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
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.
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 :
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.
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:
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.
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.
UPRERAhas 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 RERAhas 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.
You must have noticed that when you apply for a home loan, the lender requires you to provide numerous documents pertaining to your residential property and sign several commitments, including the Memorandum of Deposit.
Memorandum deed of your house property is another name for the MOD, which stands for memorandum of deposit of title deeds. Check out what MOD is and how it relates to home loans.
What is MOD in Home Loan?
The Memorandum of Deposit of title deed must be signed in order for the home loan to be disbursed.
It is an assurance provided by the homeowner loan borrower that the depositor has left the property’s title deeds with the lender.
The lender has a right to a share of the property up until the loan is fully repaid, according to the MOD.
In order to obtain a home loan in India, you must give the lender a copy of every document proving your ownership of the property. In the event that the borrower defaults on the mortgage, the MOD grants lenders the right to seize the property that has been pledged.
What are MOD charges for home loans?
The Memorandum of Deposit (MOD) is a fee that must be paid when you apply for a home loan. Depending on the lender and the loan’s terms, MOD fees for mortgages may change. This MOD is necessary to verify that you have given the lending company the title deed to your property as loan collateral. Home loan MOD fees typically range from 0.1% to 0.5% of the principal amount of the loan and depend on your state of residence or property. The MOD outlines the terms and conditions of the loan, including the amount of the deposit, the interest rate, and the repayment schedule. It acts as a legally binding contract between the lender and the borrower.
How MOD is Cancelled?
The lender must terminate the MO and release the property from liens once the loan has been paid off in full. The lien on the property will be released by the registration department and the MOD will be released after a representative of the lender visits the registration office and executes a release deed.
Make sure the property address is accurate, the lender has no claim on the property, and that it is stated that all outstanding debts have been paid in full in the release deed and NOC.
Why is an MOD Required When Taking Out a Home Loan?
According to the MOD, the lender has the right to take back the property in the event of a default and may also sell it at auction to recoup its debts.
It is carried out to lessen the lender’s risk of suffering a loss.
MOD Home Loan Benefits
In order to record the deposit of money or other assets as collateral for the loan, a memorandum of deposit (MOD) is a document that is used in home loan financing. When the borrower has weak financial standing or a bad credit history and the lender needs additional security to approve the loan, it is frequently used in these circumstances.
Compared to registered mortgages, a MOD in a home loan is thought to have a number of benefits. In the first place, it eliminates the possibility of fraud in the home financing process. Additionally, the total amount that must be paid for stamp duty and other expenses may be as little as 0.1% of the loan amount.
In addition, the owner is not required to go through any kind of registration process because the lender transfers the property to the rightful owner after a debt settlement. Usually, a third party holds the deposit in escrow that is released to the borrower only after the loan has been fully repaid.
Bottom Line
Comparing MOD home loans to registered mortgages reveals many benefits. For example, the cost of stamp duty and other fees can be as low as 0.1% of the loan’s balance. whereas the rates and fees for registered mortgages are much higher.
After making a mortgage payment, you can easily obtain the title deed, and no registration is necessary when the lender hands the property over to you. Additionally, it eliminates the potential for home loan scams, which can ruin your experience buying a home.
Determining the title deed process with the lender and the associated fees requires checking the MOD before submitting an application for a home loan.
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.
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?
Real Estate Investment Trust (REIT)
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 is a recent concept in India. However, it is already well-established in the majority of western nations, Singapore, Hong Kong, etc. This enables multiple investors to band together, pool their funds, and purchase a CRE property,
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.
Investment or merchandising a property on Indian land is easy if you are an Indian. However, for NRIs, some documents are made obligatory for investing in Real Estate in India. Meeting the government’s norms and guidelines set for NRI funding in Indian real estate, the following is the list of documents to be provided by NRI while selling a property in India.
Required documents for NRI for selling property
Address Proof
A valid address proof, such as a card, electricity or phone bill, insurance policy statement, etc., is required to be provided by the NRI as proof of residence abroad. At a similar time, NRI is needed to supply documents in support of his address in India.
Passport
An NRI should hold a valid passport if they want to sell a property in India. It’s not a mandate that they should hold an Indian passport. The passport of any country shall work as the identity proof of that person. Even the holders of Overseas Nationals of India and Persons of Indian Origin passports support the same rationale.
PAN Card
Even if NRIs aren’t prone to paying taxes in India, thanks to the very fact that their financial gain is a table within the country of their residence, it’s extremely advised that NRIs hold an Indian PAN card if they want to buy property in India. PAN numbers are issued to NRIs with foreign communication addresses, and they are needed at the time of the sale of the property to claim tax exemptions.
Sale Deed
It is a legal document that is an agreement executed by an NRI that he has purchased property in India. It mirrors the essential confirmation of responsibility for the property and is one of the vital records during the deal.
Approved Building Plan & Occupation Certificate
For merchandising any reasonably owned property, an associate degree-approved building set up could be a mandate. Occupation certificates prove that the condominium has been given out by means of the constructing society or builder and has been occupied.
Encumbrance Certificate
In the case of an apartment, residence, or maybe land, the encumbrance certificate states that no dues are pending with any legal authority. Hence, it’s miles taken into consideration as one of the key records in executing any sale.
Documents from Society
While selling property, a letter from the apartment or society is needed showing no dues on the vendor towards the society. To ascertain possession of the property, a copy of the society membership is additionally vital.
Allotment Letter
To bestow the property on the aforesaid person who holds it, a letter of allotment is required from the builder, society, or any relevant authority.
Tax Returns
In order to be demonstrated as an accountable citizen, tax returns on earnings from any source are mandatory. Properties given away on rent or lease generate earnings and hence, are taxable. To pay tax returns, a PAN card is needed.
In the absence of any aforesaid document, NRI is required to get a certificate from an attorney as evidence of his possession of the property. Although this document is admissible for sale, an authentic report is needed to get the sale carried out at a quicker pace.
In the present-day business world, organizations that conduct business with each other enter into various agreements. As the first cordial step toward a future alliance, these business organizations enter into a preliminary agreement with them while negotiating with their prospective business partners, joint ventures, vendors, and agents.
“Memorandum of Understanding” is the official name of this arrangement. Yet, it is unclear whether or not a Memorandum of Understanding (MoU) is enforceable in India.
What is a Memorandum of Understanding?
A Memorandum of Understanding is a non-binding agreement that indicates the intention of two parties to cooperate. In India, it is also known as the Letter of Intent.
However, referring to a contract as a memorandum of understanding does not always mean that it is non-binding. The legal framework in India disregards an agreement’s nomenclature. In the case of State of Orissa v. Titagar Paper Mills Company Ltd. & Another, the Supreme Court of India ruled that:
Indeed, a contract’s nomenclature and description do not necessarily reflect the true nature of the agreement or the transaction covered by it. But, these must be determined from all of the document’s terms and MOU clauses, as well as all of the rights and outcomes resulting from them, not just by picking and choosing certain clauses.
A Memorandum of Understanding essentially indicates the parties’ understanding regarding a particular transaction or project they wish to undertake. Therefore, the mere fact that a document exists regarding an understanding reached by the parties does not automatically imply that such a document is a contract.
Every agreement is not a contract, according to the Indian Contract Act of 1872. Contracts that can be enforced in court are only those that are legally binding. So, the question of whether an MOU is enforceable in India arises.
Essential requirements for a contract as per Section 10
There must be mutual acceptance of an offer made by one party to another.
The parties’ permission must be freely given and unaffected by pressure, fraud, or undue influence.
To enter into a contract, both parties must be of legal age. This requires that they be over the age of 18, be of sound mind, and not be insolvent or bankrupt.
There must be a legal factor involved.
There must be a legal object.
There must be a desire to establish legal relations.
An MoU validity in India could satisfy the first-five requirements mentioned above.
The first five criteria could be satisfied by an Agreement with Indian validity. Yet, if there is no intent to establish legal relations, it is not a contract and cannot be specifically performed.
The MOU’s contents and substantive provisions can be used to determine the parties’ intentions. The rights, obligations, and duties that an MOU establishes between parties constitute its legal nature. So, it is crucial to comprehend and value the nature of the relationship established by the parties in the binding MOU.
In order to determine whether the MOU is a complete contract for which the parties consider themselves to be bound or whether it is an informal agreement that is incomplete and only an agreement to agree, a distinction must be made between the two. Such an understanding lacks thought and the purpose of establishing legal relations when the parties just record their understanding with a clause to negotiate and execute a formal, detailed agreement in the future.
In Jyoti Brothers v. Shree Durga Mining Co. (A.I.R. 1956, Cal. 280), the court ruled that a contract to enter into a contract is not regarded as a legal contract at all. The same, though, does not prove anything. The court will consider how significant this understanding was to the parties based on whether or not either of them took action based on it.
The court ruled in BrikramKishore Parida v. Penudhar Jena (AIR 1976 Orissa 4) that an objective standard must be used to determine if there was an intent to establish legal relations. Even though the promisor may not have known that his promise would result in a legal obligation, he is nonetheless obligated to fulfill his promise if a reasonable person would assume that he intended to enter into a contract.
As a result, care must be taken while choosing the words, titles, and clauses to include in a Memorandum of Understanding. The agreement is bound by clauses like the jurisdiction clause, applicable legislation, and indemnity.
MoU in real estate
In the real estate industry, MoU establishes the basic framework for the sale of the property, including the duties and responsibilities of both parties. In real estate transactions, MoU tend to provide transparency and structure to the sale process. Below are the key elements of the MoU for the sale of property in India.
Property Details
Property details are the first and most important element of the MoU. This comprises of property’s location, size, and boundaries. The MoU should also include the property’s other relevant details, such as its registration number, title deed, survey number, and land use category.
Payment Terms and Selling Price
The sale price of the property and the terms of payment should be made clear in the MOU. This covers the due date, the mode of payment, and any fines or interest associated with late payments. To prevent confusion or conflicts in the future, the payment conditions should be agreed upon by all parties and stated in the MOU.
Ownership and transfer
Details regarding possession and handover, such as the date of possession and any conditions for transfer, should be specified in the MOU. This includes any paperwork or legal requirements necessary for the property’s ownership transfer. The responsibilities of both parties with regard to the condition of the property at the time of transfer should be clearly stated in a MOU.
Regulation and legal compliance
A clause declaring that the property transaction would adhere to all legal and regulatory standards ought to be included in the MOU. This involves acquiring any licenses, permits, or approvals necessary for the sale of the property. The MOU should also clarify who is in charge of paying for these approvals and any related fees.
Dispute resolution
The MOU should specify the dispute resolution procedure in the event of a dispute. This covers the dispute resolution procedure, such as arbitration or mediation, as well as any accompanying costs. The jurisdiction for any potential legal actions should also be included in the MOU.
Non-disclosure and confidentiality
A clause declaring that the specifics of the transaction are private and cannot be revealed to any other party without both parties’ prior written approval should be included in the MOU. This is done to make sure that any private information about the property sale is not disclosed or utilized against one party or the other.
Termination
A termination clause that outlines the conditions under which the agreement may be cancelled should also be included in the MOU. Any termination criteria, such as non-payment or a failure to adhere to legal or regulatory obligations, fall under this category. The MOU should also outline the penalties and forfeitures that would apply in the event of termination.
Signatures
Both parties must sign the MOU in order to demonstrate their acceptance of the criteria contained in it. The MOU should also specify the date of signing, and the signatures should be witnessed by a qualified individual.
Bottom line
Make sure you fully read and comprehend the MOU before you put pen to paper to prevent any issues or misunderstandings later. The buyer and seller may rest easy knowing their rights are protected and the terms of the sale are clear and fair by checking that the MOU includes everything it needs to.
Interest rate for home loan is an important factor that every borrower weighs carefully before applying for the loan. The banks or financial institutions offering home loans or loans against property, also called home equity, are different depending on whether one is applying for a fixed rate of interest or a floating rate of interest on the loan. Applying for a home loan is the biggest financial decision of one’s life, and there are internal as well as external factors that affect the decision-making process. Therefore, selecting the best interest rates is important, and one must consider the features and benefits of both.
In this article, we have tried to explain the concept of fixed and floating rates of interest for the benefit of the borrower.
Difference between Fixed and Floating Interest Rate
Fixed Interest Rate
Floating Interest Rate
Higher Interest Rate
Lower Interest Rate
Not affected by financial market conditions
Affected by changes in the financial market
It has Fixed EMIs
EMIs change as per interest rate or MCLR
Budget planning is possible
Difficult to budget or manage financials
Sense of security
Generates savings
Suitable for short/medium term (3-10 years)
Suitable for long term (20-30 years)
Risk chances are less
Risk chances are higher
Fixed Interest Rate
Customers who opt for a Fixed Interest Rate have to repay the home loan in equal and fixed installments as per the tenure of their loan. The advantage of choosing a fixed interest rate is that it would never change even if there are fluctuations in Indian financial market trends.
Floating Interest Rate
Interest rate which keeps on changing as per Indian financial market conditions is termed a Floating Interest Rate. It depends on the base rate offered by multiple lenders, so whenever the base rate changes, the interest rate is automatically revised. In comparison to fixed interest rates, floating rates are comparatively cheaper.
The floating interest rate has become more popular and is considered the first choice by home buyers. Even NBFCs and banks are offering home loan interest (floating) at a lower rate.
Choosing the fixed or floating home loan interest rate option will depend on the preferences, needs and financial profile of the borrower. One needs to consider all the factors discussed to finalizing the best option. The choice of loan has a material impact on the eventual cost of the home.
