Friday, December 23, 2016

Maharashtra RERA Rules - A Nightmare for Home Buyers

Instead of protecting home buyer's rights Maharashtra RERA Rules, if passed as it is, will intimidate flat buyers and protect builders & brokers:


Maharashtra RERA Rules - A Nightmare for Home Buyers

In model form of agreement to sale there is one very dangerous provision.

If the Allottee fails to rectify the breach or breaches mentioned by the Promoter within the period of notice then at the end of such notice period, promoter shall be entitled to terminate the Agreement and upon termination of this Agreement the Promoter shall be at liberty to dispose of and sell the Apartment to such person and at such price as the Promoter may in his absolute discretion thinks fit.

The notice period will of seven days and by email only.

There is more dangerous proviso ahead, that upon termination of the Agreement as aforesaid, the Promoter shall refund to the allottee within a period of six months of the termination.

That too subject to adjustment and recovery of any agreed liquidated damages or any other amount which may be payable to Promoter.

Promoter is entitled to do this at any time of agreement period. That means even if buyer has paid 90% of the amount promoter can terminate the agreement on any ground. And refund will be without interest.

To read more, please, visit Vijay Kumbhar's Exclusive News & Analysis Blog

Related Story:


1) Maharashtra RERA Rules Published!

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9 comments:

  1. "That means even if buyer has paid 90% of the amount promoter can terminate the agreement on any ground. And refund will be without interest. "
    ---So it is easy for builders to get back there flats when price goes high , the same things happened with people who booked there flats in 2007-2009 and at the time of possessions in 2011-12 builder put the pressure on them to surrender there flats..

    ReplyDelete
  2. Builder can cancel the agreement, that too by email even after buyers has paid almost full amount is nothing but getting 0% interest money from buyers, use that money & then cancel the agreement & sell the flat to some higher bidder if prices go up. If not this, builder can demand additional money or threaten buyers that he will cancel agreement.

    So, the best solution even after RERA in Maharashtra is to buy ready for possession flat with all approvals so that possession is assured.
    Legally though, this clause can be challenged since state Govt can't dilute what is mentioned in central Govt RERA. Lashkar-e-CREDAI in it's recent meeting asked builders to put 10 years as date of possession so that they are not caught legally for delaying project under RERA.

    As buyers it's best to buy ready for possession flats or form a group & construct on your own thus completely removing builder from the picture. Let's be united buyers as no one else is going to come to fight for us.


    Pune builders dole out discounts to woo buyers -

    A leading developer with a project coming up at NIBM annexe has brought down the selling price of 2BHK flats to Rs 31 lakh per unit now from Rs 50 lakh a few months ago. And this developer is not the only one, many others too with housing projects in Undri, Moshi, Wagholi, Pirangut and Katraj-Kondwa Road have resorted to heavy price cuts to lure buyers. Many of them are now offering 2BHK flats for as low as Rs 35-39 lakh.

    “Dearth of enquiries about our new project prompted us to reduce the selling price. We are now offering 2BHK flats at a price of Rs 35 lakh per unit against Rs 51 lakh a few weeks ago,” a sales officer of a builder from NIBM annexe told TOI.

    Not just new projects, old projects too are feeling the heat of the cash crunch that has gripped the economy after the demonetisation move.

    http://realty.economictimes.indiatimes.com/news/residential/pune-builders-dole-out-discounts-to-woo-buyers/56132301


    This news will make buyers happy while hoarders, crooks aka builders & all those advisers who say real estate prices always go up due to less land, increasing population, blah blah get admitted to Yerwada mental hospital !

    And this is just the beginning. RERA, benaami property act will crash prices even further. A minimum of 50-60% crash in property prices should take place. Till then, enjoy renting at fraction of cost.

    ReplyDelete
  3. Seems law is atleast trying to catch the crooks aka builders now. And the work of the Gera Emerald City Baner flat buyers to fight for their rights is indeed commendable.
    Btw, some similar sort of issue had happened at Zircon in Vimannagar where Vascon builders were starting new building in the society.

    District court earmarks builder’s boundary -

    The developer can't start any additional construction on such plot after conveying it to the association of apartment owners, the court said. It held that such additional construction also can't happen without prior consent.

    District judge Jayraj D Wadane made these observations on December 19 while dismissing an appeal by Gera Developments Private Ltd against the temporary injunction granted by a joint civil judge senior division, against the construction of a third building on land conveyed to a housing society, Gera Emerald City in Baner.

    http://timesofindia.indiatimes.com/city/pune/District-court-earmarks-builders-boundary/articleshow/56147423.cms


    Balewadi slab collapse: Anticipatory bail plea of five accused rejected -

    The Bombay High Court Friday rejected the anticipatory bail plea of five people including builders Arvind Premchan Jain (44) of Shivajinagar, Shravan Devkinanda Agarwal (45) of Pashan, Kailas Babulal Wani (48) of Erandwane, Shyamkant Jagannath Wani (52) of Shivajinagar and an architect Pradip Janardan Kosumbkar (41) of Kothrud, in connection with the Balewadi slab collapse incident that caused the deaths of nine workers on July 29.

    http://indianexpress.com/article/cities/pune/balewadi-slab-collapse-anticipatory-bail-plea-of-5-accused-rejected-4442369/

    Buyers who have purchased flats from crook builders like Pride Purple will have to wait even longer now for getting possession of flats. So avoid buying under-construction flat irrespective of any builder, project.

    ReplyDelete
  4. All this points to the fact that the silver bullet is to pass just one rule "A builder CAN NOT sell and under construction flat".

    ReplyDelete
  5. The Monk
    A leading developer with a project coming up at NIBM annexe has brought down the selling price of 2BHK flats to Rs 31 lakh per unit now from Rs 50 lakh a few months ago. And this developer is not the only one, many others too with housing projects in Undri,
    With Gratitude towards you & Ravi Sir
    Can u please name the project in NIBM annex or Undri bcoz I m eagerly waiting for the rates to fall so that I can move to 3 bhk. I own 2 bhk in Flower Valley Wanowrie but want to upgrade on my own funding, without selling the previous one.
    asifk2518@gmail.com
    Regards to both of you for doing a *Great * job.

    ReplyDelete
    Replies
    1. Since I am not looking at that area, don't have much details on this. However, Godrej Greens, Undri is giving big discounts. Having said that, check out financials of Godrej properties which are deteriorating with time.

      Godrej Properties Q2 net profit down 77% on-year -
      http://economictimes.indiatimes.com/markets/stocks/earnings/godrej-properties-q2-net-profit-down-77-on-year/articleshow/55336216.cms

      And it's not just Godrej, several other major builders have gone bankrupt. RNA is the latest builder to go bankrupt with its projects seized by banks.

      First, Aug 2016 news.
      Buyers in a fix as luxe project stalls -

      In yet another case of flat buyers being left high and dry, work on a luxury residential project at Sunder Nagar, Kalina, has stalled since the past three years.

      Some of them moved the National Consumer Court last year, seeking their money back with interest from the builder, RNA Corp. But a legal case can take years to settle and the purchasers say their finances are stretched.

      http://timesofindia.indiatimes.com/city/mumbai/Buyers-in-a-fix-as-luxe-project-stalls/articleshow/53482239.cms

      This is today's news.

      कर्जवसुलीसाठी ‘आरएनए बिल्डर्स’ची मालमत्ता ताब्यात -

      बांधकाम व्यवसायाला मंदीचे ग्रहण लागल्यामुळे अनेक विकासक कर्जाच्या खाईत बुडाले आहेत.

      http://www.loksatta.com/mumbai-news/property-possession-of-rna-builders-1370828/

      A builder at Noida abandoned his projects & ran away last week. In Pune, Pride Purple builders are still not traceable by Police after Park Xpress, Balewadi incident !

      So buyers who buy flats in builders' under-construction projects may well end up becoming dhoobi ka kutta !
      With stronger RERA (current state govt one has to be junked) & more importantly Benaami Property act, 2016 expect real estate to crash. Lot of other factors are also in play which will crash property prices. So just relax & enjoy the show.

      Delete
    2. Avoid greens!! It's funny the way they are selling it. For every query you have the sales person will say- don't worry it is Godrej !!

      Also i have heard they had title issues with their munndhwa project!!

      Delete
    3. This once again shows the importance of buying ready for possession flats with all approvals.

      Delete
  6. Hi Ravi,

    Found this news where views of Shri. Vijay Kumbhar are mentioned about third class Maharashtra RERA.
    As per central RERA, state govts can only make law more stringent but can't dilute it, so don't know which chicken-head babu-mantri did this. Expect both these chickens to get fried soon !

    Maharashtra’s draft real estate Act comes under fire -

    Instead of protecting buyers rights, the State government’s version of the RERA is designed to intimidate consumers and aid developers, said noted Pune-based RTI activist Vijay Kumbhar.

    The Maharashtra State Housing Department finally published its draft version on December 9 after failing to meet the deadline twice. Already, a myriad of buyer groups and activists in Mumbai like the Mumbai Grahak Panchayat are up in arms against the several controversial clauses in the State’s draft.

    “It appears that Maharashtra real estate rules have been framed by some builders with great influence in the Mantralaya and if passed as it is, will create havoc in real estate sector across the State,” Mr. Kumbhar said.

    http://www.thehindu.com/news/national/other-states/Maharashtra%E2%80%99s-draft-real-estate-Act-comes-under-fire/article16946951.ece

    ReplyDelete