by Mr. Kishor Pate, CMD - Amit Enterprises Housing Ltd.
Now that the Real
Estate Regulatory Bill has been cleared for take-off and will be an enforceable
law soon, the question that buyers are asking is how exactly they will benefit
from it. This is a fair question, considering that RERA was primarily formulated
for their protection and in their interests. Let me answer it as clearly as
possible, without sacrificing on the necessary details.
One of the most
important things that RERA will do for home buyers is to reduce their
uncertainties when it comes to planning their finances around a home purchase.
If we assume that a buyer has booked a flat admeasuring 1,000 square feet, and
that the developers has promised possession in three years.
 |
| Kishor Pate, CMD - Amit Enterprises Housing Ltd |
A flat of such
dimensions (1000 square feet) in a location which is close to the city Centrex,
or has good public transport connections to it, would potentially earn its
owner anything between Rs. 1.5-2.5 lakh per annum.
If the developer keeps
his promise and delivers the flat in the stipulated time, the buyer would be
able to put the flat out on rent and draw an income from it to offset his home
loan expense. However, if the developer fails to deliver the property in three
years and extends the delivery by a year or more without providing compensation
for the delay, the buyer's finances are thrown seriously out of whack. The Real
Estate Regulatory Bill will safeguard property buyers from such eventualities.
In the latest
amendment to RERA which was accepted in the final draft, real estate agents are
also covered under its. Effectively, this means that property agents can no
longer engage in deceptive promises, charge excessive brokerage or fail to
perform their full duties in a property purchase. They will be held accountable
for any deficient service or failure of omission or commission.
RERA will also ensure
that home buyers will not be cheated on the promised layout, and that amenities
and fittings will not change along the way. Notably, such unforeseen and unscheduled
changes were a recurring nightmare and grievance for home buyers in the past.
With RERA in force, the developer will not be able to make any changes in the
layout, dimensions, amenities, facilities and fitting which were agreed upon at
the time of signing the sale deed. If they still occur, affected buyers can
appeal to a tribunal which has been specifically instated to address such
incidences, and be assured that punitive or corrective action will be taken
against the developer.
Also, RERA will
require developers to quote their asking rates on carpet area instead of super
built-up area, which has so far been the norm. This aspect will take some time
to be fully implemented, as it is a huge change which will require countless
developers to recalibrate their rates.
There are many more
facets to this Bill which will work in favour of property buyers, but the above
clearly indicate that property buyers are soon going to stop being victims and
will in fact be much more in full control of their property investments.
About
The Author
Kishor Pate, Chairman
& Managing Director of Amit Enterprises Housing Ltd. is the driving force
behind one of the most successful real estate development firms in Pune and
beyond.
Apart from its signature luxury homes towers and premium gated
townships, AEHL has also launched highly successful affordable housing projects
like Astonia Classic and Colori in Undri and the Mediterranean-style township
Astonia Royale in Ambegaon.
No comments:
Post a Comment