Repo rate and its Impact on Home Loan Borrowers

Home Loan

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March 20, 2024

On April 6, 2023, the Reserve Bank of India announced its first bi-monthly policy for the fiscal year 2023-2024 while maintaining the repo rate at 6.50%. The apex bank raised the repo rate by 25 basis points on February 8, 2023. With the hike, the repo rate—the interest rate at which India’s central bank loans money to established banks—rose to 6.50%. This fiscal year, the repo rate increased for the sixth time in a row. The repo rate has been increased by 250 basis points overall by the RBI in FY23.

What does this decision entail for a house buyer?

Home purchasers are informed that the cost of borrowing will increase or decrease as a result of changes in the repo rate made by the RBI. Because the repo rate has such a big impact on your financial situation, it’s crucial to understand everything there is to know about it. Understanding how the reverse repo rate operates is also crucial to better understanding how your home loans function.

For example, SBI customers who are currently making monthly payments of Rs 21,834 for a home loan for Rs 25 lakh with a 20-year term would soon be required to make payments of Rs 22,253 a month following the hike. The EMI would rise from Rs 19,400 monthly to Rs 19,846 if the loan had a 30-year term.

Understanding Repo Rate

Financial institutions must pay interest for the money they borrow from the central bank in the same way that borrowers must pay a certain amount of interest to obtain credit from banks. The repo rate is the name of this interest. Repo stands for ‘repurchasing option” or “repurchase agreement,” respectively. According to the arrangement, scheduled commercial banks give RBI securities like Treasury Bills or gold in exchange for overnight credit when there is a liquidity shortage.

It is important to note that banks require money to make loans. They can borrow from the central banks or accept deposits from the general population, and repurchase agreements allow for this.

Current repo and reverse repo rate

The repo rate is a useful instrument for the banking regulator to control inflation in addition to assisting banks with lending availability. The RBI raises the repo rate in cases of rising inflation to deter banks from borrowing. As a result, the economy’s liquidity ultimately declines, which eventually controls the high inflation. In the event of declining inflation, a reversing strategy is implemented. In this scenario, the repo rate is lowered to encourage banks to take on more debt, ultimately boosting the market’s supply and sparking new investment activities.

Notice that the credit supplied by the RBI to the bank in this manner is only provided for overnight use, and the banks purchase their securities that were deposited with the banking regulator at a predetermined rate.

Reverse Repo Rate

The interest banks charge the RBI for credit extended to the banking regulator is the reverse repo rate. The RBI also employs reverse repo rates, which remove liquidity from the economy, to maintain desirable inflation levels. The RBI encourages banks to lend money to it by raising interest rates, which causes the system’s excess liquidity to be used up. As a result, banks do not have much available credit to lend.

Difference between reverse repo and repo rate

Repo rate

The interest rate the RBI charges for credit loans

Always higher than the rest for reverse repo

An instrument for reducing inflation

Complies with a buyback agreement

Bonds are used to conduct transactions

Reverse repo rate

Usually less than repo rate

An instrument for preserving financial flow

Functions according to the reverse repurchase agreement

Bonds are used to conduct transactions

In transactions, bonds are used

Principles of India’s repo rate

The RBI controls and sets the repo rate

Repo rates are a method of reducing inflation

Based on the repo rate, banks modify the interest rates on savings accounts and fixed deposits

The reverse repo rate was the name of the repo rate before October 2004

What is a monetary policy review

Every two months, the six-member Monetary Policy Committee of the RBI, chaired by the governor, meets to determine the bank’s monetary policy and adjust key interest rates in accordance with the economy’s state. The monetary policy review also summarizes the nation’s current economic circumstances and details the current and upcoming steps the RBI intends to take to boost the economy.

How are houses affected by changes in the repo rate?

Banks pay less for borrowing when the RBI reduces the repo rate. Banks are anticipated to eventually pass on this benefit to the customers. In contrast, when the RBI adjusts its lending rate upward, home loan interest rates also increase.

Interestingly, banks are quicker to pass on rate increases to customers than they are, on average, to lower their lending rates. So, even though changes in the repo rate ought to be instantly reflected in the interest rates of financial institutions, this only increases the likelihood of quick transmission, and frequently the RBI needs to encourage banks to pass along the advantages of lower rates to borrowers.

Future expectations may include faster transmission of policy as a result of the bank’s October 2019 decision to link the interest rates on house loans to the repo rate. Prior to that, banks priced house loans using internal lending benchmarks such as the prime lending rate, base rate, and marginal cost of funds-based lending rate (MCLR).

The MCLR was an internal lending benchmark that went into force in 2016 and allowed banks to ‘reset’ the loan rate at intervals outlined in the loan agreement. The banks did not pass on these rate reductions from the banking regulation to the customers as quickly as was anticipated. However, the burden was immediately transferred in the event of a rise.

When determining lending rates for MCLR-based loans, banks must also consider their cost of deposits, operating expenses, etc., in addition to the repo rates. Thus, MCLR-based loans are always likely to transmit changes in policy rates more slowly, according to Naveen Kukreja, co-founder and chief executive officer of Paisabazaar.com.

Due to the MCLR regime’s modest performance, the RBI ordered banks to convert to an external lending benchmark in 2018. This would better position borrowers to profit from policy changes. After that, beginning in October 2019, banks shifted to the repo rate-linked lending system. Almost all of India’s major banks currently provide house loans based on the repo rate set by the RBI.

Key factors about repo-rate linked home loans

Buyers who take out a home loan at the repo rate or those who move from their current home loans to it need to understand certain details about these loans.

Faster transmission: Any adjustments to the repo rate will likely be reflected in your EMI outlay considerably more quickly.

Borrowers should anticipate a much faster transmission of their loan rates with repo-rate-linked house loans. Also, these loans will be more open in terms of the rate-setting process, which should provide consumers more assurance when estimating their loan interest rates, according to Kukreja.

This also implies that your house loan EMI would increase if the banking authority modifies its benchmark lending rate. Hence, Kukreja cautions, repo rate-linked loans may actually operate against purchasers within the current environment of rising interest rates.

Also, banks will finally decide how much extra interest they will add to the repo rate on mortgages. The lowest housing loan currently on the market is 8.50%, which is a two-percentage-point difference from the repo rate, which is currently at 6.50%.

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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Navigating Rules and Regulations for Investing in US Real Estate: A Comprehensive Guide

By

Shivam Tomer

-

March 18, 2024

Investing in real estate in the United States can be a lucrative opportunity for investors worldwide. However, understanding the rules and regulations governing real estate investment in the US is crucial for success.

This article aims to provide an overview of the key rules and regulations that investors need to navigate when investing in US real estate.

Foreign Investment in Real Property Tax Act (FIRPTA)

FIRPTA is a federal tax law that applies to foreign individuals and entities investing in US real estate. Under FIRPTA, foreign investors are subject to withholding tax on the sale of US real property interests, including residential and commercial properties.

Visa Requirements

Foreign investors looking to actively participate in US real estate investment may need to obtain a visa that allows them to conduct business in the country. The EB-5 Immigrant Investor Program and the E-2 Treaty Investor Visa are among the visa options available for investors seeking to invest in US real estate.

State-Specific Regulations

In addition to federal regulations, investors must also consider state-specific rules governing real estate investment. Each state may have its own set of laws regarding property ownership, landlord-tenant relationships, and property taxation.

Financing and Mortgage Regulations

Foreign investors may face unique challenges when seeking financing or mortgages for US real estate investments. Lenders may have specific requirements for non-US citizens, including higher down payments and stricter eligibility criteria.

Ownership Structures

Choosing the right ownership structure is essential for foreign investors looking to invest in US real estate. Options include direct ownership, forming a US-based corporation or LLC, or investing through a real estate investment trust (REIT).

Tax Implications

Foreign investors need to be aware of the tax implications of investing in US real estate, including property taxes, income taxes, and capital gains taxes. Consulting with tax professionals can help investors optimize their tax strategies and minimize their tax liabilities.

Compliance with Anti-Money Laundering (AML) Regulations

Foreign investors must comply with US anti-money laundering regulations when investing in real estate. This includes verifying the source of funds and adhering to know-your-customer (KYC) requirements.

Conclusion

Investing in US real estate offers promising opportunities for investors worldwide, but it comes with its own set of rules and regulations. By understanding and complying with FIRPTA, visa requirements, state-specific regulations, financing rules, ownership structures, tax implications, and AML regulations, foreign investors can navigate the US real estate market successfully. Seeking guidance from legal, tax, and real estate professionals can help investors make informed decisions and maximize their returns in the dynamic US real estate market.

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Top Destinations for Indian Homebuyers Abroad: A Comprehensive Guide

By

Shivam Tomer

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March 18, 2024

The desire to invest in overseas properties has become increasingly popular among Indian homebuyers. Whether it’s for investment diversification, a second home, or permanent settlement, Indians are exploring various countries for real estate opportunities.

Top-Destinations-for-Indian-Homebuyers-Abroad_-A-Comprehensive-Guide

This article aims to provide insights into the top destinations where Indians can buy homes abroad, along with key considerations and benefits.

United States

Renowned for its stable economy, robust legal framework, and attractive rental yields, the United States remains a prime choice for Indian investors. Cities like New York, San Francisco, and Miami offer diverse properties, from luxury condos to investment-grade commercial spaces.

United Arab Emirates (UAE)

Dubai and Abu Dhabi have emerged as hotspots for Indian homebuyers, thanks to their flourishing real estate markets, tax-free environment, and lucrative rental yields. Freehold areas in these cities present opportunities to invest in upscale apartments, villas, or commercial properties.

Canada

With its high quality of life, excellent healthcare and education systems, and stable economy, Canada attracts Indian immigrants and investors alike. Cities such as Toronto and Vancouver offer diverse property options, including residential homes and commercial spaces.

United Kingdom (UK)

Despite Brexit uncertainties, the UK remains an attractive destination for Indian investors due to its historical significance, strong rental market, and potential for capital appreciation. London, Manchester, and Birmingham are popular cities for property investment.

Australia

Offering a high standard of living, excellent educational facilities, and a diverse lifestyle, Australia appeals to Indian investors seeking residential or commercial properties. Major cities like Sydney, Melbourne, and Brisbane offer promising investment opportunities.

Singapore

Known for its strategic location, stable economy, and investor-friendly policies, Singapore provides attractive options for Indian homebuyers. The residential and commercial real estate markets in Singapore offer potential for long-term growth and rental income.

Other Emerging Destinations

In addition to the aforementioned countries, emerging destinations such as New Zealand, Portugal, and Malaysia are gaining traction among Indian investors. These countries offer unique opportunities for real estate investment and lifestyle enhancement.

Conclusion

Investing in overseas properties presents Indian homebuyers with a range of opportunities and benefits. Whether seeking rental income, capital appreciation, or a second home, the top destinations mentioned in this article offer diverse options to suit varying preferences and investment goals. It’s essential for Indian investors to conduct thorough research, seek professional guidance, and understand the legal and financial implications of buying property abroad. With careful planning and informed decision-making, investing in homes abroad can be rewarding for Indian homebuyers.

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Guide to Property Investment in Dubai for Indian Buyers

By

Shivam Tomer

-

March 16, 2024

In recent years, Dubai has emerged as a lucrative destination for property investment, attracting interest from Indian buyers. But can Indians actually buy property in Dubai? Let’s delve into the details.

Dubai, renowned for its modern skyline, luxurious lifestyle, and booming economy, has become a magnet for property investors worldwide. For Indian buyers eyeing real estate opportunities abroad, Dubai offers an enticing prospect. However, navigating the nuances of property ownership in a foreign land can be daunting.

The good news is that yes, Indians can indeed buy property in Dubai. The emirate welcomes foreign investment and has established clear guidelines for property ownership by non-residents. Whether you’re looking for a holiday home, an investment property, or a place to relocate, Dubai’s real estate market offers a diverse range of options to suit every need.

Key Considerations for Indian Buyers:

Legal Framework: Understanding the legal framework governing property ownership in Dubai is crucial. The Dubai Land Department (DLD) regulates real estate transactions in the emirate and ensures transparency and security for investors. Indian buyers can purchase freehold properties in designated areas approved by the government.

Freehold vs. Leasehold: In Dubai, freehold ownership grants buyers full ownership rights over the property, including the land it sits on. Many developments in Dubai offer freehold ownership to foreign investors, making it an attractive option for Indian buyers. Leasehold properties, on the other hand, involve leasing the land from the government for a specified period.

Property Types: Dubai’s real estate market boasts a diverse range of properties, from luxury villas and beachfront apartments to commercial spaces and off-plan developments. Indian buyers can explore different options based on their preferences, budget, and investment goals.

Financing Options: Financing a property purchase in Dubai may require careful consideration of available financing options, including mortgage loans from local and international banks. Indian buyers should assess their eligibility and explore competitive loan offers to finance their investment.

Implications: Dubai offers favorable tax policies for property investors, including no income tax, capital gains tax, or inheritance tax. However, it’s essential to stay informed about any tax obligations that may arise in both Dubai and India to ensure compliance with relevant regulations.

Legal Assistance: Engaging the services of a reputable legal advisor or real estate agent with expertise in Dubai’s property market can streamline the buying process and provide invaluable guidance on legal matters, documentation, and transaction procedures.

Conclusion

With its dynamic economy, cosmopolitan lifestyle, and robust legal framework, Dubai presents an attractive opportunity for Indian buyers looking to invest in international real estate. By understanding the regulatory landscape, exploring available options, and seeking expert advice, Indian investors can navigate the Dubai property market with confidence and make informed investment decisions.

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Selling Strategies for Different Property Types: Maximizing Your Property’s Sale Potential

Tips

By

Shivam Tomer

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February 15, 2024

A buyer is typically spoiled for choice in a market with a large supply of housing inventory, including fresh, resale, resale but vacant, and other types. It is vital to be aware of effective marketing techniques for the type of property you own. Each type will have a different game plan, from marketing to site visits.

Depending on your property’s present status, such as whether it is a newly resold property, one you have lived in for a while and are looking to sell, or one that is currently rented out when you decide to sell it, you will need to adopt various selling methods.

How to sell a newly resale property

This situation occurs when you either bought a property that is still being built and now want to sell it as it is getting close to completion, or you bought a brand-new, ready-to-move property but haven’t moved in yet and want to sell.

If the property is a project of a real estate developer, you can show the potential buyer the brochure of the property and any unit of a comparable configuration within the project that has already been built entirely to give them an idea of what your under-construction property will look like once it is fully built.

Also, it is wise to let potential purchasers know whether your house was built by a reputable builder. This can reassure them about the building quality, the chance of prompt completion (in the first scenario), and a good resale value if the buyer wishes to sell at a profit in the future.

Keep in mind the “transfer fee,” which the builder will demand if you sell your property that is still being built to someone else. When determining your profit from the deal, this sum would need to be added to your entire cost. The typical transfer charge is Rs 100–500 per sq ft.

Selling a house you’ve lived in for several years and now wish to sell

You may have been in your home for two to three years and now want to move or upgrade to a larger home. It is crucial in these circumstances to reassure the buyer of your motivation for selling (improvement, relocation, etc.), as they can be uncertain if there are any problems with the property that are forcing you to sell it so quickly.

Before inviting potential buyers to view the house, you should confirm that it is in a usable state to reassure them of this. It would also be wise to paint your home because it would give it a new look. Before scheduling visits, you can also think about taking out all of your personal belongings to enable the buyer to view the home impartially.

Selling a pre-rented home

If the potential buyer is an investor in this situation, you should emphasize the fact that he or she will receive a pre-leased asset with guaranteed monthly rental revenue, all without having to expend additional time, energy, or money to find a tenant. Although you should emphasize all the other beneficial aspects of your house, this should be your main selling point.

A “Change of User” amendment agreement between you and the buyer is required; it specifies that the landlord will change, but the renter will remain the same. The previous rent agreement between the landlord and tenant included this paper as an annexure.

If the potential buyer is an end user, you can reassure him or her that a registered rent agreement already exists with the renter and that the tenant would vacate the property when the lease time is through, allowing the buyer to move in.

Hence, to maximize the likelihood that your property will sell, remember to tailor your selling strategy to the condition of the property.

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Best False Ceiling Designs For Your Bedroom

Decor

By

Shivam Tomer

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February 5, 2024

Did you know that a cool design feature in a bedroom, which originated in fourteenth-century Japan, can combine both functionality and aesthetic? To find out what it is, just look up! Yes, you guessed it right – it’s false ceiling designs.

False ceilings serve a lot of purposes, like hiding wiring and providing insulation, but they can also improve the look of your room with a variety of colors, textures, finishes, and designs. You can choose the best and latest false ceiling designs with our guide to add a new element to your bedroom.

Modern False Ceiling Design

How about spicing up your bedroom with new false ceiling designs? You can go for a cut out in the ceiling and use the space left by it to install cool electrical fixtures such as lights and fans. To make your ceiling look modern, you can choose from various patterns such as squares, diamonds, circular shapes, hexagons, and stars. You can repeat the pattern across the ceiling or just use a large single cut out for a more dramatic effect. So, what are you waiting for? Try out these trendy designs and give your bedroom a new vibe!

Wooden False Ceiling Design

Wood is the perfect material for cozy and luxurious bedroom false ceiling designs. You can use wooden planks or beams in a parallel or criss-cross pattern to create a grid effect. The best part is that wood comes in different grains and textures and can be painted to match your style. However, keep in mind that wood needs to be treated to keep termites at bay. Moreover, it’s better to use it in cool or temperature-controlled environments because it tends to warp in warmer temperatures.

Gypsum False Ceiling Design

Did you know that gypsum is a super popular material for false ceilings? You can find all sorts of gypsum panels in the market, from basic to fancy designs. These panels are made in advance and installed on-site, giving your false ceiling a smooth and seamless finish that’s tough to achieve with Plaster of Paris. The best part? Gypsum is easy to install, maintain and it’s super durable. Plus, it’s pretty budget-friendly too! So go ahead and pick your favorite texture and color to give your bedroom that extra magic touch.

False Ceiling Design For Children’s Bedroom

Transforming your child’s bedroom into a dreamy, sporty, or whimsical paradise is easier than you think! And what better way to do it than by adding a false ceiling design that reflects their personality and style. Let your imagination run wild and create a floating ceiling to give a dreamy look or add dimmable lights to set the right mood. If your little ones are into sports, why not go for ceiling cutouts that showcase their favorite sport? Think of the false ceiling as a blank canvas where you can unleash your creativity and bring a smile to your children’s faces. Trust us, the result will be simply amazing!

Simple False Ceiling Design

If you’re all about keeping things simple, you can jazz up your bedroom’s ceiling without going overboard. Just go for a basic tray design that comes with a hidden strip of lighting. It’ll definitely add some oomph to your room without being too flashy. This type of false ceiling design will keep the focus on your bed while also highlighting any unique features of your room. Plus, it’s super easy to design and install, so you’ll get maximum impact from minimum effort.

Floating False Ceiling Designs

If you’re looking to give your bedroom a fancy and sophisticated look, you can try designing a false ceiling that seems to be floating in mid-air. To do this, you can use hidden mounts and some clever backlighting. Install the lights around the edges of the false ceiling in a way that hides the mounts and adds a soft glow to the ceiling, making it appear as if it’s floating. There are different designs available for floating false ceilings, so you can choose the one that goes with the overall look and feel of your bedroom. If your bedroom is simply decorated, a single floating tier will do the trick. But, if you have a fancy and complexly styled master bedroom, you might want to go for a multi-level floating ceiling.

Panel False Ceiling Design

If you’re looking for drama in your bedroom, consider having an extended panel false ceiling design. The panel can start behind your bed with lines that match the headboard’s symmetry and run vertically along the wall and onto the ceiling. This design is visually striking, making it perfect for a bedroom that needs a little bit of theater. The swooping lines of the panel can instantly add life to even the simplest or plainest of bedrooms.

Zoning False Ceiling Design

If you have a bedroom that’s used for different things, you can use false ceilings to divide the room and create zones. You can put a false ceiling over your bed to make it clear that it’s the sleeping area. You can also use dimmable lights to create the right ambiance. If you have a study area in your room, you can put a false ceiling over it and embed some task lights to make it a cozy nook where you can be productive. Similarly, you can make your seating area in the bedroom nice and comfy with a suitable false ceiling design. No matter what look you’re going for in your bedroom, the right false ceiling design can help you get it done in no time.

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Latest update on Goa RERA provisions

By

Shivam Tomer

-

January 29, 2024

GOA RERA launched its official website in order to make the most important decision regarding the regulation of the real estate sector. The implementation of RERA eliminated fraud and infused transparency in the real estate sector to encourage investments.

RERA Goa

The RERA Act 2016 was enacted by the Indian government to regulate the country’s real estate sector. The Act put forth a set of regulations to safeguard the activities associated with real estate dealings, transactions, and the interests of end users and developers. The officials notified the Goa RERA on November 24, 2017, to provide uninterrupted RERA project registration, agent registration, and complaint registration. The official RERA portal was introduced in 2018.

Goa RERA Provisions

Following are the responsibilities associated with Goa RERA:

At the start of the project, promoters must make all project-related information public.
Project developers must provide quarterly updates of the project as it is mandatory as per the RERA Guidelines.
Ensure that all real estate projects are registered with RERA Goa.
Registered real estate agents are involved in projects throughout Goa.
The designated authority responds to RERA-registered consumer complaints in accordance with the rules and regulations.

Functions Performed by Goa RERA

Goa RERA was established with the following objectives:

To ensure that buyers receive every detail about projects, from the plan to the associated cost to possession.
To ensure that existing and future projects are subject to RERA Goa Authority and that they are carried out in accordance with the RERA Act 2016.
To regularize and promote the real estate sector throughout the state.
For the establishment of an Appellate Tribunal, which will be responsible for the resolution of complaints. Additionally, the authority is required to handle the consumer complaints submitted to the Appellate Tribunal quickly.

Services offered by Goa RERA

Below are the services offered by Goa RERA:

Registration of Agents
Project Registration under RERA
Registration of complaints via the official RERA website
Registration Withdrawal

Agent Registration with Goa RERA

First, visit the Goa RERA official website and click on “Agent Registration”
You will be redirected to another page where you need to enter your email ID for verification
Enter your email ID and generate OTP
Now, select the type of individual or society, company, partnership, or government body, enter the OTP and click on ‘Next’ to move further with the process.
Enter the required information and attach a copy of relevant documents in the given format
Pay the registration fee for the agent registration and submit the application and the approval or rejection will be sent to you on your registered email ID.

Agents must register themselves in order to work on any registered project across Goa. No agent is permitted to facilitate any sale/purchase and can’t get involved with any real estate transaction without registration.

Documents Required to Register RERA

Below is a list of essential documents required by every involved party of the real estate domain.

Required documents for promoter

Scanned copy of PAN card
Scanned copy of legal title deed
Information about encumbrances on the property (the site of the proposed development)
A previous financial year’s audited balance sheet and the last three years’ income tax returns
An affirmation that the promoter will treat every allocator fairly at the time of property distribution
Information about all active projects, including their status, total built-up area, and carpet area
Total area set aside in the project for parking

Required documents for agents

PAN card
Passport-sized photographs of the agent and all other parties involved, including the board of directors
Information about the venture, including its name, type, and registered address
Evidence of a company address
Previous three financial years’ income tax returns
Registration specifics, such as bylaws and the MOU (memorandum of association).
Legal documents related to the proposed project’s land

Filing complaint with RERA

The RERA Act allows consumers to file a complaint with RERA Goa against violations, scams, or any fraudulent activities. In case the home buyer isn’t satisfied with the solution provided by the RERA Goa officials, he can directly get in touch with the Appellate Tribunal. Moreover, he can directly file an appeal in the high court if he isn’t satisfied with the resolution of the Appellate Tribunal.

Follow the steps outlined below to file a complaint under the RERA.

Visit the RERA Goa official website and navigate to the ‘Complaint Register’ section.
You will be taken to a new page that contains the ‘Complaint Registration Form’ where you need to fill in the details such as complainant name, mobile number, Email ID, official & residential address where notifications will be sent, complaint details, supporting documents
Pay the complaint registration fee after entering the relevant details
Now finally click on “Submit”

Steps To Withdraw Project Registration

Follow the mentioned procedure to withdraw a RERA registered project:

Visit the official home page of RERA Goa.

Select the “Other Links” option, then click on the “Withdrawal.” option that will redirect you to the verification page of the email ID.

Click on the registration type “Project Registration,” enter your email ID, and click on the option depicting “Generate OTP”

Enter OTP and click on “Search” to access project details

Select the project to withdraw registration and follow the withdrawal procedure

How to access a list of filed complaints

Follow the outlined process to view the complaint list filed under RERA Goa.

Visit the official website of RERA Goa at rera.goa.gov.in
Click on the “Defaulters” section
Click on “List of Complaints” from the drop-down list comprising the List of agents, this will redirect you to another page named Complaint List
The list will present details about the complaint including the complainant’s name, respondent name, date of the complaint, ad final order document

Latest Updates on RERA Tripura: Registration and Regulation

By

Shivam Tomer

-

January 26, 2024

This regulatory body was established in accordance with the Real Estate (Regulation and Development) Act, 2016, which was passed to regulate and foster 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 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 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 Tripura RERA

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

Registration of Real Estate Projects: Before selling or marketing their projects, developers or promoters in Tripura must register them with Tripura RERA. 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: Tripura RERA also requires that all real estate agents working in the state register with RERA. This is to ensure that they operate transparently and ethically and that they provide accurate information to buyers.

Homebuyers’ Protection: Tripura RERA 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 Tripura RERA.

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 Tripura RERA

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

First, visit to official website of Tripura RERA 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

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 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 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

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 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 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 [email protected] for any further assistance or clarification.

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Everything to know about Chhattisgarh RERA

By

Shivam Tomer

-

January 26, 2024

To protect home buyers’ interests, the Indian government introduced the Real Estate (Regulation and Development) Rules (RERA) in 2016-17. Chhattisgarh was one of the first states in India to implement the RERA regulations in order to address homebuyers’ issues and remove pain points in home buying.

RERA has proven to be a blessing for homebuyers ever since it was established. The law guarantees greater transparency in project marketing and execution by real estate developers, giving home buyers more confidence to invest in real estate.

What is Chhattisgarh RERA

RERA Chhattisgarh came into effect in November 2017, as Section 84 of the Act made it compulsory for all the states to implement the legislation within six months of the Act being enforced.

To implement various provisions under the legalization in the state, the state government introduced the Chhattisgarh Real Estate (Regulation and Development) Rules, 2017.

Functions of Chhattisgarh RERA

Under CG RERA, real estate developers have to register all their commercial and residential projects with the Chhattisgarh Real Estate Regulatory Authority. Homebuyers and investors can check whether the project is registered with the regulatory authority or not.

Chhattisgarh RERA Registration

As per the Chhattisgarh RERA, promoters, and real estate agents are required to get their projects registered.

Here are the crucial steps that are required to be followed by agents and promoters while registering their projects.

Rera registration for developers

Developers must follow these steps to register their projects :

Go to the official website of RERA Chhattisgarh at https://rera.cgstate.gov.in/
On the home page, click on the “Registration” option
From the dropdown menu click on the “Promoter/Project” option
Navigate to the “Online Application – Promoter (Saral)” option
This will redirect you to the new page, where you have two options: “New Promoter” or “Existing Promoter”.
In case you are new and want to register as a promoter, select “New Promoter” and you will be redirected to the new page
On the new page, enter details such as promoter information, member details, payment details, and project details, among others.
Ensure the developer hasn’t undertaken a project in the past five years by clicking on the pledge button.
Click on the “Save & Submit” option to register as a promoter with Chhattisgarh RERA.

RERA Registration for Real Estate Agents

Here are the steps to register with Telangana RERA as a real estate agent:

Go to Chhattisgarh RERA’s official website at https://rera.cgstate.gov.in/
On the home page, click on the “Registration” button.
Now, select the “Real Estate Agent” option from the drop-down menu and click on the “Online Application” button.
Fill in the required information, such as business and member, and payment information.
After verifying your information, submit your application to register the business with Chhattisgarh RERA.

Exception in Chhattisgarh RERA

There are certain exceptions wherein the project is not required to get registered under Chhattisgarh RERA.

The project is not required to get registered if the area of the proposed construction does not exceed 500 square meters.
If the number of the proposed residential building does not exceed 8 units.
If the developer has already received the compilation certificate for the project before the implementation of RERA Act, the project is not required to get registered with RERA.

RERA Chhattisgarh Fees

Know all about the fees applicable to real estate developers, commercial projects, and for real estate agents.

For Real Estate Developers

Project area less than 1,000 square meters: Rs 5 per sq. m.

Project area over 1,000 square meters: Rs. 10 per sq. m.

For Commercial Projects

Project area less than 1,000 square meters: Rs. 20 per sq. m.
Project area more than mentioned limit: Rs 25 per sq. m.
Area less than 1,000 square meters (Both commercial and residential units): Rs 10 per sq. m.
Area exceeds 1,000 square meters: Rs 15 per sq. m.

For Real Estate Agents

Individual Applications: Rs 10,000 registration fee and Rs Rs 5,000 renewal fee
Non- individual applicants: Rs 50,000 registration fee and Rs 25,000 renewal fee

Chhattisgarh RERA Rules:

Following are the penalties imposed by RERA Chattisgarh for breaking its rules:

Interest penalty on project delay

One of the significant rules of Chhattisgarh RERA is that the developer has to pay interest for delay in possession of an apartment, plot, or building, as defined in terms of the agreement for sale. The developer is required to pay the interest outlined in the terms of the sale for each month of delay.

Refund in case of non-completion

If the developer is unable to complete the project, investors are entitled to a full refund of their money, plus interest.

Sharing Project Updates

As per the RERA Act, the developers are required to provide quarterly updates on registered projects.

Cap on Advance Deposit

According to the RERA Act, builders are not permitted to receive more than 10 percent of the total cost of the property as an advance payment without entering into the agreement for sale with the party.

Escrow Account Rules

Builders are required to deposit 70% of the funds collected from buyers in an escrow account in exchange for the promise to complete the project. According to the Chhattisgarh RERA, developers must use the funds only for land acquisition and construction.

Project Advertisement Rules

As per the rules, developers must share all the facilities and amenities mentioned in the project advertisements or prospectus with RERA’s official portal.

Penalty for Not Registering

The RERA provisions make it compulsory for the agents to get registered with it, on violating the provisions they are liable to a penalty of Rs 10,000 per day and this may extend up to 5 percent of the total cost of the project sold without the registration number from the authority.

Filing complaints with CGRERA

For filing a complaint with the RERA Chhattisgarh RERA, a buyer needs to follow the given steps:

First, you have to visit the official website of Chhattisgarh RERA at https://rera.cgstate.gov.in/
Now, click on “complaints” and select the Form-M option
Select whether you are a promoter or an agent, and proceed by entering the required details to lodge a complaint.
At last, make the complaint registration payment of Rs 1,000 and complete the process

Jurisdiction Rules

CG RERA allows buyers to file an appeal before the Appellate Tribunal if they are not satisfied with the decision of Chhattisgarh RERA. Further, they can also move to the high court if their concern is not justified by the respective tribunal.

Complainants have to pay Rs 5,000 to file a complaint with the Appellate Tribunal against a decision made by Chhattisgarh RERA. You can download the form to register your complaint from the official website.

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Latest Uttar Pradesh RERA Regulations: Charges and Registration

By

Shivam Tomer

-

January 20, 2024

The Uttar Pradesh RERA 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 Uttar Pradesh RERA

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 with Uttar Pradesh RERA?

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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