1. OVERVIEW OF REALESTATE INDUSTRY IN INDIA.

1.1 Real Estate Industry in India:

The size of the real estate industry in India is estimated by FICCI, to be around
US$ 12 billion. This figure is growing at a pace of 30% for the last few years.
Almost 80 % of real estate developed in India, is residential space and the rest
comprise office, shopping malls, hotels and hospitals. This double-digit growth is
mainly attributed to the off shoring business, including high-end technology
consulting, call centres and software programming houses which in 2003-04, is
estimated to have accounted for more than 10 million square feet of real estate
development. This is the ideal time to invest in the country as policy makers have
begun to emphasize on developing adequate infrastructure for the country. Real
estate companies would also do well to maximize their own performance and
operational efficiency.
The future of the real estate sector in India is going to be guided by two important
factors, namely suitable amendments in the Foreign Direct Investment (FDI)
guidelines in townships, housing, built-up infrastructure and construction
development projects as well as abolition of Service Tax on the construction
industry especially the housing sector. Conversely, if the abolition per se is not
possible then drastic modifications in the existing Service Tax norms is the need of
the hour. This Sector is already overburdened with taxes; any further imposition of
taxes in any form would adversely affect the growth of this sector of the economy.

The importance of the Real Estate sector, as an engine of the nations growth, can
be gauged from the fact that it is the second largest employer next only to
agriculture and its size is close to US $ 12 billion and grows at about 30% per
annum. Five per cent of the countrys GDP is contributed by the housing sector. In
the next three or four or five years this contribution to the GDP is expected to rise
to 6%. The Real Estate Industry has significant linkages with several other sectors
of the economy and over 250 associated industries. One Rupee invested in this
sector results in 78 paise being added to the GDP of the State. A unit increase in
expenditure in this sector has a multiplier effect and the capacity to generate
income as high as five times. If the economy grows at the rate of 10% the housing
sector has the capacity to grow at 14% and generate 3.2 million new jobs over a
decade.
Furthermore, this sector has witnessed a spurt in demand not just in residential
property but also in commercial property. A fast growing area is the I.T. and I.T.enabled services along with the BPO boom. Estimates worked out show that 42
million sq. ft. of space will be required every year till 2008, only in I.T. and I.T.enabled services especially in the cities like Bangalore, Chennai, Hyderabad and
Pune, which is also now gradually shifting to North India.
To achieve the much desired growth and development in the Real Estate Segment,
FICCI would like to submit the following 10 points for consideration:
Infrastructure Status to Housing: Infrastructure status should be provided to
housing sector. This will enable easier access to low cost institutional funds as also
allow the sector to tap long term funds.
Real Estate Mutual Funds: The Government should consider setting up of Real
Estate Mutual Funds/ Investment Trusts to provide the much needed support to the

cash starved housing sector, similar to the structures adopted for Estate Mutual
Funds/ Investment Trusts in developed real estate markets such as, USA,
Singapore. Hong Kong, etc. Real Estate Mutual Funds/ Investment Trusts would be
an efficient mode for providing equity financing as against debt, which is currently
the norm for financing real estate developments in India.
Stamp Duty: In some States the Stamp Duty is as high as 14- 15 % of the value of
the transaction. Astonishingly in the Indian context, not only are the rates high, but
also the levy of Stamp Duty is applicable in every subsequent transaction, be it the
initial transfer purchase of land or on further sale of the same land after
development or any other succeeding transaction. Opportunely some states have
brought the Stamp Duty down to between 6-8 %, this should ideally be further
brought down to 2-3 % and made uniformly applicable across all states. However,
if the above suggestion is not acceptable then if stamp duty has already been paid
on one transaction, there should be a mechanism in the law, whereby there is a
provision for concession or a system of credit for any subsequent transactions. This
would avoid the resultant cascading effect of Stamp Duty, thereby reducing the
cost of a property. The concept of credit for taxes paid on subsequent transactions
already exists in other statutes such as CENVAT, VAT, Minimum Alternate Tax
(MAT), etc.
Public Private Partnership: There is a need to evolve a regulatory framework
that encourages participation of the private sector in bringing technical and
managerial expertise in formulating and delivery of basic amenities like water,
sanitation, sewerage, transport and electricity.
Archaic Laws: Availability of land for housing projects has been constrained by a
variety of laws like the Rent Control Act and Urban Land Ceiling and Regulation

Act, which must be repealed in all the States. A necessary legal and policy
framework has to be put in place to restrict growth of slums and at the same time to
re-develop the slums into hygienic and livable.
Foreclosure Laws: The existing foreclosure laws are cumbersome as well as time
consuming and make it practically impossible for Housing Finance Institutions
(HFIs) to repossess a dwelling unit financed. HFIs are reluctant to take risk and
continue to land primarily on salaried urban borrowers. Amendment of (National
Housing Board) NHB Act has already been initiated. The implementation process
needs to be expedited to bring in the required changes.
Environmental Impact Assessment Notification: The notification specifies that
no construction activity to be taken up, inspite of the approval of plans by the
Competent Authority, till the environmental clearance has been sought. In cases
where approval has already been granted it is suggested that construction activities
should be allowed. In the intervening period the builder / developer can obtain the
environmental clearance certificate. In the case of the environmental clearance
certificate being denied then appropriate action if necessary and warranted can be
taken against the developer / builder and builder be given time to get clearance
before he applies for completion certificate, otherwise the completion certificate
will not be given Furthermore, in the case of future proposed projects the
environmental clearances should be taken by the States themselves or by the
planning bodies and not b individual builders.
Land Acquisition: The Land Acquisition Act of 1894, still, to a large extent,
governs the procurement of raw land. With the changing investment scenario it has
become necessary to review the existing law, in order to ensure that private
developers and colonizers procure the land directly from farmers and land owners

without putting undue financial burden on State/ Central Governments on land

acquisition for public purposes. Today, a builder is governed by Agriculture Land
Ceiling Act even after the land have been urbanized in the zonal plans / master
plans. This makes builders to create several companies in order to circumvent the
archaic laws. It is submitted that once the land has been urbanized and
incorporated in the master plan, then Agriculture Land Ceiling Act should not
apply and builders should be permitted to acquire lands as per their requirements,
for the development of townships.
Foreign Direct Investment (FDI): Suitable modifications in the FDI guidelines
are required, particularly in repatriation of funds, clarification on the basic
definition of built-up area, streamlining of Clearance procedures as well as the
opening up of the Retail Segment to FDI. This aspect has been discussed in detail
in Section II of this paper.
Service Tax: Service tax in relation to construction of residential complexes
having more than 12 houses have been proposed to be introduced as a new service.
However, no rationale has been provided for exclusion of services in relation to
construction of residential bungalows, which may not form part of residential
complexes.

SUBJECT MATTER OF THE PROJECT :

Q) What is the meaning of customers perception & expectations while buying
a house?
Whenever a person goes to buy a house, he is very confused. At that time he
doesnt have a clear cut vision of, whether to go for this builder, that builder, which
place, genuine price and various other factors. So at that time what is there in the
mind of the consumer and what all things he is expecting from the builders, etc.

Q) Why study of consumer perception and expectations?

Real estate sector is a vital section of Indian market structure. Since a lot of
opportunities are available in the real estate sector so there are a lot of companies
and Project developer are operating in Indian real estate sector. Then at this
junction the understanding of perception and knowing the expectations become
very much important.
So after finding the reason of all these we can provide maximum satisfaction
to customer.

1.2 REVIEW OF LITERATURE:

NEED OF REGULATORY BODY IN REAL ESTATE
Now a days many people are cheated by builder, and since builder are big gun so
very few people get justices against builder. It Raises a question - Does our
constitution really needs the law. NO!! We already have unlawful Activities
(Prevention) Act 1967 and TADA in 1987. Similarly we have laws but........the
same story. Nobody cares/dares it. A question arises that- Do we need RBI or
SEBI. How many people (individuals) participate in investing or reaping money
from shares/bonds/MF, etc. may be 40% maximum. Its a different issue that 70%
of the people get affected due to share market result. Similarly in today's real estate
may be 50% of Indians get affected directly but 90% indirectly. You know the real
cause of recession. Its again the same real-estate sector in The US and of course
some mortgage problem. Actually we need to understand where a regulator is
needed and where not. Three basic needs Food, Clothing & shelter - Roti, Kapda
and Maakan. Now everybody knows Regulatory body in Food and Beverage is
really important (not in India - so Pepsi and Coke are doing business - poor us, 1st
world countries do have). We don't have as such a proper regulatory authority for
Clothing (as it is cheaper here - look at any 1st world country, they have). About
home....... a dream of every man - whether rich/poor black/fair.... it takes whole life
to get a home. 65% of Indians have their own home at age of 62. Comparing with a
shirt or a burger........... This is really BIG. It doesn't mean that earlier two is less
important....... what I mean to say is that MAKAAN is no lesser important. You
invest once and thats huge. Govt. advertises about checking food quality, prices of
a commodity, and problems with auto, electrical equipments, and credit cards
and........... But I haven't seen this effort to educate people about real-estate
aggressively.
The real estate bill seeks to set up a Real Estate Regulatory Authority in states and
federal territories to oversee real estate transactions. It will help regulate sector and
bring in clarity in terms of who governs/monitors realty projects.The bill is touted
as a key reform measure in the vast real estate sector.

Here is how the new real estate bill will benefit consumers
1. As of now the real estate sector was largely unregulated in India. If a
consumer had a complaint against a developer he would had to make rounds
of consumer or civil courts. Also absence of standardization and lack of
adequate consumer protection has constrained the healthy and orderly
growth of the industry. Not anymore. Once the bill becomes an Act, in case
of any grievance, the consumer can go to the real estate regulator for
redressal.
2. The bill will make it mandatory for all commercial and residential real
estate projects where the land is over 500 sq. mt. or eight apartments will
have to register with the regulator before launching a project. By making
registration of the project compulsory with the regulatory authority, the bill
aims to provide greater transparency in project marketing and execution.
Failure to do so will attract a penalty which may be up to 10% of the project
cost and a repeat offence could land the developer in jail.
3. Developer will have to put 70% of the money collected from a buyer in a
separate account to meet the construction cost of the project. States can
increase the ceiling but not lower it. This will put a check to the general
practice by majority of the developers to divert buyers money to start new
project instead of finishing the one for which money was collected. This
will ensure that construction is completed on time.
4. It is likely to stabilize housing prices. The bill will lead to enhanced activity
in the sector, leading to more housing units supplied to the market. In the
governments opinion, the bill will bring in the much-needed confidence to
infuse more investment and, in turn, stabilise house prices.
5. The bill also seeks to impose strict regulations on the promoter and ensure
that construction is completed on time. Its purpose is to ensure that the
buyer gets the property as per the specifications that he had been promised
6. Carpet area has been clearly defined in the bill to include usable spaces like
kitchen and toilets imparting clarity which was not the case earlier.
7. A developers liability to repair structural defects has been increased to 5
years from the earlier 2 years.
8. Real estate appellate tribunals now required to adjudicate cases in 60 days
as against 90 days in the earlier proposal.
9. Regulatory Authorities to dispose of complaints in 60 days while no such
time limit was indicated earlier.

How it benefits builders:

The builders will also benefit from the proposed legislation, as it proposes to
impose penalty on allottee for not paying dues on time. Also the builder will have
the opportunity to approach the regulator in case there is any issue with the buyer.
But, builders believe that the bill was heavily stacked against them. The bill
provides for penalty, upto 10 per cent of the total project cost or even
imprisonment, if builders do not honour their commitment or fail to register
themselves with the regulator
How it works in other countries
United States
Real estate in the US is regulated at numerous levels. Therefore, there is no single
regulatory body, but rather a series of bodies that regulate different ownership and
usage aspects. To safeguard the interest of the end-users, the US. Department of
Housing and Urban Development (HUD) has rules under the Real Estate
Settlement Procedures Act to protect consumer interests pertaining to residential
properties.
Issues related to end users are not a matter of federal regulation. These are dealt
with in a legal contract. If a purchaser enters a contract with the developer, and the
developer does not deliver on the terms agreed upon in the contract, the developer
can be taken to court for breach of contract. In the US, there are state real estate
licensing laws and a code of ethics in place.
United Kingdom
There is an absence of a regulator to monitor development.The Financial Services
Authority (FSA), which is now part of the Bank of England, regulates almost all
investments in real estate. The Property Misdescriptions Act 1991 prohibits the
making of false or misleading statements on property matters in the course of
estate agency business and the property development business.
Germany
In principle, no regulatory authority exists. According to the German Civil Code,
the seller is generally liable to the buyer for damage compensation, if the delivered
property deviates from the description in a guaranty or in a brochure. The seller is
generally also liable for damage compensation in case of delayed deliverables.
Singapore
Land ownership and planning is primarily controlled by the public sector. Hence,
based on the demarcated use, the respective regulatory authority such as Housing
Development Board for residential and Jurong Town Corporation (JTC) for
industrial will regulate and guide development. Details such as the possession,

allotment date and specifications are usually set out clearly in contracts; end users
are able to undertake legal means to claim compensations.
UAE
The UAE Government is considering the establishment of a federal real estate
regulatory authority. Currently, the government does not have a body to supervise
the sector, although emirates like Dubai and Ajman have their own real estate
regulatory authorities Real Estate Regulatory Authority (RERA) in Dubai and
Ajman Real Estate Regulatory Authority (ARRA) in Ajman. The Land Department
of Dubai is proposing the Real Estate Investor Protection Law.
China
The Central Government introduced a regulation for real estate in 2010, which is
more stringent and specific than it has historically been to control the market. The
State Department of Real Estate New State 10, is a regulation which enforces an
accountability system for the local government to stabilize local real estate prices.
This is aimed at promoting the construction of affordable housing to promote
social development and enforce stability and accountability. On this basis, local
governments have introduced their own control rules in Beijing, Shanghai,
Guangzhou and Shenzhen.
The sales agreement contract specifies the area of the property being sold. In case
of the sale of residential property, a minor differential (generally in the range of 23%) in the area is permissible. In case this is not followed, the buyer can legally
get a refund from the developer. The mortgage contract is a legal document and
provides legal protection to the bank (lender) and the buyer (borrower).
The sales agreement specifies the terms and conditions for sale and determines the
legal rights of both the buyer and the seller. Apart from conditions in the sales
agreement, there are no other provisions to safeguard end-users.
Fallout of real estate boom:
The boom in the real estate saw emergence of many builders, who played upon the
emotional side of human nature to own one's own dream house, commercial space
etc. Besides the ever rising prices of the houses/flats etc attracted many to invest in
the real estate with a hope that their money will give the best returns if invested in
the real estate sector. The interest of the consumer in the real estate lead to heavy
bookings of the buildings, innovation of the concept of pre-launch bookings, the
flats/commercial space were sold while at the drawing board stage. The consumer
never bothered to check the credentials of the builder, sanctions by the competent
offices etc. Instead the consumers were led by alluring advertisements issued by

the builders, promising delivery of possession of constructed building/flat within

the stipulated time. The builders promised refund of money immediately on
cancellation, some of them also promised assured returns by way of rent.
After the bubble has burst, needless to say, the promises of the builders have gone
for six. The purchaser/consumers have paid the entire sale price/major
consideration and they are under debt of bank/financial institutions, savings have
evaporated and there is no sight of completed building. The promising builder has
vanished or has started avoiding calls; request for refunds, delivery of possession is
unheeded. Instead some builders have the audacity to demand more money on
account of alleged escalation cost with a remote possibility of possession being
handed over to them. What do poor and harassed consumers do in such
circumstances.
A cheated customer can lodge a complaint with the consumer forums pointing out
the deficiency of services by the builder. A consumer court is divided into three
forums namely, district forum, state commission and National Commission. Where
the value of the property is less than twenty lakhs, the complaint will be filed in the
District Forum. Where the value of the property is more than twenty lakhs but less
than One Crore the complaint will be filed before the State Commission and where
the value of the property is in excess of Rs. One Crore the complaint will have to
be filed in the National Commission.
In the matter of DLF Universal Ltd Vs Brig (Retd)Kamal Sood, the National
Commission, reported as MANU/CF/0069/2007 was faced with a situation,
wherein the consumer was led by the advertisement of the builder of delivery
within stipulated time and consequently on the failure to deliver, the builder
contended that government permissions, such as approval of zoning plan, layout
plan and schematic building plan were not given, thus the delay in construction
should not be a ground for grant of compensation to the consumer. The consumer
was further burdened with the escalation cost due to such delay. The Honorable
National Commission observed that it is unfair trade practice on the part of the
builder to collect money from the prospective buyers without obtaining the
required permissions such as zoning plan, layout plan etc. It was further held that it
is the duty of the builder to obtain the requisite permissions or sanctions for
construction etc in the first instance, and thereafter recover the consideration
money from the purchaser of the flat/buildings. The National Commission further
observed that if there is any express promise that the premises would be delivered

within the stipulated time and if it is not done so, escalation cost is required to be
borne by the builder.
In another matter titled as Veena Khanna Vs Ansal Properties and Industries
limited, reported as III (2007) CPJ 185(NC), the National Commission set aside an
order of the State Commission, wherein the builder was directed to refund the
money to the consumer along with the interest @ 13%. In the alternative, it was
directed that if the builder chooses to hand over the possession of the flat, the order
of refund with interest will not come in operation. The builder taking advantage of
the order refunded the money, because of the rise in the prices of the immovable
properties. The National Commission observed that refund of money with interest
at bank rate does not mean that the complainant is adequately compensated for
delay in construction of flat by the builder and not delivering the possession of the
flat. It was noted that because of the delay in construction and delay in deciding the
matter it is practically impossible for a consumer to purchase a flat at the market
price.
Complete information of how to buy a home or property:
1. How do I buy a house?
Be an informed consumer; buying a house is one of the most complicated and
expensive purchases you will ever make. As with most other things, you get what
you pay for. Look at and compare many houses in different areas. Once you have
seen something you like, assess its location. How far will you have to commute?
What is the traffic like? How does the neighborhood look? What services are
available? How good are the local schools? Will you be able to get your children
into them? What is the crime rate in the area, and what types of crimes have
occurred in the past couple of years? Visit the home on multiple occasions and at
different times of the day. Remember: location, location, location. It's one of the
biggest factors in setting the price of the home.
Before you make a written offer, know exactly what you are buying and what
the costs will be after you own it. For example, in addition to the monthly
principal and interest payments that you will have to finance the purchase of
your home, you will need to budget for utility bills, property taxes, and
insurance and maintenance costs. If you buy a home that has a homeowner's

association, you will also have to pay association fees. Some homes have
special assessments in addition to the regular property taxes. Make sure that
you ask the seller for copies of the past years" bills for these services, and that
you inquire as to whether there are any assessments scheduled to be placed on
the property in the future.
Also, check the condition of the house and any appliances, window
coverings and other items that you want included in the sale. Consider
purchasing a home warranty. For a minimum fee, the home warranty
company will insure that the house and the appliances are in working
condition. Many companies will provide coverage for washers, dryers,
pools and pool equipment, air conditioning, and some roof repairs. Your
agent or escrow holder can provide you with information on these
policies.
2. Do I need a real estate agent or an attorney?
An experienced local real estate agent can assist you in finding a home
that meets your particular needs. He or she will also have information
about the home and area that an outsider would never find just by looking
at the particular home. Most homes are listed for sale by a real estate
broker who is referred to as the seller's agent. The seller's agent
represents the seller. The agent who helps you find the home is called the
buyer's agent. Usually you will not have to pay your agent a fee for the
time and energy he or she spends in finding the home and assisting you in
closing the sale. The buyer's agent's fee will be paid by the seller when
you complete the purchase of the home.
Your real estate agent will also assist you in negotiating the price,
learning about the community, obtaining a loan, inspecting the home, and
in closing the escrow. In some instances, a real estate agent can represent
both the buyer and the seller. This is referred to as a dual agency. This
must be disclosed to you before you make an offer. It is advised that you

proceed carefully in this situation, since your agent will be working for
both the seller and you at the same time.
If you are not sure that you understand all of your rights and
responsibilities, it is advisable to see an attorney who is experienced in
the purchase of residential real estate. An attorney can help you with legal
and tax questions that come up during the purchase of the home, and can
assist you in reviewing all of the documents and reports that will be
provided to you in the process of purchasing the home. For more
information on how to locate a qualified attorney, order a free copy of the
State Bar pamphlet How Can I Find and Hire the Right Lawyer? To find
out how to order a free copy of this pamphlet and other State Bar
consumer education pamphlets, call 415-538-2280. Or visit the State
Bar's web site(www.calbar.ca.gov) where you'll find the bar's consumer
education pamphlets, as well as information on ordering them. The
pamphlets also can be ordered in bulk.
3. What information must the seller provide us?
In most cases, when you are preparing to buy a home, the seller must
provide you with a Real Estate Transfer Disclosure Statement. This is a
pre-printed form that lists many features or conditions about the home,
the land, and the area where the home is located. The seller must list on
this form any possible problems he or she is aware of that might affect
your willingness to purchase the home. This includes, for example,
easements, rights of others to control how you use the property,
environmental problems, nonfunctioning equipment, zoning and building
violations, and special assessments. The seller's agent must visually
inspect the home and report all facts that he or she feels might affect your
decision to buy this property. If you want information that is not covered
in the Real Estate Disclosure Statement or additional information that is
disclosed, put your questions in writing and ask the seller to respond in

writing.
You should review the Disclosure Statement immediately and carefully.
In most instances, you will have a limited period of time to decide
whether you wish to proceed with the purchase despite the stated
disclosures. Depending upon your purchase agreement, some sellers will
require a written acceptance of the conditions contained in the statement.
Other sellers will consider your silence as acceptance of all of the
conditions contained in the Disclosure Statement.
If you buy a condominium, the seller must give you copies of the
homeowners association's rules and bylaws, and financial statements, and
must inform you if there are any unpaid assessments. You should also ask
to see the past minutes of the association board meetings. You might find
that there are pending or future lawsuits or defects in the construction of
the complex being discussed in these meetings. All of which would affect
the value of what you are buying.
4. Should the house be inspected?
Before buying any property, it is advisable to have it inspected by trained
specialists. The kinds of inspections you need depend on the location and
condition of the property. For example, in a hillside area, you might want
a soil stability inspection. If you are buying a home built before 1978,
you should seriously consider an inspection for lead-based paint. At a
minimum, you should have the home inspected to determine if it is
structurally sound, a pest control inspection to see if the house has been
infected by termites or dry rot, and a natural hazards inspection to see if
the home is located in an area subject to fire, earthquakes or flooding.
The real estate agent can advise you about additional inspections that
might be warranted under the circumstances.
Keep in mind that while the seller has to tell you about anything he is

aware of that is wrong with the house, he is not insuring the quality of the
house; for this reason, and an inspection is a good idea.

5. How do I make an offer on a house?

Most homes are sold through real estate agents who have expertise in
valuing homes. You can also get information on home sales in your area
by visiting a host of Internet sites provided by professionals in the
industry, or by reading the real estate section of your local newspaper.
Once you have found the home of your choice and have determined how
much you are willing to pay, you need to make a deposit (called earnest
money) to show the seller that you are serious about buying the house.
The deposit is considered a down payment on the price of the home. In
some instances you may have to increase your deposit or increase your
offer, especially if there are multiple offers on the home.
The deposit is usually deposited in escrow upon the acceptance of your
offer. You submit a written offer on a form known as the Residential
Purchase Agreement and Receipt for Deposit. This form sets out the
terms upon which you are willing to purchase the property. The price you
offer on a home will, in most cases, be less than the amount you will need
to purchase the home. There will be expenses incurred in purchasing the
home that will have to be paid by either the buyer or the seller. These
include, for example, title reports, document preparation, recording fees,
local taxes, fees for inspections, escrow fees, homeowner's insurance, and
notary fees. Ask your agent or escrow officer to provide you with an
estimated closing statement. This will give you an idea of some of the
additional costs you will incur in purchasing your home. You do not want
any surprises.
6. What is a Residential Purchase Agreement and Receipt for

Deposit?
This agreement is an offer which, upon acceptance by the seller, results in
a binding contract. It should cover all of the important terms of the sale.
For example, it should include a complete description of the property and
of any personal property that will be sold with the house, such as window
coverings, kitchen appliances, washers and dryers. It should state the
exact purchase price, including the amount of your initial deposit, any
increases in that deposit, the amount you will pay in cash, check or wire
transfer, and the amount you will need to finance to complete the
purchase price. This agreement should also list any conditions that may
allow you to back out of the contract. You will want a condition that
allows you to cancel the contract if you cannot obtain a loan on favorable
terms or if the inspections reveal substantial defects or problems with the
home. You may also need a condition that allows you to cancel the sale if
you cannot sell your current home. Please understand, however, the more
conditions you have, the less likely the seller is to accept your offer.
This agreement should also set forth what will happen to your deposit if
you cancel the sale, what will happen if you and the seller have a
disagreement over the terms of the sale, and how the brokers will be paid.
The agreement should also indicate whether you are purchasing the
property in "as is condition" or the seller is warranting the condition of
the property. Take the time to go over each and every term of the
agreement with your agent before you sign the agreement.
7. Can I change my mind?
You should not make an offer to purchase a house unless you are serious
about buying it. You can, however, revoke your offer before it is accepted
by the seller. This revocation should be in writing. If your offer has
already been accepted by the seller, you may be able to terminate or
revise your offer if you are unhappy with what your inspections reveal or

if other conditions of the offer are not met.

The Residential Purchase Agreement and Receipt for Deposit contains
several provisions that discuss what will happen in the event the sale does
not go through. There is a mediation provision, an arbitration provision
and a liquidated damages provision. The liquidated damages provision
can result in you losing most if not all of your deposit (up to 3 percent of
the contract price) in the event you elect not to complete the purchase
price, and your election is without good cause. There is no provision in
the standard contract for liquidated damages in favor of the buyer in the
event the seller wrongfully refuses to go through with the sale. You do not
have to agree to this provision. Carefully discuss the pros and cons of
initialing this provision with your agent or attorney.

8. How can I get a loan?

Most home loans are made by financial institutions such as banks,
savings and loan associations, and credit unions. Other sources of loans
are insurance companies, mortgage bankers, finance lenders, mortgage
loan brokers, pension funds and investment trusts. Lenders charge
different fees and offer different interest rates so it pays to shop around.
Your agent will be able to recommend lenders in your area.
When you apply for a home loan, the lender will check your credit rating
and review your past employment, income history, and credit and debt
obligations. It will also obtain information about the property that will be
security for the loan. This will include an appraisal or estimate of the
fair market value of the home, a review of the preliminary report
prepared by the title insurance company to determine what liens,
easements and other conditions will be superior to its loan, and a review
of any taxes, assessments and zoning regulations that affect the property.

Some lenders will charge you a loan application fee, document

preparation fee, appraisal fee and other fees to consider or close the sale.
You should discuss these fees with your lender before you submit your
application.
9. What types of home loans are available?
In exchange for cash from the lender, you agree to pay interest and to
make payments over a period of time. In most instances, the property you
purchase will be security for repayment of the loan.
Sometimes a seller will offer a seller-financed or carry back deed of
trust. This financing method is often used when a seller wants to receive
income over a period of time or when lenders are stringent in their loan
requirements. The terms of these loans should be discussed with your
agent or attorney. He or she is best qualified to determine if the loan
documents and agreement meet all legal requirements.
Occasionally, you can "assume a loan or take over a loan that the seller
has been paying off. You should be careful in assuming any loan. Most
loans have an acceleration or due on sale clause. This means that the
lender can demand that the seller's loan be paid in full when the property
is sold. If you wish to assume a loan, you should have your agent or
attorney review all of the seller's loan documents and make approval by
the lender a condition to your offer.
Most home loans that are available to Californians offer one of two
interest rate structures. A fixed rate loan offers a set interest rate, so that
your monthly payment never changes. Some fixed rate loans are federally
insured or guaranteed, such as a Veteran's loan or an FHA loan. These
loans usually have a lower interest rate and require smaller down
payments. For more information on these loans, get in touch with a local
office of the California Department of Veterans Affairs, the U.S. Veterans

Administration or the U.S. Department of Housing and Urban

Development (HUD).
Another type of loan that is available is an adjustable rate mortgage
loan, sometimes called an ARM. An ARM is a mortgage loan which
provides for adjustment of its interest rate as market rate interest rates
change. The ARM's interest rate is tied to an index that reflects changes in
the market rates of interest. Some indexes used are the Cost-of-Funds
Index published by the Office of Thrift Supervision, and the Federal
Reserve Discount Rate. These loans usually have interest rates that are
lower than the fixed rate loan interest. ARMs can be complicated. Make
sure that you understand all of the terms of these loans before you agree
to accept one.
Occasionally, new mortgage plans become available that are intended to
meet specific needs of a community. These include loans for first-time
homebuyers, and loans for teachers. Check with your local consumer
affairs office and housing departments for up-to-date information on these
types of loans.
10. What occurs when I "close" on a home?
For the protection of the seller and the buyer, a person or company that
has no connection with you or the seller holds the money and papers
involved in the purchase. This procedure is called escrow. The escrow
holder's job is to make sure that all of the terms and conditions of the
agreement are met. He or she will also coordinate all of the activities of
the broker, the lender and the title insurance company. The escrow holder
will deliver the deed to the county for recording when it can pay the seller
the money. Escrow services can be provided by title companies, banks,
savings and loan associations, independent escrow companies, realtors or
lawyers.

The escrow holder does not act as a mediator, a lawyer or an advisor. The
escrow holder is required by law to remain neutral. Its only job is to carry
out the terms of the escrow instructions. In Southern California, escrow
instructions are signed when the escrow is opened. They are modified
throughout the course of the escrow as the agreement between the buyer
and seller change. In Northern California, escrow instructions are
executed just prior to the close of escrow. These instructions should be
clear and certain as to the intentions of the parties and the duties of the
escrow holder. Make sure your Purchase Agreement does not conflict
with your escrow instructions. If they do conflict, the escrow instructions
may be considered your final agreement as to the terms of the purchase. If
you are uncertain as to what the instructions say, discuss them with your
agent, your lawyer, and the escrow holder.
After the close of escrow, the escrow holder will provide you with
a Settlement Statement. This document will show you, as the buyer, all
of the costs incurred by you in purchasing the property. You should
review this document carefully and save this statement for later. Many of
these costs may be deductible from either your state or federal taxes. If
you have any questions or concerns about the charges you incurred,
contact the escrow holder immediately and ask for an explanation.
11. How should the title to the home be held?
Prior to the close of escrow, the escrow holder will ask you how you wish
to hold title to your new home. How someone holds title will affect what
will happen to the property in the event of the death of one of the owners.
It also will affect whether certain taxes will be incurred or whether a
probate of the estate will be necessary. You should discuss your options
with a tax specialist and your agent before you make your selection.
You can hold title to the home by yourself, as separate property, with your
spouse, as community property, or with your spouse or a third party, as

joint tenants or tenants in common. You can also hold title to the property
in a family trust. For more information on the different forms of
ownership, see the State Bar pamphlet Do I Need Estate Planning? To
obtain a complimentary copy of this pamphlet, mail a self-addressed
envelope (with 55 cents in postage) to the Estate Planning, Trust and
Probate Law Section, The State Bar of California, 180 Howard Street,
San Francisco, California, 94105-1639. For information on ordering
multiple copies, call 1-888-460-7364.
12. Do I need title insurance?
Title insurance is necessary for your protection when you buy a home. It
is, however, not a guarantee that problems will not arise after the close of
escrow. When you make an offer to buy a home, you, as the buyer, have
the right to choose the title company. This decision should be based on
the local office's expertise, and the company's record for fairly handling
claims under its policies. You should discuss these issues with your agent.
Once you have chosen a company, you should make one of the conditions
of the close of escrow clear title to the property. "Clear title" means that
when the sale to you is completed, the title to the property will be free
from liens, judgments and other claims that you have not agreed to
accept. You should also discuss with your agent the need for a survey of
the property and title insurance coverage for boundary line disputes. In
many instances, especially in rural areas, boundary lines are not where
they should be. A survey and survey coverage can help eliminate future
disputes with your new neighbors.
Before a title company issues an insurance policy, it will make an
investigation to find out if anyone besides the seller claims to own the
property. It will also search the public records for claims against the
property. The title company will provide you with a report, called
preliminary report. You should carefully review this report to determine

if it describes all of the property you are interested in buying. You should
also review this report and determine what items you are willing to accept
when you purchase the property and what items you wish removed or
taken care of as a condition of the close of escrow. If you are uncertain as
to what the report says, you should discuss the matter with your agent, the
escrow holder and/or your attorney.
There are different kinds of title insurance available. Often the difference
in cost for the better policies is nominal. "Basic" or "Standard" coverage
is, in most instances, not the best policy available. For an additional onetime cost or no charge at all, you can obtain protection for losses resulting
from illegal construction, zoning violations, unrecorded liens, prescriptive
easement claims, and post policy forgeries. Be aware that different
companies charge different rates. Discuss with your agent and the escrow
holder what policies are available in your area and the differences in
prices on each of the policies.
3. RESEARCH METHODOLOGY:
What is research?
Research can be defined as a scientific and systematic search for
pertaining information on a specific topic. We define research as the
systematic design, collection, analysis and reporting of data and findings
relevant to a specific situation facing the company. The main aim of
research is to find out the truth which has not been discovering yet.
3.1 OBJECTIVES OF THE STUDY
Project has mainly three following objective1. To determine the customers perception.
2. To determine the customers expectations.

3. To determine the problems faced by the customers while buying a

house.
3.2 SCOPE OF THE STUDY :
The project undertaken makes me able to improve my professional skills
and expertise. It helps me in getting an idea of Real Estate industry and
its importance in our life. It increases my confidence on professional
ground by dealing with high profile corporate that are very hard to
convince. As for as companys benefit is concerned, this project helps
company to know its market condition and level of competition. Also it
helps in creating awareness to consumers regarding property documents
and in promotion of their services.
In order to accomplish the objectives of the project a survey has been
conducted amongst customers of the real estate market. The survey is
based on questionnaire filling method and limited to some parts of Delhi
and NCR region. The survey is restricted to the information needed to
show legal, technical and financial transparency between project
developer and customer.
TYPE OF RESEARCH: - Exploratory and Descriptive.
Exploratory research is a type of research conducted because a problem
has not been clearly defined. Exploratory research helps in determine the
best research design, data collection method and selection of subjects.
Given its fundamental nature, exploratory research often concludes that a
perceived problem does not actually exist.
Its seeks to find out how people get along in the setting under question,
what meaning they give to their actions, and what issues concern them.
The goal is to learn what is going on here?
On the other hand Descriptive research is aimed to find the complete
description about an existing problem or phenomenon.
RESEARCH DESIGN :A survey research method was the basic research design. I interact with

personally to people through questionnaire filling method. Questionnaire

is having questions regarding the respondents basic information such as
contact details, designation, what type of information they want from real
estate project developer and Government, what type of documents they
check while buying or searching property.
3.3 DATA COLLECTTION METHODS :1. Primary data are collected through questionnaire method which is
design to keep in view the objective of the study.
2. Secondary data is collected through internet sources, research papers,
and published reports by various institutions.
3.4 DATA PROCESSING:Daily data was entered into MS-Excel sheets. After the exhaustion of the
specified geographical area this data was analyzed using SPSS ()
graphical and tabulation techniques. The data sheets mentioned here are
attached in the annexure of the report.

Q: How much are you satisfied from real estate marketing information
provided by real estate companies?
With the help of above pie chat and table it is clear that majority (42%) of people
are dissatisfied and very less proportion (1%) of people are highly-satisfied with
the marketing information provided by the real estate companies . Many people
who are satisfied with the marketing information provided by developer ,they were
saying that Real estate companies does not want to share each marketing detail but
also some real estate companies does not want to hide any marketing detail if
customers asking about them. 21.3% people are neutral, 31 % people are satisfied
and 4.3 % people are strongly dissatisfied from the marketing details provided by
the real estate companies. The reason of this strange result in simple languages is
as follows-

 Builders do not give complete marketing information in their broacher.

Marketing information provided by real estate developers is condition based.
In the marketing information broacher, developers do not share the negative
side of project.
The paper work is a bit different from that of the actual work.
We can make most of the customers satisfied by
1. Creating awareness about all the marketing details.
2. By asking the developers to provide each (negative and positive) marketing
detail without any terms and conditions in their broacher.
3. By making the people aware of all the legal and technical documents which
are needed while going to buy a house.

10: What all documents you should look before buying house?
Peoples are now very conscious about property document. They were saying that
while buying or searching property they check property document, but since most
of them do not know the all property document required to check thats why there
is need to create awareness about property document and builders should show the
entire property document to customers themselves.
While survey generally people gave name of fallowing property document

Link chain ownership document.

Registry
Map approval doc.
Kheshara- Khatauni
Sale deed
Intakhap paper
Paper shows approval from government authority
Paper of agreement between buyer and seller
No objection certificate (N.O.C.)
Acquisition letter

 Payment receipts
Power of attorney of land.
Q: What are your expectations from the web portal?
The responses to this question were varied, like people said they

They didnt know.

They wanted Transparency.
They Wanted the Web portal to provide the complete information.
Some said they want the timely information.
Some wanted the Web portal to highlight the full information of the
Developer.
Some even wanted all the legalities to be cleared by the Web-portals and
then displayed on it.

Q: What Problems have you faced while Dealing with the REAL ESTATE
DEALERS..?
There were varied Responses to this question
Majority said that they wanted to get rid of the brokers.
Some said they wanted the Developers to display their complete information
on line and to the customers.
There were people who wanted Hidden costs to be absent.
Some wanted to get rid of the false promises.
Almost all of the people wanted that the Developers should show
transparency and provide them with each and every form of information
which they wanted.

4. FINDINGS AND CONCLUSION:-

4.1 Findings:
Most of the people are dissatisfied from the real estate marketing
information provided by the real estate companies, but very few people are
strongly satisfied.
89% people are checking legal status of construction while buying/
searching a house.
Some of the people check delayed delivery penalty clause while buying a
property.
70.7% people want to check details of booking before buying or searching
house.
Most of the people have chosen PRINT MEDIA & BROKERS as a source
of information while buying or searching for a property.
People who have chosen internet, print media, brokers, and personal
reference as a source of information for searching house or property are
more satisfied compare to the other sources of information.
There is great demand of 2, 3 BHK house in near future in DELHI and NCR
region.
Most of the people chose information related to the property documents as
their first preference compared to the marketing details of the project, past
record of builder and new policies of govt. related to real estate sector.
Most of the people wanted the government to make policies in terms of
legal, technical and financial aspects which could create transparency in real
estate sector.
Most of the people know only the names of few property documents and
they check only these documents while searching a property.
A number of builders do not want to show the property documents to the
customers.

4.2 CONCLUSION:Now a days people who go for buying a house have become more aware about
what they should look for and the information they should seek, and are more
concerned about the selection of the right type of house for them. But majority of
the people are still unaware of the documents which they should look for before
going to buying a house. Here I have collected the perception and analyzed the
expectations of the general public as a whole. The conclusion thus is that people
need to be more aware of all the documents, the total legalities, and collect as
much as information from the builders, and then only they can do their investment
with a free mind.
Thus because of the above reasons there is a need to create awareness among the
customers as well as project developers to give the customers the complete
information and the role of TRUSTED PROPERTY to educate people is
appreciated in this regard.

5. SUGGESTIONS:
On the basis of my findings, I want to make certain recommendations as follows
Recommendation to build homes Pvt. Ltd.
First and foremost, the database generated through the project should be put
to effective use through continuous follow-ups to the potential customers. A
follow-up should be made on the industry potential as a whole as well.
Company should provide information according to peoples need and
necessity. And for that they can open daily polling on their web portal.
Company should not always try to attract the new customers only, but should
also take feedbacks from existing once, and try to remove their problems and
learn from their experience.
Company should make more contact with contractors and Architects to tap
more builders.

Recommendation to customer
Customers should check all the legal and technical documents and not only
the marketing details of the builders/project, before buying or searching
house.
Customers should go through all the terms and conditions of the project
developed.
Customer should be aware of the governments policy related to Real
Estate.

Recommendation to Project Developer (Builder)

Builders should show their legal and technical documents to the customers,
to make them satisfied because most of the customers want to check it and
this also helps in creating a unique identity of the developers.

6. LIMITATIONS: Un-availability of the desired personnel was the biggest constraint to this
study. Although appointments were made and followed up where possible
but still there were instances where the desired people were either
unavailable or unwilling to meet.
No prior information regarding the addresses or other details of the offices to
be visited was provided, thus a few target persons were left uncovered.
This project is completed in six weeks, so due to time constraints it was not
possible to cover all the area of Delhi and NCR region and mainly Delhi
area was covered followed by Noida , Ghaziabad and Gurgaon.
Some dealers were hesitating to give supportive data. Some of them ignored
the questions which were supposed to be filled by them. Thus affecting the
scientific accuracy.

 Since the data is not evenly collected from the NCR region hence there is a
chance of biasness.

7. BIBLIOGRAPHY
Referred Books:
Kothari C.R.- Research Methodology New Delhi Tata McGraw Hill In
(95-102)
Kotler Phillip Marketing management analysis, planning implementation
and control.
Schiffman Leon G.& Kanuk Leslie Lazar, "Consumer Behavior", Prentice
Hall of India 6th edition
Singh HarpreetResearch Methodology-Kalyani Publishers.(page no. 1-8,
68-102)
Referred Websites:

www.apekshagroup.co.in
www.trustedproperty.org
www.indianrealestateforum.com
www.google.com
www.scribd.com
www.propertywala.com
www.indiatimes.com
www.buisnessstanderd.com
www.economicstimes.com