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RERA Rules

RERA Rules:

The intention of designing the RERA Act was solely to bring transparency to the real estate sector. The RERA Act was introduced to abolish problems within the real estate sector. It aims to reduce delays and failures in the project. At the moment, all builders or developers must make the RERA registration before starting any project.

The Real Estate (Regulation and Development) Act is intended to ensure that buyers are not betrayed or taken for a ride by developers.

In the following 14 RERA rules for builders, let us see how it might benefit the buyers.

Project Registration:

RERA obliges all commercial and residential real estate projects with more than 500 square meters of land or eight apartments to register with the Real Estate Regulatory Authority (RERA) before starting any project. Developers must publish all the information, such as the sanctioned design, the layouts, the location of the project with a simple demarcation of the property, the carpet area, the number and area of the garage, etc. The developer is required to gain clearance from RERA to curb any malpractices.

Therefore, before entering into the contract, one can check the details of the project online on the RERA website by visiting the RERA website of the State concerned.

Progress Updates:

The developers are also expected to submit project details, including the number and types of units sold, the government approval, and completion scheduled quarterly. Also, if there is any conflict relating to that property, all records of the proceedings must be uploaded. With RERA one can monitor the progress online.

Escrow Account:

The developer would be expected to move 70% of the money collected from the customer to the Escrow account. This can ensure that the developer will not use the money on other projects, since they will remove the money from this account after approval from the engineers and chartered accountants they select, and the money can only be used for the project you have invested in.

Standardization of the Purchase Agreement:

Earlier sale agreements used to be in such a configuration that home buyers would be penalized for any default but identical defaults by promoters would not incur any penalty. However, now that RERA requirements are in force, a standard model selling agreement must be reached between promoters and homebuyers to ensure equality and protect buyers from different fines and charges.

The selling agreement shall define the precise details of the project, including the design of buildings and houses, the requirements, the internal development work, and the external development work, the date on which the possession of the apartment, the plot, or the building is to be handed over, etc.

Maximum 10 percent of project expense as advance payment:

The promoter can not consider a total of more than 10% of the cost of the project, the plot, etc. As an advance payment or an application fee from you without first entering into a written agreement for sale with and registering with that person.

Defect Liability Period:

Under RERA, in the event of any structural defect or poor quality, it would be the duty of the developer to correct any defect for a period of five years. So, if any fault is found in the quality used in the construction of the house, you can make the developer/builder responsible for all sub-quality problems and ask for the same repair or compensation.

Carpet Area:

The area of the property is also measured in three different ways: the carpet area, the built-up area, and the super built-up area. So when it comes to purchasing a house, this can lead to a lot of disconnect between what the home buyer pays and what he actually gets.

However, it is now mandatory for developers to reveal the size of their apartments based on the carpet space ( i.e. the area inside four walls). This involves available rooms, such as kitchens and toilets.

Representation of the Title:

Promoters are expected to disclose a valid title to the property and project. If a fault is found in the title of the land, you can ask for compensation and there is no limit to the amount of that compensation.

Information Provided:

If you make an advance payment for a project based on any false information provided to you through a prospectus or advertising, then you have the right to request a refund of your money. And if you want to proceed with the building, the contractor would have to pay a tax, which can be up to 5% of the cost of the house.

On-time Possession:

If you make an advance payment for a project based on any false information given to you via a prospectus or advertisement, you have the right to request a refund of your money. And if you choose to continue with the construction, the builder will have to pay a tax that could be up to 5% of the cost of the building.

Alteration in the plan sanctioned:

If a contractor wishes to make improvements to your individual flat’s plans and specifications, he can do so only with your permission. And if the contractor wants to make improvements to the entire project’s layout & common areas of the business, he needs the approval of 2/3rd of the total number of buyers.

Promoter Obligations:

The Promoter shall not be permitted to pass the majority rights and liabilities in respect of a real estate project to the third party without the prior written consent of two-third parties (purchasers), except the Promoter, and without the prior written consent of the RERA authority.

Agent Registration:

Now, any real estate agent must register with RERA before selling or advertising any property and must abide by all rules of regulation, such as keeping books and records, not engaging in unfair commercial practices, or making any false oral or written claims

Redressing Grievances:

If any customer, promoter, or agent has any complaint about the project, they can file a complaint with RERA. The actual state regulatory agency of the state will seek to settle the conflict within 60 days. If you are not happy with the RERA ruling, a complaint can also be lodged with the Appellate Tribunal within the next 60 days. And after that, if he is not satisfied, the case can be referred to the High Court and the Supreme Court.

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Commencement Certificate

A commencement certificate is a local municipal authority document allowing the developer to begin the project construction. Only after the applicant meets the legal criteria and has received the corresponding sanctions for building plans will the certificate (or CC) normally be granted.

 Pursuant to Section 2(m) of the RERA Act, 2016, "commencement certificate" means a commencement certificate or a construction permit provided by the competent authority to permit the promoter to begin development work on immovable property in accordance with the approved plan.

 The documents that a builder needs to submit all the latest tax receipts, photographs, documents of the property and all the certificates of no objection (NOCs) that are required to start the construction. He must also prove that all the clearances have been received from several government departments concerned such as electricity, water, fire, sewage, etc.

 Unless the developer receives a commencement certificate for his project, he is not permitted to start work on it. Therefore, a home buyer must not invest in a project, if the developer is unable to produce a legitimate commencement certificate for it. The commencement certificate obtained by the developer must also be reviewed to see if the floor on which the buyer wants to purchase a house. You run the risk of becoming the owner of an illegitimate property if you make a purchase in a project which does not possess a legitimate commencement certificate.

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A business loan is a debt-based lending agreement between a corporation and a financial institution such as a bank. It is usually used to finance large capital projects and/or to cover running expenses that the company would otherwise not be able to manage.

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A house loan or a home loan is essentially an amount of money lent from a financial institution or bank to buy a house. Home loans consist of flexible or fixed interest rates and payment terms.

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5 FINANCIAL ASPECTS TO CONSIDER BEFORE YOU DECIDE TO BUY A HOME

Buying your First Home? It is evident that you will have several questions in mind as a first time home buyer.

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Greetings from TEAM KARMA !!! Trust you and your family are safe. Over the last few weeks a lot has changed due to the spread of the pandemic, KARMA stands by all its clients The next few weeks pose a challenge for India Inc, the post pandemic world will require us to adapt and respond to the new circumstances quickly here we are undoubtedly in a strong position to help businesses sail through the complexities they may face As a truly Sales and Distribution company, we can assist you to raise funds. We can offer one of the most competitive financial products and services in the market today. We understand your financial requirements and would help to manage business better Financial solutions offered are as given below : 1. Home loan at the lowest rate of interest starting from *6.85%* Bank of Baroda or *7.10%* HDFC 2. Loan against property starting from *9.25%* 3. Balance transfer and Topup *with* *minimal* *Or* *NIL* *Cost* 4. Unsecured loans starting from *15.25%* We are also arranging for *Working* *capital* *limits* - OD, Cash Credit limit, Bank guarantees, bill discounting, LC, packing credit with minimal collateral and at lowest rate of interest from Nationalised banks, SIDBI and other Financial institutions Looking forward to a healthy and strong business relationship further Thanks and Regards Shittal Deshhmukh 9022343442 9820543442 https://www.instagram.com/p/CC--ZvTpIlR/?igshid=1pbvbwz9z1ehi

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As The New Year Renews All The Happiness And Good Tidings, Hope The Joyful Spirit Keeps Glowing In Your Heart Forever. Wish You Happy New Year !!

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Pollution level in India is at an alarming rate, especially in the national capital, Delhi which is the worst hit by it. The observance of National Pollution Control Day 2019 comes as a timely reminder for us at this time.Over 3,000 people reportedly died the next morning, during the fateful incident on December 2-3 in 1984. The death figures jumped to over 8,000 in two weeks. As per the Indian government notification, the objectives of National Pollution Control Day are:To educate people and industries about the significance of pollution control actsTo raise awareness about managing and controlling industrial disastersTo prevent pollution caused by industries and human negligence. Follow us : https://www.instagram.com/kfinprop/Website : http://www.karmafinprop.com #PollutionControlDay #NationalPollutionControlDay #PollutionDay 

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Financial Planning

The first step towards a proper financial planning for your dream home would be to review your current financial obligations such as other loans, insurance amount etc. This will provide you the right picture of your true income. Your budget will be a factor of the EMI that you can pay off and what your monthly expenses are. Apart from this, you should also account for the hidden charges such as registration, stamp duty, maintenance etc, when finalizing your budget & loan amount.

Once you have decided the loan amount, move on to check how much would you be able to put as down payment. Typically, these range from 15 to 20% of the property value, and offer a confidence to the bank about your credibility. You can also choose to take a loan with zero down payment, but this will result in an increase in your monthly EMIs.

Improving Your Credit Score

This plays a critical role in your loan application. Once you have applied for the loan, the lender checks for your credit score, as this is a clear indication of the credit worthiness of the applicant. So it would be advised to check your score with any of the credit bureaus like CIBIL, TransUnion etc. before applying for a loan, and ensure that it is in the better range.

Choosing The Right Loan?

It is important that you do your market research thoroughly, as it will help you select the most suited financing option. With a variety of options now available for loans, one always has the privilege of negotiating rightly with the bank, thus reducing your interest rate and save yourself a lot of money.

But before selecting the right loan, just keep few important parameters in mind: how much loan are you eligible for, what will be the interest rates, how can I get the loan processed with minimal fee, what should be by EMI, what other expenses do I have.

Additionally, you always have the option to choose between the floating interest rate and the fixed interest rate.

Selecting The Right Location & Builder

While choosing the location, keep softer aspects such as connectivity, safety, proximity to markets, schools, public transport in mind. You should also be aware of the future developments planning in that area.

Also, before finalizing a property, do a thorough background check of the builder, as to how many projects he has done, what has been the delivery record, quality of construction, rate of appreciation of previously developed projects etc.

Home Inspection & Legal Due Diligence

Do a thorough inspection of the property you are planning to buy to spot defects, if any. There are many professionals who would do this on your behalf and provide you a detailed report on the current defects as well as the potential damages, if any.

Additionally, there are a lot of legal documents that are required to be verified without which the sale of property is incomplete. Make sure that these are verified and signed. These include Sale agreement, registration, encumbrance certificate etc.