Tag Archives: builders

SBI to Support Real estate Industry and Builders fraternity

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State Bank of India chief general manager O P Mishra has assured the real estate industry and the builders’ fraternity of all possible support to address various issues concerning them at a meeting with the CCREDAI-Hyderabad.

Key points of the meeting were to:

  • Strengthen the relationship between the bank and developers and to discuss issues relating to home loan sanctions, project tie-ups and project funding.
  • Favour more meeting with builders and the industry at frequent intervals so that various aspects concerning them could be discussed and action initiated.
  • Assurance that other issues which required the intervention of the centre would be taken up.

He said the main points arising out of the COVID-19 pandemic had been addressed to a large extent through relief measures like moratorium on EMIs, charging of simple interest during moratorium period and extending emergency line of credit to builders.

 

 

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Will RERA change the way real estate functions?

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Definitely. With a promise of protecting the right of consumers and ushering the transparency The Real Estate (Regulation and Development) Bill, provides a legislation to protect home buyers and encourage genuine private players. Passed in March last year the long awaited RERA Act has finally coming into effect from May 1 where consumer is the king.

It will change one’s home-buying experience as the primary aim of the Act is to bring transparency and accountability from all stakeholders. Violation of orders of regulatory authorities may cause imprisonment of up to three years for developers and up to one year in case of agents and buyers . it will make mandatory for the builder to disclose details like approvals received, layout plans, court cases against them,registration etc.

Demand will improve as buyers will have increased confidence about investing in the property market. The real estate prices will remain stable now but rates could rise in the next six months. RERA will boost the confidence of investors. It will protect buyers who have purchased flats in the past. the RERA will provide relief to home buyers. It will help buyers get well-defined product typology and interior specifications. Therefore, Buyers will be able to make informed decision on a well laid-down information.

 

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Benami Transaction Act and Its effect on Real Estate Market

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The amendment in Benami Transaction Act  is a step in right direction to improve the overall confidence of the real estate buyers.  All real estate transactions shall be in the name of the actual owner who is paying the amount.

It would make real estate operations easier and establish professionalism increase transparency and clarity in ownership of the property. It would also  put the restrictions on black money into the reality market. It will bring the much needed confidence in investors . We may face an increase in real estate transactions prices. The realtors  entering into Benami Transactions may have to face punishment and pay  the hefty amount as penalty.  The act should impact the real estate transaction volume especially land transactions and real estate prices adversely.

Benamidar, or the beneficial owner or any other person who abets any person to enter into such a transaction, will face rigorous punishment ranging from a year to seven years in jail. These persons will be liable for a fine of up to 25 per cent of the fair market value of the property.  And, Those giving false information may face Imprisonment from six months to five years. Up to 10 per cent of the fair market value of the property. This act would be applicable on any kind of assets movable, immovable, tangible, intangible, corporeal or incorporeal.
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Real Estate Bill a Big Boost for Property Buyers

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With Real Estate Bill becoming a realty, business in real estate will not be as usual.  Home Buyers has many reasons to cheers as The Real Estate bill, whose main focus is to protect the home buyers rights makes registration of projects essential, including those that have not got completion or occupancy certificates. Registration will require builders to set aside funds collected from buyers and pay interest in case of delays. Hence, The real estate bill would force the Builders and Developers to finish construction and development work quickly as registering existing projects might delay them further.

The Real Estate Bill which has been passed recently by both the houses of parliament is ready to receive the assent of the President says that Builders have to deposit 70% of the amount collected from buyers in a separate account to cover the cost of construction, including land. Developers will also have to pay the same interest rate for any delays on their part as buyers do when their payments to the builders are late.

Real Estate investment has always provided a sense of security and emotional attachment to property buyers and investors. Real Estate is far less volatile than other growth oriented asset classes and financial institutions lend money easily to a real estate buyers. Real Estate is one of the very few asset classes which has beaten inflation consistently in the long run. Government’s commitment on Housing for All and Real Estate Bill to make it a realty will certainly help to strengthen the morale of realtors in coming days.

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