Topics

31

Real Estate / Investing in Real Estate Industry

« on: October 18, 2011, 08:31:33 PM »

First and foremost, one of the frequently arising doubts for salaried persons or businessmen is, where and how to safely invest their money. Though there are many wide range of doors open to invest one’s income, one of the ways is to invest in Real Estate Company. There are different types of real estate, and different ways to invest in them, and it is essential to combine these two factors in a means that suits our particular needs.

At the same time, before investing into real estate, analyze whether investing in a particular land, space, or building gives less returns because real estate is an asset form of investment which involves limited money relative to other investments. The major cause of investment failure for real estate is that the investor goes into negative income for a period of time that is not permanent, often forcing them to resell the property at a loss or go into bankruptcy
Here are some tips to understand how to invest in Real Estate

Rental houses an easy way to invest and it is reliable to get long term return on investment.
Purchase a property for low price in cash and sell it out in easy term for high price and high interest.
Buy large space of plot and split that land and sell it for high price.
Own a small flat or bungalow type house in college areas, tourist spot and rent it for high price which is good investment with long term returns.
Commercial real estate is long term triple-net lease which means little management, maintenance and high returns.
Know some useful facts before investing in real estate

Before deciding to invest beware of understanding present market trends.

Sometimes real estate does not sell at immediate moment, so better to analyze once or twice investing in appropriate areas.

Be sure that you have enough liquidity on hand to cover any losses due to vacancies when you are between tenants, if it is rental property.

Always keep relationship with responsible and trustworthy real estate agents.

If it is retail, lease, rent or any form, be sure to research about each and every area and their price before investing and decisions should be based upon background, personality or available assets.

Before investing in any real estate properties make sure that the decision fits into the whole investment objectives. Think about what you want to achieve financially and how soon you want to achieve it. Set objectives accordingly for proper investment and do not get impressed to get rich in quick schemes.

 

32

Real Estate / Condominiums

« on: October 18, 2011, 08:17:12 PM »

Condominiums – Would you prefer

A condominium is shortly called as condo. A condominium is one where you own a separate portion of an apartment and you can make use of facilities such as staircases, elevators, balconies, children’s playgrounds, corridors, heating systems etc. You share the ownership along with a number of owners who share a group ownership of the property. All the owners have access to the common facilities that are to be used by them.

Difference between a Condominium and an Apartment

An apartment is rented or leased but a condominium is owned by the buyer. This is the smallest and most apparent distinction between both phenomena. Even then, the term condominium qualifies to be called as a colloquial term of the self-owned apartment.

The distinction is even more abstract and exists only as an idea. You cannot say if an apartment is a condominium or if a condominium is an apartment. A Landlord, utilizing the space he has bought, builds several apartments in that block and lets the residents take ownership of the place by receiving huge sums of money that could be called as the price of the house. A landlord may also decide to build an apartment as well as a condominium at two different places.

He can collect rent from one as an apartment and with the other one; he can sell out all the houses and make it a condominium. Quite accurately, a condominium is the one where there is a huge collection of individual houses and owners get to own only the space that is for their home. They do not have rights to claim ownership on the piece of land on which the apartment is built. You also have to make some legal registrations after buying the property.

A condominium is subject to legal verifications by the local authorities. Owner of the separate housing spaces can do all sorts of changes inside his property and he has no rights to change anything at the commonly owned part of the property. Usually, condominium properties are owned by construction companies, in case of small condominium and big corporations in case of bigger condominiums.

For staying in shorter periods, a condominium is never the best option. Individual homes may cost a lot more than condominiums. So, condominiums are more suitable for those who want to own a real estate property of real value and especially if they lack necessary resources!

33

Real Estate / Careers in Real Estate Industry

« on: October 18, 2011, 08:11:03 PM »

As we know there is rapid growth in Real Estate industry, there is also lots of Career Opportunity cracking in today’s market. As a financial and professional services Company specializing in real estate, many companies are willing offer challenging career opportunities. Jobs in real estate for beginners include being a real estate salesperson, an assistant or other “starter” position in the commercial or residential market.

Job Opportunity in real estate development comprises of various areas such as commercial brokerage, residential brokerage, property management, industrial brokerage, real estate appraising, land development, urban planning, real estate counseling and real estate research. In addition, almost all construction business effectively has a link to real estate Industry.

To grow in this industry keep best contacts and effective resources to you get the job done. It is better to specialize in one particular real estate fields before looking into opportunity. One can search job in Real Estate Industry according to location because opportunity differs from one place to another. In order to get desirable position in Real Estate Company it is good update and educate about Real Estate professionally.

Many positions are created by Real Estate Industry to develop the job opportunity. One of most specialties in Real Estate Industries is Land development.
The developers use the land/plot for commercial/industrial building, government building, residential building like apartments, villas etc., shopping malls, schools/colleges.
Brokers/agents will help to sell or buy the properties.
The property managers will suggest you about the Housing Loans, Mortgage/Banking facilities available in their company.
Some of the evergreen job opportunities in this industry are in Government agencies, and in private sector like developing, Home financing, Industrial/ Commercial real estate.

A few points to note diversified factors of careers in this industry

To employ in residential sector helps people in buying and selling homes and it is one of best services a real estate agent performs. They help customers in regard of searching home, monetary transaction, saving time and still more.

And commercial real estate agents can search job opportunity into allocating spaces for office building, retail stores and ware houses. To sustain in this sector one should know the updated possible growth in particular locality.

Real estate agents need to understand different types of industries transportation, proximity to raw materials, water and power, labor availability and local building to equip them into Industrial/Manufacturing sector.

34

Real Estate / Real Estate Jargons

« on: October 18, 2011, 08:07:32 PM »

Full-service lease

This is a lease where the tenant pays rent that features all the maintenance charges, insurance, taxes and all utilities.

Gross income

The total revenue derived before accounting or deducting any expenses from the total income.

Gross lease

A special feature offered in which the landlord pays all the insurance, maintenance, utilities and tax. The tenant has to pay only the rent.
Gross Leaseable Area (GLA)

The total space which a landlord can provide for rent or lease and through which he receives rent. Spaces such as elevator, staircases and utilities room are excluded.

Gross Rent Multiplier (GRM)

This is the ratio of your purchase price in regard to your total annual revenue.

Limited Liabilities Company (LLC)

A number of investors form a legal entity to own commercial spaces that can be rented or leased.

Letter of Intent/Interest (LOI)

The voluntary offer letter from the buyer that shows his interests in buying commercial space.

Master lease

The seller signs the lease to rent the commercial space. This is more of an assurance in paying the rent.

Mixed Use

Commercial Property and Home Owning exists side-by-side. Normally, the retail and shopping stores function on the ground floors and the first floor and housing is on the upper floors.

NNN lease

The lease in which tenants pay the rent with the property tax, insurance and CAM fees.

Net Operating Income (NOI)

The income that is arrived at after deducting all the expenses such as insurance, property taxes and maintenance charges. This excludes mortgage payment.

Pad

The building in the prime location of a shopping center that attracts a lot of traffic.

Percentage lease

If you are a tenant, you will have to pay some part of your revenue along with the base rent.

Phase I Report

Banks or lenders do an inspection on the factors around the commercial space or property before providing loans. Normally, this will be about the contamination in the soil and the environment. The bank or the lender takes these steps before lending money to the commercial property.

Phase II Report

In this report, soil and groundwater are tested. This is more of an extensive investigation that tests the contamination levels in soil and water around the property.

Proforma income

The potential income when the property is leased hundred percent.

Proforma Cap rate

The potential capitalization rate assuming the property is hundred percent leased.

Reimbursement

The tenants’ share of the insurance, property tax and CAM fees which he has to pay the landlord along with the rent.

SBA Loan

The loan guaranteed by the government for properties which are not rented or when the owner is the occupant of the property.

35

Real Estate / Real Estate Commission

« on: October 18, 2011, 08:03:48 PM »

Paying Commission to Real Estate Agents

Bear this in mind that on either selling or buying a home, an individual should be aware of paying commission to real estate agents. That is, percentage rate of commission to be paid, proper channel of paying the commission, getting legal documents related to commission payable etc.

Most of the times, commissions will be paid to real estate agents by sellers, especially in case of a dual agency. A Dual agency is nothing but both buyer and seller will have the same real estate agent. Also, if there are different agents for the seller and the buyer, then both individuals have to pay commission to their own respective agents.

Percentage of Commission to be paid to an agent

Percentage of Commission may vary from country to country according to its economy. General idea on commission rate is 2% to 5% of selling price. Many customers do not have proper awareness on commission rates. In such circumstances, it is advisable to know the market rates for selling or buying a property from the concerned government regulatory offices in the locality.

By law, commission rates are to be negotiated to avoid Price fixing so that your money will be saved. Here are some tips to calculate and pay commission:
Keep your property that is going to be sold in good condition because the faster you sell, commission rates will become lesser.
If you are a buyer, it is a bit difficult to expect less commission rates but one should be aware of knowing exact commission rates prevailing in the market.
It is good to sign an agreement, if you are going with variable commission rates. That is when both the buyer and seller deal with one real estate agent.
Find an agent from a large, well-established and well-known franchisee company to negotiate their commission, and then search online for a broker offering discount in your area.
You must also be aware of the payment schedule as well as the payment options of the real estate agents. Normally, the fee ranges from 2 to 6 percent in case of flat fee or in case of dual fees.
In some circumstances, Real estate agents will take customers who are sellers of highly priced properties. Because it is profitable to these agents, if business is done by taking these types of customers. They earn more commission rate instead of normal market rate. If it is going to be dual agency, this method is less profitable.

36

Real Estate / Real Estate for Retirees

« on: October 13, 2011, 10:12:31 PM »

Those who retire from their jobs at old age always want a serene home that is just about witnessing the rivers, seas, lakes, golf courses etc. This has been the case for years and decades together. But recent studies reveal that people who are at retiring ages around 60 have changed a lot from their ancestors. There have been significant changes in the real estate behavior of the retirees.

Retirees still prefer houses at warm places, but these days the standard of living is too high. Due to inflation and recession, people are not able to afford homes at warm places that are good for living after retirement. Increased demand has led to the increase in real estate price for retirees due to which they find it hard to buy a home at these places. Hence, newer places have started to gain reputation as the real estate hub for retirees.

Cities, states and areas that are unheard of as real estate hubs are starting to find shape as real estate hubs for retired people. Also with new found energy and healthcare, retired people do not live a sober life. They start to enjoy life by doing different activities as skiing etc. Retired people have become more and more active over the past decade or so. Hence, they have started to prefer adventurous places as well.
Retirement life does not always mean a life where everything comes easy and enough money could be spent on living the rest of their lives. Post recession people all over the world, irrespective of their age, have become more and more penny-pinching. This is truer for the countries that have been very much affected by the downward trend. Hence, people now want to spend less on their living expenses.

Retired people now want maintenance and other services covered in the rent they pay or in the onetime purchase that they make of any real estate property. Money has been one of the prime determinants of the real estate behavior of the retired people. Most of the population lives on fixed incomes and when retired people quit jobs much before their retirement age arrives, and older people always need a lot of money to keep themselves healthy when medical bills are mounting high.

These things have forced older retirees to opt for low cost of living, cheap rent and low priced real estate purchase. The old age people do not require much entertainment features but do require safety measures and want to handle things easily. This can also bring down the real estate price or rent as they are not opting for feature rich houses.
 

37

Real Estate / Real Estate for Rentals

« on: October 13, 2011, 10:08:29 PM »

We always believe that real estate is for the huge houses that are bought and purchased with huge sums of money. Furthermore, we assume that the real estate as a business belongs to those who can invest a lot of money. This is true in a way, but the fact also remains that being a real estate rental agent, you do not need to have a lot of money, especially when you are a real estate rental agent!

This has been a happening business because there is a huge demand for it through the renting of apartments for those who prefer to stay put in a particular place for only a limited period of time and many of us consider renting an apartment for short stays such as vacations and business stays is the easiest, wisest and viable option.

How to attract Tenants

Okay now that you are into this business and things have not been going great guns! You have been wondering why but you have not been able to rope in parties who are willing to take the apartment. You are running short of time for you are seeking tenants for a short stay until the owners of the apartment come back after the vacation. So when you are really desperate in such situations, use the classifieds for your advantage.
It does not take more money for you to post your ad on classifieds. As soon as someone wants you to rent their house out to a tenant, post it on the classifieds and depending upon various factors, responses could be overwhelming. You can immediately start showing the tenants around the apartment and get them to pay the rent and also your fee in quick time. However, getting many responses from classifieds does not succeed alone.

You have to convert them into real time business where actual transactions take place. You must also have the pride of having finished a deal every now and then which is one of the most useful ingredients of success.
Classifieds Fails! Then try the internet!

The internet classifieds is not much of a guarantee either when you fail both in the web as well as the print medium. You cannot let that happen. You have to convert your prospects into customers and also potential customers into real customers who transact money. This requires patience and skill. But the internet is also a good source of finding new customers.

38

Real Estate / How to choose expert Home Builders

« on: October 13, 2011, 10:03:29 PM »

The best choice for building your homes is that you must seek an expert. Of course, for things that involve huge security risks and safety measures are very important. While building a house, you have to see that all safety measures are in place. Even if your house catches fire, you will need to either exit your house safely or should at least be able to put out the fire. Having safety precautions requires expert knowledge and so you should seek the right expert.

However, there is a catch! You should also have known who an expert is, how you shall call someone an expert and how to select the right kind of expert for you. Things are too abstract that it is impossible to understand who is an expert and who not. Some of the experts do not even care looking at your house, they can simply go on giving advice hearing what problem you are coming up with. With such advice, you cannot be sure whether the right advice is given or not.
You are going to invest a lot of time, effort and money into building your new house. Those who have already built houses do not worry about the kind of experts they seek as they have prior experience and know the nitty-gritty of building their homes. They would have good relationships with most of the experts and hence would not find it difficult when they need one.

But before seeking experts, many people still go to their relatives and friends as though they are the experts. This is not much advisable to solve problems or consult them for building homes. But the maximum you can seek from them is contacts of experts whom they have known or acquainted. Assuming the help of friends may be a cheap alternative but it is a highly risky one on something like building your home.

Your friends and relatives might know a few things about building your home but they are amateurs in building homes. They are not professionals in building homes. You must seek only professional advice or professional home builders. Friends and relatives are outsiders to the construction industry and they do not possess the knowledge that professional builders have. For most of them, it is a hobby to suggest things out of their experiences.

So, make informed choices and with all the knowledge you gain, make the right decisions while building your new home!

39

Real Estate / Paying Commission to Real Estate Agents

« on: October 13, 2011, 09:55:02 PM »

Bear this in mind that on either selling or buying a home, an individual should be aware of paying commission to real estate agents. That is, percentage rate of commission to be paid, proper channel of paying the commission, getting legal documents related to commission payable etc.

Most of the times, commissions will be paid to real estate agents by sellers, especially in case of a dual agency. A Dual agency is nothing but both buyer and seller will have the same real estate agent. Also, if there are different agents for the seller and the buyer, then both individuals have to pay commission to their own respective agents.

Percentage of Commission to be paid to an agent

Percentage of Commission may vary from country to country according to its economy. General idea on commission rate is 2% to 5% of selling price. Many customers do not have proper awareness on commission rates. In such circumstances, it is advisable to know the market rates for selling or buying a property from the concerned government regulatory offices in the locality.

By law, commission rates are to be negotiated to avoid Price fixing so that your money will be saved. Here are some tips to calculate and pay commission:
Keep your property that is going to be sold in good condition because the faster you sell, commission rates will become lesser.
If you are a buyer, it is a bit difficult to expect less commission rates but one should be aware of knowing exact commission rates prevailing in the market.
It is good to sign an agreement, if you are going with variable commission rates. That is when both the buyer and seller deal with one real estate agent.
Find an agent from a large, well-established and well-known franchisee company to negotiate their commission, and then search online for a broker offering discount in your area.
You must also be aware of the payment schedule as well as the payment options of the real estate agents. Normally, the fee ranges from 2 to 6 percent in case of flat fee or in case of dual fees.
In some circumstances, Real estate agents will take customers who are sellers of highly priced properties. Because it is profitable to these agents, if business is done by taking these types of customers. They earn more commission rate instead of normal market rate. If it is going to be dual agency, this method is less profitable.

40

Real Estate / Real Estate Business Requirements

« on: October 13, 2011, 09:39:46 PM »

If there is any requirement for starting a real estate business, then it has got to be money. You need to have a lot of money for the business, if you are to invest in real estate business. There are several ways and means from which you can procure money. The most primary source for anyone to find money is banks that can offer huge amounts of loans for you to start up a real estate business. Even then there are a certain requirements that need to be addressed.

Knowledge of the industry

This is not before taking loans but very much before taking the industry as a business. Knowledge of any industry is necessary before venturing in for business and real estate is one where you cannot even survive, if you are looking to start a business. The real estate requires an ocean of knowledge on the industry, the customers, the properties, the geography etc. So, it is advisable to learn all nuances of the industry before stepping in.

Money

Real estate business is not something that is best fit for each and everybody. Along with the business acumen required for the job, you have to own a large amount of money in order to merely start with the business. If you have all the necessary documents and proof for getting a loan from the banks, the banks will offer you loan with ease. The start up or the traces of your having made profit will help you get loan from the banks.

If you want to take loans from the banks, you must have paid your previous loans with a good repayment history. If you have done that, you can get loans with ease.

The Real Estate Business Acumen

As every industry requires specialized and specific business acumen and expertise, you must have learned what all is necessary to start a business that is full of specialized skills and knowledge. Your real estate business requires exactly that. It starts right from formulating your business plans and yielding the highest returns from your investments. You must be able to make a business plan that will help you sustain in the long run.

You also have to plan your initial size of investment that you can do to start up your business. The investment is solely your decision and you have to take right decisions on your investment which is the most primary requirement of all! This is where you are taking a huge risk and you need to plan your investment in the best manner possible!

41

Real Estate / Real estate Guide helps you choose the right home

« on: October 09, 2011, 10:09:37 PM »

The Real estate guide is the best choice for many reasons. Whether you are a first time home buyer or a veteran, buying home is the complex choice.

The Real estate guide will help you to figure out what kind of home you might like, which amenities are most important to you and how to estimate your price range so you don’t fall in love with a home that is too expensive, which you later regret.

The Real estate guide should contain the following information which makes your dream home real.

Home Buying Mistakes

Refusing to Confide in a Trusted Advisor

Altering Financial Pictures Prior to Closing

Buying the Wrong House

How to find the right home:

Location:

Generally the home should be less expensive and should not consume more time in traffic, if driving to the city for work and should not be away from the city.

Walking distance to hospitals, commuting services, theaters, restaurants, schools etc. Many period homes offer more distinctiveness in styles.
Interior Specifications:

Number of Bedrooms, bath rooms and bonus rooms like media rooms, art studios, children's playrooms, gyms, den/study.

Check list of Home Inspection:

Structural Elements (walls, ceilings, floors and foundation)
Exterior Evaluation (landscaping, grading, elevation, drainage, fences, light)
Plumbing ( types of pipe materials used for potable, drainage, and waste)
Electrical (types of wiring, grounding and light fixtures)
Property for Sale

Land for Sale listing

The different types of land for sale are available in the markets and various considerations are needed, when purchasing the land for sale.

Recreational Land for Sale

The Real estate buyers' guide provides you the concept of recreational property and is gaining more importance in the recent times with people showing increased interest in outdoor recreational pastimes.

Undeveloped Land for Sale

People are eager to build their large dream home on larger plots and are picking on a lot of listed undeveloped land for sale available in rural or semi-rural locations.

Real estate land for sale

Investing in a real estate land for sale is one of the safest investment options today and the most important factors to be considered before buying the real estate lands are the availability of water, accessibility to roads, sewer systems and electric service lines.

Commercial property listings

The commercial property has a lot of advantages like no need to suffer for any sudden increase in rent, increase in capital as the property gains value, tax deductibles etc. With commercial property listings, you also get a good idea on the commercial properties for sale with different options to choose from. Avail yourself of this opportunity to make an informesd choice.

42

Real Estate / Real Estate Development

« on: October 09, 2011, 10:02:42 PM »

Real estate development is a many-sided affair, on all sides of activities that range from the reconstruction and re-lease of existing buildings to the purchase of raw land and the sale of improved parcels to others. Developers are the coordinators of the activities, converting ideas on documents into real property. Also Real Estate Developers do not take the role as builders, their duty is to purchase the land, finance the deal, and then they suggest their builders under some agreement at a flat cost and they take control of full process from beginning to end.

Developers have contacts with architects, Local Registrar Officer, Planners, Engineers, Surveyors, leasing agents etc. Job of a typical real estate developer is to purchase land, analyses the marketing of the property purchased, develops the job, and follow for the approval, financing and at final stage they sell out the property.

Unless you have exposure in brokerage, banking, architecture, consulting, construction, some legal contact one cannot survive in real estate development sector. The real estate business has stretched out the career selections in the world today. Cooperating with its client to buy and sell homes, office buildings, commercial property, property management, land development, urban planning, real estate counseling, appraisal and research are all aspects of a career in real estate.
Real estate development is one of the challenging sectors in today’s scenario. One can get into this field as Architects, Planners, Brokers/Agents, Managers, and Counselors, also can find a lot of clerical jobs like documentations works, field workers etc. The developer needs to understand cost/risk/profitability per specific land deal.  Initial costs include soft costs for engineering and architectural design plus real estate commissions, zoning and planning permits, etc. A real estate developer assumes financial risk but liability tends to fall on the shoulders of the contractor, engineers, and architect.

The real estate developers by bridging the space between builders and users they pay an extremely important role in controlling unnecessary expenses and improving efficiency and effectiveness for all parties involved. Good influential real estate developers go beyond their task and work effectively to determine what buildings will be needed and where in present world.

They forecast an industrial park or shopping mall, or even an entire commercial district in a currently undeveloped area by looking into the future and estimating about the future business and consumer need. The real estate developers are ones who seek out chance and drive it to reality, and make our nation to grow. So, in future manufacturers, retailers and employers will have a home because today's real estate developers had a vision to predict their needs.
 

43

Real Estate / Real Estate Housing Buyer'

« on: August 09, 2011, 06:15:48 PM »

If you want to plan to buy a flat in Dhaka, BD? There is no easy task to Purchasing an apartment here in Bangladesh. One wrong step can drag you to lifelong pain. Write it in your checklist, you definitely need legal advice/suggestion to buy apartment in Dhaka, if you are not really good at understanding legal documents either in English or in Bangla. Formalities are safeguard for both sides. At least consult with one associated with housing business. Best will be one works for sale recovery section of a Developer(except the one you intend to buy from). Most of us did not take and are suffering as well. Here I am going to discuss only the legal issues for awareness and for self help. A group or forum or association of flat/apartment buyers or owner to discuss housing problems would be great. I  don't have much online discussion or document. All you'll find are the sites of developers with lucrative offer to hook you up to just signup with booking money.i have  learnt  from our real world experience in exchange of payment & pain. With the hope of less difficulty (pay & pain) for you, I am  here to indicate the problem areas of real estate & housing sector in Dhaka, Bangladesh from the point of view of buyer.
The bigger  (higher profile) the Developer (or real estate project) the more you should be careful as it will be more difficult to enjoy (and even have) your rights. Make sure you are not buying a Property with a Rental Agreement. Be aware of Developers! You've the right to know what you are buying. Don't listen to them that everyone signed so you don't have to be worried, this is just a standard formality. I'm telling you, there is no standard, not in real estate business of Bangladesh, no consumer right protection system. You will see it yourself if you just read the draft agreement from your developer. Your standard is what you sign. Real Estate & Housing Association of Bangladesh is known as REHAB. I don't have any knowledge of any protection by REHAB for buyers.

Deed of Agreement is a complex document;
I hope  you alone may not be capable of understanding the complete document. Take your time, and this document is the only thing that can help to protect your right & money. I cannot assure you, but you'll not regret and at least will not find yourself as an educated fool who can sign only. Developers are much more powerful than any individual like you. Thousands knocked the door of court but failed to help themselves because of signing agreement without knowing what they agreeing. So take your time. Get ready, collect data from different developers (if possible from the selected area) and stock your energy for a lengthy bargain and to increase your capacity. You have to show a lot of patience but you can negotiate. Just remember, "the more you pay, the more you loose control and the more developer gains it".
One easy solution is to buy ready flat/apartment (i.e ready to handover) with instant registration and handover. You may feel like you are paying extra but try a calculation and don't miss the weight of giant hassle and waiting..

Main Rules:
•   Do not sign any document (Deed of Agreement or Application with Terms & Conditions): Not even when you are paying booking money,
        but don't forget to take your money receipt. You'll thank me for this. Do not sign a blank cheque.
•   Do not make any payment (down payment or installment) before signing the Deed of Agreement. Ask for a draft Deed of Agreement with
        their official offer. Let your sales officer (agent) know that you'll need some time to go through the draft agreement. He'll work best for you
        if you do not pay the booking money. Remember, "the more you pay, the more you loose control and the more developer gain control".
        Getting money back is not an easy task.
•   Take your time, consult with someone best on it, make sure you understand each and every line & word of the draft. Especially when
        the sentences are long(it can be intentional & trap). Give enough attention to the following key issues:
•   Legal Description of the property: Make sure it explains the location, size, and the right to the land, common space and infrastructure.
•   Principle of all agreements: Put something like, "Purchasers are the owner of the property. If any clause or sub-clause conflicts with
        the principle will be null and void".
•   Sole Owner: The Developer (seller) herein warrants that it is the sole owner of the said real estate with a full right and authority to sell
        or dispose or transfer the rights on roads, open space and utility infrastructure in the Building/City including the said apartment to
        the  Purchaser and that no other person or persons or authority whatsoever have any claim, right, title, interest, or lien in, to or on said
        real estate.
•   Price: No where in the agreement it is allowed to escalate the price(except if you want) for any future events.
•   Payment Schedule:: Negotiate dates considering your arrangement. Mind the payment delay (default) compensation condition.
•   Compensation for delay of Handover/delivery: Consider your bank loan and other losses and condition of the compensation for delay payment.
        e.g: Whatever said in other clauses, y% per month on the total amount paid. Be attentive about the term grace period, do not allow it, or
       try to keep it as minimum as possible.
•   Management Agreement: The principal of the agreement must be "The purchasers are the owner of the Building/City" and have full
         authority to manage it, and all sorts of charges including utility & maintenance are the costs only and the costs are verifiable.
•   Documents, part of agreement: Include the Layout, plan, specification and land measurement approved by Government authority.
         (e.g:RAJUK) where property for other purchasers including future purchasers are mentioned.
•   Delivery(Handover) Date: There must be an end, even after a grace period.
•   Refund: If surrendered by purchaser or canceled by Developer or project is abandoned: To make it balanced for all, all three options
        may follow the same condition. e.g: x% on the total amount paid.
o   Compensation clause for delay of refund:Can be same as compensation for delay of handover or delay of payment. e.g: whatever said in
        other clauses, y% per month on the balance amount.
    Be careful about following conditions in any application or agreement or document you sign:
•   Delay in payment beyond the due dates will entail delay payment at the rate of x% per month on the amount of payment that is delayed.
•   In case of surrender of allotment by buyer or cancellation of an allotment by the Developer due to default in payment of installments by
        the buyer/purchaser or any other reason, the amount paid to the Developer shall be refunded after deducting x% of the total price only
        after resale of the apartment in question.
•   If the completion period of the project is affected by unavoidable circumstances like natural calamities, political disturbances,
        non-availability and price hike of materials, non-payment of installment in time by the buyers and any other force majeure circumstances,
        the buyer will not be entitle to any compensation.
•   If, for any reason beyond the control of the company, the project is abandoned, the company will refund the paid amount to the allottee.
        In such eventuality, the allottee will not be entitled to any compensation or damage whatsoever.
•   The buyer has to take written permission from company before carrying out any modification work.
•   You've no guarantee of the quality of the materials will be used for your apartment. No practical mechanism exists here in this trade.
        You may try the developer for this.

44

Real Estate / RAJUK major activities

« on: August 08, 2011, 08:56:48 PM »

Planning
Physical Development:

Planning is the fundamental issue in the process of city development. During plan preparation RAJUK follows certain principles, which include National Urban Policy, Project Design, Planning, Multi Sector Investment Program and existing Policies and Programs of different Agencies.

Construction:

RAJUK is one of the lead "Construction Actor" in the development process of Dhaka. The main activities include construction of roads, box-culverts/culverts and bridges and also development, excavation and filling of land.

Planning and Designing:

Planning and design are the basic stage of construction. Project preparation, feasibility study, project programming and time scheduling are directly under the planning component.

Design includes:
Conceptual Design
Selection of Materials
Design and Construction Code and Standards
Analysis of Dimensions and their Verification
Detailed Drawings
Detailed Qualities and Estimate of Materials.
Development Control
The Town Improvement Act 1953:

City area is changing continuously through development activities by different actors like government agencies, private developers, individuals and others. Planned urban growth is mainly based on the development control measures. Land use control in urban areas of Bangladesh is initiated with the adoption of the Town Improvement Act 1953.

The East Bengal Building Construction Act 1952:

The East Bengal Building Construction Act, 1952, (amended 1987) is also considered a legal document for development control. Rules, regulations and ordinances of the City Authorities are also being exercised for this purpose. Every construction requires permission as per provision of `The East Bengal Building Construction Act 1952 (amended 1987) (EBBC Act 1952)'. The developing agencies are empowered for planning permission and approval of building plans and prevent illegal constructions in the metropolitan areas.

Land Use Planning Rules:

Statutory rules control land use according to planning standards. It is based on land use policies including local plans, such as control of residential density, road standard, maintenance providing of infrastructure and services. The acts and the master plans of the cities are the principal legal instruments, which force and exercise planning control and standards.

The land use of metropolitan Dhaka ought to follow the provision of the City Master Plan. Housing, commercial and industrial project buildings need planning permission, which are generally practiced. It must be in conformity with the land use provision of the Master Plan.

Building Construction Rules:

According to the`East Bengal Building Construction Act-1952 (amended 1987)', each and every building within the designated areas of City `Master Plan’ needs approval from the City Development Agencies. As per Acts, the definition of building is: `Building includes a house, hut, wall and any other structure where of masonry bricks, corrugated iron sheet, metal tires wood, bamboo, mud, leaves, grass, thatch or any other materials whatsoever'.

The Act has empowered to initiate building rules under section 18, EBSC Act 1952 which has been updated, based on public interest, regularly since 1954, (in 1984, and in 1996). It has been formulated through the Government of Bangladesh exercising the power of the Act.

Authorized Sections and Building Construction (BC) Committees:

RAJUK has a Development Control Section (Authorized Section). Previously this section was comprised with two Authorized Officers, two Assistant Authorized Officers, four Chief Building Inspectors, 50 Building Inspectors and other staff. Now the number of Authorized Section increased in four (4) instead of two (2) by increasing the staff members and demarking the areas specified under control of each authorized jurisdiction. These sections are supported by the four Building Construction (BC) Committees headed by the Members (Planning and Development) for approval of the building plans and exercising the powers of the Act for planned growth of the city.

Other Activities
RAJUK as a prime Planning Authority represents Bangladesh as well as Dhaka City in various National and International Seminars, Symposiums and Workshops held in home and in abroad. RAJUK tries to incorporate and share the ideas and concepts related to planning and development adopted or practiced in different part of the World. RAJUK participates in various training programs to improve the organizational capabilities. RAJUK is an active member of CITYNET, SAARC-SHELTERNET and HABITAT-II.

RAJUK organize Seminars and Workshops on different Urban issues in regular basis, the seminar on World Habitat Day is an example.

Legal Aspects
A National Legal Consultant needed to be engage for an appropriate period to:
Prepare a legislative framework for the metropolitan level governance structure for Dhaka.
Prepare a legal framework for adoption of the Plan.
Draft suitable national legislation or legal instruments enabling land re-adjustment schemes to be undertaken in Dhaka.
The Plan attempted to draft Interim Planning Rules into a Semi-legal format, there will still be required some legal expertise to enable them to be legally acceptable and operational in the Bangladesh context. It could be done by the approach realistically formulated by an experienced National Legal Consultant who is familiar with Planning Laws in Bangladesh.

Functions of Planning Section
Authorized Sections and Building Construction Committee:

RAJUK control all the development activities of Dhaka City under the provisions of Town Improvement Acts, Building Construction Rules and Land Use Regulations within the area under its jurisdiction. Any use of land or any type of construction needs approval or clearance from RAJUK and Authorized Sections are responsible for issuing those land use clearances. Till very recent past RAJUK dealt with only two (2) Authorized Sections and each Authorised Section provided and served with 1 Authorized Officer, 1 Assistant Authorized Officer, 2 Chief Building Inspectors, 25 Building Inspectors and Sub Inspectors.

Under a notification issued by the government in 7th February 2001, the number of Authorized Section increased from 2 to 4 by some structural modifications. The areas of jurisdiction also specified for each Authorized Section. They are being well supported by the Building Construction Committees consist of 7 members and headed by the Members (Planning and Development). Each Authorized Section comprised with 1 Authorized Officers, 1 Assistant Authorized Officer, 1 Chief Building Inspector, 6 Building Inspectors and 10 Building Sub-Inspectors. Each Authorized Section has specified with its own areas of jurisdiction. BC committees were inactive for a period of 3 months (from 05.01 2000 to 12.02.2001) due to reorganize the committee and transferring and appointing new Member (Planning).

Land Use Clearance and Deviation in Plans/Constructions:

Land use clearances have found some or major deviations when constructing the buildings and seemed to be regular practice almost in every cases of approved plans. These happened due to non-applications of powers and lack in enforcement of building constructions rules and regulations. Negligence in duties, intention to forgo some specific cases, poor inspection and reporting and political influence made Authorized Section a fearsome part of the organization. In case of some critical issues, clients or developers some how manage the authority for land use clearances for particular areas where development is restricted for specific purpose. Peoples claimed that the files/plans are not approved properly and sites are not inspected as per given parameters. The unnecessary harassment or time killing or missing of specific files or put objections on files are most common practice dealing the Authorized Sections. The overall performance of this section is not up to the mark as mentioned by the clients.

In some cases the process of plan or building construction approval or clearance delayed due to some undefined circumstances and caused peoples to take alternative solutions. Misuse of power and Act also shown by the Authority as claimed by the clients create unnecessary harassment and delay. The provisions of Act clearly defined that the plans should be forwarded for clearance or approval within 45 days and if, any objection made in the plan must be notified within 30 days after submission for approval. In fact the process sometimes take more time as specified in the Act and in many cases it takes years to get the approval. RAJUK’s Authorized Sections are carrying out and dealing the process of development control and responsible for issuing land use clearance or approval for building plans under the provision of TI Act.

Building Heights and Regulation:

Civil Aviation Authority is now very much worried about building heights and high-rise constructions within the city area and trying to solve this problem as early as possible. Though they are not submitted any clear proposals defining or indicating the buffer where the developments to be controlled. Civil Aviation Authority not asking RAJUK for any clarification about height zone or land use clearance procedures for high rises or not given any guidelines for height restrictions. Meanwhile RAJUK is trying to develop, include and enforce some legal frameworks to limit building heights and constructions of high rises.

RAJUK has taken the issue seriously and making liaison with the concern authorities and departments to incorporate the ideas and suggestions for better control and check the growing tendency of high-rise buildings in and around the region close to the air traffic and vulnerable areas. There is need to be defined a clear, understandable and implement oriented rules and regulations to restrict building heights in specific/restricted areas. Building heights to be limited and to be varied in terms of location and environment.

Department of Environment (DOE) has imposed objection and made restrictions over land use clearance for high-rise buildings to protect environmental hazards and degradation of environmental quality and thus asked for prior approval. There is no such restriction imposed for constructing buildings up to 6-storied, but need prior approval from concern agencies and departments those who provide urban services and facilities.

sourse :
http://www.rajukdhaka.gov.bd/rajuk/page/web/about/major_activities.jsphttp://

45

Real Estate / Top 10 Real Estate Agent Protocol Tips

« on: August 08, 2011, 07:57:05 PM »

   One of my clients knows how to safely remove a brain tumor from the base of her patient's neck, but she doesn't have a clue about real estate agent protocol. Nor does she understand why some listing agents have yelled at her.
In her mind, she hasn't done anything wrong. She is only trying to find out information about a house for sale.
It's not that difficult once you know a few simple rules. Here are protocols you can use while shopping for a home that will keep you out of hot water:
1. Understand Agents Work on Commission
   Very few real estate agents work on salary.
   Most real estate agents are paid commission. If an agent does not close a transaction, she does not get paid.
   Agents are not public servants and do not work for free. Do not ask an agent to work for you if you intend to cut the agent out of your deal.
 2. Keep Appointments & Be On Time
   Be respectful, use common courtesy and don't expect an agent to drop what she is doing to run out to show you a home. You are probably not that agent's only prospect / client. And if you are, lord help you.
   Do not make an appointment with an agent and then forget to show up.
   If you are going to be late, call and let your agent know when you expect to arrive.
3. Choose A Real Estate Agent
   Decide whether you want to work without representation: dealing directly with listing agents, or if you want to hire your own agent.
   If you decide to hire your own agent, interview agents to find an agent with whom you are comfortable.
   If you are interviewing agents, let each agent know you are in the interview stage.
   Never, never, never interview two different agents from the same company. Trust me, don't do it.
4. Do Not Call The Listing Agent if You Are Working With a Buying Agent
   Listing agents work for the seller, not the buyer. If you hire the listing agent to represent you, that agent will now be working under
         dual agency.
   If listing agents show you the property, the listing agent will expect to represent you.
   Listing agents do not want to do the buying agent's job. Let your buyer's agent do her job.
5. Practice Open House Protocol
 Ask your agent if it's considered proper for you to attend open houses alone. In some areas, it is frowned upon to go to open
       houses unescorted.
   Hand your agent's business card to the agent hosting the open house. Sometimes this agent will be the listing agent, but often it is an
      agent also looking for unrepresented buyers. Announcing you are represented protects you.
   Do not ask the open house host questions about the seller or the seller's motivation. Let your agent ask those questions for you.
6. Sign a Buyer's Broker Agreement with a Buying Agent
   Expect to sign a buyer's broker agreement. It creates a relationship between you and the agent, and explains the agent's duties to you
      and vice versa.
   Ask about the difference between an Exclusive and Non-Exclusive Buyer's Broker Agreement.
   If you're not ready to sign a buyer's broker, do not ask that agent to show you homes. Otherwise, procuring cause may pop up.
   Ask your agent if she will release you from the contract if you become dissatisfied. If she refuses, hire somebody else.
7. Always Ask For and Sign an Agency Agreement
   By law, agents are required to give buyers an Agency Disclosure.
   Signing an agency disclosure is your proof of receipt. It is solely a disclosure. It is not an agreement to agency. Read it.
   The best and most practiced type of agency is the single agency. This mean you are represented by your own agent who owes you
        a fiduciary responsibility.
8. Make Your Expectations Known
   If you expect your agent to pick you up at your front door and drive you home after showing homes, tell her. Many will provide that service.
        If not, they will ask you to meet at the office.
   Let your agent know how you want her to communicate with you and how often. Do you want phone calls, e-mails, text messages, IM's or
        all of the above?
   Set realistic goals and a time frame to find your home. Ask your agent how you can help by supplying feedback.
   If you are displeased, say so.
9. Do Not Sign Forms You Do Not Understand
   Do not feel silly for asking your agent to explain a form to you. It is her job. Many forms are second nature to agents but not to you,
       so ask for explanations until you are satisfied you understand.
   Do not sign forms titled Consent To Represent More Than One Buyer. This is never in your best interest. Find another agent if this happens.
   Realize agents are not lawyers and cannot interpret law.
10. Be Ready To Buy
   If you aren't ready to buy, you don't need a real estate agent. You can go to open houses by yourself; call listing agents for showings --
        but be honest, say you are "only shopping"; look at homes online; but don't waste an agent's time if you aren't ready to act.
   If possible, hire a babysitter to care for children who are too young to stay out all morning or afternoon touring homes.
   Bring your checkbook. You'll need it to write an offer because an earnest money depositmay be required to accompany your purchase offer.