CHAPTER 1

Structure:

Introduction to the Subject Matter

 INTRODUCTION TO THE SUBJECT MATTER

y 1.1. What is the meaning of consumer behavior in the real estate industry? y 1.2. Why study of consumer behavior in the real estate industry? y 1.3. Why I choose Prime Realtors?

 1.1. What is the meaning of consumer behavior in the real estate industry?
Most real estate study is based on neoclassical economics. Consumers are expected to make decisions that maximize utility and wealth, given price and income constraints. Tastes and preferences are typically inferred from observing outcomes of consumer actions. However, the study of real estate can, and in some ways already does, benefit from inclusion of consumer behavior concepts. Incorporation of these concepts into real estate education would help explain and predict the behavior of real estate decision-makers. Most real estate study is based on neoclassical economic theory t hat assumes people make rational economic decisions about renting and buying real estate as part of their attempt to maximize utility. Most real estate researchers and educators do not examine the human influences that real estate consumers have on real estate demand. Instead, most real estate educators continue to approach the market from a production orientation rather than a consumer marketing orientation. Analysts stratify real estate markets by property types that are defined by physical construction rather than consumer benefits. Property is valued based on physical attributes rather than consumer perception of the space, atmosphere and linkages. However, residential and other real estate customers such as retail tenants often consider nonfinancial, perceptual factors in selecting a site (Smith, Gararino and Martini, 1992). Rather than ignore the human element of decision-making, or put all aspects of nonfinancial decision factors in a black box called tastes and

preferences, real estate students, teachers, researchers and practitioners can benefit from integrating the study of consumer behavior with the economic approach to real estate. Greater knowledge of real estate consumers and their behavior will lead to better understanding and prediction of decision-makers actions in the real estate market. The purpose of this article is to present some of

the most common consumer behavior concepts and explain how integration of consumer behavior theories and understanding improves real estate study. The examples emphasize residential real estate; however, consumer behavior concepts can assist in better understanding behavior in other real estate sectors, the mortgage market and investment as well.

 1.2. Why study of consumer behavior in the real estate industry?

Consumer behavior is the study of individuals, groups or organizations in obtaining, using and disposing of products and services, including the decision processes that precede and follow these behaviors (Engel, Blackwell and Miniard, 1995). Consumer behavior examines not only consumers actions, but also the reasons for those behaviors. On a macro level, marketers are interested in demographic shifts as well as society s values, beliefs and practices that affect how consumers interact with the marketplace. On a micro level, consumer behavior focuses on human behavior and the reasons behind these behaviors. Thus, concepts drawn from sociology and psychology figure prominently in the study of consumer behavior. The following sections describe these concepts as they are applicable to the development of an increased understanding of real estate decisions in a consumer behavior context.

o Consumer Choice and Decision-Making:

Much of the study of consumer behavior focuses on consumer choice. Utility theory in economics and attitude theory in social psychology have strong similarities and constitute a basis for examining consumer decision and choice processes. Consumers purchase products and services for the benefits derived from their use. While the study of economics focuses on outcomes, consumer behavior emphasizes the process. Rather than assuming perfect conditions,

researchers of consumer behavior explicitly recognize the i mpact of situational elements on behavior and the variance among individuals faced with the same conditions. Most real estate purchases and leases are considered high involvement goods1 that require complex decision-making.2 Thus, the three major comprehensive models of complex consumer decision-making (Nicosa, 1966; Engel, Kollat and Blackwell, 1968; and Howard and Sheth, 1969) would be applicable to most real estate decisions. These models trace the psychological state and behavior of a consumer from the point at which he or she perceives a need through the purchase and use of a product to satisfy that need. The following sections examine some of the key elements of these models: information search, evaluation of alternatives and decision rules.

 1.3. Why I choose Prime Realtors?

The work culture at Prime Realtors is based on the fundamental belief that employees are its most important asset. Respect and genuine concern for each employee in the organization is the basic principle on which the organization functions. They believe that by givi ng mutual respect, recognition and trust, open communication, transparency and opportunities for growth, employees will perform to their fullest potential and will be sincere, dedicated and committed to their jobs. Prime Realtors offers to their employees a wide range of benefits to make work and life more enjoyable, this includes monetary rewards in recognition of excellent work.

CHAPTER 2
Structure:

Introductions to the Industry

 INTRODUCTION TO THE INDUSTRY

y 2.1.About Real Estate Industry y 2.2.Present Scenario of Real Estate In India y 2.3.Present Scenario of Real Estate In Kolkata

 2.1. About Real Estate Industry:

Real estate is a legal term (in some jurisdictions, such as the United Kingdom, Canada, Australia, USA, Dubai, Trinidad and Tobago and The Bahamas) that encompasses land along with improvements to the land, such as buildings, fences, wells and other site improvements that are fixed in location immovable. [1] Real estate law is the body of regulations and legal codes which pertain to such matters under a particular jurisdiction and include things such as commercial and residential real property transactions. Real estate is often considered synonymous with real property (sometimes called realty), in contrast with personal property (sometimes called chattel or personality under chattel

law or personal property law). Real estate is a legal term that encompasses land along with those improvements to it such as commercial and residential structures, roadways and ports that are all fixed in location. Meanwhile, construction is the process of building new infrastructure on real estate. Given their close inter-linkages, these sectors are often treated as one. Far from being a single activity, large scale real estate development is a feat of multitasking by a wide host of professionals, including financial analysts, legal experts, project managers, construction managers, design engineers and project architects, amongst others. The modern trend in construction design has been towards the integration of previously separated specialties, especially among large firms who offer themselves as "one-stop shops" for construction projects. In the past, architects, interior designers, engineers and developers were more likely to be entirely individual companies, even in the larger firms. Presently, a firm that is ostensibly an architecture firm may have experts from all related fields as employees, or it may have an associated company tha t provides each necessary skill. These

design firms then work with the legal firms and financial companies to develop complete solutions. However, in some situations the term "real estate" refers to the land and fixtures together, as distinguished from "real property", referring to ownership of land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof. Real property is typically considered to be immovable property. The terms real estate and real property are used primarily in common law, while civil law jurisdictions refer instead to immovable property . In law, the word real means relating to a thing (res/rei, thing, from O.Fr. reel, from L.L. real is "actual," from Latin. res, "matter, thing"),[3] as distinguished from a person. Thus the law broadly distinguishes between "real" property (land and anything affixed to it) and "personal" property (everything else, e.g., clothing, furniture, money). The conceptual difference was between immovable property, which would transfer title along with the land, and movable property, which a person would retain title to. The oldest use of the term "Real Estate" that has been preserved in historical records was in 1666.[3] This use of "real" also reflects the ancient and feudal preference for land, and the ownership (and owners) thereof. Some people have claimed that the word real in this sense is descended (like French royal and Spanish real) from the Latin word for 'king'. In the feudal system (which has left many traces in the common law) the king was the owner of all land, and everyone who occupied land paid him rent directly or indirectly (through lords who in turn paid the king), in cash, goods or services (including military service). Property tax, paid to the state, can be seen as a relic of that system, as is the term fee simple. However, this derivation of real is a misconception.

 2.2. Present Scenario of Real Estate In India:

The real estate sector in India is of great importance. According to the report of the Technical Group on Estimation of Housing Shortage, an estimated shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12) provides a big investment opportunity. According to a report Emerging trends in Real Estate in Asia Pacific 2011', released by PricewaterhouseCoopers (PwC) and Urban Land Institute (ULI), India is the most viable investment destination in real estate. The report, which provides an outlook on Asia-Pacific real estate investment and development trends, points out that India, in particular Mumbai and Delhi, are good real estate investment options for 2011. Residential properties maintain their growth momentum and hence are viewed as more promising than other sectors. ULI is a global non-profit education and research institute. Further, real estate companies are coming up with various residential and commercial projects to fulfill the demand for residential and office properties in Tier-II and Tier-III cities. For instance, Ansal Properties has several residential projects in cities such as Jodhpur, Ajmer, Jaipur, Panipat, Kundli and Agra. Omaxe has also planned around 40 residential and integrated township projects in Tier -II and Tier-III cities, majority of them being in Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan and Haryana. The growth in real estate in Tier-II and Tier-III cities is mainly due to increase in demand for organized realty and availability of land at affordable prices in these cities. According to the data released by the Department of Industrial Policy and Promotion (DIPP), housing and real estate sector including cineplex, multiplex, integrated townships and commercial complexes etc, attracted a cumulative foreign direct investment (FDI) worth US$ 9,405 million from April 2000 to

January 2011 wherein the sector witnessed FDI amounting US$ 1,048 million during April-January 2010-11.

 Growth potential:
India is currently the second fastest-growing economy in the World. The Indian construction industry has been playing a vital role in overall economic development of the country, growing at over 20% CAGR over the past 5 years and contributing ~8% to GDP. In 2005, the sector generated around 31 million jobs (of which only ~1 million were generated by the organized sector). With the growing quantum of domestic and international capital inflow, economic growth is likely to continue, a nd with it, the demand for infrastructure to maintain and accelerate this trajectory. As a result, the public sector has remained a big investor in this sector, given the acute shortage of infrastructure in India compared to the requisite level required to achieve the next growth target. The Government of India proposes to achieve 9.0% GDP growth during the Eleventh Plan period. To achieve growth of this scale, adequate infrastructure is the most basic requirement. In order to overcome the current constraint of insufficient modern infrastructure, the government is developing a program for infrastructure investment through both public and private sectors, and expects to more than double public investments from ~1.2% of GDP in FY07 to 2.8% by FY12. It is also partnering with private companies on initiatives such as the ultra mega power projects and Golden Quadrilateral project.

 Future prospects
Taking cue from the Government s ambitious projects lined up for the Eleventh Plan period, the demand for construction is expected to grow by at least 8-9%, and 2.5 million employment opportunities per annum are expected to be generated. Those looking for opportunities for accelerated learning and progress would be rewarded heavily.

There is a need for the full spectrum of employees from directly linked professionals like civil and mechanical engineers and architects to per -day wage construction workers and indirectly linked industrial workers such as steel and cement manufacturers to highway toll booth operators. It would be wise to join a leading Indian company or a multi-national with a local presence, even at the starting level, as there is significant scope for training and rapid upward movement through the ranks for talented individuals. 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

10

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 concep t 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:

11

The notification specifies that no construction activity to be taken up, in spite 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 landowners without putting undue financial burden on State/ Central Government son land acquisition for public purposes. Today, a builder is governed by Agriculture

Land Ceiling Act even after the land has 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 ,

12

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:
tax in relation to construction of residential complexeshaving more than 12 houses has 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 .

 2.3. Present Scenario of Real Estate In Kolkata:

Kolkata property: the present day scenario

the recent property scenario of India is showing a downfall in the property graph, however, Kolkata is exceptional in such case. The real estate scenario in Kolkata is still going strong amidst the low prices in other metropolises. It is beyond expectation for many that the Kolkata property prices are soaring with each passing day. For example, the south Kolkata apartment s price has raised up to Rs 800/ sq feet in the last six months. Similarly, the properties in the Bhowanipore area falls into the Rs 3000/ sq foot at present in comparison to the previous price of Rs 2200/sq feet. According to the market analysis, there are a few areas that have seen an outstanding development in the field of property like the Prince Anwar Shah Road, Ballygunge, Elgin Road etc. There are several factors that are the reasons behind such a price hike such as huge demand and limited supply of various real estate options, new projects that are coming up, improved condition of connecting roads etc.

13

If you are planning to buy a property in Kolkata, then there are a few questions that might pop up in your mind such as which location should you buy a property, etc. Here is a list of some renowned places in Kolkata along with a brief description of the place. Bhowanipore is one of the posh localities of south Kolkata. This place harbors the wealthy immigrants of Kolkata. It is one of the most luxurious and posh places in the entire Kolkata. A lot of celebrities resided here, Satyajit Ray, Uttam Kumar etc. Also one of the true heroes of the countryNetaji Subhash Chandra Bose resided here. Kolkata residential market continued the upward momentum seen at end of last year, giving rise to remarkable sales and new launches in the past couple of months. The combination of low interest rates, affordable housing values, rebounding consumer confidence and greater supply has all led to the solid performance of the market. The pent-up demand came from the end users as well as investors who had tightened their belt during the economic slowdown. As sentiment improved so did turnover. With more than 95% of the ongoing projects, affordable housing sector is still driving the Kolkata residential market. The most affordable price in this segment is in the range between Rs. 1600 to Rs. 2300 per square feet. Around 20 to25 medium to large affordable housing projects such as Srijan Midlands in Jessore Road, Parvati Garden in Birati, Garden Enclave in Baguihati, Diamond City-West, Purti Colours in Behala, Green Field City in Shibrampur near Behala, Purti Flowers, Eden City in Maheshtala, Devaloke De Casa, Rajat Flora, P.S. Srijan Sonargaon, Sugam Shabuj in Narendrapur and Sonarpur, Kolkata South Universal City in Baruipur, Kolkata West Heights in Howrah and so on are currently under various stages of construction in the Kolkata market. The modern day amenities such as club, auditorium, children s play area, jogging track, landscaped garden, gymnasium and swimming pool etc. are being provided at an affordable price with almost all the projects.

14

Ballygunge is an up market area of Kolkata. This place earlier had villas and bunglows. Presently they have been replaced by high rise apartments. But still, the property prices around this area are very high due to the history of the place. Eastern Metropolitan Bypass and the Rajarhat suburbs are also areas which have seen a sudden rise in the real estate prices in the recent years. Along with these areas, Prince Anwar Shah Road, Elgin Road are also pretty happening places and therefore have seen a rise in the demand in the property market.

There are also other places like Dankuni, Howrah, Bat anagar etc are in the suburbs of Kolkata and they too have seen an encouraging growth in the price. Many NRI investors are willing to invest a huge sum for building property here. This is a reason why some great projects are happening here. Most of the old and new residential projects across all segments have experienced higher volume of sales transactions over the 1st two quarters of 2010. The increasing in sales volume has helped fuel pretty significant gains in average property prices. However, the price growth was not uniform across the market. In Kolkata, the average quarter on quarter residential price growth was around 6.33percent at the end of second quarter of 2010. Kolkata residential market divided between regions such as East, Central and New To wn have experienced price growth above the Kolkata average and those with lower than Kolkata s average price growth, including North, South, South Central, South East, South West and Howrah. Areas like EM Bypass (22.00%), Ballygunge Circular Road (15%), New Town (21.82%), Loudon Street and Theatre Road, Elgin Road (10.75%) saw the strongest quarter on quarter price growth. While areas to the South West and South of the region such as Alipore, Behala, Batanagar and Jadavpur had seen no quarter on quarter price growth. Areas to the North, South East, South Central and Howrah witnessed marginal growth in average price from the 1st quarter to the 2nd quarter of 2010.

15

CHAPTER 3

Introductions to the Company

Structure:

 Introduction to the Company

y y y y y y y y 2.1. Company Profile 2.2. About the Prime Realtors. 2.3. Specialty of Prime Realtors 2.4. Vision and Mission 2.5. Achievements 2.6. Market Presence of Prime Realtors 2.7. Services of Prime Realtors 2.8. SWOT Analysis of Prime Realtors

16

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17

2.1.1.History Venturing into Saree business in 1976 is the brainwave of Mr. Kanayalal Raghani. With sustained efforts, professionalism, and handful of employees, he has carved out a niche in the market for sourcing materials from Surat and Bombay for the Calcutta Market. In 1986, he spread the business in Andhra Pradesh, Tamil Nadu and Kerala with new suppliers. In 1997, he established this organization with the help of his two sons Mr. Deepak and Mr. Dinesh who offered their services in1988 and 1990 respectively. Later, Mr. Dilip joined the organization with his sharp business acumen.

2.1.2.Network With an intense base of network with small and big suppliers, we maintain a consistent flow of demand and supply chain. This widespread network allows us to sell our materials to a large number of traders, wholesalers, and retailers. We manage this vendor chain in an organized form that too in both national and international markets.

 2.2. About the Prime Realtors:

Driven by the philosophy that marketing properties would be for facilitating the right property to the user, a social concern to address and not merely a profitable venture, the company was formed (2008). In a time when most of the business ideas were crashing due to the turbulent time we opted to lay the genesis of Prime Realtors. Not because we wanted to prove our strength but to serve the society when it was very difficult for them to rely on people and their promises. we knew it from the day one that to continue Prime, apart from your professionalism and well versed stats; the bond of trust has to be insured with all our associates and customers. We are blessed that we were welcomed then, because property is dealt with TRUST.

18

You are being introduced to Prime Realtors, a property brokerage company, promoted by the Raghani Group, a trusted name in Textile Brokerage since 1980.The group has excellent relations build on mutual respect and trust with the associates of the Textile community. They are developed an age old textile clientage only on the basis of trust. And we now look forward to meet more new individuals of the society through the way of reality and assure them of our best services in this concrete jungle. The company has been launched with a vision to provide comprehensive and reliable property solutions to the investor community at large. They would cater to all the needs and requirement s of our clients under one roof be it sale, resale and rental of properties both residential

and commercial; sole selling of projects; lease rental and joint ventures of lands and plots; managing the property portfolio; land bank management.

 2.2.1. Head Quarter:

y 27, Marquis Street, Siddha Villa, 1st Floor, Kolakata 700 016

y Operation Head Quarter: 12/1, Lindsay Street, 2nd Floor, Kolkata 700 087 Phone: 033 64603333, 93307 33333 Website: www. Primerealtysuperstore.com

 2.3. SPECIALLITY of PRIME REALTORS:

 Their team will provide ultimate personalized solutions with a good
understanding of client s specific concerns.

 They locate perfect property, through our expertise which meets

your specific requirements.

 They do not compromise on quality of services rendered and our

professional charges irrespective of the size and value of the deal.

19

 They believe in long, trustworthy and crystal clear relationships.  2.3.1. FACTS:
It gives us encouragement when we see that relieved smile on our customers family to provide the best of services and keep advising them ways to make real estate dealings simple and profitable.

 2.4. Vision and Mission Of Prime Realtors:

 2.4.1. Vision:
To provide comprehensive unselfish and reliable property solution to the community at large. Our blueprint for success lies in our ability. We believe in achieving excellence in our every effort. This relentless pursuit of excellence helps us to maintain the highest quality standards in our services and thereby uphold the trust of our clients. It has forever been our endeavor to become the most progressive name in the real estate industry. A vision fueled by our ability to deliver quality, professionalism and value to match the best from across the globe.

 2.4.2. Mission:
Their mission is to be the leading real estate services company in India by providing our clients the most efficient and effective systems and services, combining international reach with local expertise, to help save client s time and money. We are committed to take short but steady steps to achieve undeniable brand equity in real estate industry. In our endeavor to become a trusted name for real estate services, we also plan to taste the waters in real estate development, and other such potential areas in future.

 2.5. Achievements Of Prime Realtors:

20

Their achievements till date are the following projects which they have completed as well as ongoing under sole marketing:

 North Kolkata:
y SUHASINI RESIDENCY developed by Bholenath construction at Kestopur y UTTAM TOWER developed by Liberty Real Estate Pvt Ltd. At Ultadanga y GREEN WOOD PREMIUM developed by Loharuka Group Kaikhali y NEER MANI developed by Mani Group at Beliaghata Bypass y PRASAD EXOTICA developed by Prasad Group at Kadapara Bypass y DIAMOND GLORY developed by Diamond Group at V I P road Shree Bhumi

 South Kolkata:
y MOORE HEIGHTS developed by Belani Group at Moore Avenue y CAPRICOREN TWINS developed by Capricorn Group at New Alipore y DHANSREE RESIDENCY developed by Dhansree Group at Kalighat y MERLIN CAMBRIDGE developed by Merlin Group at Prince Anwar Shah Road y JUBLEE PARK developed by P S group at Tollygunge y AAKANSHA developed by Trinayani construction at Tollygunge

 Rajarhat:
y SIDDHA PINES developed by Siddha Group at Rajarhat Main Road y SIDDHA TOWN developed by Siddha Group at Narayanpur y IDEAL VILLAS developed by Ideal Group at Rajarhat New Town AA - I y IDEAL ABASAN developed by Ideal Group at Narayanpur y DREAM RESIDENCY developed by Jain group at Rajarhat Main Road

 South Kolkata (Extension):

y 4 SIGHT MANOR developed by Ganguly Group at Garia y DREAM ARCADIA developed by Jain Group at Sonarpur St. Road

21

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y CONVENT CORNER developed by elani group at onvent Road y SUNRISE TOWER developed by Sureka Group at eliaghata y IDEAL NIKETAN developed by Ideal Group at angra

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y ACTIVE ACRES developed by Ruchi Group at angra y EDEN EXOTICA developed by Eden Group at Nayabad y ROOPKATHA developed by Pasari Group at asba

projects at present under marketing

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22

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Prime Realtors had proved their ability, strength and presence in olkata real

feedbacks from many customers, corporate and developers in dealing with residential flats in outright or rented commercial spaces in offices of showrooms and lands.

eam Strength: 5 team members in the

following break-up:

Prime Realtors currently has team strength of

estate market in last

years. In this short period they achieved many positive

23

        

Firm Management: 02 Business Development: 05 Land and JV: 01 Residential Sales: 19 Residential Renting & Leasing: 01 Retail Leasing and Sales: 01 Office Leasing and Sales: 07 Accounts and Finance: 01 Support: 09

 2.7. Services of Prime Realtors:

 2.7.1 Residential Sales Re-sale and Lease
Talk to us when you are searching for apartments to buy, either first sale apartments or re-sale apartments. We work for all major developers and would provide you a gamut of options, first sale or re-sale, to choose from. In the event you would like to sell your apartment, we could be of help getting you synergic buyers. We also do residential leasing, so do get in touch if you are looking for an apartment to lease, or would want to have your apartment leased.

 2.7.2 Corporate Office Sales Re-sale and Lease

The Lemongrass Office Leasing Team is most probably the only team in Kolkata with the largest combined man-years of office leasing experience. We have worked for most of the major corporate, Indian and MNC, who have leased offices in Kolkata. As a team we have helped lease more the 15, 00,000 sq.ft. of office space during our combined tenure of office leasing exposure. We have indepth relationship with the supply side, developers and investors, and hence are equipped to provide you the best possible synergy in terms of cost of occupancy.

 2.7.3 Services for Individual and Institutional Investors:

24

Pre-launch/Soft Launch Offers: We get information of soft launch/pre-launch offers of Grade-A residential and office buildings much before the market does. Hence, we provide our investor clients lucrative investment options at rates which make tremendous investment sense. Do get in touch with your contact details and we shall keep you updated with these offers as and when they come. Rental Backed Investments: We would offer you Grade-A office space assets with rental income. Do get in touch with your contact details and we shall keep you updated with these opportunities as and when they come. Research: Institutional investors looking for inputs on the market, product, pricing, positioning and distribution before planning investments into real estate are provided with customized research as per job scope. Hospitality Management Contracts: We work with all the major hospitality chains operating in India. Do get in touch in the event you would like us to engage in sourcing you management contracts, private equity, overall inputs for your operational and proposed hospitality assets. Most importantly office space leasing as a domain requires specialized domain knowledge, which we have in abundance.

 2.7.3 Services for Developers & Builders

Project Marketing Advisory: In today's market scenario, where there is more supply than demand, a project needs to market well. This includes the product, the pricing, the

25

positioning and the distribution strategy. We have been involved in strategizing the above marketing mix for years during our previous and current assignments. Do involve us while you are planning a project and we shall add significant value by virtue of our proven experiences. Joint Ventures and Land: Do get in touch to check if the opportunities we have matches what you are looking for. Private Equity: We work with funds looking for opportunities. Let us know if you have a proposal.

 2.8. SWOT Analysis of Prime Realtors:

STRENGTHS WEEKNESS

Team of professional having technical expertise, past experience in the field of marketing, Finance, Project audit and Media for real estate sector. A wide other realtors. range of services to the

Failure to curve the activities of the unorganized sector. Lack of project developer s support in providing the legal and technical documents.

By creating awareness regarding the Marketing details, legal and technical document of the project make consumer more satisfied. In recent years, organized sector has increased its share in the market unorganized sector. OPPORTUINITIES TREATS

   

The growing population of India. People are becoming more aware.

Tough competition amongst real estate agent as a lot of new entrants has joined the bandwagon. Some illegal services provided by the Broker. Government policy.


Rapid urbanization.


Increasing trust of people on real estate agent

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CHAPTER 4

Need of Regulatory Body in Real Estate Industry in India

Structure:

 Need of Regulatory Body in Real Estate Industry in India

y 4.1 Subprime Crisis in the case scenario in India y 4.2 Significance of a Regulatory authority in Real Estate Sector y 4.3 Impact and Conclusion

27

He major reason for the failure of US government in containing the spread of Subprime crisis was the absence of a regulatory authority, which could have made a systematic study of real-estate fundamentals and thereby could have possibly assisted in the recovery of the entire economy by providing inputs. Today the entire world has seen the impact that one nation can have over the others and despite the collapse and recovery of global markets, every nation in its best interest is putting in consistent effort to recover the depression in the economy. In India RBI for Banking, IRDA for insurance, NABARD for agriculture, SEBI for stock market, UGC for education, TRAI for telecommunication or any other sector which is open for business, Government agencies like the above mentioned have played an important role over the years in setting up the fundamental rules for successful functioning of these businesses while protecting the consumer interest of the people. However there are still many major sectors, in which the government intervention is felt, needed, debated, discussed but still never implemented especially in the case of realestates. Cutting the long story the government must pay an i mmediate attention in stabilizing real estate sector through a formation of a regulatory authority that can be a competent body to control and regulate the real-estate related concerns like taming the prices, discouraging monopoly and other unfair practices in business The private players in the real-estate in order to fill their kitty are elevating the price of real-estate properties to sky-high in the name of investment, making it impossible even for a common man or even an institution to afford for a dream property without depending on the cash lending institution like banks and others.

 4.1 Subprime Crisis in the case scenario in India

28

Though the economic analysts are of the view that the global depression of 2007will have a lesser impact on Indian economy, with all due respect I would defer from being so optimistic as the possibility of private companies (one of the major employers) resorting to job-cuts is still a very much a possibilities in India, if not a reality. Most of the pillar industries and others in India are very much dependant of foreign collaboration and FII or other international investment. So if foreign investor s pullout with their investment from India, the Indian companies might have to resort to job cuts to reduce expenditure. Job cuts will raise the number unemployed individuals in the country who may eventually turn defaulters towards the banks; more over this will also see an impact on DDI (Domestic direct investment). The banks with little option may have to resort to repossession of properties from their clientele for default in payment and this practice may extend all over the nation (on case to case basis). When people are not interested in real-estate possessions it will bring the property prices to a rock bottom or being optimistic to their fundamentals. In any case the economy of the entire nation will feel the crunch as land is an essential and heavily invested factor of production.

 4.2 Significance of a Regulatory authority in Real

Estate Sector
y A regulatory authority can either be government represented body like the RBI (Reserve Bank of India) or Independent body like the AMFI (Association of mutual funds in India). y Irrespective of any structure the organization must be empowered to outline a framework and structure to its members. y It must also educate its members as well as the common man in a proper manner to take an informed decision. y The regulated body must also be able to impose sanctions on a member fonon-compliance to its rules.

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y It must also be able to keep the price of the properties at constant and fundamental values. Recognition must be giving for the price range fixed by this regulatory body, so that the competition and competency is not affected at the same time speculation on real -estate deals is averted. y Mandatory eligibility criteria must introduced at entry level so that land shark sand land grabbers along with opportunistic traders have less scope for creating unwarranted speculation in the real-estate sector. y It can also function as an advisory counc il for the governments both at state and central level assisting them in the formulation of economic policy. y Just like any other regulatory body it must encourage, entice and affiliate its member for following the best business practices in the industry. y The Body must function on par at corporate-levels and must professionally its operations. y Over a period of time it can also undertake studies with its international counterparts so that the bar of standard can also be raised at the same time this regulatory body gets a world over recognition.

 4.3 Impact and Conclusion:

Despite of the corporate existence in the country, real-estate still is among the unorganized sector due to the absence of a code of conduct in the business. Organized business sectors provide transparency in business transaction as there is a systematic procedure for dealing at every phase; hence there is a less scope for illegal operations to take place. But the realtor price has sky rocked due to the loophole in the systems; moreover every other person involved in illegal or anti-national practice invests a great deal of Black money in properties as it is regarded as a Blanket investment . Institutional involvement in asset

30

misappropriation was also seen in the case of former Satyam Chief Ramalinga Raju s account. Such kind of investment goes unnoticed by the government authorities while scrutinizing an individual, group or an institutional account because of manipulative paperwork s. But a ordered regulatory system can easily fill all such kind of escape routes for the undesirable transactions. Realtor has become a safe haven for the presence of Land grabbers or Land Sharks who form an unconventional medium between the buyers and seller. These anti social elements can be totally erased from the realtor system due to assessment and accountability from the regulated body. The implementation of this system can impact the overall economic system as well, on one hand the industries can retain their profit margin regardless of reducing the cost of production, and on the other the consumers will have a less burden of inflation as a result of cheaper commodities. If and when a regulatory body for real estate comes into existence, Indian economy can have a faster revival since the price of the real-estate and infrastructure directly corresponds with the cost of the output. Further when the price of the land comes back to the fundamental levels it will also boost the industrial expansion and provide alternate job-opportunities for common man.

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CHAPTER 5

Calls for Regulatory Body in Real Estate Industry in India

Structure:

 Calls for Regulatory Body in Real Estate Industry in India

y 5.1 Developers Propose Self Regulatory Body for Indian Realty

32

The real estate industry in India is calling for a national property regulatory body to make the profession more transparent and deal with the increasing number of complaints. It is felt that as the property markets show sign of recovery and economic forecasts for 2009 are better than expected, then sales are likely to increase and therefore the number of problems. 'There is a need for an efficient and focused regulatory body to overlook the functioning of the real estate sector in order to insure the future development of the industry and safeguard consumer interests in line with international benchmarks, 'said Assocham, the industry body. A real estate regulator would ensure that the consumer grievances against developers, development authorities, real estate agents and financial institutions are addressed without any delay, it added. The real estate industry is still some way behind other emerging property markets. A huge hole at present is the absence of full escrow account facilities to protect the buyer from unscrupulous developers. Assocham said is should be made mandatory to ensure transparency in real estate transactions. The real estate industry maintains an escrow account for developme nt of a project, purchase of real estate units and honoring property charges. This needs to be extended to cover the principles of honoring property charges, insurance liabilities and maintenance charges on a regular basis. A spokesman said that changes are urgently needed as the real estate market starts to recover. It said that people are slowly purchasing, but only for personal use rather than for investment purposes. This means they are genuine buyers rather than speculators. The growth is confirmed by the Confederation of Real Estate Developers Associations. 'In the last few months the real estate market has undergone major changes. The slowdown that migrated from the US has corrected in India now. Whatever pent up demand there was in the market has started converting into business,' said Mr. Santosh Rungta CREDAI president.

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 5.1 Developers Propose Self Regulatory Body for

Indian Realty:
The National Real Estate Development Council (NAREDCO) has proposed setting up a self regulatory real estate authority to avoid interference of government. There are plans being drawn for its formation. The authority is believed to function at four levels centre, state, district, and town, informs R.R

Singh, Director General of the council. It will also seek the corporation from the stakeholders who will help in its representation. There will be ministries of urban development and housing, real estate companies, urban poverty alleviation, and Delhi Development Authority along with other land managing bodies. Few days back, the government was planning to bring a watchdog for real estate industry which will make developers accountable to buyers. Proposal for the authority has come following in the same footsteps. There is a dire need for such a self regulatory authority and not the government controlled regulatory bodies in Indian property market, adds Singh. As an autonomous body, its main responsibility will be setting the guidelines for real estate developers and also prescribe disciplinary action. The Centre has recommended formation of a central real estate regulatory body exclusively for National Capital Region. The authority will then provide guidelines for state, district, and urban authorities looking after the management of real estate. Everyone is well aware of the fragmented nature of Indian real estate. If there are renowned and proficient builders then there are fly by night operators as well. There is a need for greater transparency in the sector to prevent malpractices like construction of unauthorized buildings. An independent regulator with clearly set guidelines and directives to follow ensure fair competition and protection of interest of builders, investors and consumer on the top.

34

However, different people have different opinions regarding formation of a separate authority to look into the issues and matters of real estate sector. The self regulation authority may not be effective in bringing the required transparency in the market, says Ramachandran, secretary, ministry of urban development. Considering the increasing prevalence of wrong practices in the sector, it has become necessary to come up with a regulatory authority. Recently, property agents across India have come together to form a national association, the National Association of realtors India, to self regulate fragmented sector of realty. If the plans for formation of a regulatory authority fall in green box, all builders have to follow the rules and regulations like developing earthquake resistant and environment friendly buildings.

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CHAPTER 6

Model Real Estate (Regulation Of Development) Act

Structure:

 Model Real Estate (Regulation of Development) Act

y 6.1 Key provisions of the model act y 6.2 Analysis y 6.3 Conclusion

36

The Union Ministry of Housing and Urban Poverty Alleviation ( Ministry ) has published the draft Model Real Estate (Regulation of Development) Act ( Model Act ). The Model Act, as the name suggests, proposes to lay down what is expected to be a regulation for adoption by all states within India. The Model Act proposes to establish a regulatory authority to control and promote construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties.

 6.1 Key provisions of the model act:

The key provisions of the Model Act have been summarized below:

 Establishment of a Real Estate Regulatory Authority:

The Model Act provides for establishment of a Real Estate Regulatory Authority ( Regulatory Authority ), to comprise of a Chairperson and two members to be appointed from amongst persons having special knowledge and professional experience in the field of public administration.

 Registration with the Regulatory Authority:

The Model Act provides for compulsory registration of all real estate projects where: i. The area of land proposed to be developed exceeds one thousand square meters; or ii. The number of apartments proposed to be constructed exceeds four. For obtaining registration, besides furnishing other details and information, thePromoter1 would have to furnish a bank guarantee equal to 5 % of the estimated costs of development works to the local authority or other authority

37

having power to give permission for construction or development of land. The registration is valid for three years. Where delay in completion of the project is for reasons beyond the control of the Promoter, he can seek 2 renewals of 1year each.

 Obligations of Promoter:
The Model Act defines rather exhaustively who can be termed a Promoter and goes on to detail the obligations and responsibilities of the Promoter. The key obligations include: i. To make available to all persons intend to buy a plot or apartment, all information and documents relating to the property. This would include a full and true disclosure of the nature of the title which has to be duly certified by a revenue authority not below the rank of Sub divisional Magistrate.

ii. File with the Regulatory Authority, copy of every advertisement or prospectus he intends to publish or issue for inviting persons to purchase plots or apartments and make advances or deposits for the same. iii. Upload on the website of the Regulatory Authority, all details of the project and the names of property dealers or brokers dealing in the project. iv. Enter into a registered Agreement for Sale in a specified format, with the allot tee intending to purchase the plot or apartment before accepting any deposit or advance. Not mortgage the plot or apartment without the consent of the person intending to purchase it after execution of the Agreement for Sale.

 Transparency and Powers of the Regulatory Authority:

The Regulatory Authority shall host the website of records of all real estate projects in its jurisdiction and shall ensure compliance of the obligations cast upon the Promoters and allottees. The Regulatory Authority has the power to

38

decide any dispute between a Promoter and an allottee regarding failure on either part to meet its obligations.

 Establishment of Appellate Tribunal:

The Model Act provides for establishment of a Real Estate Appellate Tribunal ( Appellate Tribunal ) to adjudicate any dispute and hear and dispose of appeal against any direction, decision or order of the Regulatory Authority. The Model Act also ousts the jurisdiction of civil courts to entertain any suit or proceeding in respect of any matter which the Regulatory Authority or Appellate Tribunal is empowered to determine.

 Offences & Penalties:

In order to give teeth to the provisions of the Act, penalties have been prescribed for violations of the provisions of the Act. The penalties range from up to three years imprisonment for not registering a project or for not complying with the orders of the Appellate Tribunal to monetary penalties which may be ascertained on a daily basis for noncompliance or as a percentage of the development costs or sale price.

 6.2 Analysis
This Model Act is a welcome step as it seeks to bring in much needed

transparency by seeking to regulate the so far unregulated real estate sector in India. When enacted, it will provide considerable relief to the ordinary investor who has to go through many obstacles in purchasing property and at times is even duped by small developers, builders or brokers. By imposing strict obligations on the Promoters, the Model Act seeks to ensure that construction is completed in a timely manner and on completion the buyer gets the property as per the specifications that he had been promised. Further, by seeking to establish the Regulatory Authority and Appellate Tribunal, the Model Act

39

provides for a forum where disputes could be heard by a specialized expert body, which would result in expeditious dispensation of justice. Litigation in India is known to be prolonged process and only remedies available to a consumer in a dispute with a developer are to file a suit in a court of law or approach the consumer courts. With the enactment of the Model Act, the consumers will now be able to have their grievances redressed through a specialized body. The Model Act also ensures that allottees do not default in making payments and the Promoters receive periodical payments. By providing for penalties for both the Promoters and allottees, the Model Act seeks to ensure than non compliances would be minimal. Thus once enacted, the Model Act will ensure that all real estate transactions are carried out in a just, fair and lawful manner. Furthermore, the Model Act makes an Agreement for Sale compulsorily registrable. The Indian Registration Act, 1908 does not provide for compulsory registration of an Agreement for Sale since such an agreement by itself does not create any interest in immoveable property but merely gives the right to obtain another document, which when executed would create right, title and intere st in immoveable property. Through various amendments in local state laws a few states in India have provided for compulsory registration of the Agreement for Sale. However, with the enactment of the Model Act by the States all Agreements for Sale would require mandatory registration, so far as purchase of properties under the new law are concerned. This would further protect the interests of property purchasers.

 6.3 Conclusion
Though the Model Act is a boon for property purchasers, it has however received much criticism from developers for not providing relief for them in getting permissions and approvals expeditiously. The developers in India have long complained about the delay and difficulty in obtaining approvals for

40

construction from various government agencies and the need for single window approvals. This issue has not been addressed in the Model Act. The Model Act also does not make it clear whether it will be applicable only to projects where construction has not been commenced or also to existing projects where development has already been initiated. Lastly, though the Model Act provides for a list of disclosures to be furnished by the Promoter, the list could be made more exhaustive so as to bring real estate practices in India in conformity with the best practices of the western world.

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CHAPTER 7

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. I need to emphasize consumer is not helpless and should no t allow the builder to run over him. He should fight for his right, the law of land supports him

42

in this regard. The Consumer Protection Act, 1986, will come to the rescue of such erring builders and will force the builders to pay compensation to the consumer, handover the possession of the flat booked/alternative flat in the same locality and will ask to builder to bear the cost of escalation, if any, on account of rise in price of constructing a building. The purchaser/buyer is a consumer within the meaning of the above mentioned Act and failure of the builder to hold on to the promise made at the time of booking in delivering possession etc would constitute deficiency of service. A cheated customer can lodge a complaint with the consumer forums pointing o ut 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 there quire 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

43

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 direc ted 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. It was held that it was the duty of the state commission to direct the builder to deliver the possession of the same flat or flat of similar size to the consumer with compensation for delay in delivering the possession. Or in any circumstances, adequate compensation ought to have been given so that the complaint could purchase a new flat of the same size at the prevailing market rate. Mere payment of interest is not an adequate compensation.

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CHAPTER 8

Complete Information Of How To Buy A Home Or Property

Structure:

 Complete information of how to buy a home or property

y 8.1 How do I buy a house? y 8.2 Do I need a real estate agent or an attorney? y 8.3 What information must the seller provide us? y 8.4 Should the house be inspected? y 8.5 How do I make an offer on a house? y 8.6 What is a Residential Purchase Agreement and Receipt for Deposit? y 8.7 Can I change my mind? y 8.8 How can I get a loan? y 8.9 What types of home loans are available? y 8.10 What occurs when I "close" on a home? y 8.11 How should the title to the home be held? y 8.12 Do I need title insurance?
45

y 8.13 Congratulations!

 8.1 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 i nquire 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

46

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.

 8.2 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 hav e 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 inclosing 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 t hat 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.

 8.3 What information must the seller provide us?

47

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 home owners 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.

 8.4 Should the house be inspected?

48

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.

 8.5 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

49

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.

 8.6 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

50

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.

 8.7 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.

 8.8 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.

51

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, are view 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.

 8.9 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 sellerfinanced 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. 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

52

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 Costof-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 those 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.

 8.10 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 escro was 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

53

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.

 8.11 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 tenant s or tenants in common. You can also hold title to the property in a family trust.

 8.12 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

54

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 there port 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 one-time 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.

55

 8.13 Congratulations!
Whether you are purchasing a home for the first time or for the fourth time, the day of closing should be a cause for celebration. And since a portion of your purchase price is paying for the agents and the escrow holder's expertise, utilize their services throughout the process leading up to the day of closing. Ask questions; ask for an explanation of any item you do not understand. Request copies of any documents you do not understand; keep copies of all documents relating to the purchase of your home. And, if necessary, seek advice from a qualified real estate attorney or tax advisor. Asking questions during the purchase of your home will help insure that you and your family will enjoy your new home for many years to come.

56

CHAPTER 9
Structure:

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
y y y y y y y

9.1. Title Justification 9.2. Objective of the Study 9.3. Scope of the Study 9.4. Data Collection Methods 9.5. Sample Design 9.6. Data Processing 9.7. Significance of the Study

57

 9.1. Title Justification

 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. The real estate sector in India has assu med growing importance with the liberalization of the economy. The consequent increase in business opportunities and migration of the labor force has, in turn, increased the demand for commercial and housing space, especially rental housing. People looking for a new home have started focusing on the upcoming NCR area comprising Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad.

Interest in real estate has increased dramatically in recent years. I n addition, approaches to real estate investment and financing continue to expand and evolve. There are now a myriad of ways of investing in real estate. These include purchasing properties directly as an individual or with other investors in a partnership, or investing in the stock of publicly traded real estate companies. The latter companies, called real estate investment trusts (REITs), develop and own properties throughout the nation. Investments can also be made in mortgage loans that are used to finance real estate. These investments could include making a mortgage loan (as a lender) or purchasing publicly traded mortgage-backed securities (residential or commercial). This book prepares readers to understand the risks and rewards associated with many approaches that may be used when investing in and financing both residential and commercial real estate. Concepts and techniques included in the chapters and

58

problem sets are used in many careers related to real estate. These could include investing, financing, appraising, consulting, managing real estate portfolios, leasing, managing property, analyzing site locations, and managing corporate real estate. This material is also relevant to individuals who want to better understand real estate for their own personal investment and financing decisions.

 9.2. Objective of the Study:

Project has mainly three following objective:

 To determine the consumer s behavior in the real estate sector , when

they will getting to buy a property or investing a property .

 To examine, evaluate and document the problematic situations arising

between the real estate developer and customer.

 Propose solutions or remedial measures to bridge the information gap

between real estate developer and customer.

 9.3 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 company's benefit is concerned, this project helps company to know its market condition and level of competition. It also helps in creating awareness to consumers regarding property documents and in promotion of their services.

59

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 Kolkata & various region of West Bengal. The survey is restricted to the information needed to show legal, technical and financial transparency between project developer and customer.

 9.3.1 Type of Research:

y 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 notactua1ly 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 y Descriptive research is aimed to find the complete description about an existing problem or phenomenon.

 9.3.2 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 respondent's basic information such as contact details, designation, what type of information they want from real estate project

60

developer and Government, what type of documents they check while buying or searching property.

 9.4 Data Collection Methods

 Primary Data:
There are many methods of collecting primary data which is design to keep in view the objective of the study and the main methods include:

 Questionnaires  Interviews  Focus group interviews  Observation  Case-studies  Diaries  Critical incidents  Portfolios.  Secondary Data:
Secondary data is data that has already been collected bysomeone else for a different purpose to yours. For example, this could mean using:

 Data supplied by a marketing organization  Annual company reports  Government statistics  Research papers  Internet sources  Published reports by various institutions

 9.5 Sample Design

61

Study of the geographical area comprising of Kolkata, Howrah, Assansole, Burdwan and Siliguri were undertaken. It has tried to cover corporate offices of different industries in these regions. Generally I met with the employees related to The top management of the companies. The sample size consisting of 317employees of these regions.

 9.6 Data Processing

Daily data was entered into MS-Excel sheets. After the exhaustion of the specified geographical area this data was analyzed using SPSS & Minitab.

 9.7. Significance of the Study:

Consumer has an enormous impact on a company or industry's growth. What impacts consumer behavior can have many different factors involved for a company or certain goods and services? Such factors may include media hype (both good or bad), poor production methods, bad advertising campaign, acts of nature, war, etc.

For instance, earlier this year when a few batches of fresh spinach were found to be contaminated with Ecoli even the news media warned about buying the usually good for you healthy produce actually advising consumers to not eat raw spinach period. This made a heavy impact on Central Cal ifornia's agricultural market. Another example would be the slowdown of consumerism in America after 9 11. Fear literally paralyzed every market and Industry in the nation.

62

These are some more extreme and dismal portrayals of consumer behavior, but I think it shows exactly what the power of consumer behavior means in the marketplace.

63

CHAPTER 10

DATA ANALYSIS AND INTERPRETATION

Structure:

DATA ANALYSIS AND INTERPRETATION

y 10.1. Profession & Age of Samples y 10.2. Property Wish list and Budget1 y 10.3. Critical Analysis of Questionnaires

64

10.1 Profession & Age of Sa p es

 Profession: I target to meet with service class people because they are educated and they are having capability of buying house or any e perience of buying house or any property. uring survey I visited to many Government and Privet offices to meet with people who can give me proper response of my uestionnaire. I met with

business. Profession Govt. Sector Private Sector Business Others Total Frequenc 5 6

317

100

able:3

igure: 1

Percentage 5.8 .6 6.3 0.3

.6 %(

6) people are doing Private services and 6.3% (

total

people out of which 5.8% (5 ) people are doing Government services. ) people are doing

Cumulative Percent 6.1 3.7 100.0 0.3

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 Age: I met with people having different age. ut generally I choose to met with people having age more than 30 years .Because they have bought house or they are in process of buying any house. he people I have met most people belong to age group of 35 to 0 years and having 5.4 % and people belonging to age group 5 to 30 years having (least) l.3%.People are in age group 30 to 35 years and more

than 40 years are having 11.7% and 41.6 % respectively. Age Group 25 0 Yrs 0 5 Yrs 0 5 Yrs Above 40 Y Total Table:4 Frequenc 4 37 144 132 317

Percentage 1.3 11.7 45.4 41.6 100

igure: 2

10.2 Property Wishlist and Budget

Case Processing Summery Valid Percent 100.0 Cases issing N Percent 0.0 0.0 Total N Percent 317 100.0

Pref. location &House types

N 317

Cumulative Percent 1.3 12.9 58.4 100.0

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Table:5 Location and Type of house Cross-tabulation Type of House 1BHK 2BHK BHK 4BHK Others 24 0 8 42 45 4 2 6 19 1 2 19 11 22 6 1 28 24 14 111 9 0

Location Kolkata Howrah Assansole Siliguri Burdwan Others Total Table:6

Total 66 101 58 1 28 17

rom the above table and graph given below it is clear that currently there is

consider location criteria.

igure: 3

Relation between type of house and consumer preferred price level: From the response of people it is clear that price of type of house depend upon location and furnishing level. But from statistical analysis we can get fallowing results:

great demand of 3BH

& 4 BH

and also demand of 1BH

and 2BH

if we

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 Most of the people want 1 BH in 15 to 20 1akhs and some wants in 20 to 251akhs &very few people wants in 30 to 35 1akh.  Most of the people want 2 BH in price range of20 to 25 lakhs & 25 to 30lakhs.  Most of the people want 3 BH in price group of35 to 40 lakhs, 45 to 50 lakhs & 50 to 55 lakhs.  People want 4 BH in the range of55 to 60 lakhs.  There is not great demand of Penthouses and Bungalows in any region other than olkata.  Most of the people who are doing job or having business if wants to purchase3BH or 4BH prefer luxury house.

10.3 Critical Analysis of Questionnaires

Q1: How much are you satisfied from real estate marketinginformation provided by real estate companies? Satisfaction Level Strongly Satisfied Satisfied Neutral Dissatisfied Strongly Dissatisfied Total Table:7 Frequency 15 129 81 61 31 317 Percentage 4.7 40.7 25.6 19.2 9.8 100 Cumulative Percent 4.7 45.4 71.0 90.2 100.0

Figure: 4

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With the help of above pie chat and table its is clear that majority (40.7%) of people are satisfied but very less proportion (4.7%) of people are strongly 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. 25.6% people are neutral, 19.2% people are dissatisfied and 9.8 % 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 fallows:

 Builders are not giving complete marketing information in there

brusher.

 Marketing information provided by real estate developer is condition

based.

 In marketing information book developer does not share negative side

of project.

 Paper work is little bit different from actual work.

We can make most of the customers satisfied by:

 Creating awareness about all the marketing details.  Developers provide each( negative and positive) marketing details
without any terms and conditions in their brochure. Q2: Do you check legal status of the construction when you search/buy property?

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Statement Yes No Total Table:8

Frequency 261 56 317

Percentage 82.3 17.7 100

Cumulative Percent 82.3 100

Figure: 5

construction while buying or searching house! Property and rest 17.7% people are not checking legal status of construction of house or property. It is clear that most of people are having awareness about this and they (Respondent) were saying that builders are not in intention to provide this information. Builders were saying that information about legal status of construction are obvious, because we (builder) are constructing project after checking all legal construction criteria. But many people were saying that some builder for their own profit they construct house without checking legal status of construction. So builders should share information related to legal status of construction with customers to make them more satisfied. Legal status of construction includes:

 Earthquake resistance  Fire clearance  Water harvesting  Other government restriction and lease.

nn

fter survey I found that 82.3% people are checking legal status of

 R

structure (per square mixture ratio used)

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Correlation between Q1 & Q2: From the graph given below it is clear that the customers who are satisfied with marketing information provided by real estate companies they are checking legal status of construction while buying house or property and the people who are not checking legal status of construction they are generally neutral and dissatisfied. So its shows that people who are all ready aware about the what information should be in marketing detail book they are satisfied with the marketing detail provided by the real estate companies.

Figure: 6 Q3: Do you check for existing clause while purchasing a property?

Statement es No Total
Table: 9

Frequency 257 60 317

Percentage 81.1 81.9 100

umulative Percent 81.1 100.0

Figure: 7

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From the above pie chart and table I can conclude that most of the people (81.1%)are checking exit clause while purchasing a property and remaining (18.9 %) are not checking the exit clause. Some developers say that exit clause depends upon the size of the deal, complexity of the project and the environment in which the project is exists. Peoples (respondent) were saying that the economic and credit climate has meant the rise of the "exit clause" in commercial and residential real estate deals, a fine print item that got little play before now. Though the proliferation of deals is limited these days, the ones in the market are getting extra scrutiny from lenders, landlords, tenants, brokers and sellers. On the other side, developers are canceling or delaying projects to hold onto what cash and lines of credit they have on hand. It all boils down to the money. Correlation between Q1 & Q3: From the graph give below it is clear that people who are checking exit clause while purchasing a property they are satisfied with the marketing details provided by the real estate companies and vice-versa. So to make customers more satisfied builders should provide information related to exit clause in marketing detail brochure.

Figure: 8 Q4: Do the Real Estate developers give possession timely?

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Statement
es No Total Table: 10

Frequency
127 190 317

Percentage
40.1 59.9 100

umulative Percent
40.1 100.0

The answer of majority was not in favor. Out of 317 people, 190 said No to

Q5: Do you want to check details of booking before buying or searching house?

Statement es No an t say Total Table: 11

Frequency 224 49 44 317

Percentage 70.7 15.5 13.9 100

umulative Percent 70.7 81.1 100.0

Figure: 10

qp

this comprising of 59.9% of the whole population. Whereas 127 said

es .

o q

Figure: 9

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People say that checking details of booking is very important homework before buying house. By checking details of booking they (respondent) can get fallowing Information:  Helps to identify the apartment of their choice.  An idea about how much funds developers are having in hand.  Idea about builder's genuinity.  Idea about which type of persons are in their neighborhood. Q6: What source of information do you prefer while buying/searching for a property? Statements Print Media TV & Radio Internet Outdoor Ad Broker Personal Ref Total Table: 12 Frequency 75 16 128 22 29 47 317 Percentage 23.7 5.0 40.4 6.9 9.1 14.8 100 Cumulative Percent 23.7 28.7 69.1 76.0 85.2 100.0

Figure: 11 Above Table and chart shows that most of the people prefer Internet (40.4 %) and Print media (23.7 %) for searching house or property. And other sources like Personal reference, Broker, TV & Radio, Outdoor advertisement are having 14.8%,9.1%, 5% and 6.9% respectively.

74

Many people say that search of property through internet is very comfortable. Because in a one click they can reach to number of builders and their projects. They were saying that mostly internet property web portal show only marketing detail of projects but if they will show legal and technical document of project so searching property through internet become more beneficial. Some people say that print media is better way of searching property because it is easily available at every where any time and also gives information about current status of project with marketing details. Many people were saying that buying or searching house or property through broker is not safe because of their dual nature .Generally they are making hype of the developer's project and hide negative side of the project. Correlation between Q1 & Q6: From graph given below we can see that people who are using internet and Print media for searching house or property are satisfied with the marketing details provided by the real estate developer. So it s clear from here generally internet, print media, personal reference and broker provides real information to customers respectively.

Figure: 12 Q7:What kind of information do you want from real estate agent?

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Consumers preference of information related to Property Document :

Figure: 13 From the above table and pie chart it s obvious that most (63.1%) of the people give first preference to property document. They (respondent) say that while searching property on real estate web portal they want to see property document of project as a first preference comparison to marketing details, past record of builder, Government new policy related to real estate sector but in real world many agent do not provide documents related to property. So, Prime Realtors playing very crucial role in filling information gap between real estate developer and customer and give customer more satisfaction. Other than this 24.3%, 10.4%, 2.2% people choose property document as a second, third, and fourth preference respectively. Consumer's preference of information related to "Past Record of Builder":

Preference 1 2 3 4 Total Table: 13

Frequency 200 77 33 7 317

Percentage 63. 24.3 10.1 2.2 100.0

Preferance 1 2 3 4 Total Table: 12

Frequency 200 77 33 7 317

Percentage 63. 24.3 10.1 2.2 100.0

umulative Percent 63.1 87.4 97.8 100.0

umulative Percent 63.1 87.4 97.8 100.0

76

Figure: 14 Above table and pie chart shows that 40.4% and 32.5% people give 4th and 3rd Preference respectively to information related to "Past record of builder" from real estate agent. Very few people choose 1st and 2nd preference as "past record of builder" among Property document, marketing details, and Government new policy related to real estate sector. Consumer's preference of information related to "Marketing Details":

Figure: 15 From the above table and pie chart I can conclude that Most of the people 37.9%and 25.2 % choose information regarding marketing details from real estate agent as 2nd and 4th preference. Other than this 17.4% and 19.6% people choose information regarding marketing details as 1 st and 3rd preference. Consumer's preference of information related to "Government New Policy related to Real Estate Sector :

Preference 1 2 3 4 Total Table: 14

Frequency 55 120 62 80 317

Percentage 17.4 37.9 19.6 25.2 100.0

umulative Percent 17.4 55.2 74.8 100.0

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Figure: 16 From the above table and pie chart I can conclude that Most of the people 37.9%and 25.2 % choose information regarding marketing details from real estate agent as 2nd and 4thpreference. Other than this 17.4% and 19.6% people choose information regarding marketing details as 1st and 3 rd preference. It is clear from above table and histogram that most of people 37.5% and 32.2% give 3rd and 4th preference to information regarding "Government new policy related to real estate". Remaining 25.6 % and 4.7% people choose it as a 2 nd and 1st preference respectively. From the above discussion it is clear that people are now more conscious about property document, marketing details of project rather than only past record of builder and Government new policy related to real estate sector. But most of the real estate web portal and project developer (builder) only provide information related to marketing details and some Government new policy related to real estate sector. So what information people (customer) want actually they do not get and it creates an information gap between real estate developer and customer (people). Q8: What all documents you should look before buying house?

Preference 1 2 3 4 Total Table: 15

Frequency 15 81 119 102 317

Percentage 4.1 25.6 37.5 32.2 100.0

umulative Percent 4.7 30.3 67.8 100.0

78

Peoples are now very conscious about property document. They were sayin g 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 that's why there is need to create awareness about property document and builders should show the entire property document to customers themselves. During survey generally people mentioned following property document:

 Draft agreement for sale  Land documents indicating ownership (Photocopies of title deeds,
Registry, Acquisition Letter, Power of attorney of land)

 Copy of lease agreement (applicable only if the property bought from a

development authority)

 Copy of approved plan.  No Objection Certificate (N.O.C.) from the developer, society or
development authority as applicable

 Clearance certificates (for completed projects only)  A certificate from builder's Chartered Accountant certifying that the
builder has not mortgaged the property anywhere else. Q9: Do you know what steps should be taken by regulatory body (Government or Private) in Real Estate sector? While doing survey I interact with many people and after asking this question generally they give me fallowing responses:

 Healthy & friendly business environment, security facility for customers  Transparency in legal terms  Safety Majors for buyer, seller and other exiting players.  Display all the guidelines & easy access to customers.  Consumer protection from illegal things.  The entire needed information can easily available to customer.  Remove corruption

79

 Create legal environment  Public supported policy  Transparency in terms of law and finance  Transparency in business  Remove illegal things  Make policy that make easy prospect in real estate sector  Reduce bank loan rate  Make everything clear and transparent  Make available all needed information while buying p roperty  Prevent crime  Remove corruption  Define all clauses in information book  To control fraud in real estate  Guide consumer in right direction  Fever able policy for buyer & consumer  Make forum to protect customer  Help common man  Give fever able majors to builders as well as customers so that they can
there interaction become easy.

 Check reliability of builders & building & support customers  Make policy to buy and sell house or property become easy  Information transparency  Create policy that can remove corruption and support end users  Make favorable policy so that people can get loan easily and trust on
Govt.

 Should make clear picture of all the agreement between developer &
customer

 Price control & remove corruption  People can get justice easily.

80

 The price level at a level so that everyone can afford a house  People can get required information from builders  Implement hard & fast rule on forum to work in a corruption free
manager

 Make policy such that customer can get right thing at right price  Periodical review of policy and make focus on its implementation  Check builder working methodology if possible fix guideline according
to this

 Give license of building to only reputed builder to stop fraud  Make necessary to each builder to fallow govt. scientifically criteria to
build house

 Review FDI contribution and set it again

It is clear from above detail that some people are aware about what kind of policy government should make regarding real estate. But most of the people had given suggestion regarding the problem which they have faced in their life. For example one respondent Mr. R.N. Singh said that government should reduce home loan rate. So there is need to create awareness about what government is doing in real estate. We can create awareness through Internet (web portal), Print media, TV and Radio.

81

CHAPTER 11

FINDINGS

On the basis of analyzed data the findings are follows:

 Most of the people (40.7%) are satisfied from the real estate marketing
information provided by the real estate companies, but very few people (4.7%) are strongly satisfied.

 82.3% people are checking legal status of construction while

buying/searching house.

 Most of the people (81.1%) 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 choose INTERNET and PRINT MEDIA as a source

of information while buying or searching for a property.

 People who choose internet, print media, broker, and personal

reference as a source of information for searching house or property are more satisfied compare to other source of information.

 There is great demand of 2, 3 and 4BHK house in near future in Kolkata

metropolitan region.

 Most of the people choose information related to property document

as a first preference comparison to marketing detail of project, past record of builder and government new policy related to real estate sector.

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 Most of the people want that government make policy which crea tes
transparency in terms of legal, technical and financial in real estate sector.

 Most of the people know only the name of few property documents
and they check only these documents while searching a property.

 Lots of builder does not want to show property document to customer.

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CHAPTER 12

CONCLUSIONS

Now people become more aware of the immense potential of information and communication. People know that buying a house or property involves more money and risk. So they want to check every aspect of information related to buying a property, but since some people do not know about the all information needed to buy or searching property and builder whatever information provided to customer either those information are not sufficient or having some terms and conditions. Because of this there are many situations arises in which customers are cheated by developers and developer cannot make customers more satisfied. So because of above reasons there is need to create awareness among customers as well as project developers to bridge existing information gap.

84

CHAPTER 13

RECOMMENDATIONS

Recommendation to Prime Realtors: First and most important, the database generated through the project should be put to effective use through continuous follow-up on the potential customers.

 A follow-up should be made on the industry potential as a whole as

well.

 Company should provide information according to people's need and

necessity

 And for that they can open daily poll 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 of builders. Recommendation to Project Developer/Builder: Builders should show their legal and technical document to customer themselves to make them satisfied because most of the customer wants to check it and it also helps to create their unique identity. Recommendation to customer:

 Customer should check all the legal and technical document not only
marketing details of the builders project before buying or searching house.

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 Customer should go through all the terms and condition of the project
developer.

 Customer should be aware about the government's policy related to

real estate.

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CHAPTER 14

LIMITATIONS

Utmost care was taken to complete the survey with accuracy but there are a few limitations of the study they include:

 It lacks specialization or expertise since the survey was undertaken for

academic purpose.

 The study suffers from geographical constraints as it was conducted

only in Kolkata and some other region of West Bengal whereas the problem includes the entire country.

 This project is completed in eighteen weeks and for academic purpose

only, so due to time it was not possible to cover all the area of Kolkata, Howrah, Assansole, Burdwan and Siliguri.

 Unavailability 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 person was 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.

 Some dealers were hesitating to give supportive data. Some of them

ignored the questionnaire which we were supposed to be filled by them due to this, affecting the scientific accuracy.

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BIBLIOGRAPHY
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OOKS

1. Kotler Philip: Principles of Management 2. Kotler Philip: Marketing Management 3. Porter E. Michael: Competitive Strategy and Real Estate Development 4. Kothari C.R.: Research Methodology 5. Schiffman Leon G.& Kanuk Leslie Lazar: Consumer Behavior

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MAGAZI

S, JOUR ALS

1. Realty plus: October 2010 2. Property World: December 2010 3. Real Estate Digest: July December 2010 4. Real Estate Market & Opportunities: A report by IBEF 5. Second Quarterly Market Report 2010: A report by NK Realtors 6. Scenario Planning for Real Estate: A report by Jones Lang LaSalle 7. Eye on Real Estate: Real Estate Update (August 2010) by Ernst & Young

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WSPAP RS
y y

1. The Economic Times - June 05 2010; August 2 2011 2. The Hindu Business Line - August 16, 2011 3. The Times of India - September 03, 2011

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4. The Telegraph - November 13, 2011

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SIT S

1. www.lemongrassadvisors.in 2. www.ibef.org 3. www.nkrealtors.com 4. www.joneslanglasalle.com 5. www.google.com 6. www.scribd.com 7. www.propertywala.com 8. www.indianrealtynews.com 9. www.indianrealestateforum.com 10. www.indiatimes.com 11. www.buisnessstanderd.com 12. www.economicstimes.com 13. www.financialexpress.com 14. www.business-standard.com 15. www.livemint.com 16. www.propertywire.com 17. www.indiaproperty.com

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