Looking to buy a property in NCR? – Read this article…

If a common man wants to buy a property from his hard-earned money, he has to visit the relevant agencies a number of times for true and accurate information which is quite staggering.

Even then whatever information he gets is correct and relevant is something which is not guaranteed.

Let’s see the various problems that arise while getting the relevant information and the possible solutions……

Where is the perturbation?

Many builders create more number of flats than actually approved by the Authority for their project.

Some builders purchase the free hold land and get their maps approved. These maps actually do not provide the real situation and builders make their flats on much larger area than approved. But banks do not approve the loans based on so called approved maps.

What is the correct way to get the information?

When you go to authority office then you need to specify the purpose of visiting the office, and a gate pass is issued to you. On getting the gate pass you can enter the office.

You should know the plot number of the project he wants to enquire about. The plot number is mandatory otherwise you cannot get any information.

If you wish to see the map of a builder or a copy of map then it should be sought under the RTI Act, and the department will then give the copy. 

The information regarding land acquisition by the authority to build a project can also be obtained under the RTI Act by land acquisition department.

The details of property are now available online on their website: www.noidaauthorityonline.com

Where to enquire?

Ghaziabad:   

                    GHAZIABAD DEVELOPMENT AUTHORITY
                    VIKAS PATH NEAR OLD BUS STAND GHAZIABAD

                    Contact No.  0120-2790-906

                    www.gdaghaziabad.com 

Noida:       

                    Administrative Complex
Sector 6, Noida - 201301 
District. Gautam Budh Nagar
Uttar Pradesh, India
Fax: 91- 120- 2422210-317
Help Line No. 2425025,26,27

                   www.noidaauthorityonline.com

Greater Noida:

169 Chitvan Estate

                    Sector Gamma - II

                    Greater Noida,

                    Gautam Budh Nagar,

                    Uttar Pradesh 201308

                    Contact Number: 0120- 2326150-51, 0120 23206335-7

                     www.greaternoidaauthority.in                                                                                  

Faridabad:  

Huda Office, Faridabad Sector-12,

                    Faridabad - 121007

                    Contact Number: (0129) 2227676, 2220691, 4004139

                    www.huda.nic.in

Assured returns plan — risk or reward?

For the investor, these schemes offer better returns than investing in a fixed deposit with an interest rate of not more than 10%

After the 2008 global financial crisis, the real estate sector witnessed inadequate liquidity. The problem aggravated with domestic financial institutions reducing exposure to the real estate sector and drying up of private capital. With commercial projects (office space and retail malls) taking most of the brunt of the financial crisis, these projects were worst off in securing funding.

Even if a developer was able to get funding for a commercial project from a financial institution, the interest rate charged was very high, at about 15% to 24%. With weak support from financial institutions and private investors, developers explored alternative ways to raise funds for their projects.

Of late, developers are actively promoting assured return plans (ARP) for commercial properties. In ARP, a developer offers investors a fixed return (generally 11% to 13% a year) on the investment for a certain number of years (generally three to four years or till the time he gets possession). A few developers even offer lease guarantee in addition to ARP, wherein a developer guarantees leasing of the commercial property after completion of the property, even if the property remains vacant.
For the developer such schemes have proved to be a win-win situation as this enables them to raise funds for the project at a lower effective rate in addition to finding a buyer for their project.

For the investor, such schemes offer better returns than investing in a fixed deposit in a bank with an interest rate of not more than 10%. Their investments are secured with an assured return to the investment and can be discounted upfront in case of an upcoming project and adjusted in the price. Further, the investors reap a dual benefit by getting interest and capital appreciation of the property.
However, at times the ARP schemes do conceal more than what they reveal.

There are some hidden costs associated with ARP schemes, which are generally ignored by the investors. In an ARP, the property is generally priced higher than the prevailing market price. A developer offers no bulk discounts which otherwise are available if an investor seeks a property without ARP. An investor can negotiate a lower price for the same property if it opts for a non-ARP. An investor also has to pay the property amount upfront instead of paying in instalments like in a construction linked plan.

It has been observed that an investor ends up paying the same or more amount in the case of an ARP than a non-ARP. Hence, an ARP project may not lead to capital appreciation for an investor other than the general appreciation of the price of property.

Can you cancel a sale deed or ATS ?

The registering authority is obliged to get a deed of cancellation registered if two parties involved in a property transaction want to cancel the deal

In many transactions of sale of immovable property, parties execute an sgreement to dell (ATS) as a precursor to the sale deed. Unlike a sale deed, execution of ATS does not pass title of ownership in favour of the buyer. In an ATS, parties set out terms such as advance sale price, total sale price, timelines of payment, time period within which the sale deed is to be executed, obligations of the parties before the sale, etc.

In some cases, the ATS does not materialise into completion of sale of the property and execution of sale deed for various reasons such as breach or default by either party of its obligations contained in the ATS.

Now the question is: can a registered ATS or sale deed can be cancelled if both the seller and buyer want it?

Cancellation of a previously executed and duly registered ATS can be done if the parties execute a cancellation deed. It is a settled law that a bilateral contract such as an ATS or sale deed may be cancelled only if both buyer and seller agree and execute a separate deed of cancellation. Cancellation deed, being a document relating to transfer of ownership of immovable property, should be registered by the sub-registrar provided the requirements under Proviso to Section 32A of the Registration Act, 1908 (‘Act’), are duly complied with.

Section 32A of the Act provides for compulsory affixation of photograph and fingerprints by persons presenting the document for registration. Proviso to section 32A provides that in case of any document relating to the transfer of ownership of immovable property, the passport size photograph and the fingerprints of each buyer and seller should be affixed to such a document.

In the matter of GD Subramanian v sub registrar, P Shanmugam, B Dillibabu and B. Vasu (2009 (1) CTC 709), the Madras High Court observed that the registering authority is obliged to register any deed of cancellation of sale deed which has been mutually executed by the buyer and seller, provided it is in compliance with the requirements of Section 32A. Further, the court also observed that the registering officer is legally bound to reject and refuse to register a deed of cancellation if it has been executed unilaterally and without the knowledge and consent of the other party, and if it does not fulfil the requirements of Section 32A.

Prospective buyers hesitate to purchase a property which has a history of a cancelled transaction of sale or ATS. However, if cancellation of the ATS has been done in accordance with law and buyers undertake legal due diligence, risk may be minimised. The new buyer may inspect the original cancellation deed executed by the seller with the previous buyer. The clauses of cancellation deed must clearly and unambiguously state that ATS, which was previously executed by the owner and previous buyer now stands cancelled. Also, the new buyer must ensure that the cancellation deed was duly registered at the office of sub-registrar in whose jurisdiction this property is situated.

Source : HT News

Is your apartment earthquake safe ?

INDIA has been classified into different zones indicating the intensity of frequency of occurrence of earthquake.

These zoning maps indicate broadly the seismic coefficient that could generally be adopted for design of buildings in different parts of the country.

These maps are based on subjective estimates of intensity from available information on earthquake occurrence, geology and tectonics of the country

Delhi / NCR are located in zone IV which has fairly high seismicity where the general occurrence of earthquakes is of 5-6 magnitude, a few of magnitude 6-7 and occasionally of 7-8 magnitude. Delhi / NCR thus lie among the high-risk areas. So in these areas buildings must be designed in such a manner that they can bear earthquake of 4.5 magnitudes on Richter scale.

Multistory flats

In case of a multistory flat you don’t have a chance to check whether the building is earthquake resistant or not. The only left options are that you should rely on the builder.  According to experts, for each and every flat we cannot test if it is earthquake resistant or not rather the whole building is tested. The structural design of the building can be taken from the developer and get checked from the experts.

Houses built on plots

If you are going to build a house on the plot, so you can have a chance to make it earthquake resistant. Soil testing is the most important task, it shows how much weight can the soil bear and this directly means the number of floors that can be built on the land. In technical terms, this means the soil's weight bearing capacity. Nowadays the earth quake resistant houses are built on the frame structure instead of load bearing structure, in which the whole building is based on a column. Columns are placed two to two and a half meters below the ground level. It is necessary to insert bend (beam) in floor level, lintel level, semi-permanent level (top) and side level (doors – side windows). Now the question arises:

Who will test the soil?

Several Semi Government and the private agencies are there to test the soil. There are certain Independent Insurance Surveyors also that perform this task. A certificate is issued after an investigation.

What are the outcomes of investigation?

·        How much load per square centimeter the soil can afford?

·        Whether the soil is ok for construction?

·         What is the water level in the area?

·         What is the correct ratio of water level and bearing capacity?

·        Is the soil hard or soft?

Who is responsible in case of damage?

After testing the Surveyor and Building Design Structural Engineer issue a certificate. In case of any damage to the building they can be held accountable.

What is safe?

·        Bars used in the column must be at least 12 mm thick.

·         Foundation should be at least 900 by 900.

·        At least 12 mm thick steel bars should be used in the Lintel beam (beam above the door) and in putting.

·         Depending on the thickness of the concrete, thickness of steel can be varied.

·         Higher quality steel should be used. High elasticity steel strengthens the building.

·        Use of good quality construction material.

Consider the above points before purchasing a flat or constructing a plot, and have HAPPY LIVING in your dream home.                                                                             

Child Sexual Abuse – Are you safeguarding your Little Angels?

I had originally posted this article on SEEKYT. I am posting it here again in order to increase awareness amongst the general populace in light of increasing incidents of sexual abuse against the children...
  
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“A six year old girl brutally raped and dumped on the side of the road…” 

“A three years old boy brutally raped and victimized by his nursery teacher…”

– The headlines like these now a days are not uncommon in the newspapers around the world. Just pick up a newspaper on any day, and you will find at least one or another news concerning the sexual abuse committed against the children.

The aim of this article is not to frighten you, but to create awareness amongst all those parents and the guardians who want to seriously fulfill their responsibility of safeguarding their children, keeping in mind their vulnerability to such elements, which arises out of their sheer innocence.

Statistics show that every 1 out of 6 children is sexually assaulted at one point of the time in their lives, by the time they reach the age of 18.

Remember, the sexual assaulters are not those people who look dirty or horrific, in fact, they are the ones who wear a shield of trust. Studies have shown that 90% of the time, the sexual assaulter is a person is already known to the kid and its family, like a nearest relative, neighbor, teacher, nanny or even one of your dearest friends!

Here is a very simple formula for safeguarding your kids against the sexual abuse.

REMEMBER this three letter word all the times – “V-A-T” (VIGIL – ASK – TEACH)

1.  VIGIL – Keep your eyes wide open when: 

a.  You visit the Kid’s School, or the Day Care – Get to know the behavior and history of staff employed over there. Keep a frequent contact with the parents of other kids, and ask like what’s happening around.   

b.  You are in your neighborhood - be especially suspicious of a person demanding the company for your kids, or shows over interest to play with them, or offers them chocolates or gifts when you think it is not necessary for them to do so.

c.  You are leaving your kids to the places where your kid is alone with an adult person (best is to avoid doing so).  

d.  Keep a tab on the changes in the behavioral patterns in your kids, like sudden quietness or shyness, over eating, aggressive behavior etc.

e.  Any signs of physical abuse, like fluid or blood oozing out of the genetelia, pain or scratch marks on the body – you can do this every day when you are giving bath to the kids or changing their clothes.


2.  ASK QUESTIONS – 

a.  From your Kids – Ask “What happened in the class today?”, “Does anybody hugs or kisses you in the school, like I did the other day?”, “How does the father/mother of your best friend behave with you when you visit his/her home”, “Did anybody ever pinched you when you were in a school?”

b.  From others – Let others know that you are a Parent who likes asking questions, for example, if someone offers to organize a private tuition class for your kid, ask why is that not possible to do so with a group of children.


3.  TEACH YOUR KIDS– 

a.  The names of the males and female sexual organs – and that nobody is supposed to touch theirs, nor are they expected to touch the private parts of others – should someone ask them to do so.

b.  Difference between a ‘Good Touch’ and a ‘Bad Touch’ and who is supposed to touch them, and who isn’t.

c.  Power of saying ‘NO’ to someone who wants to pick them up in arms, or offers them some sweets, or to anybody who makes them uneasy, or wants to make them do something which they do not want to.

d.  Raise Alarm – Make them comfortable raising an alarm – should they sense “discomfort” with someone’s act.

REMEMBER – “Awareness is the key for ensuring the well  being of our little ones. If they are happy, so are we!” 

I hope this article will help you to become a better parent in safeguarding your children against sexual abuse. If it does help you in any way, do not forget to spare two minutes and leave a comment.

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Going to buy a Property ? Read this before it is too late...

Property is a means for not only to increase your reputation in the society but to increase your wealth also that is why in India everybody is eager to purchase a property.

You should be very careful while buying a property because it is not necessary that your deal is always profitable.

There can be a number of factors that one should consider while buying a property.

Purpose of buying the property: There should be reason to purchase a property. You should be very clear whether the property being purchased is for investment purpose or for living purpose. For investment you can purchase a property in any town but for living purpose you can not purchase a property in any town randomly, you have to consider a number of things for that as well. You can earn a lot of money by purchasing a commercial property also but again you have to be very careful and think twice before investing otherwise it would be of no use and you will lose all your hard earned money. A lot of people invested in various malls in Delhi /NCR considering they will get very returns but unfortunately they could not get the returns as expected.

Choosing the right location:  You should be very careful while choosing the location and whether the property fits your budget or not. Don’t try to purchase a number of properties at one location. Investing in property should be similar to investing in share market; you should consider a number of portfolios. The location should be such that it should be suitable for living, what are the facilities in and around, what kind of people live there etc. even if you have purchased the property for investment purposes. Find out various future prospects of the location you are looking for.

Don’t forget to check the title to property: Whenever you are looking for a property to purchase do not forget to check the title to property i.e. in whose name the property is. It is very important to verify that all the papers are complete; the property is not under any legal or illegal dispute. In case of any confusion related to property you should consult an expert. Since it is your own hard earned money it should not go wasted. You should become the owner of the property hassle free.

Loan free property: The property you are going to buy should be free of any kind of loan otherwise it would be your responsibility to repay the loan amount.

Information about the builder / seller of the property: you should have the full information about the builder/seller of the property. There is less chance of fraud if you go for a property built by a renowned builder. If you are going for a builder flat you must confirm that how many flats this particular builder has sold and in which locality. If possible go and have a talk with the residents of those flats. There are a number of builders in Delhi/NCR who have not built a single property yet but they have filled their pockets by hefty amounts by just placing fraudulent advertisements in the newspapers.

Beware of fraudulent advertisements: In newspapers and magazines you can find a number of attractive property offers, which are just a mirage. They are just to attract the buyers and have nothing to do with reality. In any property related advertisements you can see a number of things for example facility for sports complex, gym, swimming pool etc., do consider such a property if you actually require those facilities otherwise why spend more amount for such property.

Don’t be impressed by the sample flat: Builders always prepare the sample flat just to attract the buyers. They use such costly and attractive fittings so as to make the sample flat beautiful but otherwise they don’t such fittings in actual flat. The area shown in sample flat is more than what you get in reality because in sample flat they replace the inner walls by thin cardboard walls so as to make the impression of a big flat. The paint and the textured walls used in sample flat are of very good quality but such a good quality is not used in reality.

Extra charges: While taking payment of the flat the builders imposes so many extra charges that you are not aware of. You should be very clear in your mind and have a complete discussion with the builder about the various charges that will be imposed on you and beard by you. Supreme Court has made it clear that no builder can charge parking money though most of them are charging from one to three lakh rupees. Similarly the builder can impose park facing charges, club charges, road facing charges etc. whereas as many buyers are least bothered about such facilities.

Why Noida Extension (GreNo West) is still, the best location for purchasing a property?

Till last year investing in Noida Extension was a nightmare for many customers and investors as the farmers were at loggerheads with the builders over compensation issue, the fate of a large number of buyers was hanging in balance until the court order on Noida Extension was out. But with the National Capital Region Planning Board (NCRPB) giving its nod for master plan—which was made mandatory by a court order in October 2011 for any construction activity in Noida Extension— the builders and buyers got a  sigh of relief. 

The Approval by NCRPB had boosted the confidence of the buyers who otherwise remained very cautious of investing in housing sector covering Noida Extension.

The reasons for Noida extension being still the best location to invest in are:

Price:  Noida extension is still the cheapest option available in Delhi/NCR considering its locational advantage. Noida extension was launched in 2010 by few builders at very affordable rates. Today the rates in Noida Extension have increased,  but keeping in mind the location benefit, the proposed and passed Metro Route, and it’s the connectivity with other NCR Regions, it is still the best option available for investment.

Locational advantage: The locational advantage of Noida Extension is its proximity with Noida, Greater Noida, Delhi, Indirapuram, Vaishali, Vasundhara, Anand Vihar, Ghaziabad, Kalindi Kunj, & Crossing Republic. Noida Extension is well connected to these well developed areas. Noida Extension is approximately 8-9 Km from Noida City Centre, the nearest metro station.

Proposed Metro Route: Greater Noida Authority has proposed and now passed the plan for metro station in Noida extension with PPP model. This will boost the price of property in this area, thus giving high benefits to the investors.

Variety of options: A number of builders are associated with Noida extension and they are providing a wide variety of housing options to the prospective buyers ranging from studio apartments to 4BHK apartments, individual floors to villas. So based on the requirements and budget, one can opt from this wide range of options.

 Green Belt: Being part of Greater Noida planning, noida extension is planned to have 22% green area.

Clear Legal Formalities: With all the bad phase gone, Noida extension is now free of all the legal hurdles.

“It is high time to book your house or go for investment in Noida Extension. The deal will churn out 100 percent profit once the possessions of Noida Extension housing is cleared. In the coming four to five years, prices will go sky-high after which there might be saturation.”

The investors who had invested almost 2 years back in this area are already getting more than 100% of price rise in this area, even when the construction of all the projects is still underway.

For more information - read this news from TOI - 
Dwarka E-way, Noida Extension amongst the areas to give top returns

What is the Real Estate Regulatory Bill ?

The Real Estate Regulatory Bill is a proposed law which the Indian Government is planning to introduce and implement (this is as of April 2013). 

This is required in order to regulate the practices and transactions of the real estate construction bodies or the ‘Builders’, for transparency and the welfare of consumers or the ‘Buyers’ in general.

Why is this bill required?

Transparency: This bill is required in order to inculcate transparency of the dealings between the Builders and the Buyers, since the Real Estate sector – although one of the largest in India, also happens to be one of the worst regulated.

Monopoly: In the absence of this bill, the Indian Real Estate sector has emerged as having monopoly of the promoters and builders.

Compliance: The builders are generally accused of promising, but not complying with the consumers with a project start date, completion date, possession date and construction specifications, and not to mention the price.

Payment window: Even in the construction linked payments plans, where the consumers are required to pay the builders according to the construction completed, the payment window is very thin and the interest rates for the default payments is exorbitant.

Model Agreement: In the absence of a model Builder-Buyer Agreement the buyers are compelled to sign an agreement which is one sided in the sense that the consumer does not have any rights to raise the voice, should the Promoter change the specifications of the project later on. Builder exercises sole discretion in altering the project layouts, carpet area and apartment location etc.

Delays: Consumer generally incur losses due to project completion time lags – as a result of any external reason like recessionary trends or the legislative disputes.

Approvals: There are large number of approvals required for starting construction on a project like NOC’s from various authorities (like Greater Noida Authority in case of Noida Extension (Greater Noida west or GreNoWest projects)). Builders, even before getting the required approvals, start collecting the funds from the buyers though various promotion techniques like advertising and selling prospectus etc.

Funds: Builders collect the funds from buyers for a project in which they have invested, and use those funds for starting another project – thus causing delays in construction and possession of the project for which the buyers have done the payment.

It is for this reason that NEFOMA (Noida Extension Flat Owner Members Association) was formed to safeguard the rights of the buyers of Greater Noida west since there is no regulatory authority to safeguard their rights.

What is the scope of this bill?

This bill intends to cover the housing infrastructure like townships and apartments etc. However the commercial infrastructure like malls etc are currently not within the purview of this new bill.

How will this Bill safeguard the rights of Buyers?

This bill will safeguard the buyer’s rights by ensuring that:

Registration: The promoters of a housing project (Builders) have to mandatorily get themselves registered with the Real Estate Regulatory Authority before starting any specific project.

Prior Approvals:  The promoter has to mandatorily get ALL the required approvals before getting registered with the Regulatory Authority for that project. Thus the approval process will then become mandatory for the Promoters before starting any such project. Even the brochure of the project has to be approved first by the regulatory body.

Raising Funds: The promoter cannot start collecting funds from the buyers or the consumers before they are registered with the regulatory authority

Advertising: The promoter is barred from approaching public or sharing the brochure of proposed project for which the necessary approvals and registration are not in place. The promoters cannot use fancy apartment pictures for advertising the projects – they will be required to advertise the actual location of the project.

Carpet Area: The builders will be required to state the ‘Carpet Area’ in the brochure instead of the ‘Super Area’. This will ensure that the consumers understand clearly what actual area are they getting in return for the money they are paying for the unit.

Misappropriation of Funds: The promoters will be required to create a new bank account for each project out of which 70% of the amount should be used for the existing project for which it was created, thus avoiding the misappropriation of the funds.

Transparency: The builder has to display mandatory information on their websites or brochures related to the housing projects like specifications, pricing, carpet area etc. The builders cannot make changes to these specifications once these are decided for a housing project.

Delays: The regulatory body must either accept or reject the registration for a housing project within maximum one month of the registration request submitted by the Builder. This will ensure that unnecessary delays are avoided – which always impact the consumers adversely.

Agents: The agents or the brokers associated with the housing project will also be declared by the builder before hand – and they will also be required to comply to the laws of regulatory body – just like the Builders.

Model Agreement: The regulatory authority will provide a model Buyer-Builder agreement containing the necessary clauses so that the agreement is not only in the interest of Builder or the Buyers – but equal interest has to be entertained or divided amongst both of them.

Enforcement of Law: If a Builder breaches the agreement several times, this can attract a police action like Jail term along with the hefty fine.   

In a country like India where the corruption is rampant within all the spheres of the political system – it is difficult to ascertain if this bill gets sanctioned any time soon, especially when it has been waiting for almost 5 years on bench. But this is definitely a high time that the Government of India realizes the pain of Buyers and how they have to suffer in the hands of some Builders to whome they surrender their whole life savings, for realizing a dream of getting a home of their own – which is a dream as well as a basic necessity of each and every living being on this planet.