Real Estate Development

REAL ESTATE DEVELOPMENT
1.Development
Definition as per Section 2(7) of MRTP Act : means the carrying out of buildings, engineering, mining or other operations in, or over, or under, land or the making of any material change, in any building or land or in the use of any building or land and includes demolition, reclamation, redevelopment and lay-out and subdivision of any land. Regions State Government may by notification in the Official Gazette , establish any area in the State, by defining its limits, to be a Region. Regions (in Maharashtra)
1) Bombay Metropolitan Region 2) Poona Metropolitan Region 3) Amravati Region 4) Nasik Region 5) Aurangabad-Jalna Region 6) Sangli-Miraj Region 7) Jalgaon-Bhusawal Region B) Regional Planning Boards 1) Chairman : Appointed by State Government 2) Director of Town Planning 3) Not more than 4 members as are members of local authorities 4) Not more than 10 members who in the opinion of State Government have a special knowledge or practical experience of matters relating to town planning , engineering, transport, industry, commerce or agriculture 5) A Town Planning Officer 6) Not more than 4 persons from the two houses of the State Legislature, of which not more than 2 members are appointed from each of the said houses. A vice chairman may be appointed from amongst the members
Regional Plans Regional Board: 1) Survey 2) Prepare an existing-land-use map thereof 3) Prepare Report of surveys 4) Prepare Regional plan and such other documents, maps, etc. Contents of Regional Plan Regional Plan shall indicate the manner in which the Regional Board propose that land in the Region should be used, a) Allocation of land for different uses, general distribution and general locations of land, and the extent to which the land may be used as residential, industrial, agricultural, or for mineral exploitation b) Reservation of areas for open spaces, gardens, recreation, zoological gardens, nature reserves, animal sanctuaries, dairies and health resorts c) Transport and communications, such as roads, highways, railways,waterways, canals and airports, including their development d) Water supply, drainage, sewerage, sewage disposal and other public utilities, amenities and services including electricity and gas e) Reservation of sites for new towns, industrial estates and any other large-scale development or project which is required to be undertaken for proper development of the Region or new town f) Preservation, conservation and development of areas of natural scenery, forest, wildlife, natural resources and landscaping g) Preservation of objects, features, structures or places of historical, natural, architectural or scientific interest and educational value h) Areas required for military and defence purposes i) Prevention of erosion, provision for afforestation, or reforestation, improvement and redevelopment of water front areas, rivers and lakes j) Proposals for irrigation, water supply and hydro-electric works, flood control and prevention of river pollution k) Providing for the relocation of population or industry from over-populated and industrially congested areas, and indicating the density or population or the concentration of industry to be allowed in any areas. Restriction on change of users of land

If use of any land is to be changed , permission of Municipal Corporation (or Municipal Council) within whose area the land is situated is required, and if land is situated outside Municipal Corporation or Municipal Councils area, then the Collectors permission is required. Development Plan Every Planning Authority shall carry out a survey, prepare an existing land-use-map and prepare a draft development plan for the area within its jurisdiction, in accordance with the provisions of a Regional Plan, and submit the plan to the State Government for sanction. Contents of Development Plan Shall generally indicate the manner in which the use of land in the area of the Planning Authority shall be regulated, and also indicate the manner in which the development of land therein shall be carried out. Contents of Development Plan a) Proposals for allocating the use of land for purposes, such as residential, industrial, commercial, agricultural, recreational; b) Proposals for designation of land for public purposes, ( such as schools, colleges, and other educational institutions, medical and public health institutions, markets, social welfare and cultural institutions, theatres and places for public entertainment, or public assembly, museums, art galleries, religious buildings and government and other public buildings) c) Proposals for designation of areas for open spaces, playgrounds, stadia, zoological gardens, green belts, nature reserves sanctuaries and dairies d)Transport and communications, such as roads, highways, railways, water-ways, canals and airports, including their extension and development e) Water supply, drainage, sewerage, sewage disposal, other public utilities, amenities and services including electricity and gas f) Reservation of land for community facilities and services g) Proposals for designation of sites for service industries, industrial estates and any other development on an extensive scale. h) Preservation, conservation and development of areas of natural scenery and landscape i) Preservation of features, structures of places of historical, natural, architectural and scientific interest and educational value and of heritage buildings and heritage precincts j) Proposals for flood control and prevention of water pollution k) Proposals for acquisition of land for public purpose l) The filling up or reclamation of low lying, swampy or unhealthy areas or levelling up of land m) Provisions for permission to be granted for controlling and regulating the use and development of land within the jurisdiction of a local authority ( open space, FSI, height, number of storeys, sub-division of plots, parking space, sizes of projections and advertisement signs, etc.)

Procedure to be followed in preparing and sanctioning Development Plans 1) Declaration of intention to prepare Development Plan 2) Appoint Town Planning Officer 3) Conduct survey of the land and prepare existing-land use map 4) Prepare draft Development Plan and publish notice 5) Provision of Regional plan to be considered 6) Objections to draft Development Plan 7) Modification made after preparing and publishing notice of draft Development Plan 8) Submission of draft Development Plan
Town Planning Schemes

Making of Town Planning Schemes A Planning Authority may for the purpose of implementing the proposals in the final Development plan, prepare one or more town planning schemes New Towns 1) If the State Government is satisfied that it is expedient in the public interest that any area should be developed as a site for a new town , it may, by notification in the Official Gazette designate that area as a site for the proposed new town. 2) After publication of the notification for the purpose of acquiring, developing of land in the area of a new town, the State Government shall by another notification in the Official Gazette constitute a New Town Development Authority What are the basic land transaction documents needed? 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 7/12 extract, Measurement maps and certificate, Approved layout plan, Non-agricultural order, Zone certificate, Previous purchase deed/s. Search and title report, Earnest money receipt/MOU, Deed of sale between seller-purchaser, Registration receipt Index and register extract New 7/12 extract with the purchasers name.
2.CRZ: Coastal Regulation Zone
In exercise of the powers conferred by Environment (Protection) Act 1986, the Central Government declared the coastal stretches of seas, bays, estuaries, creeks, rivers and backwaters which are influenced by tidal action upto 500 m from the High Tide Line as Coastal Regulation Zone. Definition of High Tide Line (HTL) For the purpose of the Notification: High Tide Line (HTL) will be defined as the line upto which the highest high tide reaches at spring tides. Activities prohibited in CRZ 1) Setting up new industries and expansion of existing industries 2) Manufacture or handling or storage or disposal of hazardous substances 3) Setting up and expansion of fish-processing units 4) Setting up and expansion of units/mechanisms for disposal of waste and effluents 5) Discharge of untreated wastes and effluents from industries, cities or towns 6) Dumping of city or town waste for the purpose of land filling 7) Dumping of ash or any waste from thermal power stations

8) Disturbing natural course of sea water 9) Mining 10) Harvesting or withdrawal of ground water 11) Construction activities in ecologically sensitive areas 12) Any Construction activity between Low Tide Line (LTL) and High Tide Line (LTL) 13) Dressing or altering of sand Dunes, hills, natural features Regulation of permissible Activities
All other activities, except those prohibited, will be regulated as under : 1) Following activities will require Environmental clearance from Ministry of Environment and Forests, Government of India : (i) Construction activities related to Defense requirements (jetties, etc.) (ii) Operation construction for Ports, harbors, light houses (iii) Facilities for transport of raw materials , take in water and discharge of treated water for Thermal power plants (iv) All other activities with investment more than Rs. 5 crores 2) (i) Coastal States and Union Territories shall prepare Coastal Zone Management Plans and obtain approval of Central Government in the Ministry of Environment and Forests (ii) Within framework of such approved plans, all development and activities within CRZ shall be regulated by the State Government / Union Territory Classification of Coastal Regulation Zone 1) Category I (CRZ-I) 2) Category II (CRZ II) 3) Category III ( CRZ III) 4) CRZ IV ( Andaman Nicobar Islands) Lakshadweep and small islands Category I ( CRZ I) (i) Areas that are ecologically sensitive and important, such as national parks/marine parks, sanctuaries, reserve forests, wildlife habitats, mangroves, corals/ coral reefs, areas close to breeding ground of fish and other marine life, areas of outstanding natural beauty/historical/heritage areas, areas likely to be inundated due to rise in sea-level consequent upon global warming (ii) Areas between LTL and HTL

Category II ( CRZ II) Areas that have been already developed upto or close to the shore-line. (Areas within municipal limits or in other legally designated urban areas which is already substantially built up and which has been provided with drainage and approach roads and other infrastructural facilities such as water supply and sewerage mains) Category III ( CRZ III) Areas that are relatively undisturbed and those which do not belong to either Category I or II.This will include coastal zone in the rural areas (developed and undeveloped) and also areas within municipal units or in other legally designated urban areas which are not substantially built up CRZ IV Andaman & Nicobar Islands Lakshadweep and small islands Regulations for CRZ I No new construction shall be permitted within 500 metres of the High Tide Line. No construction between LTL and HTL Regulations for CRZ II Buildings shall be permitted neither on the seaward side of the existing road nor on the seaward side of existing authorized structures. Buildings permitted on the landward side of the existing and proposed roads/existing authorized structures shall be subject to the existing local Town and Country Planning Regulations CRZ III (i) (ii) (iii) Area upto 200 metres from HTL is to be earmarked as `No Development Zone. No construction shall be permitted within this zone except repairs of existing constructions. Development of vacant plots between 200 m and 500 m from HTL with prior approval of Ministry of Environment and Forests (MEF) permitted for hotels/beach resorts Construction of dwelling units between 200 m to 500 m of HTL permitted, with conditions like total number of dwelling units shall not be more than twice the number of existing units, height not to exceed 9 m., not more than 2 floors, etc.
CRZ IV Andaman & Nicobar islands (i) (ii) (iii) No new construction of buildings permitted within 200 metres of HTL Buildings between 200 m and 500 metre of HTL shall not have more than 2 floors, total height not more than 9 m Corals and sand from beaches not to be used in construction

(iv) Dredging and underwater blasting in and around coastal formations shall not be permitted
CRZ IV Lakshadweep and small islands (i) (ii) (iii) (iv) For permitting construction of buildings, distance from HTL shall be decided depending on the size of islands. Buildings within 500 m of HTL shall not have more than 2 floors, height not more than 9 metres. Corals and sand from beaches not to be used in construction Dredging and underwater blasting in and around coastal formations shall not be permitted
3.The Urban Land (Ceiling and Regulation) Act

An Act to provide for the imposition of ceiling on vacant land in urban agglomerations, for the acquisition of such lands in excess of the ceiling limit, to regulate the construction of buildings on such land and for matters connected therewith, with a view to preventing the concentration of urban land in the hands of a few persons and speculation and profiteering therein and with a view to bring about an equitable distribution of land in urban agglomerations to sub serve the common good. It was introduced in 1976 by the then Prime Minister Indira Gandhi to prevent land-hoarding and facilitate the government to execute social and welfare schemes. States were given choice to apply the Act, from any date, in their areas of jurisdiction. 4 categories given in Schedule I Category A : 500 square metres Category B : 1000 square metres Category C : 1500 square metres Category D : 2000 square metres If a person holds vacant land situated in two or more categories of urban agglomeration : 1 sq.m. in category A = 2 sq.m. in Category B = 3 sq.m. in category C = 4 sq.m. in Category D 1 sq.m. in Category B = 1.5 sq.m. in Category C = 2 sq.m. in Category D 1 sq.m. in Category C = 1-1/3 sq.m. in Category D In Maharashtra Category A : Greater Bombay Category B : Pune Category C : Ulhasnagar, Solapur, Nagpur Category D :Thana, Nasik, Sangli, Kolhapur Persons holding vacant land in excess of ceiling limit to file statement Every person holding vacant land in excess of the ceiling limits to file statement before the competent authority. Acquisition of vacant land in excess of ceiling limit: Such vacant land is to be acquired by the concerned State Government.State Government could grant exemptions at its discretion.

Payment of amount for vacant land acquired by State Government: 1) Rs. 10 per square metre in case of vacant land situated in Category A or B 2) Rs. 5 per square metre in case of vacant land situated in Category C or D Maximum amount of compensation: Rs. 2 lakhs Penalty for concealment If the competent authority, is satisfied that any person has concealed the particulars of vacant land, then the person shall pay as penalty, twice the amount representing the value of the vacant land. Implementation of ULCRA was dismal due to: (i) Absence of clarity and too much discretionary powers to state governments for granting exemptions. (ii) Compensation was very little which often led to lengthy legal disputes. Also low compensation made landowners reluctant to declare their vacant land as surplus (iii)Absence of mechanism to encourage entry of vacant urban land into land market. Land prices in cities reached astronomical heights due to artificial scarcity of land Repeal (Scrapping) of the Act Since the ULCRA did not meet its intended objectives, the Government of India repealed ULCRA in 1999 and gave choice to the State Governments to repeal it as and when they wanted. Rationale for the Reform (Repeal) 1) Vast tracts of land in cities are expected to be released for development, which is expected to bridge gap between demand and supply in real estate sector 2) Housing sector will receive boost. Increase of land availability will increase affordability for urban poor. 3) It will tend to improve transparency and efficiency in land acquisitions. 4) Administrative fees payable under ULCRA for getting permission for land development (which were sometimes as high as Rs. 100 per sq.ft) could be done away with and benefits passed on to customers.
Specific advantages of repeal: 1) Increased supply of land and investment in housing will generate direct and indirect income and employment generation 2) Faster granting of building permissions 3) Large tracts of land can be used for Integrated townships and construction of houses for EWS / LIG 4) Decline in litigation cases

5) New supply of land to have moderating effect on property prices 6) Remove impediments to land supply Repeal of Act, in Maharashtra On 29 November 2007, The Government of Maharashtra repealed the Urban Land Ceiling Regulation Act. Maharashtra was one of the last few States to repeal the Act. What made Government of Maharashtra to repeal the Act? Funds under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) could be released by the Government of India, only if the Act was repealed by the State by March 2008. The State had 88 projects worth Rs. 25,000 cr. awaiting Centres clearance under JNNURM. It was also awaiting central assistance on infrastructure projects valued at Rs. 40,000 cr. for Mumbai.
4. S.E.Z. Special Economic Zone

1) Exports are given top priority in any country, including in India. 2) No export duty 3) Exemptions/ relaxations from Income Tax 4) Exemption from Sales tax on final product As per WTO, no country can give Export incentives. The reason is that WTO intends to encourage free competition among nations. If incentives are given for exports, then there will not be free competition. However goods can be made tax-free for export purposes, which is permissible under WTO stipulations. Hence all our export schemes are directed towards ensuring that inputs as well as final products are made `tax free SEZ to encourage exports Government had introduced scheme for`Free Trade Zones (FTZ) or Export Processing Zones (EPZ) whose basic idea was the same as of present SEZ, i.e, the area covered under FTZ will be treated as `free trade areas where inputs and capital goods can be imported free from customs duty or procured indigenously duty free from customs duty and final product can be exported duty free. Over the years the scheme of FTZ/EPZ was diluted for various reasons and ultimately scrapped EOU:EOU (Export Oriented Unit) scheme was originally conceived as 100 % EOU, but later diluted to ÈOU. It is like mini-FTZ located at various places in India.The EOU scheme is still functional, but has limitations in view of difficulties in control of such small units. Success of China in SEZ China has made spectacular economic progress in recent years. Exports from China are growing at phenomenal speed. One main reason for growth in exports was due to `SEZ developed in China. These are huge areas of thousands of hectares, where raw materials can be imported without any duty and final product is exported. Excellent infrastructure is provided in these SEZs Difference between SEZ in China and India Basic concept of SEZ is like a separate island within country. They are treated as if they are outside India, for customs purpose. Goods can be brought in SEZ without payment of customs duty or excise duty. Supplies to SEZ are treated as èxports and are entitled to all export benefits. Supplies from SEZ unit to any person outside SEZ is treated as ìmport by that person and normal customs duty is payable. SEZ have full freedom of operations within SEZ and all facilities of import and export are provided within the zone itself. SEZ is a specifically delineated duty-free enclave and shall be deemed as foreign territory for the purposes of trade operations and duties and tariffs

SEZ as port: Section 53(2) SEZ shall be deemed to be a port, inland container depot, land station and land customs station under section 7 of Customs Act. 14 SEZ `Ports 1) Kandla SEZ, Gandhidham 2) SEEPZ, SEZ Mumbai 3) Noida SEZ 4) Madras SEZ, Chennai 5) Cockin SEZ 6) Falta SEZ, Kolkata 7) Visakhapatnam SEZ 8) Surat SEZ 9) Manikanchan SEZ , Kolkata 10) Jaipur SEZ 11) Indore SEZ 12) Salt Lake Electronic City, Kolkata 13) Mahindra City, Chennai 14) Jodhpur SEZ As per Section 7A of Customs Act, Central Government can appoint ports or Airports for unloading of imported goods and loading of export goods As per Section 29(1) of Customs Act, vessel or Aircraft entering India must land only at Customs port or a customs airport. The actual place where loading/unloading is permitted is approved by Commissioner of Customs. Thus, imported goods can be taken directly to these SEZ and cleared from there. Goods can be booked for export directly from SEZ Central Excise Provisions Goods manufactured in SEZ are èxcluded excisable goods and no excise is payable.

Development of SEZ in India Asias First Export Processing Zone (EPZ) was set up in Kandla in 1965.Concept of SEZ was first introduced in EXIM policy (now called Foreign Trade policy) announced on 31 March 2000 by Government of India.4 EPZ were converted to SEZ wef 01 November 2000 . They are : 1) Kandla (Gandhidhaam, Kutch, Gujarat) 2) Santacruz (SEEPZ, Andheri, Mumbai) 3) Kochi (Cochin, Kerala) 4) Surat (Gujarat) Subsequently, EPZ at 1) Chennai 2) Falta (West Bengal) 3) Noida 4) Visakhapatnam (AP) were also converted to SEZ w.e.f 30 January 2003 SEZ Act 2005 In order to encourage development and growth of SEZ, Special Economic Zones Act, 2005 was passed by Parliament in May 2005. Basic purpose of the Act is smooth and hassle free operations in SEZ and a `Single Window Clearance for setting up SEZ or a unit in SEZ became operational from 10th February 2006. Main Objectives of SEZ Act are: 1) Generation of additional economic activity 2) Promotion of Exports of goods and services 3) Promotion of investment from domestic and foreign sources 4) Creation of employment opportunities 5) Development of infrastructure facilities SEZ rules provide for : 1) Simplified procedures for development, operation, and maintenance of the SEZ and for setting up units and conducting business in SEZs 2) Single window clearance for setting up of an SEZ 3) Single window clearance for setting up a unit in a SEZ 4) Single window clearance on matters relating to Central as well as State Governments 5) Simplified compliance procedures and documentation with an emphasis on self-certification.

Setting up new SEZ SEZ can be set up in public, private, joint sector or by Central Government or State Government, jointly or severally. Developer of such SEZ can allocate fully developed plots to entrepreneurs on purely commercial basis. Proposal to establish a SEZ will be approved by Board of Approvals (BoA) Any person who intends to set up SEZ shall make proposal to State Government. He is termed as `Developer of SEZ. Proposal will then be forwarded to BoA by State Government. Proposal can be sent to BoA directly, but in that case if the BoA approves it, the concurrence of State Government. Section 3(4):If State Government intends to set up a SEZ, it may after identifying the area, forward the proposal to BoA Section 3(10):Central Government will grant Letter of Approval (LoA) to Developer on basis of recommendation from BoA Minimum Area Requirement 1) Multi-product SEZ : 1000 hectares 2) Service Sector : Minimum 100 hectares 3) SEZ in port or Airport : 100 hectares 4) Sector specific SEZ ( IT, Biotechnology Non-conventional energy, Gems and jewellery) : 10 hectares 5) Other sector specific SEZ : 100 hectares 6) SEZ for Free Trade and Warehousing Zone (FTWZ) : 40 hectares Infrastructure Requirements relating to IT SEZ 1) 24 hours uninterrupted power supply at stable frequency in the Zone 2) Reliable connectivity for uninterrupted and secure data transmission 3) Provision for central air-conditioning system, and 4) A ready to use, furnished plug and pay facility for end users. Benefits to Developer 1) Obtaining goods duty free by Developer for development of zones 2) Income tax exemption for 10 years (check)(Direct Tax Code from 01 April 2011) placed in Parliament in August 2010

Development Commissioner: Appointed by Central Government for each SEZ Setting up a Unit in SEZ Unit means a Unit set up by an entrepreneur in a SEZ. Entrepreneur means a person who has been granted a Letter of Approval by Development Commissioner. Single window clearance All permissions and approvals required to set up and run a Unit shall be given at one place under `Single Window clearance scheme. Approvals will be granted by approval Committee. Any person intending to set up a unit can submit his proposal in prescribed Form `F Environmental clearances Will be given by Approval Committee Environment impact assessment not required. Relaxations in CRZ Activities not permitted in SEZ 1) Recycling of plastic waste or scrap. 2) Second hand capital goods not permitted Requirements of NFE The Unit shall achieve Positive Net Foreign Exchange to be calculated cumulatively for a period of five years from commencement of production. Background of procedures 1) Bond cum legal undertaking 2) Freedom of operations: No routine examinations by Customs of imports and exports cargo 3) Self certification : No routine examinations 4) Trading units permitted 5) Captive power plants permitted, also can sell surplus power 6) Administrative control over SEZ will be of jurisdictional Commissioner of Customs in port cities. In case of SEZ located in other than port cities, administrative control will be with jurisdictional Commissioner of Central Excise 7) Insurance outside India

Import of raw material and capital goods No customs duty No excise duty Procedure for import 1) Great flexibility to import goods 2) Direct delivery from port or airport is also permissible. 3) Simplified procedure for import of narcotic drugs for manufacture of medicines Subcontracting allowed Tax Exemptions to SEZ Developer and Unit in SEZ are exempt from various taxes and duties. 1) Exemption from cesses and AED, specified in First Schedule of SEZ Act 2) Exemption from customs duty 3) Exemption from excise duty 4) Exemption from service tax 5) Exemption from Stamp Duty 6) No CST on supplies from DTA. SEZ unit has to submit Ì form of CST Rules 7) Income tax Exemptions to developer and SEZ units : 100 % for five years and 50% for next 5 years 8) Exemptions to capital gains from transfer of capital assets, if shifting from Urban area to SEZ 9) Exemption from Dividend distribution tax 10) No TDS on interest paid by Offshore Banking unit (OBU)
5. Rent Control Act

Rental laws These laws govern the rental of Commercial and Residential property and are necessary to enforce individual civil rights of both: landlord and tenant , and prevention of any deceitEarlier, tenants residing could not be evicted for a long time and would not surrender their cheap tenancies on their own volition. Investors did not want to enter real estate market to utilize rental fees as income. Many landlords preferred not to give their empty houses on rent, leading to shortage of supply and thus increasing the rents Purpose of Act Controlling 1) The rents and repairs 2) Evictions, due to the tendency of landlords to take advantage of scarcity of premises. 3) Act is for providing bona fide tenants and not for penalising the landlords History Earlier relations between landlord and tenant were governed by Transfer of Property Act, 1882.Then, during First World War, Rent (War Restrictions) Act II of 1918 was passed. In 1939, Bombay Rent Restriction Act 16 of 1939 was enacted.Then, Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 Maharashtra Rent Control Act, 1999 Extends to the whole of Maharashtra State. Came into effect from 31 March 2000. An Act to control the rent and repairs of certain premises and of eviction and for encouraging the construction of new houses by assuring a fair return on the investment by landlords. Application The Act will apply to premises let for the purpose of 1) Residence 2) Business 3) Trade 4) Storage Exemption
This Act shall not apply to : (a) Any premises belonging to Government or local authority

(b) To any premises let or sub-let to banks, or any Public Sector Undertaking or any Corporation, or foreign missions, international agencies, MNC and private limited and public limited companies having a paid up capital of Rs. 1 crore or more Definitions Standard rent : means : (a) Where the standard rent is fixed by the Court (b) Where the standard rent or fair rent is not so fixed, then : (i) Rent at which the premises were let on the 1st day of October 1987 (ii) If not let on 1st October 1987, then the rent at which they were last let before that plus an increase of 5 % Section 8 Court may fix standard rent and permitted increases in certain cases , if application is made to it for the purpose or in any suit or proceedings. Section 10 Claiming or receiving on account of Rent in excess of standard rent and the permitted increases, is illegal. Offence punishable with imprisonment not exceeding 3 months or fine not exceeding rupees five thousand or with both. Increase in Rent annually A Landlord is entitled to make an increase of 4 % per annum in the rent of the premises let, for improvement etc. Section 12 Increase in Rent on account of payment of rates, etc. : Where any landlord is required tro pay to Government or to any local authority or statutory authority in respect of any premises any fresh (or increase in) rate, cess, charges, tax, land assessment, ground rent of land or any levy on land and buildings, he shall be entitled to increase rent in such premises Section 14 Landlords duty to keep premises in good repair. If he neglects, tenants may themselves make the same and deduct the expenses of such repairs from the rent or otherwise recover them from the landlord. Relief against forfeiture Section 15 (1) No ejectment to be made if tenant pays or is ready and willing to pay standard rent and permitted increases. (2) No suit for recovery of possession shall be instituted by landlord against tenant on ground of nonpayment of standard rent until the expiry of 90 days after notice in writing of the demand has been served on tenant.

(3) No decree of eviction shall be passed by Court in anysuit for recovery of possession on grounds of arrears of standard rent if within 90 days from date of service of summons,of suit, tenant pays to Court the standard rent. Section 16) When landlord may recover possession (1) If Court is satisfied : (a) that tenant has committed an act contrary to provisions of clause (o) of Section 108 of Transferof Property Act, 1882 , i.e. Causing damage to building or destructive or permanently injurious nature, or (b) that the tenant has without the landlords consent given in writing erected on the premises any permanent structure, or (c) tenant has been guilty of conduct which is a nuisance or annoyance to adjoining occupier, or has been convicted of using premises for illegal or immoral purposes, or (d) that tenant had given notice to quit and in consequence of that notice, the landlord had contracted to sell or let premises, or (e) tenant has unlawfully sub-let or given on licence, the wholer part of the premises,or (f) premises were let to tenant for use as residence by reason of his being in service or employment of landlord and tenant has ceased to be in such service or employment, or (g) that such premises are bona fide required by the landlord for occupation by himself or any person for whose benefit the premises are held, or (h) premises are reasonably and bona fide required by the landlord for carrying out repairs which cannot be carried out without premises being vacated, or (i) that the premises are reasonably and bona fide required by the landlord for the immediate purpose of demolishing them and such demolition is for purpose of erecting new building, or Court will pass decree of eviction , in case of demolition , for constructing new building, only if the landlord has given an undertaking that in new building will included premises for each existing tenant with carpet area equivalent to existing area of the premises. Section 20 Tenants right to give notice to landlord of his intention to occupy tenement in new building.When building to be demolished, tenant may within 6 months of delivering vacant possession of the premises to landlord, give notice to landlord of his intention to occupy a tenement in new building Section 21 Landlord to intimate to tenant, date of completion and tenants right to occupy premises in new building failing which, landlord may be punishable with imprisonment upto 3 months or with fine upto Rs. 5000 or both Section 23 Members of armed forces of the Union, Scientists, (if they are landlords) are entitled to recover possession of premises required for their occupation, on the ground that such premises are bona fide required by himself or by any member of his family.

Section 24 A licensee in possession of occupation of premises given to him on licence for residence shall deliver possession of such premises to the landlord on expiry of the period of licence Section 28 Landlord can inspect premises at a reasonable time after giving prior notice Section 29 Landlord not to cut-off or withhold essential supply or service enjoyed by tenant in respect of the premises let to him.Landlord punishable with imprisonment upto 3 months and fine upto Rs. 1000 or both Section 42 A landlord may submit an application to the Competent authority for the purpose of recovery of possession of the premises from the tenant. Section 45 If any person refuses or fails to comply with the order of eviction made by Competent authority within 30 days, the Competent Authority may evict that person from, and take possession of the premises and deliver the same to the landlord and for that purpose, use such force as may be necessary Section 55 Tenancy agreement to be compulsorily registered. Responsibility of landlord.
6. Factors affecting purchase of House in urban areas

1) Product factor: Interior features (Plan etc.) Exterior features (Elevation etc.) Neighborhood quality View
2) Price factor : Price of House Comparative neighborhoods price Future appreciation in price Mortgage rate Interest rate
3) Promotional factors : Advertising On-site Sales Publicity
4) Locational factors : o o o o o o Nature Distance from Office ( all persons of house) Shops Leisure ( Cinema, sports, etc.) Schools Relatives and friends
5) Consumer socializing factors : o o o o o Broker Housing Developer Opinions of Friends Opinion of Immediate family members Opinion of extended family members
6) Privacy factors : Enough space / separate rooms 7) Security factor : o o o 24 hour patrol, Survelliance cameras, traffic crime

8) Intuitional factors : o o First impression Personal feelings
9) Demographic factors : o o o Age Income Marital status
10) Other factors : Nearness to existing residence, future growth, Date of possession, Vastu, etc.
Selection of site location, for residential building o o o o o o o o o o o Neighborhood quality View Nature Distance from Office ( all persons of house) Shops Leisure ( Cinema, sports, etc.) Schools Relatives and friends traffic crime future growth
7. Types Of Home Loans

Home Purchase Loan The basic simple home loan product, for the purchase of a new home. Existing Home Improvement Loan These loans are given for repairing or renovating the home you already own. Home Construction Loan If you want to build a house, loans are available for the construction of a new home. Home Extension Loan This loan is given for expanding or extending an existing home. Home Conversion Loan In case you want to move to a bigger house, you can convert your existing mortgage to the new house. Land Purchase Loan Nowadays, you can even borrow to buy land for both plot & home construction. Bridge Loan Bridge Loans are designed for people who wish to sell the existing home & purchase another. Balance Transfer Loan These help you to payoff an existing home loan, and switch to a new loan at a lower interest rate. Refinance Loan This loan helps you pay off a debt you have incurred from another source could even be a private source such as relatives and friends. Stamp Duty Loans HFIs even willing to fund your stamp duty payments. Loans to NRIs Tailored for the requirements of non- resident Indians (NRls) wishing to build or buy a home in India.
Checklist for home loans Rate of interest Since amounts are large and the repayment periods are typically very long, the interest component in the total amount to be repaid is quite significant. Calculation of Interest Lending institutions tend to calculate interest payments based on a reducing balance method. Fixed and floating interest rates If the interest rate on the loan is fixed, even if the interest rates in the economy go down you will be locked into the higher rate that was fixed when you took the loan. Processing and administrative charges This is the amount of money charged up-front by the lending institution for processing of the application. Processing and administrative charges This is the amount of money charged up-front by the lending institution for processing of the application. Commitment Fees The commitment charges are levied if you don't withdraw the loan amount for an extended period after the loan has been sanctioned.

Penalty for prepayment If you repay your loan amount before time, you may have to pay a prepayment penalty. Add-on facilities: Some companies offer special features or sweeteners to make the deal more attractive. a. b. c. d. e. f. g. Free accident insurance Discounts Waiving of pre-payment penalty Waiving of processing fee Free property insurance Assistance in locating property Waiving of the last two instalments, if the earlier ones have been paid on time
Special loans Some companies offer special repayment plans. The conventional loan is the plain vanilla kind where you pay back in equal monthly instalments throughout the tenure of the loan. Balloon Payment is where you repay in equal monthly instalments during the tenure, but then the last instalment is larger than others. Level of Service - As always when dealing with any entity, one should look at the level of customer service they offer.
Housing Finance Institutions HDFC HUDCO ICICI Housing Finance IDBI Housing Dewan Housing LIC Housing Finance
8. The Lease Rental Housing

Definition of lease A lease is a transfer of right to enjoy a specific immovable property, made for a certain time, in consideration of a price (rent) paid, which is to be rendered periodically between 2 parties, a transferor( lessor/ landlord) and a transferee ( lessee/tenant) Housing Scenario Statistics (India) The population is over 122 crores as per Census 2011 This comprises 37.70 crores in urban areas, forming 31.16 % of the total population. It has risen from 23.34% (1981), to 25.72 % (1991) to 28.53 % (2001) In metropolitan cities, upto 60 % of population lives in slums . In India, the 2 main options of housing delivery are rental and ownership. Urbanisation of India
Rental Housing as the predominant option - Factors A large segment of population (EWS, Slum dwellers) cannot afford a house. A large section of the population is mobile or migratory Non-availability of LT housing loans to the low income segment due to lack of credit-worthiness restricts the affordability of home-ownership of this segment The transfer of property is very expensive, tedious and time consuming due to the stamp and registration duties payable Re- transactions attract capital gain, which is taxable in the same way as income. The value of property, if beyond a certain amount, is subject to assessment under wealth tax The ownership of houses are subject to House/Property tax, which is based on an assessment of the rental value, this is highly subjective. The assessment is different for tenant and owned properties Fiscal incentives announced by the government for investments in housing are available only to the organised sector and not to the unorganised. This sector does not access to credit from the banks or to the organised housing activity Fiscal incentives are only available to those who take credit from banks not to those who invest their own savings directly.

Vulnerability of the Poor Housing-Lack of tenure, poor, quality shelter without ownership rights, no access to individual water connection/toilets, unhealthy and insanitary living conditions. Economic- Irregular/casual, employment, low paid work, lack of access to credit on reasonable terms, lack of access to formal safety net programmes, low ownership of productive assets, poor net worth, legal constraints to self-employment. Social- Low education, lack of skills, low social capital/caste status, inadequate access to food security programmes, lack of access to health services, exclusion from local institutions. Personal- Proneness to violence or intimidation, especially women, children, the elderly, disabled and destitute, belonging to low castes and minority groups, lack of information, lack of access to justice.
Reasons for decline can be attributed to the 1. Rent Control Act 2. Investment in rental housing is neither encouraged by fiscal incentives nor legal framework 3. Affordable rentals in urban areas is high 4. Resulted in degradation of housing and proliferation of slums 5. Increase in Chawls & Kholies in Mumbai, jhuggies in New Delhi Recommendations of NHHP 05National Housing and Habitat Policy For encouraging Rental Housing including building of service apartments, fiscal concessions in the form of imposition of flat rate of10 percent of tax on the income on renting of new properties for first five years and depreciation allowance of 50 percent per year on investment made by employers in housing projects for employees. Adequate housing stock to be created of rental and ownership Private sector would be incentivised to invest a part of their profits for housing needs of the poor. Development Authorities/Private Sector would be advised to earmark 20-25% Real Estate Investment Trusts (REITS) / Real Estate Mutual Funds (REMF) would be recommended to be set up to serve as a mutual fund for real estate development. To encourage HFCs to increase their lending for EWS and LIG categories which involves comparatively higher risk and operational costs, the benefit under Section 36 (1) (viia) of IT Act. as available to banks, public finance institutions etc. may be extended to HFCs. Slum reconstruction programmes for creating a better environment would be encouraged by schemes with cross subsidization. These would be based on the basis of audit of slum areas covering health status, education, sanitation, environment, employment status and income generation.

Land sharing and pooling arrangements would be resorted to in order to facilitate development of land and improvement of basic amenities in slums. Transferable development rights and additional FAR would be released as an incentive for providing shelter to the poor. The private sector, community based organisations (CBOs), nongovernmental organisations (NGOs) and self help groups would be involved in such activities. The land or shelter provided to the poor / slum dweller would as far as possible be made nontransferable for a period of ten years.
Major Residential Renting segments Major renting segments are On-the-Move executives typified by the 25-35 yrs., jobs require them to be away from hometowns Outstation Students- in graduate/ postgraduate education. Age group is 15-30 yrs. Urban Migrant population migrants flocking to the city to earn a living who eventually get absorbed into slums
Advantages of rental Individual households are by and large not subjected to financial credit criteria applied to HF. Category of low income earners, informal earners and irregular income earners Upfront costs to the tenant are limited to lease agreement costs and the deposit on the unit, which is refundable at the end of the lease period Individual HHs are not required to invest substantially in housing. Do not require to undertake repairs to the property Mobility is easier in terms of legal obligations of renting Permanent housing stock is created which remains available for new entrants into the housing market Mobilisation of overall mortgage finance and/or subsidies does not need to be organised on an individual household level.
Disadvantages of rental Increased operating costs or provisions made for ongoing unit maintenance, vacancies and escalation incurred by stockholder. These are passed on to the renters The benefits of any residual stock value or resale after the initial funding period do not accrue to the households Tenure is less secure as the landlord can require the tenant to leave The renter cannot make major renovations or upgrades There may be credit risk exposure to the providers of rental housing by way of default by tenants.

Whether to lease or to own? Determining Lease prices The normal Demand & Supply conditions govern the lease price. Lease rates are based on a percentage of the value of land. Thus during boom when land value rises lease values rise and the reverse The norm is 5-9% of land value
The Budgeted method Used to verify that lease values are appropriate It uses the principle that fair rental is based on a percentage of potential returns carried out on leased land In case of agricultural property this could be 25% of the expected gross margin income
9.Customer Relationship Management (CRM)

1) It costs 6 times more to sell to a new customer, than to sell to an existing one. 2) A typical dissatisfied customer will tell eight to ten people about his/her experience 3) A company can boost its profit by increasing its customer retention 4) The odds of selling a product to a new customer are 15%, wheras the odds for selling a product to an existing customer are 50% Customer Relationship Management CRM Building long-term, profitable, customer relationships. Focus on most profitable customers
Customer Relationship Marketing Enables companies to provide excellent real-time customer service by developing a relationship with each valued customer through the effective use of individual account information. Based on what they know about each customer, companies can customize market offerings, services, programs, messages and media Advantages of CRM Using CRM, a business can 1) Provide better customer service 2) Increase customer revenue 3) Discover new customers 4) Cross-sell / up-sell products more effectively 5) Help Sales staff close deals more effectively 6) Simplify marketing and sales processes 3 phases of CRM How companies improve value of their customer base ?
By excelling at following customer strategies : 1) Reducing rate of customer defection 2) Increasing longevity of the customer relationship 3) Enhancing growth potential of each customer through `share of wallet , cross-selling and upselling 4) Making low-profit customers profitable or terminating them 5) Focusing disproportionate effort on high value customers.

CRM has become a strategic initiative in most companies due to following reasons 1) Growth of service sector require integration of pre-sales, sales and post sale customer support 2) Affordable advances of digital technology (computers, mobile phones, internet) 3) Shift of companies from market share to share of wallet - cross sell, bundling CRM Strategies Can help you optimize information sharing and interactions as consumers transition from lead to prospect to purchaser to homeowner. In developing the appropriate CRM solution, we look at your companys processes for: - Lead-tracking - Standardizing customer contacts - Measuring and pinpointing customer drop-offs - Formalizing best practices to enhance overall sales productivity CRM Strategies for developers CRM is based on the following parameters Customer value Customer satisfaction Retention of old customers Attracting new customers
There is a certain value associated with a building or an apartment or a commercial unit in the eyes of every customer Customer forms an expectation of value and acts upon it Whether or not the product lives up to the value expectation affects both satisfaction and repurchasing probability.
Relationship marketing can be defined as a task of creating strong customer loyalty and is very important in the growth of organizations. Essential CRM considerations for Developers CRM systems augment and automate the life-cycle, ultimately to enhance the value of a wellnurtured relationship. In a competitive market of township development CRM plays a crucial role as it is phased-out project and positive word of mouth can generate higher sales for the developer.

Planned and integrated CRM involves the following - target and engage the types of home-buyers who fit each communitys environment and have the highest potential to return maximum value - understand the prospective buyers better and design sales experiences that better suit their needs - improve consistency and accuracy by incorporating industry-specific practices and automating efficiencies that reduce building time and administrative costs Essential CRM considerations for Developers 1. The CRM system should collect and analyse key information, design requirements and amenity preferences from prospective clients and leverage this information for marketing campaigns, website generated sales leads are also fed into the system to automate customer appointment, scheduling for each community manager. 2. The system also integrates with the organisations financial database to qualify buyers and align all accounting functions associated with each new home built. 3. Before identifying the best CRM system the following checklist should be followed blueprint before you build- implementation team to describe the needs, goals, and phased CRM expectations have discussions with your internal and external customers examine best practices of your sales force, marketing team, customer service representatives consider the type of data that each group needs to be successful.
4. Think Project and not Product: the benefit of CRM come not only from the product you purchase but also from the implementation plan you follow. 5. Measure Needs to match functionality, complexity, systems and preferred methods of working. Establish a scoring system that make it easy to track the benefits and shortcomings of each product. Include qualitative information in the lists such as customer satisfaction etc.. 6. Define your deployment method: decide whether you prefer to maintain centralised databases or site and/or regional level. 7. Use Consultants Expertise to train: Design different training for different employee skill levels. 8. Evaluate to Evolve: establish and monitor metrics to determine if your buyers satisfaction levels are really increasing. Also include sales performance and contractor efficiency metrics for a comprehensive view of your business.
10. MOFA1963
The Maharashtra Ownership Flats (Regulations of Construction, Sale, Management and Transfer) Act 1963.Extends to the whole of the State of Maharashtra Definitions Flat Means a separate and self-contained set of premises used or intended to be used for residence, or office, or show-room or shop or godown or for carrying on any industry or business and includes a garage, the premises forming part of a building and includes an apartment* Apartment Means any part of the property intended for any type of independent use, including one or more rooms or enclosed spaces located on one or more floors (or part or parts thereof) in a building , intended to be used for residence, office, practice of any profession, or for carrying on any occupation, trade or business or for any other type of independent use and with a direct exit to public street, road or highway or to a common area leading to such street, road or highway ( Even if the provision for sanitary, washing, bathing or other conveniences are common to two or more set of premises, yet the premises shall be deemed to be separate and self-contained.). Difference between flat and Apartment Definition
Promoter means a person (and includes a partnership firm or a body of association of persons), who constructs or causes to be constructed a block or building of flats or apartments for the purpose of selling some or all of them to other persons, or to a company, cooperative society or other association of persons, and includes his assignees; and where the person who builds and the person who sells are different persons, the term includes both.

Section 3 : General liabilities of promoter a) True disclosure of the nature of the title of land b) Full and true disclosure of the encumbrances c) Give inspection of the plans and specifications of building d) Disclosure of the type of fixtures and fittings e) Disclosure of particulars of design and materials to be used in construction of bldg. f) Specify in writing the date by which possession of the flat is to be handed over g) Prepare and maintain a list of flats with their numbers already taken or agreed to be taken, and the names and addresses of the parties, and the price charged or agreed to be charged h) Disclosure of the nature of the organisation of persons to be constituted and to which the title is to be passed h) Not allow persons to enter into possession until a completion certificate is duly given by local authority j) Make true and full disclosure of all outgoings
k) Give on demand true copies of documents* l) Display/keep on site all documents, plans and specifications and permit inspection to persons intending to take or taking one or more flats
True copies of documents to be given: 1) Documents of title relating to the land 2) Certificate by an Advocate that documents are genuine 3) All documents relating to encumbrances, (if any), on such land 4) Plans and specifications 5) List of fixtures, fittings and amenities 6) List of flats with their numbers already taken or agreed to be taken and names and addresses of such parties 7) List of all outgoings k) Display/keep on site all documents, plans and specifications and permit inspection to persons intending to take or taking one or more flats Section 4: Promoter before accepting advance payment or deposit to enter into agreement and agreement to be registered. Amount shall not be more than 20 percent of the sale price

Section 5 Promoter to maintain separate account of sums taken as advance or deposit and to be trustee thereof and disburse them for the purpose for which are givenand shall on demand in writing by a Competent Authority ( officer appointed by State Government for the purpose) make full and true disclosure of all transactions in respect of that account. Section 6 Responsibility for payment of all outgoings is of the promoter till property is transferred to the persons taking over the flats Section 7 After plans and specifications are disclosed , then no alterations or additions without consent of persons who have agreed to take the flats.Also, defects noticed within 3 years to be rectified free of cost and if not rectified by the promoter, the flat owner will be entitled to receive reasonable compensation for such defects. If any dispute as regards to any defect in the building or material used , matter shall be referred for decision to an officer of a Board established under Section 18 of the Maharashtra Housing and Area Development Act, 1976 Section 8 If Promoter fails to give possession within specified time ThenPromoter shall be liable on demand to refund the amounts already received by him in respect of the flat (with simple interest of 9 % per annum from the date he received the sums till the date the amounts and interest thereon is refunded) Section 9 No promoter shall, after he executes an agreement for sale mortgage, or create a charge on the flat without consent of parties. Section 10 Within 4 months from the date on which the minimum number of persons required to form a co-operative society have taken flats , the Promoter shall submit an application to the Registrar for registering of cooperative society. If Promoter fails to do so, the Competent Authority may on receipt of application from flat-takers direct the Registrar to register the society, after verifying the authenticity of applicants request and giving the promoter a reasonable opportunity of being heard. Section 11 Promoter to Convey his right, title and interest in the land and building, etc. and execute all relevant documents thereof in accordance with the agreement. It will be the duty of the Promoter to file with the competent Authority within prescribed period, a copy of conveyance executed by him. If Promoter fails to execute conveyance in favour of co-operative society, the society may make an application to concerned Competent Authority for issuing a certificate that such society is entitled to have an unilateral deemed conveyance, executed in their favour and to have it registered.

Competent Authority shall issue certificate to Registrar that it is a fit case for enforcing unilateral execution of conveyance deed. Registrar shall issue summons to promoter to show cause why such unilateral instrument should not be registered as `deemed conveyance and after giving promoter reasonable opportunity of being heard, may, on being satisfied that it was a fit case for unilateral conveyance register that instrument as `deemed conveyance Section 12 General liabilities of flat-taker 1) Pay at proper time and place, the price, his proportionate share of municipal taxes, water and electricity charges and co-operate in formation of co-operative society ]If any person, fails to comply shall, on conviction, be punished with a fine which may extend to Rs. 2000. 12A) Manager not to cut-off, with-hold , curtail or reduce essential supply or service. If he does that, then, flat-taker may make application to Court for direction to restore such supply or service. Court will direct the Manager to restore .Manager on conviction may be punished with imprisonment upto 3 months or fine or both. Section 13 Offences by Promoters and consequences on conviction 1) Any promoter to fails to comply with or contravenes provisions discussed earlier shall be punished with imprisonment for a term which may extend to 3 years 2) Any promoter who commits criminal breach of trust of any amount advanced or deposited with him for purposes mentioned in Section 5* shall be punished with imprisonment for a term upto 5 years or with fine or with both Section 5 Promoter to maintain separate account of sums taken as advance or deposit and to be trustee thereof and disburse them for the purpose for which are given and shall on demand in writing by a Competent Authority ( officer appointed by State Government for the purpose) make full and true disclosure of all transactions in respect of that account. Section 14 Offences by Companies If person committing offence is a Company, then every person who at the time the offence was committed was incharge of, and was responsible to the company for the conduct of the business by the company shall be deemed guilty of the offence and shall be liable to be proceeded against and punished accordingly. If Offence committed with the consent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer of the company, such person shall be deemed guilty of the offence and shall be liable to be proceeded against and punished accordingly.
11. The Maharashtra Apartment Ownership Act, 1970

Application of the Act: Extends to whole of Maharashtra Applies only to property, the owners of which submit the same to the provisions of the Act by duly executing and registering a Declaration Definitions Apartment Means any part of the property intended for any type of independent use, including one or more rooms or enclosed spaces located on one or more floors (or part or parts thereof) in a building , intended to be used for residence, office, practice of any profession, or for carrying on any occupation, trade or business or for any other type of independent use and with a direct exit to public street, road or highway or to a common area leading to such street, road or highway Apartment owner Means the person or persons owning an apartment and an undivided interest in the common areas and facilities in the percentage specified and established in the Declaration Association of Apartment Owners Means all the apartment owners acting as a group in accordance with the bye-laws and Declaration Section 4 Status of Apartments Each apartment, together with its undivided interest in the common areas and facilities, appurtenant to such apartment, shall for all purposes constitute heritable and transferable immovable property, and Accordingly, an apartment owner may transfer his apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment by way of sale, mortgage, lease, gift, exchange or in any other manner, to the same extent and subject to the same rights, privileges, obligations, liabilities, investigations, legal proceedings, remedies and to penalty, forfeiture and punishment as any other immovable property, or make a bequest of the same under the laws applicable to the transfer and succession of immovable property. Section 5 Ownership of Apartment 1) Each apartment owner shall be entitled to exclusive ownership and possession of his apartment in accordance with the Declaration executed and registered 2) Each apartment owner shall execute a `Deed of Apartment in the manner prescribed for the purpose.

Section 6 Common areas and facilities 1) Each Apartment owner shall be entitled to an undivided interest in the common areas and facilities in the percentage expressed in the Declaration. Such percentage is computed by taking as a basis the value of the apartment in relation to the value of the property, and such percentage shall reflect the limited common areas and facilities The common areas and facilities shall remain undivided and no apartment owner shall bring any action for partition or division of any part thereof Section 7 Compliance with byelaws Each apartment owner shall comply strictly with the bye-laws and with the administrative rules and regulations adopted and with the conditions and restrictions set forth in the Declaration or in the Deed to his Apartment Section 8 Certain work prohibited No apartment owner shall do any work which would jeopardize the soundness or safety of the property, reduce the value thereof or impair any easement , nor may any apartment owner add any material structure or excavate any additional basement without in every such case the unanimous consent of all the other apartment owners being first obtained. Section 9 Encumbrances Subsequent to recording Declaration, no encumbrance of any nature shall thereafter arise or be effective against the property. Section 10 Common profits and expenses The common profits of the property shall be distributed among, and the common expenses shall be charged to, the apartment owners according to the undivided interest in the common areas and facilities. Section 11 Contents of Declaration a) Description of land , freehold/leasehold b) Description of building ; number of storeys and basements, number of apartments, principal materials of which it is to be constructed c) Apartment number of each apartment, statement of location, approximate area, number of rooms, immediate common area to which it has access d) Description of common areas and facilities

e) Description of limited common areas and facilities, if any, stating to which apartment their use is reserved f) Value of property and each apartment and percentage of undivided interest in common areas and facilities, including voting g) Statement of purposes for which building is to be used A true copy of the Declaration and of the bye-laws shall be filed in the office of the competent Authority Section 12 Contents of Deeds of apartments a) Description of land , b) Apartment number of apartment, in declaration c) Statement of purposes for which apartment is to be used d) Percentage of undivided interest appertaining to the apartment in the common areas and facilities e) Any further details which parties may deem desirable
12. The National Housing Bank

The Sub-Group on Housing Finance for the Seventh Five Year Plan (1985-90) identified the nonavailability of long-term finance to individual households on any significant scale as a major lacuna impeding progress of the housing sector and recommended the setting up of a national level institution. The Committee of Secretaries considered' the recommendation and set up the High Level Group under the Chairmanship of Dr. C. Rangarajan, the then Deputy Governor, RBI to examine the proposal and recommended the setting up of National Housing Bank as an autonomous housing finance institution. The recommendations of the High Level Group were accepted by the Government of India. The Honble Prime Minister of India, while presenting the Union Budget for 1987-88 on February 28, 1987 announced the decision to establish the National Housing Bank (NHB) as an apex level institution for housing finance. Following that, the National Housing Bank Bill (91 of 1987) providing the legislative framework for the establishment of NHB was passed by Parliament in the winter session of 1987 and with the assent of the Honble President of India on December 23, 1987, became an Act of Parliament. The National Housing Policy, 1988 envisaged the setting up of NHB as the Apex level institution for housing. In pursuance of the above, NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987. NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital. The general superintendence, direction and management of the affairs and business of NHB vest, under the Act, in a Board of Directors. The Head Office of NHB is at New Delhi.
Vision
Promoting inclusive expansion with stability in housing finance market Mission "To harness and promote the market potentials to serve the housing needs of all segments of the population with the focus on low and moderate income housing "
Objectives of NHB NHB has been established to achieve, inter alia, the following objectives To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system. To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups. To augment resources for the sector and channelise them for housing.

To make housing credit more affordable. To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act. To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country. To encourage public agencies to emerge as facilitators and suppliers of serviced land, for housing.
Functions 1) Regulation In terms of the National Housing Bank Act, 1987, National Housing Bank is expected, in the public interest, to regulate the housing finance system of the country to its advantage or to prevent the affairs of any housing finance institution being conducted in a manner detrimental to the interest of the depositors or in a manner prejudicial to the interest of the housing finance institutions. For this, National Housing Bank has been empowered to determine the policy and give directions to the housing finance institutions and their auditors. Besides the regulatory provisions of the National Housing Bank Act, 1987, National Housing Bank has issued the Housing Finance Companies (NHB) Directions, 2001 as also Guidelines for Asset Liability Management System in Housing Finance Companies. These are periodically updated through issue of circulars and notifications. As part of the supervisory process, an entry level regulation is sought to be achieved through a system of registration of housing finance companies. National Housing Bank supervises the sector through a system of on-site and off-site survelliance 2) Financing NHB supports housing finance sector by: Extending refinance to different primary lenders in respect of (i) Eligible housing loans extended by them to individual beneficiaries, (ii) for project loans extended by them to various implementing agencies. Lending directly in respect of projects undertaken by public housing agencies for housing construction and development of housing related infrastructure. Guaranteeing the repayment of principal and payment of interest on bonds issued by Housing Finance Companies. Acting as Special Purpose Vehicle for securitising the housing loan receivables. Functions ( contd.)

3) HFCs Promotion and Development The principal mandate of the Bank is to promote housing finance institutions to improve/strengthen the credit delivery network for housing finance in the country. The Bank has played a facilitator role in this regard instead of itself opening such dedicated housing finance institutions. For this purpose, NHB has issued the Model Memorandum and Articles of Association. NHB has also issued guidelines for participating in the equity of housing finance companies. All housing finance companies registered with NHB u/s 29A of the National Housing Bank Act, 1987 and scheduled commercial/co-operative banks are eligible for refinance support subject to terms and conditions as laid down under the respective refinance schemes. As a part of its promotional role NHB has also formulated a scheme for guaranteeing the bonds to be issued by the housing finance companies. Considering the need for trained personnel for the sector, NHB has designed and conducted various training programmes.

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