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Even though the immediate impact of demonetization on the real estate sector in the country has been negative, there are many favorable changes that are happening in the real estate market in recent times. With demonetization and the new rules imposed by the Government, the sector is going through a sea change.
The Real Estate (Regulation and Development) Act, passed in May 2016 is an Act of the Parliament of India which seeks to protect buyers as well as help promote investments in Real Estate market in India. By implementing transparency and speedy dispute redressal the act seeks to protect home-buyers from related frauds of builders. The act is implemented by several states with Maharashtra leading the league owing to its robust real estate.
Here’s how the act brings in more transparency for the real-estate industry.
1) Agents of the real estate
According to the act all real estate agents would have to register with them. They would have to follow the guidelines in their real estate dealings as set by RERA. In addition to maintaining a highly responsible and professional attitude towards their customers/ home-buyers as defined by the act.
2) Timely possession of properties
An imperative complaint of home-buyers is that the builder has delayed construction of the property. This leads to delayed or sometimes no possession of the property. RERA makes sure builders are liable for every project they undertake. Failure to do so will result in imprisonment up to three years and fine.
3) Detailed property disclosure
RERA ensures builders disclose complete details such as title report of the land on which property is built, floor usage plan or FSI (floor space index), design standards, construction standards like material used and so on.
The act is quite strict on builders and promoters. RERA has created a State-level body to redress complaints from real estate customers. For instance, under Section 12 RERA provides relief to home-buyers. It deals with claims by buyers due to loss sustained as per wrong advertising or prospectus of the property. Another Section 13 states that if there is no agreement for sale then there is no way the buyer has to pay an advance or deposit to the builder. Next Section 14 states the promoter must adhere to sanctioned property plan and must not make any changes without the consent of the buyer.
Leading NBFCs like Bajaj Housing Finance offers attractive home loan for potential home buyers at the affordable interest rate and flexible tenure.
Lodha Group is one of the supreme real estate developers in India which was established in the year 1980 in Mumbai, India. Lodha Group lies among the top real estate companies of India which is particularly famous for its high-class residential and commercial projects. Most of the properties of Lodha Group are located in and around Mumbai in the Indian state of Maharashtra. The Group also has its presence in Hyderabad and Pune and is expanding to Bangalore as well. Internationally Lodha Group is present in the United Kingdom. Its presence in London makes it particularly very famous in India and the company’s growth is simply worth noticing in the recent times.
About Lodha Group
Lodha Group was founded by Mangal Prabhat Lodha in the year 1980. Mangal Prabhat Lodha was born on the 18th of December 1955 was a famous India politician and vice – president of the Bhartiya Janata Party (BJP) in Maharashtra came to establish this company in the year 1980. Abhishek Lodha, the son Mangal Prabhat Lodha is in charge of the development of the company in Mumbai. Lodha Group is one of the best real estate developers in India and is among the top select multinational real estate developers in the world with its presence internationally in London. Currently, there are 28 ongoing projects in London and within a span of few years of time, it might achieve new heights. The company is one of the most profitable real estate developers in India and has the record of being the largest by sales for consecutive three years in a row. Presently, Lodha Group is developing an area of around 43 million square feet of prime real estate.
Types of Property of Lodha Group
Residential and commercial properties are the two types of Lodha Group properties in Mumbai. The residential properties include world class housing facilities such as apartments and townships with all the luxurious facilities that one can dream off. The commercial properties include the premium spaces of various corporate giants and signature offices for the different multinational companies. In London, Lodha Group is only dealing with residential properties at the moment.
It is not easy to lie among one of the best developers in India but Lodha Group has achieved this in quick time since its inception. This vision of the group is to build a better life and the complete team works with utmost dedication to make it the best in the field of real estate in India. Lodha Group has not only played a significant role in the development of real estate in India but also it has played a vital part in social welfares as well. Corporate social responsibility is undertaken by the social initiative wing of the Lodha Group known as the Lodha Foundation. Lodha Foundation established in the year 2007 has its prime focus on the development of health, education and livelihood. These developmental initiatives are undertaken by Manju Lodha who is the chairperson of Lodha Foundation and is the wife of Mangal Prabhat Lodha.
It is a common practice to buy property in Pune, Mumbai or any other location for end usage or investment purposes. Nowadays, with new and more elaborate projects coming up in various parts of urban cities, many people tend to buy houses and flats more than what they actually intend to use as a means of future investment or for future planning. However, the trend has also set in of using this extra property for commercial purposes like setting up an office, clinic or running some kind of business from the same premises. It is more often the case with people who are doctors, chartered accountants, lawyers or other jobs which are majorly work from home professions or which involve meeting clients and doing deals majorly from homes. This practice, however insignificant it might seem, is illegal.
- As per the rules of the Government, residential properties cannot be used for commercial purposes or else they will be treated as commercial properties and will attract higher rates of taxes like the property tax, water and electricity surcharge and other taxes in accordance with the commercial property laws. As a result, if a rented residential property is being used for commercial purposes or even a self owned one, the owner will have to pay a higher tax depending on the rules of the state government and will have to obtain prior permission for the same.
- A residential property or house in Mumbai, Delhi or any other particular location of your choice can be used for commercial purposes in cases where the particular state allows it but after the permission of the residential society and the complex owners. This might also require permission from the local municipal body which will decide whether or not to allow such an establishment and whether all the relevant permissions have been got from the locals and the residents. Some states allow a part of the residential property to be used for commercial purposes and accordingly the taxes are levied and the surcharges come into play. However, in all cases, approval and permission of the residential society and the real estate developer is required.
- There are set rules and procedures for converting residential properties into commercial ones and for that you have to separately apply to the municipal body as per the requirement, the size or area of the property being converted, the purpose of use and the resources it would require. This would in turn attract higher property taxes and water and electricity cess as per the prevailing norms and the owner will have to bear it. So in cases where the property has been rented, the owner can object to the conversion and setting up of commercial practices on account that he will have to pay higher tax rates without moving up the rent.
However, certain practices do not count as setting up a commercial establishment like running yoga or meditation classes, dance and music lessons, tuitions or any such activity. Everything which requires professional help will attract commercial property billings in case you plan to set it up in your residential complex.