Six North-Eastern States agree to Implement RERA
According to reports, six northeastern states in the country have finally agreed to implement the Real Estate Regulation Act (RERA) in the states two years after the introduction of RERA by the Parliament in order to protect the interest of prospective home buyers. Sikkim, Nagaland, Mizoram, Manipur, Meghalaya and Andhra Pradesh have been unable to notify the real estate authority on account of land and other issues. Earlier, the Ministry of Housing and Urban Affairs (MOHUA) has assigned a special team to visit the northeastern states on 26 October 2018 in order to conduct workshops with the states’ representatives and discuss the issues coming in the way of the implementing the Act in those states. The RERA Act was introduced in 2016 by the Parliament to provide proper protection to home buyers. All states and union territories had notified RERA rules except West Bengal and six northeastern states. As per current reports, over 26,018 real estate agents have registered themselves under the RERA and more than 33,750 real estate projects are registered under the real estate authority. Maharashtra ranks the highest with over 18,392 projects registered under RERA.
5 December 2018
MOHUA Minister claims RERA is bringing positive transformative changes in the industry
Hardeep Singh Puri, the Minister of State (I/C) of the Ministry of Housing and Urban Affairs said that the Real Estate (Regulation and Development) Act (RERA) is positively impacting the industry with transformative changes. Delivering the inaugural speech at the 3rd regional workshop on RERA, Puri also quoted that all the State/Union Territories (UTs) have been notified of the RERA rules except for six northeastern states and West Bengal. Others who were present on the occasion were Anil Baijal the Delhi Lt. Governor, Durga Shankar Mishra the Secretary of the Ministry of Housing and Urban Affairs, various homebuyers, stakeholders, representatives of the developer’s association, Seniors officers from Haryana, Punjab, Himachal Pradesh, Chandigarh, Delhi, Uttarakhand and Uttar Pradesh.
21 November 2018
MahaRERA planning to cut down minimum registration fees for builders
The state government is planning on reducing the minimum registration fees to be paid by realtors to the Maharashtra Real Estate Regulatory Authority (MahaRERA) by over Rs.40,000 depending on the project area. At present, developers and builder are paying the minimum registration fees of Rs.50,000 irrespective of the area of the property. However, developers find it unfair on developers of smaller projects in interior areas. According to the MahaRERA (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017, developers are required to register their respective projects under MahaRERA even if the builder hadn’t been issued a completion or occupation certificate. Hence, taking the area of the project and the number of flats into consideration, the government is planning on reducing the minimum registration fees down to Rs.10,000 in such cases.
12 November 2018
RERA conducts awareness meet in Vijayawada
An Awareness programmed on Real Estate Relation Authority (RERA) was conducted in Vijayawada in the presence of RERA assistant director Sunitha. The programme organised by NAREDCO discussed on the RERA act that would help real estate developers and builders. She also stressed that plots more than 500 yards would be included under the RERA act and sale or purchase of the properties should be done only through registered real estate agents. In order to make the purchase and sale transactions easier, the entire details of the construction company and the developer name along with other relevant details are to be registered under RERA. The assistant director was also honoured by RERA Vijayawada chapter president Vemuri Subba Rao, Treasurer C H Vekanteswarulu, General Secretary B Amarnath and other officials.
9 November 2018
Goa RERA to form committees to resolve old pending cases
In order to resolve old pending cases of home buyers against developers and builders, the Goa Real Estate Regulatory Authority (RERA) has reportedly decided to form taluk-level committees. The meeting headed by the interim regulator of Goa RERA and Sudhir Mahajan the Secretary of Urban Development was convened in order to come up with consumer programmes to create awareness among the public about their rights under the new real estate regime. Earlier, home buyers were not being provided accommodation despite paying the amount in full or the deed of sale had not been executed to make the transfer foolproof. However, the new RERA regime is anticipated to improve transparency in these transactions and restrict home buyers from being prey to unfair practices resorted by the real estate developers and builders. R Menaka the director of Urban Development said that the awareness programmes would be held at the taluk level instead of the urban areas in the past as more projects are coming up in villages.
8 November 2018
Experts claim poor Rera implementation to be posing a challenge to prospective home buyers
Prospective home buyers and many project developers are still facing troubles regarding the poor implementation and dilution of the Real Estate (Regulation and Development) in many states, according to experts. As per the current figures, Maharashtra tops the list of states for adoption and implementation of the Rera Act with more than 17,300 real estate projects registered around the state. The other states that follow are Uttar Pradesh with 3,950 projects, Gujarat with 3,300, Karnataka with 1,981 projects and Madhya Pradesh with 1,901 projects registered under the act. With over 23,000 real estate agents and over 32,300 real estate projects registered under Rera across the nation, many states are yet to set an online state government portal on which the projects are to be registered under the Rera.
7 November 2018
Poor RERA implementation in states posing a challenge to prospective home buyers
According to experts, the poor implementation of Real Estate (Regulation and Development) Acts (RERA) in many states still pose a challenge to prospective home buyers and project developers in the country. As per sources, Maharashtra ranks the highest when it comes to adopting and implementation of the RERA Act with over 17,300 registered real estate projects, followed by Uttar Pradesh with 3,950 projects, Gujarat with 3,300, Madhya Pradesh with 1,901 and Karnataka 1,981 projects registered under RERA. Until August 2018, over 32,300 projects and more than 23,000 real estates have registered under RERA across the country. Many states have not yet set an online portal on which the projects have to register manually. Similarly, dilution of the act at the state level leave a large number of projects left out of the Rera ambit posing a challenge for potential home buyers in the states.
2 November 2018
Real Estate sector jumped by over 8% in the first three quarters of 2018
Housing sales in the country have reportedly risen by nearly 8% during the initial three quarters of 2018 compared to the same period in the year 2017. The rise in the residential real estate can be attributed to the positive impact of reformatory changes such as the GST (Goods and Services Tax) and RERA (Real Estate Regulation and Development Act). With both sales and the new supply of real estate picking up pace over 7 major Indian cities - Hyderabad, Pune, Kolkata, Chennai, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Bengaluru, the new launch supply across these cities in the first 3 quarters of the year stood close to approximately 1,39,700 units registering an increase of almost 18% against the same period in 2017. However, the NBFC crisis is expected to affect the Indian real estate sector growth during the next year as it not only freeze funds to the sector but also affect the private equity (PE) funds moving into the sector. This might result in home loan interest rates rising in the near future.
30 October 2018
Central Ministry to assign a special team to resolve RERA issues in six northeastern states
The Ministry of Housing and Urban Affairs has reportedly assigned a special team to look into issues regarding the implementation of Real Estate (Regulation and Development) Act, 2016 in six northeastern states - Nagaland, Sikkim, Manipur, Meghalaya, Arunachal Pradesh and Mizoram - later during the week. These states haven’t been reported the legislation of the rules due to land and other issues in the states. According to sources, the Centre will send the team to visit the states on 26 October 2018 and meet the officials of the respective states to address issues regarding the RERA Act implementation. Until now, 14 states have appointed interim regulators while 13 states have appointed permanent regulators. With over 22 states having functional online portals under the RERA, 25,247 real estate agents and 32,923 real estate projects have been officially registered under the Centre’s real estate act.
25 October 2018
WBHIRA in discord with RERA
With some of the West Bengal Housing Industry Regulation Act (WBHIRA) provisions in in discord with the Real Estate (Regulation and Development) Acr (RERA), questions have been raised on the ambiguity of the constitutional validity of WBHIRA. One of the questions raised is whether WBHIRA should be under the purview of the state act or the central act. According the the Forum for People’s Collective Efforts (FPCE), West Bengals is the only state that has not implemented RERA yet. According to sources, WBHIRA, a state counterpart of the RERA, favours developers and builders rather than the home-buyers. The home-buyers’ organisation has already written to PM Modi and other union ministers raising the issue. The forum believes that the diluted regulation act in West Bengal can lead to other states coming up similar versions such as the WBHIRA.
22 October 2018