be announced in some more places in the state in the coming time.

MahaRERA has issued warrants worth Rs 22.2 crore in 99 cases for delay and similar matters in 38 projects in Raigad district. Rs 6.50 crore was expected to be recovered from 33 warrants from Bhupeshbabu, the developer of NK Garden in Panvel Tehsil Office area. For this, the Panvel Tehsil Office had seized the properties of survey numbers 93/2/9, 93/3, 93/5, 93/6, 93/9, 93/11 at Morbe and held this auction.

As per the legal provision regarding distribution of the amount recovered in this auction, this amount was distributed through the local revenue system to the homebuyers in this project as per the compensation sanctioned by MahaRERA.

Also Read: 88 Realty Projects approach MahaRERA to cancel their Registration

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The real estate sector in India has been dominated by men for decades, but times have changed. Today, women are almost on par with men in real estate. Currently, 66% of Indian women, according to a recent survey, prefer real estate as an investment. Even before the pandemic, the numbers were on the rise, thanks to woman empowerment and growing awareness of the goldmine that is property investment.

While it’s refreshing to see women take the lead, it is even more delightful that there are multiple benefits for women buying a property. The time is ripe to be a female homeowner as there are several benefits in store; from low interest rates and tax exemptions, to discounts and lower stamp duty charge.

Here are some of the key benefits for women to own a property in India:

Attractive interest rates:

Banks often keep their home loan interest rate low for women borrowers compared to men borrowers. A lower interest rate makes a great impact on Equated Monthly Instalments (EMIs) and provides significant savings over the longer tenure of the home loan. The rates would differ across banks, with a difference of around 0.25 per cent and  is also applicable when a woman co-applies for the home loan.

Lower rates for Stamp Duty:

A majority of the state government encourages home ownership by women and thus they provide a significant rebate on registration fee/stamp duty if the property is registered in the name of a lady. Home loan benefits for females include lower stamp duty charges by 1-2%. For eg: the State Government of Maharashtra recently announced in their budget that they would give a 1 % rebate on stamp duty for women which would not only encourage a sense of homeownership among women in the state but would also aid them in saving money spent on the registration of properties.

Tax deductions:

To avail of certain tax benefits, women can also become the joint owner of a property along with her spouse. If she has a separate source of income, both can claim tax deductions individually if they opt for the old tax regime. Hence, under Section 80C of the Income-tax Act, 1961, each co-owner can claim a deduction on the principal payment of up to Rs 1.5 lakh. When it comes to interest payments, each co-owner can claim a deduction of up to Rs 2 lakh. Due to their financial awareness and credit consciousness, women borrowers are also less likely to default on the home loan, and they also have better credit scores as compared to men. This enhances their home loan eligibility and opens up more loan repayment options, too.

Pradhan Mantri Awas Yojana (PMAY):

PMAY is a game-changer initiative for home buyers. The PMAY makes female co-ownership mandatory for the female head of the family. When it comes to the Economically Weaker Section (EWS) and Low Income Group (LIG) category, the PMAY scheme preference is extended to widows as well as single women.

In summation

It is heartening to see so many women in leadership positions in the real estate industry, which is currently booming and also to see women become homebuyers in greater numbers. No one should hesitate because there are so many advantages for a woman buying a home in India!

Also Read: Maharashtra State Budget 2023-24: Women Homebuyers to benefit

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Much against general expectations, the RBI decided to keep the repo rates unchanged at 6.5% today. This is indeed good for the residential real estate market, which faces a tough road ahead amid massive layoffs by large corporates the world over. India is not decoupled from global economic dynamics and their invariable impact on the housing uptake here. The RBI’s decision to keep the repo rates unchanged comes as a welcome respite to homebuyers.

This particularly gives relief to affordable and mid segment homebuyers who feared a possible rate hike today, making property buying via home loans even harder. As is, affordable housing has been under stress since the pandemic. This segment (units priced <INR 40 lakh) saw its overall sales share dip between 2019 and 2022 and further in Q1 2023. ANAROCK Research indicates that back in 2019, out of the total sales of nearly 2,61,400 units across the top 7 cities nearly 38% sales were in the affordable segment.

But in 2022, out of the total 3,64,880 units sold across the top 7 cities altogether, about 26% were in the affordable category. There has been a further dip in overall sales share in Q1 2023, as well. Out of total 1.14 lakh units sold in the top 7 cities in Q1 2023, affordable housing comprised just 20% share (or. approx. 23,110 units sold).

It bears keeping in mind that after the remarkable performance in Q1 2023, the housing market is now staring at major headwinds with layoffs, rising property prices, etc. which will pose a challenge in the short-term. The respite of home loan rates remaining unchanged is therefore very welcome.

Also Read: CREDAI Urges RBI to Maintain Repo Rate amid Increasing Construction Costs and Rising Housing Prices

The post <em>Unchanged Repo Rates A Boon for the Housing Market</em> appeared first on Square Feat India.

According to a recent survey by real estate consultant Anarock, at least 65 per cent of women homebuyers now prefer to invest in real estate, followed by 20 per cent favouring the stock markets. Just 8 per cent of women respondents favour gold and 7 per cent prefer FDs.

A day after the International Women’s Day celebration, the Maharashtra Government in their budget for 2023-24, offered one per cent discount in stamp duty for women homebuyers. This move is expected to make homebuying cheaper for women in the state.

Here are few comments from real estate experts on the 1% concession in stamp duty for women home-buyers offered by Maharashtra Government in the State Budget 2023-24:

Manoj Patwal, Founder and MD, BetterServ Ventures Private Limited
“Women have long been recognised as an important part of the decision-making when it comes to buying a home. Today, Women are independent, empowered, educated and employed. The state acknowledging this and making way for women to be more empowered is a great move in the right direction. The announcement in the State budget on reduction in stamp duty for women homebuyers has come as a perfect celebration for Women’s Day which will encourage them to invest in real estate.”

Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI
“Women of today are empowered and play an important role in the home buying process. Women home buyers are increasing and constitute a sizable segment of home buyers in the housing sector. The government on its part is encouraging them by offering a range of benefits. The 1% discount in stamp duty for women by the State Government is a welcome move just a day after Women’s Day. This will encourage the women homebuyers to buy their dream home.”

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory “We commend the Maharashtra Government for their decision to offer a 1% discount on stamp duty for women home buyers. This proactive step towards empowering women homebuyers and making home ownership more affordable for them. We believe that this move will not only encourage more women to invest in real estate but also provide a boost to the overall real estate sector. It will create a positive impact on the economy by increasing the demand for housing and contributing towards the growth of the industry. We look forward to seeing the positive impact of this initiative on the real estate market and the economy as a whole.”

Also Read: Positive Buyer Sentiment to Drive Real Estate Demand in Delhi-NCR

The post Maharashtra State Budget 2023-24: Women Homebuyers to benefit appeared first on Square Feat India.

Buying a home is both an emotionally and financially intensive decision and one tries not to compromise on his and his family’s aspirations. While searching for a home, thorough research and planning go a long way in finding the home of your dreams. Here is a five-point guide to help you while you are on a house-hunting spree.

Location is Paramount

When you are searching for a home for your family, you just cannot avoid the presence of basic amenities around. Social infrastructure such as schools, hospitals, parks, community centres and recreational facilities are a must for the entire family. You must do thorough research about the location and the growth potential of the entire region. After all, you and your family will spend a significant portion of your life in this home. A remote and unconnected location is not conducive from a quality living perspective.

Do proper research, and go for a property which has access to physical infrastructure and basic amenities.

Connectivity

When you are looking for a home from the residence perspective, you must factor in the element of connectivity. A remotely located home with poor public transport and lack of road connectivity will make your life burdensome. While doing research for the property, you must ensure that the property is well-connected with the public transport system. The slow pace of development in the region might indicate that the transportation facilities might remain elusive for a long time. In such cases, you must reconsider your decision, even if it means shelling some extra bucks.

Budget

The decision to buy your own abode is a financially heavy decision. While searching home for the family, you must consider the factors such as the size of the family, the type of property required and the construction status of the shortlisted property. If you have a small family, you can be better off with a 2 BHK flat than a villa. However, in the case of a large joint family, a mansion or duplex might be considered. However, the price points will vary proportionately.

If you do not have an immediate need and arrangement of finances at once is also a challenge, you can go for the under-construction project. In such projects, the payment plan is tied with the stage of construction and you do not have to incur a lot of money at once. Moreover, almost all under-construction project developers have collaborations with the financial institutions and you can get up to 80 percent of the property cost as a home loan. Again, a comparative study of the home loan rates and financing institutions can lower your Equated Monthly Installments (EMIs) significantly.

Approvals 

As they say, you generally buy your dream home once in a lifetime and you would not want this dream run to get ruined by the lack of necessary approvals and permissions. It is always advisable to go for projects from reputed developers only. Large developers are generally registered with the Real Estate Regulatory Authority (RERA) and have a valid registration number. You can also ask the developer to show the necessary approvals and even get a copy for your satisfaction before making an investment.

Resale Potential

Even if you are buying the home for your family and do not plan to sell it anytime soon, you must consider the factor of resale value and property appreciation. If after some years, you change your mind and wish to move into a bigger abode, the appreciation potential of the current property will fetch you a good Return on Investment (RoI).

Conclusively, proper research and planning can go a long way in getting a well-connected and investment-worthy property.

Suren Goyal, is Partner, RPS Group, views expressed solely belong to the author

Also Read: Luxury Real Estate set to Rebound in 2023

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