RERA: Stiff penalty awaits builders failing to register

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,“ 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 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.

 

 

 

 

Courtesy By Times of India

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Karnakata RERA to levy stiff penalty on builders, brokers failing to register by Aug 31

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,“ 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 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.

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Why young strangers are sharing kitchens, loos, Millennial Rush For `Co-Living’ Spawns Industry

Last Tuesday was family din ner at co-living venture We Live Wall Street. Thursday was a “craft jam“ -terra cotta pot painting amplified by rosé and salty snacks -at Node in Brooklyn. A few weeks earlier, this reporter slept on the 68th floor of the tallest residential building in Jersey City, in a flashy model apartment.

These are some of the adven tures one could have in modernday co-living, a housing model that draws inspiration from the single-gender residence hotels of the early 20th century and postwar intentional communities, along with modern co-working spaces and hacker hostels.

These are accommodations where residents share facilities such as dining areas, lounges, work spaces, laundry rooms and gyms, and the investors are looking to do more. And conventional developers are starting to play with the idea, bringing a swankier gloss to what had been homespun group housing. Newer iterations seem more akin to the millennialfocused, hipster-amenitised luxury rental developments sprouting in different parts of the world (with design tropes that include raw wood shelving, vintage board games, and picture books strewn about the common areas).

Using architecture, design and so-called community programming (say , craft jams and bar crawls) co-living aims to push people together. It’s housing buoyed by and addressing a collision of attendant themes: the sharing economy and a yearning for connection, social and professional, among overworked millennials and a work force that’s increasingly freelance.

In Britain, the co-living microflats market now accounts for 5 to 10% of the £25 billion build-to-rent private rental sector, James Mannix, head of residential capital mar kets at property group Knight Frank, said. The Collective, one of London’s major co-living developers, says tenants at its Old Oak apartment building, the world’s largest co-living endeavour with 546 people living across 10 floors, have a median age of 28. “For people at certain stages of their career … it definitely makes a lot of sense,“ Ivan Soto-Wright, a 27-year-old resident of Old Oak, said. Some co-living ventures have collapsed under the weight of their ideals, like the utopian Pure House, started by Ryan Fix, now 42, in his loft in the US in 2012. “It was an experiment that grew out of control,“ he said.

Fix, who eventually turned over the Pure House leases he had acquired to his tenants, is now a co-living consultant.

With a colleague, he started Pure House Lab, a nonprofit “dotank“, offering workshops, research and other services to the coliving movement, about which he remains bullish. “Loneliness and anxiety are still on the rise,“ he said, “The opportunity is to build environments with more points of collision. Creating nurturing spaces where people can share and connect is transformative for the planet.“

 

 

 

 

 

Courtesy By Times of India

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Builders to give five-year warranty against a host of structural defects

Property buyers will now get a five-year warranty against structural defects in their buildings. Till now, these warranties were for a year.

Several builders,  in Bengaluru have started including the five-year defect liability clause, as per the RERA Act, in their new sale agreements.

Though this finds no mention in the RERA rules promulgated by the Karnataka government last month, lawyers say wherever the state rules are silent, the central Act comes into force. This means that realtors may also have to include this clause in old agreements in projects that are ongoing, where occupancy certificates have not yet been applied for and thus fall under the ambit of RERA.

According to the new law, a builder will be liable for any structural defect or any other defect in workmanship, quality or provision of services as per the sale agreement if it is brought to its notice by the customer within five years of handing over possession.

“It shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act,“ the law says.

“All this will make contractors think hard, so that good quality material is provided,“ C N Govindaraju, managing director, Vaishnavi Infrastructure, said.

Puravankara MD Ashish Puravankara and Ozone CEO Srinivasan Gopalan said they have started including the clause in their new sale agreements. Citrus Ventures said the same, adding that it will not modify existing agreements but extend the provisions of the clause to them as per the law. Legal expert E Suhail Ahmed said there cannot be a different set of rules for old and new buyers in a project that is under RERA.

Both small and big organised builders say they are ready to be held accountable for any structural defects, including usage of inferior material, structural cracks, wrong planning structure, leakage and dampness, for five years.But they say they are unclear about the definition of “workmanship,“ which can include even tiles, and electrical wirings, where suppliers do not provide warranty for more than a year.

“For me to stand warranty for those items is practically impossible as I get a one year warranty from the suppliers.There is no way we can extend it by another four years from our end and even if it is done, there will be extra cost. For a third party vendor fault, it is not right to blame us,“ Suhail Rahman, executive director of Asset Builders, said.

Realtors are thus deciding to make buyers aware on what constitutes a liability on their part and what they cannot be held responsible for. “We are planning a warranty booklet where it will be stated what is covered and what is not,“ Citrus Ventures CEO Vinod Menon said.

Since the law is open ended, it possibly sets the stage for lawsuits. Extended warranty and other RERA rules will lead to an increase of about 10%-15% in projects cost, builders say . Most of this may be passed on to buyers.

Courtesy By Times of India

Cushman & Wakefield appoints Swapan Dutta as Managing Director, Kolkata

Property consultant Cushman & Wakefield has appointed Swapan Dutta as the Managing Director of its Kolkata operations. Dutta will be responsible for developing new avenues of growth in Eastern Region and will work closely with clients to provide value driven transaction solutions in line with their strategic goals, the property consultant said in a release.

Dutta will be reporting to Anshul Jain, Managing Director, India, Cushman & Wakefield.Property consultant Cushman & Wakefield has appointed Swapan Dutta as the Managing Director of its Kolkata operations. Dutta will be responsible for developing new avenues of growth in Eastern Region and will work closely with clients to provide value driven transaction solutions in line with their strategic goals, the property consultant said in a release.

Dutta will be reporting to Anshul Jain, Managing Director, India, Cushman & Wakefield.

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