Reveal mortgage status of housing projects, Maharashtra builders say

0
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered all real estate developers in the state to declare the security interests they have created on projects registered with the authority.

The move aims to improve transparency and alert potential buyers to any mortgages or loans taken out by the developer against apartments they are about to buy – or the project itself.

This information is already available from the Central Registry of Securitization Asset Reconstruction and Security Interest of India (Cersai), a central government agency responsible for operating and maintaining a registry of this data. The objective of Cersai, incorporated under the Law on Securitization and Reconstruction of Financial Assets and on the Enforcement of Collateral (Sarfaesi Law), is to prevent loan fraud, such as loans from different banks on the same property.

Cersai has data relating to collateral created from January 22, 2016 for listed commercial banks and, from July 1, 2016, for all other entities registered with it. From June 2017, it began recording data on personal property security interests on residential and commercial properties under construction.

MahaRERA has now made it clear that homebuyers and beneficiaries should also be aware of these collateral created on real estate projects and apartments they wish to buy.

Many times homebuyers buy a property without knowing the mortgage or loan status of the property, which later leads to litigation and legal complexities.

If the developer has made use of a loan by mortgaging the inventory or a few apartments and is unable to repay, the banks would take over the property to recover their contributions and this would affect the buyer.

These situations can be avoided with the authority’s new directive, as Cersai has records of all properties against which loans have been sanctioned.

Real estate developers will now have to submit a report from Cersai on the collateral created in the real estate project as well as the certificate of charges when registering the project with the authority.

In the event that no security has been provided, the developer must provide a commitment confirming this. The developer must also submit the Cersai report when modifying the security interests created. According to MahaRERA, submitted Cersai reports must be generated within 10 days of the submission date.


Source link

Leave A Reply

Your email address will not be published.