Real Estate Regulation Bill : Protect Interest of Property Buyers..!

With the Parliament in all likelihood set to discuss the Real Estate (Regulation and Development) Bill in the coming budget session, property buyers have much to cheer.

According to major property experts,a strong legislation would put a restrain on unethical and unscrupulous practices in the Indian real estate sector, which from the outside looks very fascinating when the skyline of many Indian cities is changing.

Indeed in Interest of Buyers..!

Mr. Ramesh Prabhu, Consumer Activist said,``While the penal interest provision could hurt real estate players; the Bill if it goes through would indeed in the interest of many buyers - especially the middle class, for whom purchasing a property has been a herculean task (due to skyrocketing prices) and unscrupulous practice adopted by some developers,'

The Bill has been framed under provisions dealing with "property transactions" in the concurrent list of the Constitution that applies to states, making the proposed legislation more than a model real estate law.

Model agreement..!

The Real Estate (Regulation and Development) Bill has proposed the following, which intends to protect the interest of property buyers:

**  Indian Real estate developers will have to disclose project details and contractual obligations to ensure transparent, fair &  ethical business practices.

** There could be model agreement which could reduce ambiguities in real estate transactions, which you as buyer may not be familiar with.

** Moreover, the real estate regulation will make it mandatory for private developers / promoters to register all projects before the sale they sell property to you as buyers.

Fine and 3 years imprisonment..!

** The property shall be registered provided that all necessary clearances have been obtained & all major concerns of the buyers are addressed about incomplete or /  fraudulent land acquisition.

** If the developer /  promoter / buildler fails to declare the status of clearances, the Real Estate Bill provides for levying a fine that can amount 10 per cent of cost of project or /  three  (3) years of imprisonment.

**  Also ensuring that the developer / promoter adhere to timelines, the Real Eatste Bill states that the real estate player will have to park 70 per cent of funds in a particular bank account, thereby precluding resources from being diverted and thus safeguarding property buyers.

Should sell  basis of carpet area..!

** The Bill also enunciates that developers / promoters should sell a residential property on the basis of "carpet area", instead of the current practice of "super area", thereby ensuring that buyers get a better deal & transparency (over the how much carpet area you can enjoy) prevails.

Share: