Are they the real game-changers?

 

RERA – Real Estate Regulatory Authority After the Govt. of India enacted the Real Estate (Regulation & Development) Act 2016, it paved the way for each state to enact their own RERA act. The prime object was to protect the home buyers & also promote the development & investments in the real estate industry. It is aimed at implementing an uniform set for rules for conducting the business of developers as well as guidelines & rules to be followed by the home buyer when he or she is transacting with the developer.

The Jurisdiction of RERA extends to all kinds of real estate developments. Below are its salient features.

Salient features of RERA:

1. Mandatory registration of project with RERA if the development is less than 60%
2. Mandatory public disclosure of all project details
3. Mandatory disclosure of functions &duties of the promoter/developer
4. Compulsory deposit of 70% of sales receivables in escrow account & use it for construction costs of the said project only
5. Real Estate agents to get registered with RERA
6. Rights of Allottees/buyers:
   • Right to get detailed schedule of development
   • Claim possession as per sale & construction agreements
   • Obtain refund with interest in case of default by developer
   • To make payments as per agreements
7. RERA Roles:
   • Act as nodal agency for real estate industry
   • Enforce provisions of the RERA ACT
   • Accept buyers’ complaints & address them through adjudicating Officers & Real Estate Appellate Tribunal

http://apnarera.com/rera-karnataka-forms 

PMAY – CLSS

Pradhan Mantri AwasYojana – Credit Linked Subsidy Scheme

PMAY – CLSS is a govt. of India scheme aimed to promote affordable housing by subsidizing the interest rate of the home buyer when he avails a loan for buying the home. It was introduced in 2015 & was valid till March 2022. But the government has extended its benefit validity till September 2022 for urban areas & till March 2024 in rural areas. A snap shot is as below:

Salient features:

• It is an interest subsidy scheme.
• In a family, either husband or either wife or both can avail the offer together.
• Categorized the homes into three types – LIG, MIG 1, MIG 2
• Interest calculated on a maximum loan of Rs 6 Lacs
• Interest subsidy is credited upright to the loan amount thereby giving relief to the buyer w.r.t. to loan outstanding & reduced EMI

Below is the summary of the eligible criteria in the scheme as on date:

GST: – Goods & Services Tax

Introduced in 2017, it supersedes all the taxes that were levied into components going into the construction of the projects & accordingly passed on to the buyer. As a simplified process, the buyer was charged 4.5% as the Service Tax on all the payments made.

Now GST @ 18% was introduced for real estate sector. Of this 1/3rd or 6% is deemed as the value of the land or the Undivided Share of Land supplied to the buyer so an effective rate of 12% is charged to the buyer.

Salient Features:

• No GST to be levied on completed/ready-to-move in/Occupancy certificate obtained/release order obtained projects.
• No GST on completed resale properties.
• Properties purchased under PMAY-CLSS will be charged an net GST of 8% out of gross 12%