Registration of sale deeds to be banned in Tamilnadu

Govt. to get tough on unapproved buildings

Registration of sale deeds to be banned

The government has decided to ban registration of sale deeds for resale of unapproved buildings after December 21.

Any owner who fails to submit an application online for regularisation of unapproved buildings by December 21 will not be able to register the sale deed of such property after the deadline.

Power supply, water supply and sewer connections will be disconnected for such buildings.

Speaking at a public consultation, Housing and Urban Development Minister Udumalai K. Radhakrishnan urged residents to make use of new schemes to regularise unapproved buildings.

“The schemes will help the weaker sections of society who want to own a home,” said Mr. Radhakrishnan.

CMDA Member-Secretary C. Vijayaraj Kumar said approval for buildings would be checked by officials concerned before registration of sale deeds after December 21.

Self-declaration scheme

“Resale of no building will be permitted without proper approvals. This is a voluntary disclosure scheme. We trust the residents. It is also a self-declaration scheme. A large number of those who have a sanctioned plan but have deviated from it are expected to regularise their buildings. Buildings that do not have any sanction will also be regularised,” said Mr. Vijayaraj Kumar.

“For ordinary buildings, we will permit an FSI [Floor Space Index] of 2 under the regularisation scheme. The permissible FSI is 1.5. Minimum road width will not be required for regularisation of ordinary buildings. For special buildings, the minimum road width has to be 7 metre for the regularisation scheme. For continuous building areas such as Mylapore, George Town and Chintadripet, setback is not required for regularisation of unapproved houses. But commercial buildings in continuous building areas will not be regularised if the front setback is less than 1.5 metre,” said Mr. Vijayaraj Kumar.

“At least 90% of the buildings are expected to be covered under the scheme. Almost 50% relaxation in the FSI has been given for multistorey buildings. Relaxation of other planning parameters is expected to benefit many residents. We are also collecting feedback from stakeholders on the regularisation scheme. We will make changes to help the maximum number of residents. Residents need not worry even if their application is rejected. There is a provision for appeal also,” said Mr. Vijayaraj Kumar.

After the applications for regularisation of buildings constructed on or before July 1, 2007 are submitted online at www.tnbuildingreg.in, the officials concerned will screen the documents submitted and issue regularisation order for the buildings.

In the Chennai Metropolitan Area, the CMDA member-secretary will issue the regularisation order for special buildings, group developments and multistorey buildings. The Chennai Corporation Commissioner will issue regularisation order for ordinary buildings in the city. The commissioners of municipalities, executive officers of the town panchayats and the block development officers (BDO) of panchayat unions will issue the regularisation order for ordinary buildings in their jurisdiction. In other parts of the State, application for regularisation of multistorey buildings will be received by the DTCP.

For special buildings and group developments, the member-secretary and the deputy director of the DTCP will receive applications. For ordinary buildings, the BDOs of village panchayats or executive authorities of the urban local bodies will issue the regularisation order.

The number of unapproved buildings in the Chennai Metropolitan Area is estimated at five lakhs.

Unapproved layouts can be regularised online at www.tnlayoutreg.in. The last date for application is November 3, 2017.

The Hindu 

Model Tenancy Act – 11-month rent agreement in Tamil Nadu

Coming soon, 11-month rent agreement in Tamil Nadu

Realty, Real estate, Investment

Image used for representational purpose.

CHENNAI: Your rental agreement is set to undergo a sea change after Tamil Nadu implements the Centre’s Model Tenancy Act. Changes include the mandatory registration of all rental agreements over 11 months in period or `50,000 in value, advance amount to be limited to three months and tenant’s right to continue possession of the property after lease period to be limited to six months.

The rental agreements now cite the more than five-decade-old Tamil Nadu Building (Lease and Rent) Control Act, 1960, which will change once the new Act is brought in. As land — and thus rent — is a State subject, the central Act is a draft; it is up to individual States to adopt it. However, by making it a mandatory condition for obtaining funds for ‘Housing for All’ Mission under the Pradhan Mantri Awas Yojana, the Centre has managed to convince States, including Tamil Nadu to come on board.
The new Act has some key changes when compared to the existing State Act. Under the Model Tenancy Act, it is mandatory that all rental agreements that have a period exceeding 11 months or are valued at over `50,000 must be registered with the Registration Department under the provisions of Indian Registration Act.

The new Act is considered to be more beneficial for the landlords. Under the old Rent Control Act, there was no tenure for tenancy and evicting a tenant was highly restrictive. Previously, the stress was on the tenant’s right to occupation. However, in the new legislation, this right to possession is limited to only six months after the lease period.
This would prevent the misuse, including usurpation of property, of the earlier Act, said sources. Officials point out there are several cases where tenants refuse to vacate the premises, which then become aged, ill-maintained, and on the verge of crashing.

In another feature, if the landlord takes possession of the premises to undertake repair or reconstruction, the re-entry of the tenant is on the basis of a mutually-agreed new tenancy agreement. Earlier, the premises had to be offered to the same tenant.
Also, the new Act has the provision to renew rent at periodic intervals.
In one of the features advantageous for tenants, the new Act restricts the advance amount that landlords can collect up to three months’ rent. However, it is another matter that this is decided arbitrarily by the landlord, with some charging as much as 12 months’ rent as advance. Though the old Act limits advance to just one month, it is at least three months’ rent at all metros and other cities in India.

The earlier Act which was passed to regulate rents also gave powers to the government to take properties on fair rent, even against the wish of the property owner, if it was in the interest of the State. But senior officials feel the provisions are outdated for the present scenario, where a robust real estate sector is now supplying sufficient housing stock.
A big challenge for the regulator was to calculate ‘fair rent’ to be charged by the landlord. The fixing of rent depends on the land value, and there was a chance that it could be exploited by the landlord by charging exorbitant rent. The new Act will regulate rent as per the contract and safeguard tenants from extreme escalation due to rise in land value.

Sources indicated that all provisions of the Model Tenancy Act have to be covered by the lease agreement to be entered between the landlord and the tenant.
Meanwhile, the rent courts functioning under the provisions of Tamil Nadu Buildings (Lease and Rent control) Act, 1960, may be continued in the Model Tenancy Act, too, by re-designating them to function under the new act in order to save the loss of revenue to the government.

Source Indian Express

Construction at Kotur Gardens Kotturpuram Chennai

Construction at Kotur Gardens Chennai

Ongoing Construction at Kotur Gardens Kotturpuram Chennai. Project done by 360 Property Management Construction Division. +91 44 4212 0133

Real Estate Act Comes Into Force. How It Will Protect Homebuyers

New rules under RERA or the Real Estate (Regulation and Development) Act are applicable to residential and commercial development. Under RERA, realty developers and agents have to register with respective state regulatory authorities

New rules under RERA or the Real Estate (Regulation and Development) Act to regulate the real estate sector, protect home buyers and ensure the timely execution of projects with an aim to boost investor confidence and stamp out illegal practices will apply from today. They are applicable to residential and commercial development and make it mandatory for all projects and brokers to be registered with the real estate regulator who will oversee transactions and settle disputes. Only seven states have, however, moved to implement the new rules as yet.
Here’s your 10-point cheat-sheet:
  1. RERA is a model law, which means the Centre can recommend it but it is up to the states to formulate and pass their own laws, since land is a state subject.
  2. Till last weekend, only six states had notified the rules – Uttar Pradesh, Gujarat, Odisha, Andhra Pradesh, Maharashtra, Madhya Pradesh and Bihar. The Housing Ministry had last year notified the rules for the five Union Territories and for the National Capital Region of Delhi.
  3. The Centre has described RERA as the beginning of a new era where the consumer will be king. Union housing minister Venkaiah Naidu said rights and obligations of buyers, developers and real estate agents are clearly defined in the Act and any aggrieved party can seek redressal for violation of terms of agreement by the other party.
  4. On reports that some states have diluted key provisions of RERA, Mr Naidu said that the states have assured his ministry that these will be corrected.
  5. Under RERA, real estate developers and agents have to register with their respective state regulatory authorities by July 30. They must also deposit 70 per cent of the funds collected from buyers in a separate bank account to be used only for the construction of the project, to ensure timely development. New projects must have all approvals before launch.
  6. Promoters must have the consent of two-thirds of the buyers in a project before making any change in the number of units or other structural changes. RERA prescribes penalties, including imprisonment on developers who delay projects or do not deliver on promises. Developers are required to disclose their project details on the real estate regulator’s website, and provide updates on construction progress.
  7. RERA also states that any structural or workmanship defects brought to the notice of a promoter within a period of five years from the date of handing over possession must be rectified by the promoter. For delayed possession, developers need to pay an interest rate of 2 percentage points above State Bank of India’s lending rate.
  8. RERA also prescribes imprisonment of up to three years for errant developers. A developer can sell only on the basis of carpet area which will help home buyers understand what they will be paying for each square foot they will get for use.
  9. In the last few years, sluggish economic growth and delays in getting approvals stalled several projects, leaving buyers waiting for their homes and developers holding high debts. It also put a strain on investors such as banks, private equity firms and non-banking financial companies.
  10. Analysts say the real estate sector will be able to attract higher institutional funding as the Act will bring in much desired transparency in the sector, which contributes about 9 percent of India’s gross domestic product, boosting buyer confidence.

Source : NDTV

New projects across budgets coming up in Egmore

Chennai

One of the older localities of Chennai, with a glorious past, Egmore is seeing many new projects across categories.

Who doesn’t want to a buy home of their own especially when you are a first time home buyer?

Vijayaragavan Shantharam from Chennai approached the Magicbricks real estate Forum asking, “I have been living in Dubai from the past three years and now I intend to come back to my mother land. Being born and brought up in Egmore, Chennai, I would definitely like to invest here preferably in a 3BHK apartment. Though my father has a 2BHK apartment in the same locality and I have no plans to shift to Chennai anytime soon, I would want to buy a home of my own. Please suggest if Egmore is a worth-investing locality? Help me understand more about the locality in terms of returns on investment and advantages of investing here.”

Why is it profitable to invest in Egmore?

There are a host of reasons to invest in the locality. Some of them are: Egmore, in Chennai, is not only a fully developed residential area but a commercial and retail hub too The Egmore Railway Station connects the locality to other parts of the city.

Several residential and commercial areas such as Chintadripet, Nungambakkam, Purasawalkam, Anna Salai and Chetput surround the locality. The National Highway 114 passes through the locality and ensures its connectivity to other areas. The state-run Metropolitan Transport Corporation (MTC) buses frequently pass through the locality and connect it within and with other parts of the city via road.

The locality also has a suburban train station on the Chennai Beach Tambaram railway line The Chennai International Airport is situated within 20 km distance and can be reached via the Trichy-Chennai High way and the Chennai-Nagapattinam Highway Trichy-Chennai Highway.

Mahant Rajan, an existing resident of the locality says, “Egmore is centrally located and has proximity to all commercial and retail establishments. The other advantage of the locality is its social infrastructure such as schools, banks, restaurants, markets, vegetable shops, grocery stores and other day-to-day requirements.”

According to Magicbricks, the locality has been rated as 4.7 out of 5 on the basis of buyer’s feedback for offering good environment to live, decent commuting facilities and the social and physical infrastructure.

The locality offers varied types of residential housing such as flats, plots, villas, builder floors and residential houses.

According to Magicbricks data, there are over 60 housing options to choose from. This does not include the upcoming projects. Let’s find the details of residences present in the locality.

Considering factors like availability of varied housing types, proximity to commercial and retail establishments and the affordable budget range, it is safe to say that Egmore is worth investing in.

Pushpa Rawat, Times Property, Magicbricks Bureau/Chennai

Chennai provide buyers many investment opportunities

Opportunity realty

The emerging growth corridors of Chennai provide buyers many investment opportunities. Unlike other cities, Chennai’s reaction to the real estate sector was mixed last year. While sales experienced a good momentum in the beginning it was rickety towards the end with a dip in new launches by the end of the year.

According to recent Magicbricks data, among the localities in Chennai that have the potential to witness growth in property prices are Adyar which tops the list with 11.9 percent and prices expected to grow by 11.3 percent in the next three months, followed by Kodambakkam at 8.9 percent with prices expected to grow by 5.0 percent. Nungambakkam has been rated at 7.9 percent with prices expected to grow by 10.0 percent, T Nagar with 2.2 percent and Mylapore with 0.6 percent decline with prices expected to grow by 3.8 percent in the next three months.

Investment hotspots

The Investment Hotspots report by Magicbricks Research indicate that upcoming projects being built in the city’s emerging nodes that enjoy growing employment opportunities, improving infrastructure and increasing population. These new nodes are laden with realty potential in 2017 and 2018. The emerging corridors of growth in Chennai are Chromepet-Tambaram, GST and OMR.

Chromepet tambaram

It is the most well connected corridor in Chennai as it is very close to Central Chennai. Medavakam has the highest share of consumer demand mainly due to its connectivity and proximity to Velachery, a well-established residential area. As property prices are high in Velachery, people prefer to buy in Medavakkam where average prices are in the range of Rs 4,500 per sq ft as compared to Rs 8,000 per sq ft and above at Velachery. Chromepet which is the centre of the corridor have the next highest demand. Best bedroom configurations to buy are 2BHK apartments. The second most preferred is the 3BHK category in the corridor. This means that the localities in and around Nanmangalam have 2BHK property and consumers are also showing interest in this category. Areas such as Medavakkam and Velcahery have independent homes and builder floor apartments with 2 and 3BHK units.

GST Road

Residential and commercial establishments dot both sides of GST. There is special emphasis on SEZs with almost five of them already set-up and a few more in the process of getting approvals. When it comes buying homes, Guduvancheri has the highest share. This is due to its proximity to SRM University, Estancia IT Park and the Ford Plant. The area has a healthy rental yield of about 4 percent.There are more number of ready-tomove-in apartments in Guduvancheri in comparison to other localities. Urapakkam, located next to Guduvancheri, has the next highest demand in the corridor owing to the same reasons as Guduvancheri.Two BHK apartments account for around 70 percent of the total demand. There is also a good demand for independent houses with more bedrooms for renting as these are usually converted to Paying Guest accommodation. These fetch good ROI and also have good demand from ITITeS people working in the many SEZs and IT Parks here.

OMR

This corridor has the highest demand among all corridors. Apart from residential and office spaces, it also has hospitals, residential schools and shopping establishments. The locality with highest consumer demand is Sholinganallur. This is mainly due to its connectivity to Medavakkam and ECR. Two BHK properties here fetch good rents and have limited availability in the corridor. Perumbakkam, next to Sholinganallur, has the next highest demand as the locality has good social infrastructure and hospitals.

Similar to other corridors, 2BHK apartments are the most preferred. About 55 percent people looking to buy the format here. It is also observed that most of the 3BHK apartments that are purchased in the corridor are mostly for self-occupation. Interestingly, although only 2 percent people are looking at buying 4BHK and higher units, about 29 percent people are looking at rental property in this category. While there is demand for all kinds of property it is highest for 2-3 BHK.

Source: Times Property, The Times of India, Chennai

out-of-the box developments in the real estate industry

Flex it!

Homes that can transform as per the requirements of its owners might have seemed like a dream up until a few years back. But with the concept of flexi-homes catching up that is no longer the case.

Cities are expanding at an unprecedented rate by the day.

But surprisingly, spaces seem to be shrinking. To address this growing concern, there have been a number of out-of-the box developments in the real estate industry over the years. And the concept of flexi-homes seems to be the top contender in the race.

Like the name suggests, flexi-homes are homes that provide innovatively designed living spaces which enable home owners to alter and customise internal layouts like floor plans, sizes of rooms and other architectural elements, depending on their needs. According to Siddhart Goel, senior director, research services, India, Cushman & Wakefield, the trend has caught on in India and is likely to grow in the future. “Earlier, customers hardly had a say when it came to home buying. They had to accept the designs offered by the builders and after possession and customise their homes at additional costs. These costs would often mount up to quite a lot and would also take up months of their time, plus the added inconvenience. The advent of flexi-homes helps them save on both these elements,” he says.

For developers who offer such projects, this is a win-win scenario since a niche segment like this not only helps them stay ahead of their counterparts but also brings in more customers, especially from the HNI segment where customers give high priority to the options available to them in terms of how they want their house to be. Flexible interiors use both architectural elements as well as innovative furniture to incorporate multiple uses. Spaces that can extend like a collapsible wall that make extra room when you have company over or bed rooms that double up during the day, flexi-homes are catering to home buyers seeking living spaces to suit specific spatial needs, together with the right ticket size, social infrastructure, connectivity and amenities.

“Evolving customers are interested in adaptable homes that can meet changing spatial and privacy requirements over time while repurposing spaces to suit multiple utilitarian requirements. For this, homes need to be designed smartly so as to use all available area efficiently. At the same time, interiors, including furniture, should be planned intelligently, in order to facilitate flexibility and utility within smaller unit areas,” says Vivek Sharma, business head, Mahindra World City, Chennai.

Expandable homes have the advantage that the customer is able to invest in spaces in the preferred residential communities of their choice and later, according to future requirements, add to the existing layout. “The construction plans of such homes are required to provide, in advance, the specific structural details and specifications needed to easily accommodate subsequent additions with the least amount of disruption to daily family activities and limited retrofitting of the existing building,” adds Sharma.

For the home owner, these flexi options have given the word ‘space’ a new meaning altogether. One that can be altered and transformed whenever required and often in a matter of minutes. “Investing in a home is a big step. It will definitely make a big difference in buying trends if even a compact residential unit can meet multiple needs. Young families usually do not need a lot of space. But in the future, additional space will become a necessity and having an expandable home eliminates the hassles of selling the existing home and relocating to a larger place,” says Avantika Prabhu, an IT consultant. The concept of both these options together might seem a little farfetched in the current scenario, but with many developers toying with the idea, one can hope that it will soon be a valid option.

Source – Divya Menon, Times Property, The Times of India, Chennai