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RERA: STIFF PENALTY AWAITS BUILDERS FAILING TO REGISTER BY AUGUST 31 THE BENGALURU BUILDERS' SALES SURGE IN 2017

 
 
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RERA: STIFF PENALTY AWAITS BUILDERS FAILING TO REGISTER BY AUGUST 31 THE BENGALURU BUILDERS' SALES SURGE IN 2017
by System Administrator - Wednesday, 30 August 2017, 11:38 PM
 

By: M.S.Yatnatti: Editor and Video Journalist Bengaluru: Reportedly The Karnataka government has decided to come down heavily on builders and brokers who fail to register under the state Real Estate Regulatory Authority (RERA) by August 31.The deadline for registration under the central RERA Act was July 31, but the state government had provided a month-long amnesty considering the inordinate delay in notifying the final rules of Karnataka RERA Act."This opportunity is being given as a last recourse to all ongoing project promoters and agents. After this, the defaulters will be identified and they'll be liable to heavy penalty, which can be up to 10% of the project cost," reportedly said Kapil Mohan, housing secretary and Karnataka RERA chairman.After the August 31 deadline, all projects will be registered with 100% penalty (of the applicable registration amount) under section 3 of the RERA Act. Also, if an unregistered agent sells a property, he will face a penalty of Rs 10,000 per day till he complies with the rules.If the builder continues to violate the order, he could even face imprisonment of up to three years or a fine which could be up to another 10% of the estimated cost of the real estate project, or both.Mohan reportedly said RERA has already collected the list of ongoing and new projects in the state. "We expect promoters and agents to utilize the next two days to register with RERA without inviting drastic penal action," Mohan added.From September 1, promoters and agents who aren't registered with the regulator will be barred from advertising, marketing, booking, selling or offering to sell any plot, apartment or building.Karnataka notified RERA Act on July 10 and launched a portal on July 24 for builders to register themselves and their projects. "Anyone who hasn't registered can do so now as the portal is open and functional," said Mohan.As on August 29, the state has seen about 1,500 registration requests on its portal from brokers and builders; about 1,000 projects and 273 agents have been registered.According to officials, there are about 5,000 ongoing projects across the state. Industry estimates put the number of real estate brokers at more than 25,000. Karnataka RERA has already issued 50 notices till August 24 to defaulting builders across the state.

Brigade's revenue from operations rose 11%, Sobha's grew 6.2%, and Prestige, the biggest among the city developers, reported a 5.5% increase to Rs 1,444 crore, compared to the year-ago quarter .Puravankara's revenue from operations rose 17.4% to Rs 371.53 crore."The sales from all the segments and, especially from the higher segments, improvedoverall realization for builders . "The market has improved in Hyderabad and in the current environment in Bengaluru, having stable sales is a good sign of improvement .Are you planning to build or buy your dream home in near future ? You may want to hold on for some time, as developers led by the Confederation of Real Estate Developers' Association of India (Credai), Bengaluru, are trying to convince the Karnataka government to cut or abolish stamp duty and registration fees in the wake of the goods and services tax (GST) being implemented from July .If the move is successful, you will definitely save some money. "Else, it is expected to burden home buyers by 10%15%," say some industry leaders. Reportedly Suresh Hari, secretary, Credai, Bengaluru, confirmed they will soon submit a petition to chief minister Siddaramaiah, seeking either to abolish or reduce stamp duty as it is expected to hurt home buyers with the introduction of GST. Though GST was introduced to eliminate multiple taxation, he said the real estate sector will be an exception because home buyers are bound to pay GST along with stamp duty and registration fees, which account for 5.6% of the property value. "GST and RERA will certainly add to overheads of the industry and increase housing prices by 10%-15%. It's time the state government steps in to protect home buyers by either abolishing or reducing stamp duty levied on all immovable property after implementation of GST," Reportedly when there's unsold inventory in a subdued market, property developers occasionally offer a guaranteed rental scheme to boost sales. Mantri Developers, the Tata Group, Confident Group are among those who have done it in the past. Now, Puravankara has tied up with e-commerce company Snap deal and property consultancy JLL to launch a similar scheme. A customer can buy a ready-to occupy apartment from Puravankara across Bengaluru, Chennai, Coimbatore and Kochi and lease it back to the company for a period of seven years. The flat booking can happen through Snap deal. Puravankara will pay a pre-agreed rental to the customer for the leased period and pay the common area maintenance amount to the building association. It will increase the rentals by 8% annually . JLL will help Puravankara in sub-leasing the apartments to tenants. Some 200 apartments will be part of this scheme. For many buyers who do not intend to stay in the apartment they have bought, such schemes can be attrac tive. They receive a guaranteed income and lowers the pressure of loan EMIs, if any . They do not have to worry about finding and dealing with tenants. A CEO of a rival company , who declined to be identified, said it will turn out to be a great scheme in attracting buyers if Puravankara can provide the promised rental appreciation for the stipulated period. In 2011, Confident Group had offered assured rentals of Rs 10,000 and Rs 14,000 for ready-to-move in 2 & 3 BHK flats in a project in Hoskote. Those flats measured between 1,100 sqft and 1,450 sqft and cost between Rs 21 lakh and Rs 31 lakh. Bengalurubased Mantri Developers launched a similar scheme named last year for two of its projects. As per news paper reports Bangaluru real estate is booming .There are nearly 500 residential projects underway in and around Bengaluru adding around 60,000 new units and this indicates huge construction activity happening in and around Bangaluru.. Once the buyer has decided on the location and his or her budget ­either through own funds or housing loan -care and caution have to be exercised. For, buying apartments and falts and homes and villas involves many intricate and complex issues. The Bengaluru real estate market is vibrant, with builders catering to all sections of the society with apartments and villas of varying categories -built up area ranging from 650 sqft to 10,000 sqft and price Rs 30 lakh to Rs 10 crore plus.Look before you leap.Cons are everywhere . Beware of con artists: Con artists make money through deception. They lie, cheat and fool people into thinking they've happened onto a great deal or some easy money, when ­they're the ones who'll be making money. If that doesn't work, they'll take advantage of our weaknesses -- loneliness, insecurity, poor health or simple ignorance. The only thing more important to a con artist than perfecting a con is perfecting a total lack of conscience.What does the average con artist look like? Despite what you may think, he isn't always a shady-looking character. A con artist is an expert at looking however he needs to look. If the con involves banking or investments in properties, the con artist will wear a snappy suit. If it involves home improvement scams, he'll show up wearing well-worn work clothes. Even the basic assumption that the con is a "he" is incorrect: there are plenty of con women too."Ensure papers are in order verify the builder's credentials”.