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Effect of the RERA Act

The Real Estate (Regulation & development) Act , (RERA) is a revolutionary reform by the Government of India in the real estate sector. Promoting the professionalism and infusing the transparency, this Act strikes out all unambiguous deeds of doing business in the real estate sector. Well, we all know that the motive of the RERA is to safeguard the interest of buyers, but the way of doing so by the RERA is usually misunderstood.

If a promoter fails to obtain the permission, the Real Estate Regulatory Authority will not approve the project registration and the developer can’t market or sell the units. It also states that the project must be verified by an authorised architect, including minor alternations after the construction of the project. Thus, the RERA will not directly verify the documents related to real estate projects submitted by the developers. It makes the promoter, engineer and the architect involved in the project construction liable for any ambiguities and misconducts.

So, one can buy the RERA registered projects, but the buyers must verify all the documents related to the project by themself. Also, the rules may change from state to state so we would recommend buyers to go through the state-wise RERA rules before taking any decision.

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Impact of RERA on Real Estate Agent.

From 1st May onwards, every real estate agent has to register his or her name as per the Real Estate (Regulation and Development) Act (RERA). The law was amended and brought into action by the government for the fair practice in the real estate industry.

Under the RERA Act, the real estate agents who have registered themselves, as per the government rules, will be able to transact with the clients in a legal way. The statistical study says that the brokerage industry in this real estate segment alone has a turnover of $4 billion every year and growing. The study also depicts that there are 500,000 – 900,000 brokers as an estimated number in India. In fact, the number can be more also. Before the amendment of the act, the brokerage segment in the real estate industry was unregulated and totally unorganized. The channels had no specific rulebook to charge brokerage fee to the respective clients.

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Rera Advocates in Pune

*Developers who are pushing ahead dates to hand over apartments cannot find escape now, with state regulator Maharashtra Real Estate Regulatory Authority (MahaRERA) ruling that the possession date of an ongoing project should be corresponding to the pending work.

*Builders will have to refund GST paid by home buyers in case he cancels the flat booked in the last fiscal and will be allowed to avail credit adjustment for such refunds, the tax department has said.

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Advocates for RERA in Pune

Some of the important compliances are:

Informing allottees about any minor addition or alteration.
Consent of 2/3rd allottees about any other addition or alteration.
No launch or advertisement before registration with RERA
Consent of 2/3rd allottees for transferring majority rights to 3rd party.
Sharing information project plan, layout, government approvals, land title status, sub-contractors.
Increased assertion on the timely completion of projects and delivery to the consumer.
An increase in the quality of construction due to a defect liability period of five years.
Formation of RWA within specified time or 3 months after majority of units have been sold.
The most positive aspect of this Act is that it provides a unified legal regime for the purchase of flats; apartments, etc., and seeks to standardise the practice across the country. Below are certain key highlights of the Act:

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Committee, for ‘effective’ implementation of RERA

The government has constituted a committee, to suggest recommendations to strengthen the Real Estate (Regulation and Development) Act (RERA) and to remove difficulties in its implementation, an official said, on December 31, 2018. The decision to form the committee, to be headed by union housing and urban affairs joint secretary Shiv Das Meena, comes months after the ministry organised four workshops where stakeholders, including home-buyers, had given suggestions for effective implementation of the Act.

As of now, 28 states and union territories have notified the rules under the real estate law. “The ministry has formed a committee under its joint secretary Shiv Das Meena. The panel will look into the suggestions received at the four workshops on RERA and then, submit its recommendations to the ministry. The committee will also consider whether there is a need for changes under removal of difficulties of the central law’s clause,” the official told PTI. If needed, the committee may suggest amendments to the RERA, he said, adding that the panel will hold its first meeting on January 3, 2019.

The Government of India enacted the Real Estate (Regulation and Development) Act 2016 on 26th March 2016 and all its provisions came into effect, from May 1, 2017.

Developers have been given until the end of July 2017, to register their projects under RERA. Likewise, real estate agents, who also fall under its ambit, are still in the process of registering themselves. Several states still need to notify the rules under the Act and most importantly for buyers, developers/promoters need to register their projects under RERA.

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Registration of Real Estate Projects

Functions and duties of Prompter/Builder

The Promoter/Builder upon receiving his Login Id and password under clause (a) of subsection (1) of The Real Estate (Regulation and Development) Act, 2016, need to create his web page on the website of the Authority and enter all details of the proposed project as provided under sub-section (2) of section 4, in all the fields as provided, for public viewing including-

a) details of the registration granted by the Authority.
b) quarterly up-to-date the list of number and types of apartments or plots as the case may be booked.
c) quarterly up-to-date the list of number of garages booked.
d) quarterly up-to-date the list of approvals taken and the approvals which are pending subsequent to commencement certificate
e) quarterly up-to-date status of the projects and
f) such other information and documents as may be specifid by the regulations made by the authority.

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Deemed Conveyance and its Significance

Ved Legal is having enough experience to deal with these kinds of Deemed Conveyance of Co-operative Housing Societies, in and around Pune. Any aggrieved society or apartment holder can get resolution from us in regards of the same.
Conveyance is transfer the title of land and building by promoter/landowner in favour of housing society by execution of Conveyance Deed. As per the provision contemplated in section 11 of Maharashtra Ownership Flat Act 1963, Conveyance is the right of Co-operative Housing Society and the Duty of the property Developer/Promoter to be executed within 4 months from date of Registration of Co-Operative Society.
After land and Building is conveyed i favour of Co-Operative Society and the title of property is fully and finally recorded in the property card and other revenue records then only the property becomes completely free and marketable.
As per Housing Society Bye-laws the main objective of formation of the society is to obtain conveyance and if conveyance is executed within 4 months from date of registration of society case can be filed against the promoter /landowner of the land to obtain the conveyance as per section 13 of MOFA 1963 failure to give conveyance is an offence and the promoter/landowner of land can be imprisoned upto 3 years or fine or both.

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Different Types Of Property Transfer

Here are the different types of property transfers according to the Transfer of Property Act, 1882:

Sale
According to section 54 of the Transfer of Property Act, 1882, sale of transfer refers to the ownership in exchange for a price paid or promised or part-paid and part-promised. Basically, in a sale there exists an absolute transfer of all rights in the property sold.

Elements And Modes Of Sale Transfer

A sale of transfer comprises of:

The parties.
The subject matter.
The price or consideration.
Modes Of Sale Transfer

There are two modes of sale transfer namely:

By registered instrument; and
Delivery of possession.
Mortgage
Section 58 of the Transfer of Property Act defines a mortgage as the transfer of an interest in a specific immovable property, for the purpose of securing payments of money advanced in the form of a loan, future debt or performance of an engagement. Thus, a mortgage is a transfer of an interest in specific immovable property that acts as a for of security for the repayment of your debt. In order to facilitate a mortgage, it is necessary to specify the immovable property. Your description must be sufficient enough to identify the property according to the requirements of the Registration Act, 1908.

Exchange
Section 118 of the Transfer of property Act, 1882 states that, when two persons mutually transfer one thing for the ownership of another, neither thing or both things being money only, such a transaction is called exchange under the Act. However, it is not limited to immovable property. The word exchange not only means exchange of lands, but also exchange of goods.

Gift
Section 122 of the Transfer of Property Act defines the word Gift as the transfer of certain existing movable or immovable property made voluntarily by one person, called the donor, to another called donee and therefore accepted by or on behalf of the donee. Such an acceptance must be made during a lifetime of the donor and while he is still capable of giving. In case the donee expires before acceptance, the gift will be considered as void. A gift given for immovable property to a minor, is complete when it is accepted by a person on behalf of the minor and applies his thumb impression on the gift-deed in token of acceptance.

Lease
Section 105 of the Transfer of Property Act, 1882 states that a lease of immovable property is a transfer of a right to such property, for a certain time in consideration of the price paid or promised or any other thing of value, to be rendered periodically on specific occasions to the transferor by the transferee, who accepts the transfer on such terms.

In simple a lease is a contract that outlines the terms under which one party agree to rent property owned by another party. It guarantees the transferor, tenant, use of an asset and guarantees the transferor, the property owned or landlord, regular payments from the transferor for a specific number of months or years.

License
Section 52 of the India Easements Act, 1882, defines the terms licence as, “ where one person grants to another, a right to do, or continue to do, upon immovable property of the grantor, something which would in the absence of such a right, be termed unlawful, and such right does not amount to an easement or as interest in the property, such a right can be referred to as a licence. In simple, it is a permission to stay on an immovable property without which the stay would be accounted to as trespassing.

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Advocates for Property Transfer

Ved Legal deals with property transfer cases such as SALE DEED, GIFT DEED, ASSINGMENT DEED, MORTGAGE DEED, and AGREEMENTS etc….since 2007. Ved Legal offers a multitude of services in the areas of Property, Co-operative and Matrimonial law and it is best known for its expertise in these fields. We have vast experience in representing our clients before concern authorities for the matters. We therefore undertake different types of property matters as mentioned above various transfers, Agreements (Rent, Lease and Leave & Licenses), Partnership Firms & Its Registration, Wills, Probates, Succession, Contracts etc.
Land is a subject falling within the powers of the State Governments under the Constitution of India 1 and hence, property laws in India may differ from State to State. Besides the local laws, several laws enacted by the Central Government also govern acquisition and ownership of property (including an interest in property) through purchase/sale, transfer, mortgage, inheritance or gift.
When a person acquires or owns an immovable property, the law also gives him/her the right to use, lease, sell, rent or transfer/gift of the land. The owner also has a right to mortgage his immovable property as a security for loans. However, there are some laws which restrict the type of use a land can be put to, e.g., a land may be used only for residential or commercial purposes to prevent haphazard/unorganized growth of cities and towns. Laws in some of the States prevent/restrict outsiders from acquiring property within the State. Restrictions are also placed on non-agriculturists from acquiring agricultural land. There are also other laws which prescribe rules and regulations for protection of environment or which provide for approval of building plans/designs so as to protect people from natural or man-made hazards. Some laws like the Registration Act, 1908, also lay down provisions governing registration of property transactions so as to keep proper records of ownership of property in the public domain.
The Transfer of Property between any two parties is governed by the Transfer of Property Act, 1882. Both these parties need to be alive for transfer under the Act. In case of transfer of a property of a deceased person, Succession Laws as per the religion of the deceased will be applicable.

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Advocates for Property Transfer in Pune

Ved Legal deals with property transfer cases such as SALE DEED, GIFT DEED, ASSINGMENT DEED, MORTGAGE DEED, and AGREEMENTS etc….since 2007. Ved Legal offers a multitude of services in the areas of Property, Co-operative and Matrimonial law and it is best known for its expertise in these fields. We have vast experience in representing our clients before concern authorities for the matters. We therefore undertake different types of property matters as mentioned above various transfers, Agreements (Rent, Lease and Leave & Licenses), Partnership Firms & Its Registration, Wills, Probates, Succession, Contracts etc.
We have enough experience in co-operative laws and property laws as well as we are specifically expertise in execution and registration process of various DEED & AGREEMENTS as well as in Registration process of Co-operative Housing/Commercial/Industrial Societies, Federations and execution of Conveyance or Deemed Conveyance thereof.

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