Write the following code in VBA
Select a Range of cells and excute to convert into +/-
Sub ConvertDRCRofTallyData()
Dim rng As Range
Set rng = Selection
For Each cell In rng
If InStr(1, cell.NumberFormat, "Dr") >
0 Then
cell.Value = cell.Value * -1
Else
cell.Value = cell.Value
End If
cell.NumberFormat = "General"
Next
MsgBox "Done"
End Sub
AN OVERVIEW OF THE AGREEMENT FOR SALE NOTIFIED UNDER THE KARNATAKA REAL ESTATE (REGULATION AND DEVELOPMENT) RULES, 2017
Adv. Hitendra V.Hiremath
(Authored by Mr. Hitendra V.Hiremath, presently works as Legal Consultant with RERA Consultants LLP at Bengaluru, Karnataka, India)
An Agreement for Sale is an agreement entered into between the promoter and the allottee as per Section. 2 (c) of The Real Estate (Regulation and Development) Act, 2016 ("Act"). The definition doesn't actually define an Agreement for Sale, however, the definition can be deduced keeping in mind the objective of the Act, an Agreement for Sale is a binding legal contract entered between the Promoter and Allottee to sell an apartment, building or plot as the case may be. The Agreement for Sale is also required to be notified under the respective state rules and all Agreement for Sale being entered between the promoter and allottees should necessarily adhere to the notified drafts. Further, the Housing Department, Government of Karnataka through its notification dated 12/06/2020 bearing No. DOH 8 RERA 2017 has notified the Agreement for Sale in Annexure – A under newly inserted Rule 8A of Karnataka Real Estate (Regulation and Development) Rules, 2017 ("Rules"). After notification of the Agreement for Sale and as per Section.13 of the Act it is now mandatory that the Promoter has to enter to Agreement for Sale in the format as prescribed for the sale of apartments, plots and villas as the case may be.
The key highlights of the notified Agreement for Sale in Karnataka are as follows:
1. The Promoter have to strictly follow the approved plans for the project and units proposed to be sold and any changes in the approved plans can be undertaken with 2/3rd consent of the allottees of the Project and in strict compliance of Section. 14 of Act.
2. The total price of the apartment /plot has to be mentioned along with detailed breakup of amounts such as cost of apartment/plot, cost of exclusive balcony/verandah/open terrace areas for apartment, proportionate cost of common areas, preferential location charges, taxes, maintenance charges.
3. Details of apartment / building shall be Carpet Area, common area etc (compare to the practices of super built up area)
4. Allottees have to pay the amounts to Promoter as per the Schedule Payment Plan, failure to pay the same the Promoter can levy interest for delay in payment of amounts.
5. The apartment/plot as sold shall not be mortgaged by the Promoter nor should create any charge.
6. The Promoter has to declare and mention the handover date of possession of apartment/plot as the case may be to allottee along with common areas and common amenities and facilities to the association. Further, if the possession is delayed due to force majeure conditions then the reasonable extension is allowed, however if the Promoter is unable to complete the project due to Force Majeure conditions and that the contract cannot be implemented then the allotment stands terminated and within 60 days the amounts has to be refunded to allottee.
7. The Promoter has to give a notice in writing after obtaining the Occupancy Certificate to allottee to take possession of apartment/plot within 60 days from date of occupancy certificate and execute the conveyance deed as per the local laws, however if the allottee fails to possession within 60 days then the allottee shall be liable to pay the maintenance charges.
8. If in case the allottees initiates the cancellation of the allotment of the apartment/plot then the Promoter shall withhold the booking amount as forfeiture fee and shall refund the remaining amounts within 60 days from date of cancellation.
9. The Promoter is liable for a period of 05 (five) years for any structural defect, defect in workmanship, quality or provision of services or any other obligations as agreed by the Promoter under the Agreement for Sale.
10. The Promoter shall now have to compulsorily declare that the project is now in accordance with the provisions of Karnataka Apartment Ownership Act, 1972 and Karnataka Ownership Flats (Regulation of the Promotion of the Construction, Sale Management and Transfer) Act, 1972 which means that the allottees shall also have to follow and comply with all the provisions of the aforementioned acts.
11. There are many more clauses of important and relevance for all the stake holders viz., Allottees, Promoters, lenders, professionals while entering into Sale Agreement.
12. The Promoter and Allottee can enter any additional clauses, however the said clauses shouldn't be in contravention of the provisions of the Act and Rules.
Further, as per Section.13(1) of the Act, Agreement for Sale needs to be executed with allottee if the promoter intends to accept a sum more than 10% (ten percent) of the cost of the apartment/plot and such that Agreement for Sale has to be registered.
Further as per Section 61 of Act, if the promoter contravenes any provisions or rules then shall be liable to a penalty extending upto five percent of the estimated cost of real estate project as determined by the authority.
As the notified Agreement for Sale has inserted a note stating that any additional clauses can be added by the Parties, however not being in contravention to provisions of Act and Rules, the Parties can insert clause such as Assignment in order to avoid the process of cancellation and reallotment. However, the ambiguity and grey areas still remains unanswered over cancellation of Agreement for Sale due to death of Allottee/s as the same will be registered.
DISCLAIMERS
· This post underlines the information as per the notified Agreement for Sale as available in https://erajyapatra.karnataka.gov.in/WriteReadData/2020/344.pdf last visited on 29th August, 2020 at 08:00 pm; and
· We recommend the Promoters to seek the assistance of the Professionals involved in the real estate practice in case of any queries and clarifications.
CONTACT
For any other details, clarifications, assistance, advise and other services, please visit www.reraconsultants.in; or can get in touch with us at 080 – 2223 3003 or email to legal@reraconsultants.in
AN OVERVIEW OF THE AGREEMENT FOR SALE NOTIFIED UNDER THE KARNATAKA REAL ESTATE (REGULATION AND DEVELOPMENT) RULES, 2017
Adv. Hitendra V.Hiremath
(Authored by Mr. Hitendra V.Hiremath, presently works as Legal Consultant with RERA Consultants LLP at Bengaluru, Karnataka, India)
An Agreement for Sale is an agreement entered into between the promoter and the allottee as per Section. 2 (c) of The Real Estate (Regulation and Development) Act, 2016 ("Act"). The definition doesn't actually define an Agreement for Sale, however, the definition can be deduced keeping in mind the objective of the Act, an Agreement for Sale is a binding legal contract entered between the Promoter and Allottee to sell an apartment, building or plot as the case may be. The Agreement for Sale is also required to be notified under the respective state rules and all Agreement for Sale being entered between the promoter and allottees should necessarily adhere to the notified drafts. Further, the Housing Department, Government of Karnataka through its notification dated 12/06/2020 bearing No. DOH 8 RERA 2017 has notified the Agreement for Sale in Annexure – A under newly inserted Rule 8A of Karnataka Real Estate (Regulation and Development) Rules, 2017 ("Rules"). After notification of the Agreement for Sale and as per Section.13 of the Act it is now mandatory that the Promoter has to enter to Agreement for Sale in the format as prescribed for the sale of apartments, plots and villas as the case may be.
The key highlights of the notified Agreement for Sale in Karnataka are as follows:
1. The Promoter have to strictly follow the approved plans for the project and units proposed to be sold and any changes in the approved plans can be undertaken with 2/3rd consent of the allottees of the Project and in strict compliance of Section. 14 of Act.
2. The total price of the apartment /plot has to be mentioned along with detailed breakup of amounts such as cost of apartment/plot, cost of exclusive balcony/verandah/open terrace areas for apartment, proportionate cost of common areas, preferential location charges, taxes, maintenance charges.
3. Details of apartment / building shall be Carpet Area, common area etc (compare to the practices of super built up area)
4. Allottees have to pay the amounts to Promoter as per the Schedule Payment Plan, failure to pay the same the Promoter can levy interest for delay in payment of amounts.
5. The apartment/plot as sold shall not be mortgaged by the Promoter nor should create any charge.
6. The Promoter has to declare and mention the handover date of possession of apartment/plot as the case may be to allottee along with common areas and common amenities and facilities to the association. Further, if the possession is delayed due to force majeure conditions then the reasonable extension is allowed, however if the Promoter is unable to complete the project due to Force Majeure conditions and that the contract cannot be implemented then the allotment stands terminated and within 60 days the amounts has to be refunded to allottee.
7. The Promoter has to give a notice in writing after obtaining the Occupancy Certificate to allottee to take possession of apartment/plot within 60 days from date of occupancy certificate and execute the conveyance deed as per the local laws, however if the allottee fails to possession within 60 days then the allottee shall be liable to pay the maintenance charges.
8. If in case the allottees initiates the cancellation of the allotment of the apartment/plot then the Promoter shall withhold the booking amount as forfeiture fee and shall refund the remaining amounts within 60 days from date of cancellation.
9. The Promoter is liable for a period of 05 (five) years for any structural defect, defect in workmanship, quality or provision of services or any other obligations as agreed by the Promoter under the Agreement for Sale.
10. The Promoter shall now have to compulsorily declare that the project is now in accordance with the provisions of Karnataka Apartment Ownership Act, 1972 and Karnataka Ownership Flats (Regulation of the Promotion of the Construction, Sale Management and Transfer) Act, 1972 which means that the allottees shall also have to follow and comply with all the provisions of the aforementioned acts.
11. There are many more clauses of important and relevance for all the stake holders viz., Allottees, Promoters, lenders, professionals while entering into Sale Agreement.
12. The Promoter and Allottee can enter any additional clauses, however the said clauses shouldn't be in contravention of the provisions of the Act and Rules.
Further, as per Section.13(1) of the Act, Agreement for Sale needs to be executed with allottee if the promoter intends to accept a sum more than 10% (ten percent) of the cost of the apartment/plot and such that Agreement for Sale has to be registered.
Further as per Section 61 of Act, if the promoter contravenes any provisions or rules then shall be liable to a penalty extending upto five percent of the estimated cost of real estate project as determined by the authority.
As the notified Agreement for Sale has inserted a note stating that any additional clauses can be added by the Parties, however not being in contravention to provisions of Act and Rules, the Parties can insert clause such as Assignment in order to avoid the process of cancellation and reallotment. However, the ambiguity and grey areas still remains unanswered over cancellation of Agreement for Sale due to death of Allottee/s as the same will be registered.
DISCLAIMERS
· This post underlines the information as per the notified Agreement for Sale as available in https://erajyapatra.karnataka.gov.in/WriteReadData/2020/344.pdf last visited on 29th August, 2020 at 08:00 pm; and
· We recommend the Promoters to seek the assistance of the Professionals involved in the real estate practice in case of any queries and clarifications.
CONTACT
For any other details, clarifications, assistance, advise and other services, please visit www.reraconsultants.in; or can get in touch with us at 080 – 2223 3003 or email to legal@reraconsultants.in
Annual Schedule of Rates – ASR Value (as mentioned in CA Certificates for updates under RERA)
ASR is a government tool to find out the minimum value of a property at different locations based on various market factors. In Delhi, it is called Circle Rate whereas; in Mumbai, it is known as Ready Reckoner Rate (RR rate).
Following are some of the key aspects about ASR that property buyers should know:
- Normally, ASR is typically lower than the prevailing market rate of the property in a location;
- The government calculates the minimum stamp duty and registration charges based on the prevailing ASR value in the area;
- ASR is reviewed from time-to-time and the government tries to keep it close to the prevailing market rate in the area.
"The Annual Schedule of Rates is prepared to assess the market value of a property to calculate the stamp duty as applicable on the said property. These rates are determined by the Stamps and Registration Department of the state of Maharashtra. The ASR helps individuals find the official rates for properties in a particular area," explains senior faculty, Vidya Bhagwat, faculty department, REMI.
Experts point out various terms of ASR rates as known in the key cities across India:
- Circle Rate Delhi, Bhubhaneshwar;
- Guidance Value Bengaluru, Hyderabad;
- Guideline Rate (Market Value) Chennai;
- Guideline Rate Kolkata;
- Ready Reckoner Rates Mumbai;
- Jantri Rates Gujarat.
ASR impacts the property prices:
"In cities like Bengaluru and Mumbai, the ASR is now very close to the actual prevailing market rates in most areas and for most asset classes. Thus, they are a good benchmark for the buyer. However, buyers should note that rates will vary from property to property depending on the quality of specifications, micro-location characteristics, reputation of the developer, payment terms, etc," says Amit Oberoi, head of valuation and advisory at Colliers. He further goes on to add, "It is necessary to set a realistic ASR level, so that the government can realise the actual revenue that is used for public good. Also, the government should consider lowering the stamp duty and registration rates, so that there is a greater disclosure of transaction values."
Written by Vinay Thyagaraj, is a Chartered Accountant and a Law Graduate, founder partner at M/s. Venu & Vinay, Chartered Accountants, Bengaluru, has over 20 years of experience in Business Consulting, Structuring and Taxation. Travelled across south Indian states to deliberate, discuss, present technical papers on RERA. Presented more than 100 technical sessions on RERA to Industry Associations, Professionals, home buyers association, Law universities and for public at Large. He is also financial consultant at RERA Consultants LLP. He can be reachable on vinay@vnv.ca
Who Should issue Audit Report under RERA
Certificate by a Chartered Accountant is to be issued with set of objects and intentions with an intent to express the professional opinion or state the facts based on the information, explanation, documents received from the promoter.
Proviso to Sec 4(2)(l)(D) of RERD Act having reference and requirement of CA Certificate – which is reproduced below -
2nd Proviso - Provided further that the amounts from the separate account shall be withdrawn by the promoter, after it is certified by an engineer, an architect and a chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project:
3rd Proviso - Provided also that the promoter shall get his accounts audited within six months after the end of every financial year by a chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be verified during the audit that the amounts collected for a particular project have been utilised for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project
| Sl No | Certificate for | Act / Rule Ref | Certifying |
| 1 | On every withdrawal from project Bank Account | RERA Act –
2nd proviso to sec 4(2)(l)(D)
| Withdrawal of money from project bank account is in proportion to the % of completion of the project
|
| 2 | Annual Audit under RERD Act | RERA Act –
3rd proviso to sec 4(2)(l)(D) | 1. Amounts collected from Allottees for a particular project have been utilised for the same project and
2. the withdrawal has been in compliance with the proportion to the % of completion of the project |
1. As per Sec 4(2)(l(D) proviso 3 mandates accounts shall be audited by a Chartered Accountant in practice.
2. Act does not say whether Tax, Statutory or any other Chartered Accountant
3. However, Regulations / Notification issued by State RERA Authorities have mentioned on the header of the format of certificate - Stating Statutory Auditor of the Promoter shall issue the Report
4. Question is Who is Statutory Auditor?
5. Is any Act defining Statutory Auditor? Whether Co's Act 2013 defines Statutory Auditor?
6. If we Consider Statutory Auditor means the Auditor as per Co's Act 2013, if so, what about other than Co's. Say, Proprietor or Partnership or Housing Society?
7. Considering the all the above facts, i am of the opinion that Auditor appointed under any Statute can certify the Accounts under RERA (may be Auditor as per Sec 139 of the Co's Act, Tax Auditor, GST Auditor etc) as long as Chartered Accountant holding Certificate of Practice (not an employee of the promoter, who is on Role of the promoter)
8. RERA Regulators are differentiating the Chartered Accountant for issuance of a periodical certificate for withdrawal of funds based on % of Completion method - hence Chartered Accountant issuing Certificate for withdrawal of funds shall be different for Issuance of RERA Audit Report under Proviso 3 to Sec 4 (2)(l)(D) of the RERA
Objective of RERA Audit Certificate by a CA -
| 1. Amounts collected from Allottees for a particular project has been utilised for the same project and
2. the withdrawal has been in compliance with the proportion to the % of completion of the project |
Note –
1) Currently, the regulators in most of the states have a prescribed format.
2) This certificate shall be issued by a CA holding COP
3) CA to collect project financial information from the promoter.
4) Collect estimated cost of the project, escalation if any and details thereon
5) CA to collect and consider all professional certificates issued from time to time for withdrawal of the project.
This certificate shall be submitted to authorities and is a public document. It could be made available for viewing at the portal of the regulators in the respective states. The comments in this note are purely a matter of interpretation and not binding on any regulatory authorities. Therefore, there can be no assurance that the regulatory authorities will not take a position contrary to our comments or views
Written by Vinay Thyagaraj, is a Chartered Accountant and a Law Graduate, founder partner at M/s. Venu & Vinay, Chartered Accountants, Bengaluru, has over 20 years of experience in Business Consulting, Structuring, and Taxation. Traveled across south Indian states to deliberate, discuss, present technical papers on RERA. Presented more than 100 technical sessions on RERA to Industry Associations, Professionals, home buyers association, Law universities, and for the public at Large. He can be reached on vinay@vnv.ca
Kerala RERA Rules
Kerala Real Estate (Regulation & Development) Rules, 2018
Kerala has notified the Kerala Real Estate (Regulation and Development) Rules 2018 on 18th June 2018 vide GO (P) No. 46/2018/LSGD and has constituted Kerala Real Estate Regulatory Authority on 5th October 2019.
Sri. P.H. Kurian IAS (Retd) has assumes charge as Chairman and Adv.Preetha P Menon has assumed charge as member.
Authority has started the series of awareness program to educate the Promoters/Builders/Real Estate Agents, Allottees/Home buyers/consumers and various stake holders.
Application, forms, affidavits etc are published in the Kerala RERA Website for registration of Real Estate Projects and Real Estate Agent and guidelines there on.
This note will help the reader to understand the Kerala RERA Rules, applicability for Registration real estate project, documents, information required to file application for grant of registration, extension, revocation.
| Details | Details |
| Official Kerala RERA Website
| |
| Kerala RERA Office Address | Swaraj Bhavan, 5th Floor, Nanthancode, Kowdiar PO, Thiruvananthapuram 695003
|
|
| |
| Filing of Application | Manual Filing / Submission till webportal is ready
|
| Authenticated Copy – Rule 2('C) of Kerala RERA | Self-Attested copy of any document required to be provided | |||||||||||||
| Registration of Real Estate Projects with Authority – Rule 3 | ||||||||||||||
| Rule 3(1) | Application in Form A – in Triplicate For New Projects (means all Statutory Approvals and permits have been obtained on or after 1-5-2017) | |||||||||||||
| Rule 3(2) | Application in Form A 1 – in Triplicate For Ongoing Projects (means Occupancy Certificate has not been issued as on 1-5-2017) | |||||||||||||
| Registration Fee – Rule 3(4) Note - 1) Project involving construction and sale of building, total registration fee = plot fee + buildings fee 2) Floor Area – as specified in permit issued by competent authority | 1) By way of Demand Draft drawn on any scheduled Bank 2) Fee Amount is as per the Table -
| |||||||||||||
| List of Documents – Rule 3(5) | 1) All documents as per Sec 4(2) 2) Form B (Sec 4(2)(l) Clauses A to F) | |||||||||||||
| Withdrawal of Application Rule 3(6) | 1) Application for withdrawal shall made within 30 days of filing application for grant of registration 2) Authority will retain 10 % or Rs.50,000 whichever is more towards processing fees 3) Balance will be refundable within 30 days from such withdrawal | |||||||||||||
| Rule 4 – Additional information and documents to be furnished - | 1) PAN 2) Audited BS, ITR for preceding 3 years 3) No of Parking Available 4) Legal title Deed 5) Details of encumbrance on Project Land 6) Development Agreement / MOU
| |||||||||||||
| Rule 5 – Disclosure in case of Existing (ongoing) Project | 1) All documents as prescribed in Rule and Act 2) Status of the Project and Extent of Completion 3) Sold details - Size of the apartment in Carpet Area 4) Sold details – area of plots
| |||||||||||||
| Rule – 6 Withdrawal of sums deposited in separate bank account – Sec 4(2)(l)(D) | 1) Land cost – shall be cost incurred by the promoter (whether outright purchase / lease charges etc) 2) Construction Cost – cost incurred towards on-site and off-site expenditure for physical development of the project
|
| Rule 7 – Grant of Registration of the Project | 1) Registration Certificate in Form C 2) Rejection shall inform in Form D (however 15 days or such time may be provided to rectify the defect application before rejection)
|
| Rule 8 – Extension of registration of Project | 1) Before expiry of 3 months prior to expiry of registration granted 2) Fees – 50 % of registration fees 3) Reason for such delay 4) Documents 5) Force majure – fees may be waived off 6) Extensions maximum of 1 year
|
| Rule 9 – Revocation of registration
| As per Sec 7 of the Act |
| Rule 10 – Agreement for Sale
| As per Annexure A |
| Rule 11 – Real Estate Agent Registration | 1) All Documents 2) Application Form in Form G 3) Fees a. Individual Rs.25,000 b. Non Individual Rs.2.50 Lacs
|
| Rule 18 – Interest Rate, Timelines | 1) SBI PLR + 2 % 2) Refund with in 45 days from the due date (AFS Clause 7.5) |
Vinay Thyagaraj is a Chartered Accountant and a Law Graduate, founder partner at M/s. Venu & Vinay, Chartered Accountants, has over 18 years of experience in Business Consulting, Structuring and Taxation. Presented business, taxation technical papers and participated at various symposiums, forums. Regular speaker at various regional TV channels on financial matters, budget etc. Has been working on The Real Estate (Regulation and Development) Act 2016 since the inception of the Act with a view to understand financial, business impact of the Act on the organization and Industry, helping promoters to implement the best practices under RERA. Travelled across south Indian states to deliberate, discuss, present technical papers on RERA. Presented more than 100 technical sessions on RERA to Industry Associations, Professionals, home buyers association, Law universities and for public at Large. He is also financial consultant at RERA Consultants LLP
