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Ankesh Pratap Singh

Ankesh Pratap Singh
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https://www.ipropunited.com/
Talks about : Real Estate News, Investment Tips, Proptech, Loan tips and Property Tips

How fractional ownership affects the commercial real estate industry

By
Ankesh Pratap Singh
-

The experts have predicted that fractional ownership in India will reach $5 billion in a few years. As a society, we have placed a great deal of faith and loyalty in real estate investments. One of the most important class symbols that guarantees your place in the community’s upper strata is land ownership. Despite the fact that previous generations were able to invest their life savings in gold and real estate relatively quickly, modern urbanites are only allowed to invest in residential apartments or small plots of land. Meanwhile, we as a population of humans also experience a number of constraints that make it challenging to make successful investments.

Since there is a shortage of land in our country, especially in a country where the population is growing, real estate has ultimately proven to be a profitable investment. However, it is also out of reach for those looking to jump on the landowner bandwagon. People prefer to invest in commercial real estate (CRE), which guarantees better rental cash flow, rather than depreciating assets. But CRE demands more money, better connections, and thorough understanding of the real estate industry. Because of this, only High Net Worth Individuals (HNIs) or Ultra HNIs are permitted to participate in this elite sector of the investment industry. 

After the pandemic took everyone on a financial run, fractional ownership of CRE has emerged as a promising idea for safe investments that would offer long-term capital appreciation and daily returns as well. Fractional ownership real estate ownership is a boon for regular people looking to make profitable investments due to its low risk and high return characteristics. Learn more about fractional property ownership and how it can help regular people by reading on.

Fractional Ownership 

Ownership is our sole right to any property. However, as the name implies, fractional ownership is the concept of owning only a portion of any property rather than being the sole proprietor with all rights. Currently, investing in commercial real estate in India can be profitable, but there are certain financial obstacles that prevent the average person from entering the market. 

For instance, if there’s a luxury office worth Rs 100 crore in prime location in Delhi. Only High Networth Individual can afford to invest in it. A typical citizen offering only Rs 10 Lakh cannot claim it, despite the fact that it offers numerous benefits and is a secure investment option. But what if several people band together, combine their resources, and make a bid on the commercial property in question? That would imply that everyone would receive a portion of the office and split the benefits equally. Everybody who invested in the office space could receive rental returns and long-term capital benefits as time passes and real estate’s market value rises.  

That is exactly what the idea of fractional ownership of real estate intends to achieve. It enables those with little capital to participate in the ownership of commercial real estate.

As the commercial real estate (CRE) market is predicted to grow by 13% to 16% over the next five years, fractional ownership of CRE is steadily increasing in India. The fact that the country expects an increase in the demand for office space in the upcoming years, an increase in the number of large institutional investors, and a sizeable inflow of foreign capital related to numerous commercial projects are some of the elements that could contribute to this anticipated boom. Significant capital growth is more likely as a result of each of these factors.

Grade A properties are typically involved in commercial real estate, and they are frequently leased by large businesses like multinational corporations, banks, warehouses, factories, or information technology companies. In contrast to residential tenants, such organizations don’t typically leave the property abruptly and put the owner in a bind. On the other hand, a rental lease for allotting commercial spaces is extended by three years or more. As a result, renting property to businesses has a number of advantages, including on-time rent payment and complete control over setting up the space to suit their needs. Additionally, because they use the property as an office, they make every effort to keep it organized and are more likely to renew their lease than to look for another location to establish their business. 

Many interested parties are looking to invest in fractional shares of Commercial Real Estate because they see a monthly deposit in their bank account and the constant increase in the market value of a property. 

Possible Fractional Ownership Approaches / Models

While understanding the structure and process of co-ownership agreements is an important first step in purchasing a property, it is also important to understand the various models that offer various benefits. The first model is known as the “Pay-to-use” model, in which the co-owners pay a pre-agreed “usage fee” for a daily or weekly usage. The costs of ownership are covered by this usage fee as well as any additional income from the property’s rent. If all of the revenue—including usage fees and rental income—exceeds all of the costs, the surplus is divided among the property owners. Additionally, the purchase price and ownership of the property are divided according to what each co-owner can afford, their respective investment objectives, and any other factors that the owners’ group collectively finds useful. 

The “Usage Assignment” model is the second one used to distribute usage rights. Under this model, each owner is granted the right to use a piece of property exclusively for a set number of days, weeks, or even months over the course of a year. The time frames for such use may be flexible, fixed, or even a combination of the two. The property may also be used by the co-owner to be rented out, traded, or even left vacant during each co-owner’s designated period of use.

The different ways of splitting the benefits of using the asset, the rights associated with each member, ensuring priority access, and providing those at lower market rates are basically what the different types of usage as part of the fractional ownership model entails. The only difference between timeshare and fractional ownership is that the former allows the investor to own a portion of the real estate rather than time-based units. This means that if the asset’s value rises, so will the benefits and surplus shared by the co-owners.

Does Investing in Fractional Real Estate Support Liquidity?

Liquidity is the ability to convert an asset into cash without depreciating its market value. Liquidity is a key concept to consider when investing that is advantageous to both businesses and investors. Cash is the most liquid asset in a technical sense because it can be used for transactions in any form. Rare metals are typically seen as having higher liquidity, while commercial properties are seen as having lower liquidity.

Fractional ownership has made it simple for the part-owner to sell commercial real estate. For instance, a person who has a fractional property investment can quickly transfer their share of the property to another willing investor if they wish to sell their share. Also keep in mind that sole ownership of a property does not give the owner the same level of flexibility to switch between investments.

Fractional Ownership Vs. Real Estate Investment Trust (REIT)

Risk and investment are mutually exclusive. There is no way to guarantee that your investment will have no risks over time while also ensuring that it will generate large profits for you. However, you can always research the market, consider the most recent trends, and seek professional guidance on how the real estate industry might develop in the upcoming years. Commercial real estate is currently in great demand due to its rising market value. However, there are drawbacks to CRE, such as the enormous capital requirement that small-scale investors cannot afford. The only people who could benefit from CREs were High Net Worth Individuals (HNI). 

However, with the development of ideas like REITs and fractional ownership, a regular person can now purchase a piece of CRE and benefit financially from monthly rental income or interest accrued on the security deposit amount. But how do REITs and fractional ownership compare?

REITs (Real Estate Investment Trusts) are similar to mutual funds in many ways. REITs pool money to invest in profitable real estate on your behalf, much like mutual funds do when they invest in things like government bonds, direct equity, stocks, etc. Such properties are leased to commercial entities, which allows the part-owner to receive their capital share. However, REITs do not give you the freedom to choose the property you want to invest in. 

However, you have a choice regarding fractional real estate investing. First, CRE property is listed on fractional ownership platforms for investors to check out. Following that, the minimum ticket size or fractional real estate investment is chosen based on the market value of each property. Finally, you can decide how many portions you want to own based on the ticket price. If there are a total of 10 tickets available and you choose to buy two of them, you now own 20% of the property and receive your share of the revenue it generates, this is one of the more ideal fractional ownership examples. 

Vacation Ownership vs Fractional Ownership 

If a fractional owner wants to use the home for personal purposes, they must make arrangements with the property management companies. Each property or management company may have restrictions on how much time its customers may spend at the vacation home. Owners of fractional shares are not required to use all of their allotted time themselves. They could give some of their time to close friends, family members, coworkers, and even employees. By informing the property managers in advance, fractional owners may lease their unused time to other owners or make it available to third parties who are not owners.

Differences Fractional Ownership and Between REIT 

  • With fractional ownership you can diversify your investments and buy a number of properties in various locations thanks to fractional ownership. REITs present a fixed portfolio with a fixed number of assets. 
  • You can sell your share whenever you want with fractional ownership. REITs, on the other hand, cannot be transferred or sold at the investor’s choice. 
  • There is no set minimum value for investing in commercial real estate through fractional ownership. REITs have a minimum value of Rs 500 crore, which limits property options.
  • Property that is under construction or not currently in use can be acquired through fractional ownership. According to SEBI guidelines, REITs must invest at least 80% of their capital in income-generating properties. 

Things to Consider Before Investing in Fractional Ownership

Investing in CREs is regarded as a wise decision due to the numerous benefits, complete transparency, and safety. When it comes to investing in fractional ownership real estate, however, there is no substitute for experience. You can choose more wisely when it comes to CRE investments by considering the factors listed below. 

  • Extensive market research reveals that fractional ownership is a relatively new idea in India, and that few start-ups offer the chance to invest in commercial real estate. These start-ups are typically managed by wealthy financiers. The best course of action is to do your research and identify the business with strong executives and a wide investor base. 
  • Get the best Deal by Comparing other factors, such as assessing the current market price of that particular property, finding a property with the highest return on minimum investment is a fairly simple task. In order to avoid overpaying for a property, experienced investors know to search for deals. 
  • Look for businesses or prop-tech companies that offer simple exit options and guarantee the highest possible capital gains with a high yield over the long term. Check for solutions that are focused on the needs of the customer.

The saying “the rich get richer and the poor get poorer” is probably one you’ve heard. This statement may be considered true in terms of investment opportunities in our nation, where high net worth individuals (HNIs) are the only ones who can afford promising opportunities like commercial real estate (CRE). The only options available to retail investors at the time were low-return provident funds or high-risk stock markets. Fractional ownership, however, has democratized the CRE market and made it accessible to the average person. Fractional ownership, which enables multiple investors to band together, pool their funds, and purchase a CRE property, is a recent but promising concept in India that is already well-established in the majority of western nations, Singapore, Hong Kong, etc.

Disclaimer: Access to the content on this internet page is provided by iPropUnited as a courtesy to the public service for educational reasons based on related news and stories. The accuracy of any information on this website cannot be guaranteed, however, it is all believed to be credible.

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Tripura RERA Regulations – Know Registration and Complaint Filing Process

By
Ankesh Pratap Singh
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This regulatory body was established in accordance with the Real Estate (Regulation and Development) Act, 2016, which was passed with the intention of regulating and fostering transparency in the Indian state of Tripura’s real estate market.

RERA Tripura’s primary objective is to safeguard homebuyers’ interests, guarantee real estate developers’ ethical behavior, and create a process for settling disputes between homebuyers and developers. RERA Tripura is in charge of registering real estate projects and agents, keeping an eye on ongoing projects, and making sure that developers abide by the laws and guidelines set forth by the Act.

Homebuyers can also use the authority’s platform to complain about developers for any wrongdoing, delays in project completion, or other problems relating to the acquisition of their properties. RERA Tripura is essential in fostering the growth of the real estate industry while defending the interests of homebuyers. It also contributes to a transparent and effective real estate market in the state.

Provisions under RERA Tripura 

The following are some of the key provisions under RERA Tripura:

Registration of Real Estate Projects: Before selling or marketing their projects, developers or promoters in Tripura must register them with RERA Tripura. The registration procedure entails providing comprehensive project information, such as the land title, approvals, financial information, project timeline, and promoter information.

Registration of Real Estate Agents: RERA Tripura also requires that all real estate agents working in the state register with RERA Tripura. This is to ensure that they operate in a transparent and ethical manner and that they provide accurate information to buyers.

Homebuyers’ Protection: RERA Tripura is in charge of making sure that purchasers of real estate are protected from dishonest business practices. The act establishes a Real Estate Appellate Tribunal to hear appeals against the orders of RERA Tripura.

Disclosure and Transparency: According to RERA Tripura, developers must provide accurate and comprehensive information about their projects, including the current status of approvals, project schedules, and financial data. This is to prevent developers from deceiving buyers and allow them to make informed decisions.

Escrow Account: According to RERA Tripura, developers are required to put 70% of the money they receive from customers in a separate escrow account that can only be used for building and land expenses. This is to guarantee that the project is finished on schedule and that any money collected from buyers is not used for other endeavors.

Timely Project Delivery: RERA Tripura requires developers to complete their projects within the timeframe specified. In the event of a delay, the developer is required to compensate the buyer in accordance with the terms of the agreement.

RERA Tripura provides a mechanism for regulating and promoting the real estate sector in the state and ensures that the interests of homebuyers are protected.

Registration process with RERA Tripura

To get registered with RERA Tripura, you need to follow the below given steps:

  • First, visit to official website of RERA Tripura at rera.tripura.gov.in and click on “Registration” tab
  • Choose the type of registration you want to apply for – agent or developer.
  • Fill in the registration form with your personal and business details, such as your name, Aadhaar card details, contact information, PAN card details, and business registration number.
  • Upload the necessary documents, including a copy of your PAN card, Aadhaar card, business registration certificate, and any other relevant documents.
  • Pay the registration fee in accordance with Tripura RERA regulations. The fee for agent registration is Rs. 5,000, and the fee for developer registration is determined by the project’s size and location.
  • The Tripura RERA authority will issue you a registration number and certificate once your application is approved.
  • You can check the status of your application online once it has been submitted.

It is important to note that all real estate agents and developers in Tripura are required to register under RERA. Non-compliance with the registration requirements can result in penalties and legal action.

Project registration process with RERA Tripura

The Act requires that all real estate projects with more than eight units or a land area of more than 500 square meters be registered with the state RERA authority before they are launched.

To register a real estate project under RERA in Tripura, you can follow these steps:

  • Visit the official website of Tripura RERA rera.tripura.gov.in.
  • Click on the “Registration” tab on the home page and select “Real Estate Project” from the drop-down menu.
  • Complete the necessary fields on the online application form, including those for the project, the promoter, and the land. 
  • Upload all required paperwork, such as the project’s layout plan, land title records, and other approvals and certificates that are necessary.
  • Pay the required registration fee online using the website’s payment gateway.
  • Submit the application form along with the required papers and a receipt for your payment.

After receiving the application, the Tripura RERA authority will review the information and supporting documentation and, if everything is found to be in order, will grant registration. The registration certificate that RERA will issue will contain significant information about the project, such as the anticipated completion date, the promoter’s information, and other crucial specifics.

The RERA requires all projects to be registered, and failure to do so can result in severe fines and legal action. Therefore, it is crucial to follow the registration process precisely and to adhere to all requirements.

Filing a complaint under RERA Tripura 

To file a complaint under the Real Estate (Regulation and Development) Act, 2016 (RERA) in Tripura, you can follow these steps:

  • Visit the official website of RERA Tripura at rera.tripura.gov.in.
  • Click on the “Complaint Registration” option on the homepage.
  • You will be directed to a new page where you will have to select the appropriate option for your complaint type (such as allottee or promoter).
  • Enter your personal details such as name, address, email, and contact number.
  • Enter the details of the project against which you are filing the complaint, such as the name of the project, registration number, and the name of the promoter.
  • Provide a brief description of the complaint and attach any supporting documents, if available.
  • After providing all the required information, press the “Submit” button.

You will be given a complaint registration number that you can use to track the progress of your complaint and for future reference. 

By going to the RERA Tripura office and bringing the required paperwork and a written complaint, you can also file a complaint offline. The RERA office in Tripura is located at the following address:

Real Estate Regulatory Authority, Tripura

Ground Floor, Aranya Bhavan

Gorkhabasti, Agartala

West Tripura – 799006

You can contact the RERA Tripura office at +91 381 241 4024 or send an email to reratripura@gmail.com for any further assistance or clarification.

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Two more towers in Chintels Paradiso declared unsafe

By
Ankesh Pratap Singh
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GURUGRAM: Two more towers in the Chintels Paradiso society have been declared unsafe by officials said on Tuesday citing a structural audit report by IIT-Delhi. Last year two people died there after Tower D partially.

Deputy Commissioner (ADC) Vishram Kumar Meena said that the IIT-Delhi team completed the sampling work of towers A and G while the sampling for Tower H is in progress. Towers E and F of the society in Sector 109 are not fit for habitation. 

Meena said that the IIT-Delhi team has found structural deficiencies in the construction during the structural audit of towers E and F of these towers and repair are not possible on technical and economic grounds. The allottees of the two towers would be rehabilitated as per the rules and the IIT-Delhi team has also recommended that E and F towers be closed. 

In November 2022 IIT-Delhi had earlier declared Tower D unsafe in its investigation report whose valuation report is also being shared with the residents of the tower and the developer for the settlement-related process.

“As per the report, it is found that a high amount of chloride is used in the concrete for construction purposes. Due to this steel and concrete used in construction got eroded”, said ADC Meena, who is also the chairman of the SIT constituted by the district administration to investigate the February 2022 incident.

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Bombay high court revoked cancel notice for 517 slum projects

By
Ankesh Pratap Singh
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Mumbai: The Bombay high court has invalidated a notice the Slum Rehabilitation Authority (SRA) had issued for the cancellation of 517 slum projects that had been left unfinished since 2014.

The notice that was issued was, according to the high court’s bench of Justices G.S. Patel and S.G. Dige, “entirely outside the frame of the law and not issued in accordance with the law.”

According to the order, a specific hearing must be held for each case, not just a general notice. Following a statement made in the state assembly by the then-housing minister Jitendra Awhad, SRA CEO Satish Lokhande issued the notice in April 2022.

“The high court has not restricted the powers of the SRA while quashing this notice. We will now be issuing individual notices. Only those cases where the developer is genuine will be allowed to continue with the scheme. The criteria include the developers who are willing to deposit rent for 11 months and demonstrate financial capability”, said Lokhande.  

“The proviso is clear. It means that every defaulting owner/developer must be given notice and afforded a hearing. No rejection of a scheme can proceed, or appointment of another developer or re-development by the SRA can proceed without compliance with the proviso”, said the bench referring to the Maharashtra Slum Areas (Improvement, Clearance, and Redevelopment) Act, 1971.

According to the law, the SRA CEO was required to move forward with each project individually, pointing out any deficiencies, the court claimed. “It is not possible for the CEO to group together as many as 500 projects, claim that they are all behind schedule, and move forward under the presumption that every delay is the fault of the developers,” the statement reads.

The document continued, “Therefore to demand compliance with undefined requirements in an undefined time, and in default of such generalities that are impossible to meet, threaten the recording of a rejection of the proposed slum schemes.”

The bench stated, “It is well settled that an authority must act in that manner or not at all where a statute requires it to do so.”

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Property dealer forges papers for Haryana RERA certification ends up with canceled registration

By
Ankesh Pratap Singh
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A property dealer lost his H-RERA registration for forging documents related to his office address in what was likely the first such case.

 

Vineet Kejriwal used forged documents and the signature of an engineer to claim RND Projects, a Bristol hotel, as his rented office. Following the victim’s complaint, the deputy commissioner’s office conducted an investigation and determined that the claims were true. As a result, the DC ordered the cancellation of his RERA registration.

“I filed a complaint with the DC’s office and H-Rera in July last year against Kejriwal for forging documents to obtain the regulator’s certification at our company’s address,” said complainant Deepak Hans. “On a tip, I found out the forgery while conducting an RTI query to obtain the names and addresses of the city’s registered property dealers,” he added. 

It was revealed in the RTI response that the address of Shop number 30, GF, Bristol hotel was mentioned on Kejriwal’s license, which was signed by DC Gurgaon.

“It was abundantly clear that the accused forged and independently created documents in order to deceive the DC office and obtain the certification, and even the lease agreement was entirely fabricated and false”,  he claimed.

Following the complaint, the deputy commissioner directed an inquiry and appointed the city magistrate as the investigation officer. 

The inquiry report stated that I have reached the conclusion that the documents submitted to authorities by Vineet Kejriwal were obviously forged, and the accused has made himself liable for appropriate legal action. The license issued to the accused on those documents may be canceled. 

On the basis of the inquiry report, the deputy commissioner directed the cancellation of Kejriwal’s RERA registration and recommended the regulator to initiate action against him. DC further wrote to the commissioner of police and the district revenue officer to take action against the accused as per the recommendations of the inquiry report.

Over 1,800 real estate agents registered with the regulator had previously received warnings from H-Rera asking them not to engage in unethical behavior.

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Know about Uttar Pradesh RERA Act—Objectives & Registration Process

By
Ankesh Pratap Singh
-

The Uttar Pradesh Real Estate Regulatory Authority was implemented on May 1, 2016, when the state notified the rules of the RERA Act. The body acts as the regulatory body for the real sector and oversees complaints and projects approvals.

UPRERA has been actively helping buyers and sellers in streamlining real estate transactions. With a large inventory of affordable housing options and ready to move properties, the real estate scenario has been booming in the state, especially in areas like Noida, Ghaziabad, Greater Noida, Lucknow, etc. Uttar Pradesh RERA has been offering project filing, grievance, and other services through its online portal to meet the demands of homebuyers and make the buying process more transparent. It became operational on July 26, 2017. 

Developers, brokers, and real estate agents operating in UP can easily register and seek approval under the UPRERA act. Registration will require  a set of document proofs and pay a nominal registration fee, among other charges. Since the act became effective, thousands have been registered successfully through the portal, making it a huge success. 

The online portal has been a massive advantage for potential property buyers. They can make a complaint online against dishonest developers and fraudulent activities. Further such complaints are resolved quickly through the body’s e-court system so aggrieved buyers can find a resolution soon. As a result, the RERA Uttar Pradesh act has bought a greater sense of peace to homebuyers. 

Primary objectives of UPRERA 

Similarly to other states, the Uttar Pradesh Estate Regulatory Authority was established under the Real Estate (Regulation and Development) Act, 2016, to protect homebuyers in UP against unfair actions and promote transparency in the buying process. Encouraging standard practices, speedy grievance resolution, and project delivery are the other core objectives of the UPRERA act. 

RERA Uttar Pradesh has proven to be a great boon to the state’s bustling real estate hotspots and micro-markets, including Noida, Lucknow, Greater Noida, Ghaziabad, and more, with such customer-centric benefits. UP is being hailed by many as the new real estate epicenter, with numerous major players making private investments. 

Although the post-pandemic market situation has been relatively slow, it is anticipated that demand for premium and affordable housing will gradually increase. Considering that many of the state’s metropolitan areas are on th way to becoming commercial hubs Aside from that, it is now simple to invest in real estate in the state because UPRERA handles project registrations, complaints, and approvals. 

So, if you are planning to purchase a property in the state, you can avail of  complete details related to property, builders, and projects on Uttar Pradesh RERA’s website portal. 

  • Benefits related to registering with UPRERA

The implementation of RERA has introduced massive changes to the real estate sector of Uttar Pradesh. From making builder information easily accessible to filing complaints, the Uttar Pradesh Real Estate Regulatory Authority has streamlined transactions in the best way possible. 

Contribution of Uttar Pradesh RERA in state real estate sector and its micro-markets. 

  • Easy access to realty information 

Buyers can access detailed information about registered projects, builders, promoters, and real estate agents using the UPRERA online portal. 

  • Timely grievance redressal 

In case of any malpractice or defects in completed projects, buyers can lodge a complaint against the seller and seek immediate resolution. 

  • Fair and standard pricing

As per the provisions in the UPRERA act, builders and developers can only charge prices on the basis of the carpet area derived using a standard formula. With this mandate, buyers benefit from a fair pricing system.

  • Defined advance payments

The act regulates developers to charge more than 10% of the property’s total cost as advance payment before sealing the sales agreement. 

  • Compensation for project delays

Under this act, the builder is liable to pay a penalty to homeowners if they fail to meet deadlines to hand over the project. 

How to check registered projects

If you have been looking for a residential property in Uttar Pradesh, you can simply go to the website portal of UPRERA. After logging on the website, you need to complete a form to access the required project information. 

Here is a step-by-step process to check the project registration online on the UPRERA website:

  • To begin, go to the UPRERA website portal.
  • On the homepage, locate the “Projects” tab and click it. A form will appear on the screen. 
  • Now fill out the form as asked to search for your project. You can find every project registered on UPRERA’s website like this. 
  • Navigate to the “view details” option to load the complete information related to the project. 

Required Documents for UPRERA registration

All builders and developers are required to register their projects under the UPRERA act. The registration process is simple, as it just needs to upload the required documents on the RERA Uttar Pradesh’s digital portal and fill out the necessary form. 

Below is a list given for documents that need to register a project with Uttar Pradesh RERA: 

  • Sale deed
  • Brief detail of the project
  • Allotment letter issued by a competent authority 
  • ITR of the last three years
  • Extract of Khatauni 
  • Audited Balance Sheet 
  • Registry Document 
  • Lease Deed
  • For Competent Authority – CIN, PAN, TAN, and Photographs of Housing Commissioner, CEO, and VC.
  • For Local Authority – TAN, PAN, and Photograph of M.C./E.O
  • For Individuals – PAN, Photograph, and Aadhaar of the applicant
  • For Company – Company registration certificate, brief detail of enterprise, CIN, PAN TAN, Photograph and Photographs of all Partners and Directors
  • Company Registration Certificate, CIN/TAN, PAN, and Photographs of All Partners and Directors for Proprietorship Firms, Societies, and Partnership Firms

How to register a project on UPRERA?

Under the UPRERA act, all developers and builders must register their commercial and residential projects to promote, advertise, book, and sell. To do so, you can simply apply online using the UPRERA digital portal. 

If you have a project and want to register with Uttar Pradesh RERA online, follow the steps below: 

  • Log on to the online portal of the Uttar Pradesh Real Estate Regulatory Authority 
  • Navigate to the “Registration” tab, it will redirect to the registration page
  • Locate and choose the “Project” tab and log in using your registered ID and password. You will now reach the registration page. 

Real estate agents and builders are required to register themself with RERA Uttar Pradesh first to register the project. 

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NGT imposes fine of Rs 68 crore against 343 stone crushers in Haryana

By
Ankesh Pratap Singh
-

Gurugram: National Green Tribunal asked the pollution board to take action against the violators of environmental norms in Charkhi Dadri. No stone-crushing unit will be allowed until the air quality index comes below 200.

A fine of Rs 68 crore has been levied against 343 stone crushers in Charkhi Dadri by the National Green Tribunal for violating environmental regulations. 

The order came on the basis of a petition filed by local resident Vinod Kumar Jangra, who alleged that dust and dirt from the stone crushers were adversely affecting the environment and public health.

The court had asked for a factual report following the plea. The assessment revealed that the average AQI for the vicinity of the crushers was higher than 200. As a result, NGT asked for action from the pollution board.

The order stated, “We also fix interim compensation at the rate of Rs 20 lakh against each of the stone crushers operating in the area on ‘polluter pays’ principle. The compensation will cover the period from five years prior to the filing of this application and till date. This will apply to all 343 identified stone crushers as mentioned in the report of the joint committee dated 17.01.2023”. 

No stone crushing unit would be allowed to operate in the area until the air quality index was in the ‘moderate’ category and dropped below 200 as per the bench’s order. 

The collected fine would be used for the restoration of the environment in the area.

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What is MahaRERA and its functions?

By
Ankesh Pratap Singh
-

RERA (Regulation and Development Act), was passed to safeguard homebuyers’ interests and promote financial investment in the real estate market. Since the Indian government enforced RERA in 2016, every state has had its own RERA authority to regulate the housing sector.

For instance, if you want to purchase a house in the state of Maharashtra, you must ensure the property is pre-approved by Maharashtra RERA. Additionally, know that this Indian state was the first in the nation to fully implement RERA.

The Regulation and Development Act in Maharashtra was implemented the same year as the Parliament approved the RERA bill. This regulatory authority regulates all real estate disputes within the state and gives home buyers and owners prompt solutions. 

The Maharashtra RERA Act has made it easier for appellate tribunals to register official complaints from deceived buyers. The rules set forward by this body have also increased transparency in all real estate deals between buyers and developers.

The builders cannot sell or even advertise their developing properties to prospective buyers until the project gets registered under RERA. Every commercial, as well as residential complex in Maharashtra, must be registered under RERA.

RERA in Maharashtra is making the Maharashtra real estate sector safer as it already dealt with over 2200 complaints last year. Moreover, this regulatory body has processed over 18,000 RERA applications, which makes up 60% of all RERA applications within India. 

What are the Primary Goals of MahaRERA?

Here is an overview of the primary objectives of the RERA ACT, Maharashtra:

  • RERA Act focuses to facilitate the sale of plots of land, fully-constructed buildings, or apartments in a seamless way.
  • Its policies aim to establish transparency between sellers and buyers. For instance, buyers can now demand complete floor plans and blueprints from developers before purchasing.
  • It provides relevant resolution over disputes between developers and buyers.
  • Due to developers following RERA’s norms, there is clear information about the plot, home, and apartment sale.
  • It allows buyers to file complaints about any developer, as MahaRERA has established the concept of an Appellate Tribunal.

A property – be it commercial or residential is registered with RERA Maharashtra, which means it’s authentic, and purchasing it will not create any disputes.

Therefore, it is recommended to check whether the property is registered with RERA Maharashtra even before taking a home loan to buy any residential housing in the state. 

What are the Benefits of Registering with MahaRERA?

Protects buyers from liquidation 

The RERA Act Maharashtra protects buyers from insolvency, as it holds an Escrow account. It acts as a third party that controls payment between two parties and only releases the funds once the contract terms are met, which means during the purchase of under-construction property, the developer has to deposit 70% of the money buyers pay them into a single account. The developer can access these funds after successfully handing over the home to the respective buyer. 

Safeguard the rights of all stakeholders

Along with buyers, RERA allows the right to its registered brokers and developers to file a complaint against dubious deals and buyers who default on their payments.

Grant flexibility to developers on project completion 

RERA Maharashtra allows flexibility to developers, as they can choose the completion date of the project. 

Improves transparency and accountability

As a result of this Act, procedures are more streamlined and laws are clearly put down, which attracts more people to work within the real estate sector.  

Ensures fairness in pricing

Maharashtra RERA makes sure that purchasers pay only for carpet areas. Resulting, no builder can charge a high premium on the square footage of a home.

How to check registered projects on MahaRERA?

It is easy to check whether the project is registered with Maharashtra RERA and one can check it online. To check the registration of any project follow the steps listed below:

  • Log on to the official MahaRERA portal and navigate to ‘Registration’.
  • Click on the ‘Registered Projects” in the ‘Registration’ drop-down menu and this will take you to the external web portal. You must allow all pop-ups to complete this process.
  • A short form will open asking for specific details on the external page. Here, fill the project and promoter’s name. The page will display all MahaRERA Maharashtra details. Here, you can check a developer’s RERA certificate along with other relevant details.

How to check registered Agents on MahaRERA?

Not only developers and their properties, but independent brokers and real estate agents are also registered with Maharashtra RERA. And, if you’re dealing with one, it’s prudent to check whether they’re registered or not. Here’s how:

  • Log on to the MahaRERA Maharashtra web portal, and click on the ‘Registration’ tab from the top menu.
  • Click on ‘Registered Real Estate Agents’ and this will take you to an external website.
  • A form will open on the external website. Here, enter the agent’s registration number or name. You’ll see all the details if the agent is indeed registered with the Maharashtra RERA Act. If they are not registered, the search will return empty, and you can determine they are not to be trusted. 

Required Documents to register 

Below are the listed documents that are required while registering your project or yourself under the RERA Act Maharashtra:

  • To apply as an independent individual will require your full name, mobile number, address, and photograph. 
  • Your company registration documents if you’re applying as a partnership firm or company.
  • Agreements refer to the ownership, lease, or development of a project.
  • Complete layout and the approved building plan.
  • Details of RERA bank account (typically opened before applying for MahaRERA).
  • Form 1 from your architect(s), Form 2 from your Structural Engineer(s), and Form 3 from your Chartered Accountant(s).
  • PAN card, name, address, mobile number, and photograph of the person in charge of promoting a property for a particular developer.

How to check registered projects on MahaRERA?

Want to register your project under Maharashtra RERA? You can simply register online, and the process is straightforward.

  • Log on to the official Maharashtra RERA site and click on the ‘Online Application’ tab.
  • You’ll have to register with the portal. For this, click on the ‘New Registration’ tab.
  • Create your account with Maharashtra MahaRERA authorities by following proper procedures.
  • You must choose Maharashtra as your state on the registration page, and mention the remaining details such as username, registered email address, and mobile number. Click on “create user” once you’ve filled out all details.
  • After completing the above mentioned steps the portal will send you a verification link to the email address that you provided. Verify by clicking on the link in your mailbox.
  • Further, you can log in to the website with your username and password, upload the necessary documents, and fill the required fields to register with the Maharashtra RERA Act.  

Which projects are not required to be registered with MahaRERA?

It is notable that all projects are not required to be registered with MahaRERA. The Act is constituted to register real estate agents, and real estate projects and to prevent home buyers from fake projects and malpractices. 

Following are the cases in which the project is not required to be registered with MahaRERA. 

  • The real estate project with an area below 500 sq mt 
  • If the total number of apartments does not exceed 8 as part of the project (all phases). 
  • The promoter of the relevant real estate project has received a completion certificate (CC) for the project before the implementation of the MahaRERA Act.
  • Where a real estate project includes redevelopment or renovation/repair, which does not include advertising, marketing, or new allotment of a residential apartment, plot, or building.

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China focusing to stabilize housing prices and strictly curb speculations

By
Ankesh Pratap Singh
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After a flurry of government moves to support the crisis-hit sector, a ministry publication reported on Tuesday that China’s housing regulator will work to keep housing supply and demand balanced, make home prices stable and strictly curb speculation. 

According to China Construction News, led by the Ministry of Housing and Urban-Rural Development, China will make more targeted efforts to support demand for owner-occupied and improved housing to boost market confidence. 

According to the report the regulator held a video conference On Tuesday vowing to promote home delivery, help resolve financing risks for property firms, and equally support the balance sheets of state-owned and private property firms. 

In the last year, China’s property sector got severely affected as cash-squeezed developers were unable to finish apartment construction, prompting a mortgage boycott by some buyers. The authorities launches a flurry of support policies targeting home buyers and property developers to relieve a long-running liquidity squeeze that hit developers and delayed the completion of many housing projects.

According to the official data released on Tuesday, property Investment decreased by 10 percent in 2022. The first decline since records began in 1999, and the property fell by highest since 1992. 

On Tuesday the statistic bureau also anticipated that due ti the enormous demand for owner-occupied and enhanced housing, the property sector’s impact on economic growth in 2023 will be much less than it was in 2022. 

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Proptech constantly revolutionizing the real estate sector

By
Ankesh Pratap Singh
-

The real estate sector is known worldwide for contributing to economic activities and the country’s development.  the real estate sector is traditionally categorized as one of the largest employers in various activities and processes such as construction, design, development, advisory, financing, sales, etc. The real estate sector is emerging with promising opportunities for entrepreneurship over the last couple of decades.

The real estate sector is now thriving with innovation, making it one of the fastest-growing fields. Real estate entrepreneurs especially in proptech, are taking advantage of the stream of new technological developments to digitalize the property industry. Numerous real estate companies are changing the existing systems and processes of the industry with innovative business models.

Proptech entrepreneurs offer several solutions for the real estate markets. Numerous property search tools, innovative buying solutions, new renting practices, selling alternatives as well as new concept agents, and landlord solutions offer customers easy access to reviews, visuals of how the property looks every season, tools to rate the property’s infrastructure, and many more such benefits.

App and web-based listing platforms for residential properties provide various search services to house owners and house seekers without or with minimum brokerage fees and hidden charges. 

Such companies enhance the renting and selling processes by offering a variety of innovative solutions to owners and seekers with no brokerage fees or very little in the way of hidden costs. 

In this field, many ventures like Covie, Awfis, and Smart work convenience of co-working spaces to businesses. There are also companies that are providing home designing and buying application functions and many provide a 3D view of the accommodation, which helps the consumer have a better idea of the space. 

Working-class people and students are the common groups that usually search for accommodation within their budget. Some the companies such as Zolo, Covy, and Stanza Living are providing co-living accommodation facilities to students and early professionals. Similarly, there are companies providing solutions in the field of Mortgages. 

Conclusion

In India, the real estate market sector is huge, lot of companies today are trying to diversify their operational locations and services to target the consumers that will be using their services from co-living to co-working.

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