FAQs related to RERA
The Real Estate Act is intended to achieve the following objectives:
- ensure accountability towards allottees and protect their interest;
- infuse transparency, ensure fair-play and reduce frauds & delays;
- introduce professionalism and pan India standardization;
- establish symmetry of information between the promoter and allottee;
- imposing certain responsibilities on both promoter and allottees;
- establish regulatory oversight mechanism to enforce contracts;
- establish fast- track dispute resolution mechanism;
- promote good governance in the sector which in turn would create investor confidence.
In accordance with notifications issued by Urban Development Department of Government of Maharashtra, MR & TP Act is applicable to all the districts of Maharashtra. Hence, all areas of Maharashtra are included in Planning Area as defined in Section 2(zh) of the Act.
The Act covers all bodies (private and public) which develop real estate projects for sale to the general public. Section 2(zk) defines the term ‘promoter’ which includes both private and public real estate promoters. Thus, both Development Authorities and the Housing Boards, when involved in sale are covered under the Act.
Yes. Every real estate project which has land area more than 500 sqmts or has more than 8 apartments needs to be registered.
Yes. Every real estate project which has land area more than 500 sqmts or has more than 8 apartments needs to be registered
As per section 2(b), which defines ‘advertisement’, any medium adopted in soliciting for sale would be covered under the said definition, including sms and emails. Prospectus, which is intended for sale of apartment in real estate project, will also be covered.
No. The advertisement issued after1st May 2017 must carry the MahaRERA Registration Number of the project.
As per section 2(d) an allottee includes a person who acquires the said ‘apartment / plot’ through transfer or sale, but does not include a person to whom such plot, apartment is given on rent. The Act doesn’t include rental projects, lease / leave and License deals.
The position of parking is as follows;
- a) Open Parking Area: This has been clearly included in the definition of “Common Areas” which need to be conveyed to the Association of Allottees after Occupancy Certificate is received. Hence, sale or allotment of Open Parking Areas by the Promoter is not permissible
- b) Covered Parking as defined in the Maharashtra Real Estate (Regulation and Development)(Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017 is permitted to be sold.
- c) Garage as defined in the Act is permitted to be sold.
Section 18 of the Act provides for provisions as regards various situations in which the allottee would be compensated by the promoter due to delay in completion of the project etc.
An aggrieved person can only approach one of the two forums for redressal of his grievance.
Yes. It has been detailed in the MahaRERA Order available on the MahaRERA website.
FAQs related to GST
While the government has attempted to keep the rates similar to the existing incidence of central excise duty plus VAT, we could see a marginal increase/decrease in tax rates. However, the availability of credits, surpass the marginal increase in tax rates.
The GST is slated to be applicable on financial services, at the rate of 18 per cent. Hence, home loan processing charges are likely to increase under the GST regime.
Property rents will increase, for developers engaged in the construction of properties on their own account and subsequent renting of the premises, as the GST credit shall not be available in the hands of such developers. Hence, with an increase in tax rates on the input side, property rentals may spike
No, as the relevant tax would have been incorporated by the developer, at the time of receipt of the payment or issue of the demand letter for payment.
Yes, because GST at the rate of 12 per cent shall be levied on properties that are under construction, where the completion or first occupancy certificate has not been received.
A resale property is an immovable property. Thus, it is not covered under the definition of ‘goods’ under the GST regime and hence, there will be no impact.
An office purchased by a businessman, will result into the purchase of an immovable property and this transaction is out of the purview of the GST and hence, GST shall not be levied. Therefore, the question of input credit doesn’t arise at all.
As per Section 171 (anti-profiteering clause) of the CGST Act, 2017 and as per the recent press release specifically for real estate sector, a developer is mandatorily required to pass on the benefit accrued from the implementation of the GST. Hence, keeping the margin same, a developer has to evaluate the revised pricing. However, given the fact that after obtaining the completion certificate or its equivalent, credit shall be restricted to the developer, it shall be interesting to see how the anti-profiteering sections are administered by the government.
Apartment owners will have to pay about 2.5 per cent additional tax on the maintenance charges. This tax will be applicable on flat owners, who pay maintenance charges of above Rs 5,000, excluding property tax, stamp duty, water charges and electricity charges
Real estate builders will now receive the benefit of input credits, on materials such as steel, cement and sand, which will be deducted from their tax liabilities. It has been anticipated by the government that builders will transfer these benefits to the end consumer, by way of price reduction, to boost consumer demand in a tepid sales environment.
The following documents are required to apply for a home loan:
For Salaried Individuals:
- Latest salary slip (proof of income)
- Proof of age
- Identity papers
- Proof of residence
- Bank statements for the previous six months
For Self-employed Individuals:
- Certified copies of balance sheet
- Profit and loss statement and tax challans / tax returns for the previous 3 years.
For Partnership/Private Limited Companies:
- The Articles of Association
- Partnership deed & details about the firm
- latest salary certificate specifying Name (as it appears in the passport)
- Date of joining
- Passport Number
- Perquisites and salary
- Photocopy of labor card/ identity card
- Photocopy of valid resident visa stamped on the passport
- Photocopy of monthly statement of local bank account
- Property related documents
There are a many different home loans available to suit your specific needs. They are:
- Home Purchase Loan: This is the most commonly utilized loan for purchasing a home.
- Home Improvement Loan: This loan is given for implementing repair work and renovations to your home.
- Home Construction Loan: This loan is available for the construction of a new home.
- Home Extension Loan: These loans are given for expanding or extending an existing home such as for the addition of an extra room, etc.
- Home Conversion Loan: These loans are available for those individuals who have financed the present home with a home loan and wish to purchase and move to another home for which some additional funds are required. Through a Home Conversion Loan, the existing loan is transferred to the new home, including the additional amount required, eliminating the need for pre-payment of the previous loan.
- Land Purchase Loan: This type of loan is sanctioned for the purchase of land, for both home construction or investment purposes.
- Bridge Loan: This loan is designed for people who wish to sell their existing home and purchase another. The Bridge Loan helps finance the new home, until a buyer is found for the old home.
- Balance Transfer Loan: This loan help you pay off an existing home loan with a higher interest rate, and avail of a loan with a lower rate of interest.
- Refinance Loan: This loan helps you pay off the debt you have incurred from private sources, such as relatives and friends, for the purchase of your present home.
- Stamp Duty Loan: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of a property.
- Loans To NRIs: This loan is tailored for the requirements of NRIs wishing to build or buy a home in India.
Since NRIs can pay through funds held in any non-resident account, the repayment option are maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999, and the regulations made by the RBI from time to time. Most of the home loan providers consider the economical stability of the applicant. Therefore, home loans for NRIs are quite feasible, as they are well in economic resource.
The RBI has issued certain directives for sanctioning home loans to Non-Resident Indians. These are:
- The home loan amount should not exceed 80% of the cost of the dwelling unit, as the remaining amount that is 20% needs to be provided by an own contribution towards the cost of unit financed.
- The cost of dwelling unit which is own contribution financed less the loan amount, can be met from direct remittances from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India.
- However, repayment of the loan, comprising of the principal and interest including all the charges are to be remitted to the HFC from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India.
According to the recent loan directives by the Reserve Bank of India (RBI), Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO) purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country. NRIs and Resident Indians can also acquire immovable property in India other than agricultural property, plantation or a farmhouse.
Before we begin any construction, we seek several approvals and permissions from relevant bodies, without which, the construction may be at risk of coming under litigation. Here is a list of documents and approvals that builders, such as Pataskar Developers Private Limited must possess for all construction work to commence:
- Land documents such as Development Agreement/ Power of Attorney duly Registered
- ULC order (in specific cases, but now abolished)
- I. O. D and Commencement Certificate (C.C) of the project
- Municipal Authority approved plans
- N.A Order ( though abolished but NOC is to be obtained)
The very first thing you should do when you are planning to invest in real estate, is ensure that you are dealing with a trustworthy property developer, such as Pataskar Developers Private Limited. But as a prospective real estate investor, there a few things you too can do:
- Run a copy of the title report of the property by your advocate to ensure that there are no conditions written in fine print and that there are no specific reservations by the state government.
- Check for specific clearance reports, such as if the construction is near a seafront, forest zone, no development zone or if there are any restrictive reservations regarding the property.
- You should also check for any heritage reservations for the premises if the project is being constructed over or in the close vicinity of a heritage building. The idea here is to ensure that you do not get stuck with a property that is or may get caught in any sort of disputes. This is extremely important because if there is no clearance of titles, you will not be able to avail home loans for the property in question.
The Stamp Duty is payable on the agreement value of the property or the market value, whichever is higher. Currently for Maharashtra State a Stamp duty of 5% to 6% is applicable depending upon the tier of cities. Currently Govt. of India has introduced online payment facility for paying the stamp duty in form of e-SBTR through selected banks.
The price mutually agreed between the two parties in the Agreement for Sale is called as Consideration.
As per the latest rules & regulation one cannot purchase a property having lower Consideration than the Market Value fixed by the Ready Reckoner as per Govt. of India.
Market value of the property refers to the price that is mentioned in the Ready Reckoner, which is prepared by the Government of Maharashtra every calendar year.