The Real Estate (Regulation and Development) Act was adopted by the state of Maharashtra on May 1, 2017 and was one of the first states to implement it in letter and spirit. In fact, post the formation of the regulatory authority, many aggrieved home-buyers have got swift redressal as well. Some of the duties of the Allottees mentioned under Section 19 of the Act are as follows as briefed by Rajan Hiranandani, legal expert.
1) Every allottee who has entered into an agreement for sale shall be responsible to make necessary payments in the manner and within the time as specified in the agreement for sale; 2) Every allottee of the apartment, plot or building shall participate towards formation of an association or society or co-operative society of the allottees or a federation of the same; 3) Every allottee shall take physical possession of the apartment, plot or building within a period of two months of the OC issued; 4) Every allottee shall participate towards registration of the conveyance deed of the apartment, plot or building, as the case may be.
Source: Times Property, Saturday 16 December 2017
Residential property: With reviving homebuyer confidence, 2018 might see higher sales
After the initial hiccups in 2017 due to the impact of demonetisation, GST and RERA, the realty sector is likely to witness recovery next year, and the growth will be sustainable backed by stronger market fundamentals than ever before. The year 2017 has been an eventful year for the Indian economy at large, and the real estate sector got more than its usual share of the limelight. A series of reforms and structural changes tore into the heart of the industry, effecting an attack on market opacity, unaccounted funds transactions and customer victimisation.
The entire real estate fraternity had to re-orient their businesses to sustain in the changing environment. Already, the real estate sector has shed a massive part of its unorganised and fragmented nature, and the ways and means of doing business in changed for good in 2017. The government maintained a laser focus on changing the fabric of the Indian economy, with direct implications on the real estate sector, by implementing impactful reforms:
Booking a flat being built also earns tax relief on earlier sale
A taxpayer who books an under-construction flat and acquires it within three years of the sale of his old house will be entitled to a tax deduction, the Mumbai bench of the Income-tax Appellate Tribunal (ITAT) has ruled. “Booking of a flat in an apartment under construction must be viewed as a method of constructing residential tenements,” said the December 18 judgment. This ruling is important as tax relief on long-term capital gains (LTCG) accrued from sale of a house can be availed only if it is invested in another house within a specified period.
Under section 54 of the I-T Act, the period prescribed for investing the LTCGs in a new house is two years from the date of sale of the old house. The tax benefit is also available if a new residential house is constructed by the taxpayer within three years from the date of sale of the old house. In this case, the taxpayer invested LTCGs of Rs 78.4 lakh arising from the sale of his share of a Byculla flat into booking a flat in an under-construction building at Mumbai Central. He paid the builder Rs 1.04 crore in instalments prior and post the sale of the old flat.
Carpet Area after RERA
As if jargon, such as carpet area and built-up area were not enough, there is also a super carpet area. Many buyers would look clueless hearing these jargons. In every residential complex, these are the three ways to calculate the area. These are the basic terminology a buyer should know. However, after RERA, the outlook towards carpet area has totally changed. Carpet Area: The carpet area is the area that can be covered by a carpet or the area that excludes the thickness of inner walls. It does not include common areas such as lobby, lift, stairs, play area, etc. With carpet area, one can analyze the usable area in the kitchen, living room and bedroom.
Carpet area under RERA: Many developers in the past used to provide information on the built-up area rather than carpet area, which is less than built-up area, but with RERA there will be a clear definition that aligns with customer expectation. As per RERA guidelines, a builder has to disclose the exact carpet area, however the act does not make it mandatory for builders to sell flats based on carpet area. Everyone from, investors, developers, bankers to brokers need to start practicing RERA and disseminate the information. All the changed definitions are supposed to be practiced and executed on the ground by the real estate fraternity, so that there is clarity and benefit for the end-users.
Source: Mid-Day, Friday 22 December 2017
Is your property Registered?
Property registration is one of the foremost and important processes that should not be delayed. It is important that you realise that if you fail to register the property, the previous owner or the developer will be considered the legal and rightful owner. Legally, the sale of property won’t be considered valid till the sale deed is duly stamped and registered. The basic purpose of registration is to record the ownership of the flat. Typically, a person can’t sell his property in case his home is not registered in his name. Importance of Registration. Property registration is a critical aspect for any property purchase process and serves as a basis for establishing legal title to the transacted property in case of any potential dispute. Hence, once the legal title or bonafide ownership of a property is established in the eyes of the law, the owner can undertake any necessary future action such as resale, leasing, offering the property as a collateral to raise loans, etc.
As per a ruling by Supreme Court in 2011, all property sales would be considered invalid unless the sale deed was duly stamped and registered. Under Section 49 of the Indian Registration Act, 1908, the documents (sale/gift agreement) will not have any bearing on the property and will not confer any transaction rights on the property. In case of a dispute, you will not have any rights on the property if it is not registered in your name.
Source: Times Property, Saturday 23 December 2017
Set the stage for a quick Sale
There is a very famous saying, which goes as – Dress to impress – and this does not only apply to us, but also homes. So, if you are planning to sell your house and get an optimum price for it – dress it up (read: literally) because when you compare a bare shell versus a visually attractive house – the latter will always take the cake. However, our fast-paced life today leaves us with no room (read: time) to spruce up the interiors and jazz it up, if we are planning to put our house in the market. But our experts feel that with simple tricks and small adjustments, the home will get a complete overhaul and would be ready to go ‘under the hammer.
Declutter: It is very important to make your house visually clean and appealing. Discard all the unwanted and damaged items of the house and organise them to give out positive vibes; Spruce up your plain walls with interesting lighting fixtures or handmade paintings. They give a lot of character to an otherwise ‘boring’ house; Ensure your bathrooms are functional, clean and organised. If there are issues w.r.t to leakages, drainage, electrical fault among others – fix them immediately; If you’re planning to sell your house along with the furniture, then merchandise it well with linens, drapes, props and furnishing to gain extra costs.
Source: Times Property, Saturday 30 December 2017
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