GST on RTM Projects Without Completion Certificate will Affect Home Sales

Anuj Puri,
Chairman – ANAROCK
Property Consultants

The applicability of GST in the Indian taxation system was a move aimed towards ‘one nation, one tax’. Post land abetment, the applicable GST for under-construction properties was 12% while ready-to-move-in flats were kept out of the GST ambit. 

Even for under-construction properties, there was a ruling of Input Tax Credit (ITC) pass-over to the buyer to ensure that it becomes a tax neutral proposition.

While calculations and ITC pass-over still remain a challenge after 1.5 years of GST regime, a recent announcement stated that there is no GST applicable only on ready-to-move-in flats wherein sales took place after the issue of completion certificate. This is likely to add woes to buyers as well as developers.

Impact on Buyers

 Until now, all properties that were treated as ready-to-move-in were out of GST ambit, so buyers had significant choices. As per ANAROCK data, more than 90,000 units out of total unsold inventory of 6.87 lakh units (as of Q3 2018) across the top 7 cities were ready-to-move-in - a massive 14% of the overall unsold stock.

However, after this announcement, projects which are ready-to-move-in but do not have completion certificates will attract GST. For buyers, this means that either their purchase cost will increase if they decide to purchase such a property, or the overall spread of options will reduce. After all, not all unsold ready-to-move-in properties may possess a completion certificate.

Impact on Developers

Developers were already struggling with huge unsold inventory and were leaving no stone unturned to make sales and generate cash flows. The sudden NBFC crisis jolted the sector and fund-raising became a major concern. Amidst all this, developers were cashing in on the buyers’ preference for ready-to-move-in units since these were not liable for GST.

With this announcement, developers are now left with no choice but to absorb the GST charges in ready-to-move projects that have not been given completion certificates. If they attempt to pass this additional burden on to their buyer, their ready-to-move-in units without completion certificates will be at par with under-construction projects in terms of cost to buyers.

Boost for Secondary Sales Market

This announcement may be a blessing in disguise for the secondary market. The secondary real estate segment does not attract GST as such properties are by definition complete. Buyers eyeing ready-to-move-in units will now certainly evaluate this option rather than paying 12% GST on first purchase units.

Impact on Unsold Inventory

The burden of unsold inventory in the primary market is likely to increase as more home buyers may now consider buying resale units which are exempt from GST. The additional GST levy on ready-to-move-in units without completion certificates is an extra cost which developers simply cannot afford to pass on to their customers. Given their existing woes with regards to unsold inventory, developers have little choice but to absorb this additional cost either partially or completely if they want to keep sales going.

Demand to rise for RTM with completion certificates

Another obvious trend that will emerge is that ready-to-move-in projects with completion certificates will draw significant demand. Developers with such stock will not miss the opportunity to cash in on it.

We will also see developers step up their efforts to obtain completion certificates so that they can declare their projects as free of GST. This would be a notable change from the previous times when developers with ready-to-move-in units were in no real hurry to obtain completion certificates.

Affordable housing will also see a massive boost because such projects attract only 8% GST as compared to the other segments which attract 12%. More than ever before, affordable housing - already the king of the current market, will become the strongest contender in the rapidly-changing regulatory regime.

Piramal Capital and Housing Finance Receives Global Recognition

Piramal Capital & Housing Finance Limited (PCHFL), the wholly owned subsidiary of Piramal Enterprises Limited, has been recognized as the 'Best Overall Investment Manager' for Asia and India at the 14th Annual Global Real Estate Survey conducted by Euromoney. 

Piramal Capital and Housing Finance has won this award in India for four consecutive years for setting new benchmarks and outstanding performance in the industry.

In addition, it also marks its victory in one of the largest market - Asia this year for the first time by demonstrating its commitment & remarkable performance in the global real estate market. 

Khushru Jijina, Managing Director, Piramal Capital & Housing Finance, said, "PCHFL has been consistently recognized by the industry and its peers for its quality, performance and professionalism. 

We believe that awards are a validation of our Group values of Knowledge, Action, Care and Impact and a testament of our employees' efforts who strive to be the best, as well as our developer partners who motivate us to do better. We are delighted to win this award and are thankful to our stakeholders for their steadfast support."

This prestigious award has been voted and nominated by industry peers such as advisors, developers, investment managers, banks and corporate end users. Euromoney Real Estate Survey is one of the most prestigious and widely recognized global surveys that canvasses the opinions of the leading firms in the real estate sector, across the globe.

Company Awards:

Best Domestic Fund House by CNBC Awaaz in 2014

Best Overall Investment Manager (India) by Euromoney's Real Estate Awards for 3 years in a row - 2015, 2016 and 2017

Firm of the Year (India) by the PEI Global Private Equity Real Estate (PERE) awards in 2014 and 2016

Great Places to Work in Financial Services: 2016, 2017

MCHI CREDAI Golden Pillar Awards: Piramal Housing Finance - Emerging Home Loan Provider of the Year and Piramal Finance for Leading Real Estate Project Finance Company of the Year

Assetz Group launches premium properties in Bangalore

BENGALURU: Assetz Property Group, a reputed builder in residential, commercial and warehousing space, has launched three alfresco row houses, Soul & Soil, Earth & Essence and Leaves & Lives, along with 38 & Banyan, an architectural masterpiece in the heart of Bangalore.

The properties are located in prime areas for investments in Bangalore and the true essence of these homes is the integration between the architecture and the environment.

Established in India in 2006, Assetz Property Group has been in the forefront in developing four business verticals - Residential, Commercial, Fund Management & Warehousing. Despite the continuous gloom in real estate market in India, the company has launched four projects in the last two months.

Projects launched by Assetz:

Earth & Essence  - Starting at 2.37 Cr are 3, 4 & 5 BHK row houses, off Bangalore International Airport.

Leaves & Lives - Starting at 2.29 Cr are 3 & 4 BHK row houses, off Sarjapur Road.

Soul & Soil - Starting at 1.93 Cr are 3 & 4 BHK row houses, off Hennur Road.

38 & Banyan - Starting at 3.5 Cr are 3 & 4 BHK homes, off Indiranagar.

Furthermore, Marq, the integrated township, phase 1, which was launched about 4 years back, has been almost sold out with just few units remaining for grab. The company is set to launch their phase 2 of Marq 2.0 in the beginning of October this year.

Alfresco architecture and contemporary design

The new launches by Assetz Property Group address the problems of living in an urban city like the block out of crisp breeze and lush greenery. Mixing old-world charm with luxury, the company has launched  golf villa plots at 18 & Oak, Sarjapur-Attibele Road, East Bangalore which will give occupants a chance to live with nature while having a view of an 18-hole golf course at a mere stone throw away. 

The property will spell out homes designed by nature and will be known as one of the most luxurious addresses in Bangalore.

Homes in prime residential locations

Assetz Property Group puts careful thought into providing their customers with a home that caters to their every need, for which the location of the home is just as important. Each of their projects is located in some of the best neighbourhoods in Bangalore. Marq Phase-2, for instance, is one of the upcoming launches located in the burgeoning locality of Whitefield. This 22-acre enclave will be a home ahead of its time with a unique design approach and kid-centric amenities and facilities.

Global amenities at home

Every property developed by Assetz goes hand-in-hand with impeccable construction and world-class facilities. 38 & Banyan, a property situated off Indiranagar, is the leading example of this fact. From a state-of-the-art amphitheatre to an infinity pool, class and sophistication are ways of life here. Find the dream home in the thoughtfully designed property of 38 boutique apartments, around a 150-year-old banyan tree.

Variety of world-class projects

Magnificent apartments have always been one of the striking landmarks in the bustling city of Bangalore. However, the variety of residential projects launched by the Assetz Property Group will alter the landscape of the city.

The residential portfolio of Assetz Property Group includes:

18 & Oak- Golf villa plots located off Sarjapur-Attibele Road.

Marq (phase 1) - Luxury homes located off Whitefield-Hoskote Road.

63° East - Luxury Eco homes located off Sarjapur Road.

Here & Now - Uber modern apartments Located behind Manyata Tech Park.

38 & Banyan - Boutique apartments located near Indiranagar.

Earth & Essence - Row houses located off Bangalore International Airport Road.

Soul & Soil - Row houses located off Hennur Main Road.

Leaves & Lives - Row houses located off Sarjapur Road.

Kumari Builders Embarks Rs 300 Crore Villa Project in Bangalore

Bangalore: Kumari Builders and Developers is investing Rs. 300 crore in a 46-acre villa project in the city. Through this investment in Kumari Hamlets, the Bengaluru-based residential real estate developer is expanding its property portfolio by 1.8 million sq. ft.

Established in 2012, Kumari Builders and Developers was founded with the foremost objective of fulfilling the housing needs of working professionals. Its aim is to help young professionals take their first step into affordable independent living.

Ashok Naidu, Director, Kumari Builders and Developers, says, "We are investing Rs. 300 crore in Kumari Hamlets as it is one of our most promising projects. We have built a space where you can be with nature. Here you get to relax, refresh and rejuvenate, making the imprint of coming home the best feeling ever. Seeing the vast potential for connectivity and infrastructure development, Malur has emerged as the most feasible location for this project. The affordability factor has enabled us to transfer the benefit to our customers."

Located just 40 to 50 minutes from the Hope Farm, Whitefield and well connected to major business hubs, Kumari Hamlets is the ideal destination for people who prefer to experience a relaxed lifestyle. Spread across 46 acres with about 750 units, the project aims to connect its residents with Mother Nature. With more than 4,000 trees and 8 acres of parks, the setting is perfect to de-stress from busy life.

With the intention of making villas affordable for people in the mid-income group, the best of architectural minds have designed Kumari Hamlets, with prices starting at just Rs. 60 lakh.

"Superior-quality villa projects situated in and around business hubs are priced at the higher end. We want to enable professionals working around these prime locations to own their dream villa at rates that are accessible to them," explains Ashok. He further adds that the project is within 40-45 minutes of drive time from some of the major IT hubs.

After demonetisation and a year-and-a-half of struggle, the Indian real estate market is on a recovery mode. With the implementation of RERA and GST, there was much confusion in the market. However, the industry is limping back to growth and has seen a significant rise in residential property launches over the past few months. As per the Knight Frank India Real Estate Report, Mumbai and Bengaluru were the largest markets in the country in terms of residential space and accounted for 56 percent of the total supply during H1 2018.

"With real estate market back on track, what better time than now to announce a project that caters to the needs of the mid income group. The project offers a home that lets them be one with Nature while living in a burgeoning city," adds Ashok.

About Kumari Builders and Developers: 

Kumari Builders and Developers is one of the fastest-growing real estate companies in Bengaluru. With eight projects to its credit, the company currently has ongoing projects adding up to 2,54,610 square feet of built-up area. It was founded in 2012 with the foremost objective of fulfilling the housing needs of young working professionals in the city.

Surbana Jurong and Mitsubishi to Jointly Develop Developmental Projects in Asean Countries

SINGAPORE:  Surbana Jurong Capital, the newly established financial services arm of Surbana Jurong, and Mitsubishi Corporation has signed an agreement to set up a fund management company (FMC). The FMC will be a 50:50 joint venture between the two companies and will be jointly managed by both partners.

The FMC will set up an Investment Fund (Fund) to invest in urban development projects in emerging Asia, primarily in Myanmar, Vietnam, Philippines, Indonesia, India and Sri Lanka. Such projects may include transit-oriented developments (TOD) such as aviation or rail-related developments, affordable housing, as well as other urban-related infrastructure.

The partners will each contribute up to US$250 million to seed the Fund, and the FMC will also raise and manage funds from other accredited or institutional third-party investors.

According to Asian Development Bank's (ADB) estimates, developing Asia will need to invest at least US$1.7 trillion per year in infrastructure until 2030 to maintain its growth momentum. However, there remains a huge gap between the demand for such infrastructure and the region's access to financing.

The FMC will seek out commercially-viable urban infrastructure projects which are in an advanced feasibility stage or in the early phases of construction, and provide equity investment to support such projects.

Qualifying projects will need to meet sustainable environmental, social and corporate governance metrics. Institutional investors seeking to participate in the sustainable growth of the region can therefore do so through the Fund.

The FMC will leverage both partners' unique strengths to deliver optimum long-term risk-adjusted returns for the Fund. Surbana Jurong, as one of the largest Asia-based urban and infrastructure consultancies, has direct exposure to project opportunities in the region. It has over 70 years of successful project deliveries and technical teams in over 40 countries to provide insights on the risks of such projects.

Mitsubishi Corporation, a global integrated business enterprise with diverse business operations, has experience in investments and financial products, and has been investing in real estate projects in ASEAN countries since 2013 totalling JPY250 billion.

Wong Heang Fine, Group Chief Executive Officer of Surbana Jurong, said, "Emerging countries in Asia continue to see rapid economic and population growth, which drives the demand for urban infrastructure projects including transit-oriented developments and affordable housing. For project owners looking for funding, and investors looking for long-term sustainable returns, Surbana Jurong and Mitsubishi Corporation's new FMC will provide that capital bridge. Our JV will tap both partners' know-how across financing and investing, as well as technical and risk analysis to deliver sustainable returns. This JV is also timely, as Singapore positions itself as the regional infrastructure hub."

Surbana Jurong Capital

Surbana Jurong Capital, as the financial services arm of Surbana Jurong, will source, invest, plan, develop and manage infrastructure and real estate projects, generating long-term sustainable returns for its stakeholders. It will draw on its ability to plan and manage the risks of development stage projects, seeking to bring together existing market liquidity with appropriate opportunities, providing risk-adjusted returns for investors.

Wong commented, "Surbana Jurong Capital will augment Surbana Jurong Group's complete value-chain of solutions. Through Surbana Jurong Capital, we are now able to provide equity investment and long-term financing solutions to our global clientele, further enhancing the value-add we bring to our partners."

About Surbana Jurong

Surbana Jurong is one of the largest Asia-based urban and infrastructure consulting firms. Leveraging technology and creativity, Surbana Jurong provides best-in-class consultancy solutions across the entire value chain of the urbanisation, industrialisation and infrastructure domains.

Headquartered in Singapore, the Surbana Jurong Group has a global workforce of over 14,000 employees in more than 120 offices across over 40 countries in Asia, Australia, UK, the Middle East, Africa and the Americas, and an annual turnover of around S$1.5 billion.

Surbana Jurong has a track record of close to 70 years, and has built more than a million homes in Singapore, crafted master plans for more than 30 countries and developed over 100 industrial parks globally.

Surbana Jurong's motto 'Building Cities, Shaping Lives' reflects its belief that development is more than just steel and concrete. Surbana Jurong creates spaces and designs infrastructure where people live, work and play, shaping cities into homes with sustainable jobs where communities and businesses can flourish.

About Mitsubishi Corporation

Mitsubishi Corporation is a global integrated business enterprise that develops and operates business across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business.

Mitsubishi Corporation's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods.

ANB Capital Merges with Anuj Puri’s ANAROCK Property Consultants

ANAROCK Property Consultants and ANB Capital Advisers today announced the formal merger to create ANAROCK Capital, which will be headed by Shobhit Agarwal as MD & CEO.

Anarock Property Consultants was launched by prominent real estate consultant Anuj Puri while ANB Capital was headed by Shobhit Agarwal as MD & CEO.

The ANAROCK Group’s residential services division has already defined itself as India's leading, fastest-growing and most disruptive consultancy in the industry. With the addition of the Capital Markets vertical, ANAROCK takes a major step forward towards its ambitious expansion plans.

"The Indian real estate market is in its next evolutionary stage, and perfectly primed for ANAROCK Capital. The firm will fill the massive real estate investment banking advisory gap that exists in a market completely redefined by RERA in terms of how the market operates and who will operate it going forward. Among several other functions, ANAROCK Capital will advise on big-ticket funding, acquisition and consolidation mandates. Shobhit's vast experience and deep-rooted industry relationships will come into play with immediate effect. I take particular pride in announcing the second merger of equals in my professional life - and more are to follow," says Anuj Puri, who will be the chairman for the new entity.

Shobhit Agarwal has been a prominent deal-maker in Indian real estate capital markets for over two decades and looks forward to taking the massive stakes involved to the next level.

"Our capital markets team consists of well-honed industry experts who are adept at handling multi-million-dollar capital mandates" says Agarwal, who has already traded capital in excess of US$ 10 billion in his previous assignments.

"Leveraging the ANAROCK Group's tremendous market penetration and superb operational infrastructure with 10 operational offices in India and 1 in Dubai, ANAROCK Capital will lead the real estate investment banking business from the front. There is over US$ 150 billion of capital to be traded in Indian real estate over the next 5 years - and with our collective expertise, existing exposure and resources, we are perfectly poised to capture a major share of it," he adds.

Building on ANB Capital's existing strengths and expertise, ANAROCK Capital will provide services in real estate investment banking, financial management of big-ticket mergers, acquisitions and restructurings. The firm already provides capital advisory services to some of the country's leading corporations, institutions and state governments, based on a unique business model that eliminates the conflicts of interest inherent to large, multi-product financial institutions and multi-vertical international property consultants.

Shapoorji Pallonji to Make a Mark in Mulund with residential projects

Leading real estate developer in India Shapoorji Pallonji Group has decided to  develop residential project in Mulund, targeting real estate enthusiasts and home buyers from Mumbai and adjoining areas. 

This upcoming project's development and marketing will be managed by Shapoorji Pallonji Group's real estate faction, in collaboration with Nirmal Developers.

Mulund - A blessed suburb 

The location of the project is probably enough to get the home-buyer to reach halfway towards an agreement. Mulund, also known as the prince of the suburbs, has been bestowed with the best of geography with the existence of the pristine Yogi Hills and the Sanjay Gandhi National Park.

For long now, the Sanjay Gandhi National Park has been a weekend/picnic that many Mumbaikars have taken a liking to. It depicts the nature perfectly with dense trees, plush greenery, and an artificial lake where boat rides can be enjoyed. One of its popular rides called the 'van rani' and a walk up to the Gandhi Tekdi are two other good reasons why this spot is frequented by many age groups.

Needless to say, Mulund is very convenient in terms of infrastructural facilities. From educational institutions to shopping malls, Mulund is perfect for a polished lifestyle.

Mulund is a proud suburb that houses a cosmopolitan mix. Many age groups can find their idea of leisure outing here. There are temples and parks for the middle aged while the young guns can frequent the malls, cafés and cineplexes.

The suburb has also contributed to the economic growth with various industrial factories and pharmaceutical companies like Hoechst, Wellcome, Glaxo, Merind and Johnson & Johnson; not to forget, the various engineering companies boasting of their addresses in the prince of the suburbs namely Bombay Oxygen, Chicago Pneumatic and ACC.

Connectivity has been another trump card for the city's economic development with Mulund's railway station, the Eastern Express Highway and LBS Marg.

Today, old constructions are making way for newer prospects and there is a spurt of new malls and movie theatres. Korum Mall & R-Mall have remained as some of the most favoured shopping complexes amongst the middle-class and upper-middle class crowd. The people's ever favourite D-mart can also be found in this suburb along with one of the world-class hospitals, Fortis Hospital.

Why is Shapoorji Pallonji investing in Mulund? 

Being a pioneer in the field of real estate, Shapoorji Pallonji has indubitably had a hawk's eye vision for good locations. Many of their projects are constructed in what one could call, 'lifestyle-friendly' locations like Howrah, Bengaluru and Pune. It's no surprise that they have envisioned an edifice in Mulund, one of Mumbai's leading suburbs. This upcoming project's development and marketing is managed by Shapoorji Pallonji Group's real estate faction, in collaboration with Nirmal Developers.

Rustomjee Launches New 2BHK Homes in Thane (W) with Special Payment Scheme

Rustomjee Group has launched new residential township ‘Rustomjee Urbania’ with modern amenities at the upscale and happening Majiwada Thane West.

The skyline of Majiwada Thane has been dotted with high-rise towers that not only are privy to the facilities of the township but boast of exclusive amenities as well.

The Azziano towers of Urbania will have 32 podium level amenities which include gymnasium, mini golf, indoor play area, alfresco dining, mini theatre, business centre, box cricket, basketball, senior citizen's relaxation area among others.

The high rise towers have adequate provision for parking and an enviable view of the Yeoor Hills and Thane city. This is the perfect investment opportunity as not only are all the approvals in place but one can also save 2.5% on stamp duty as per special approvals from Thane municipal authorities. All this comes at a very reasonable price of Rs.99 lacs + Taxes for the 2BHK aspirational homes. 

Moreover, Rustomjee has introduced a special 10:90 subvention scheme wherein buyers need only pay 10% + taxes now and no pre EMI till November 2019 or possession, whichever is earlier.

The Azziano Towers are one of the most premium set of residential towers in Rustomjee Urbania. The township is not only a self-sufficient entity but is strategically located so that residents find ease of commute and living. It is just off the Eastern Expressway, approximately 4.7 kms away from Thane station and about 8 kms from Airoli. In addition, there are several corporate parks in the vicinity as well as hypermarkets and shopping malls like Korum and Viviana.

Speaking on the launch of the tower, Percy S. Chowdhry, Director, Rustomjee Group, said, "We at Rustomjee have always put our customers first and want to offer them the best amenities to experience an upgraded lifestyle. At Rustomjee Urbania, and the Azziano Towers in particular, we have taken care to ensure that every member of the family will feel comfortable and experience an elevated standard of living. For families with young children, Urbania is ideal - after all here 'Childhood's Available'."

About Rustomjee Urbania

Located in Majiwada, Thane (W), Rustomjee Urbania caters to almost every need of a resident. It is the only township in Thane (W) that has received Pre-Gold Rating from IGBC (Indian Green Building Certificate) and is probably one of the most awarded township projects in India.

Rustomjee Urbania houses the Rustomjee Cambridge International School, the first school in the integrated township. Affiliated with International General Certificate of Secondary Education (IGCSE) Program of University of Cambridge, it makes a global level of education available to students, at walking distance from their homes.

How RERA Protects Home buyers from Errant Builders

The Indian real estate industry, particularly the residential sector, was in the past correctly characterized as being unregulated and unorganized with unreasonable project delays and poor quality of construction being definitive aspects.

The arrival of the Real Estate Regulatory Act (RERA) in March 2016 brought in a paradigm shift in the sector and metamorphosed it into a more mature, systematic and regulated one. RERA came into force on May 1, 2017, and is meant to be a homebuyer-friendly regime which will address their grievances and promote transparency, efficiency, financial discipline and accountability in the sector.

Indeed, buying a home is not only the most cherished dream for many Indians but also one of the biggest long-term financial commitment in the buyers’ lifetime. Considering this, there are 14 important guidelines incorporated in the RERA umbrella to prevent unscrupulous players from raining on consumers' homebuying plans:

1.  Enforcing timely delivery of projects: In case of project delays, buyers have the right to - (i) Seek withdrawal of booking (the developer is liable to refund the entire amount along with interest)

(ii) Go ahead with the project (with the condition that developer will pay interest for every month of delay until the property is ready for possession). The maximum time for refunding the buyer's investment is with in 45 days of it becoming due.

2.  Facility to check RERA registration number: All builders have to mandatorily register their projects under RERA with the respective state regulatory authority and obtain a registration number for every project. Without RERA registration, developers are not allowed to sell the project. The project details, construction progress, commencement/occupation and other certificates, sales details, etc. must be updated on the single-point information window i.e. RERA portal, at regular intervals.



3.  Financial safety via an escrow account: Homebuyers’ investments can be considered safe, as RERA obliges developers to deposit at least 70% of the buyers' money received for a particular project into an escrow account. This prevents the developers from 'rolling' these funds into other projects. The rolling of funds was a major reason for project delays in the past.

4.  Ability to verify the builder's track record: Buyers can now opt for properties only from reputed developers who are complying with RERA norms and have a good track record and financial stability, which can be verified by buyers.

5.  Transparency in advertisement and marketing collaterals: Developers can now promote a project only after registering it with RERA. The unique RERA registration number has to be published with every advertisement/brochure, or in any kind of project promotion at all.

6.  Clarity on carpet area: The hitherto conventional practice of developers charging homebuyers on the basis of the super built-up area no longer works. Under RERA, the quoted price has to be mandatorily based on the carpet area of the property. What you see is what you get (and buy).

7.  Strict norms on building changes: Around 2/3rd of the buyers’ consent in a particular project is necessary in case the developer intends to modify the building or layout plans/specifications/liabilities in the project.

8.  Facility to check payment plans: Homebuyers can do due diligence before opting for a particular payment plan, a variety of which developers now offer - including flexi-payment, down-payment, possession-linked and construction- linked plans.

9.  Booking amount cannot exceed 10%: Developers can only take 10% of the total property cost as a booking amount while the sale agreement is drafted at later stages. RERA prohibits developers to accept more than this. If guilty of charging more than 10%, the developer potentially invites a penalty of imprisonment of up to 3 years.

10. Brokers must be registered under RERA, too: As service providers to real estate consumers, property brokers are also liable for all deliverables committed by the developers they represent. Hence, they must register themselves with their respective state Regulatory Authorities.

11.  At long last, a reliable redressal mechanism: RERA provides a strong redressal mechanism to consumers by imposing a penalty on developers/brokers for any breach of obligation. Homebuyers can file complaints against developers/ brokers which will mandatorily be resolved in a span of 60 days from the date of the complaint.

12.  Structural defects must be addressed: In case of issues within the building or apartment, such as inefficient plumbing, visible cracks, etc. in the initial five years after possession, developers are liable to rectify the defect in less than 30 days or else give compensation to the buyer.

13.  Availability of land title documents: These vitally important documents were, more often than not, inaccessible to buyers before RERA. Now, they can scrutinize documents related to a project's land title ownership on the RERA website.

14.  Goodbye to soft/pre-launches: RERA has put a complete halt to soft launches, pre-launches and any other interpretations of selling something which doesn't exist as yet. As a result, speculators have now been pushed out and the market has turned extremely buyer-friendly.

Overall, RERA is a boon to the homebuyers. While the progress of RERA implementation across states, barring a few, is going at a slower pace than predicted, it is definitely regaining the trust of homebuyers by consolidating the sector and plucking out unscrupulous real estate players.

Know your rights and get protected from fraudulent activities of builders. RERA will protect home buyers from delay in possession or any issues with the property.

Author: Anuj Puri, Chairman - ANAROCK Property Consultants