The Rajya Sabha has passed the much awaited Real Estate Bill on Thursday, 10.3.16 promoting PM Narendra Modi to hail it as ‘great news for home buyers’. The bill that aims to regulate the property sector, initiates transparency and help protect the interests of the consumer. Now let us take a look inside the features of the bill:
Better organised real estate sector:
The real estate sector in India has been unorganised that leads to different discrepancies in the functioning. The bill will establish state-level authorities called Real Estate Regulatory Authorities (RERAs) that will regulate transactions of both residential and commercial projects. The authority will thus grade the projects assisting the customers to make better decisions.
Timely completion and handover:
One of the problems faced by the buyers in Indian real estate market is that they don’t get the possession of the property as promised by the seller. The new bill promises that 70% of the money received from the buyers has to be kept aside in a separate bank account and the money must be used for construction works in order to avoid delays. This will also ensure that the developers don’t invest the money received for a single project in any other project.
Accurate information:
As per the newly passed bill, it will become mandatory for sellers to disclose every information starting from the project layout, approval, land status, contractors, project completion status and schedule with the customers as well as the Real Estate Regulatory Agency (RERA).
Appropriate punishment:
The bill has made the law against the failure to hand over property to the buyer stricter in order to ensure maintain smooth flow of law and order. If the seller is unable to hand over the property on time then he is liable to pay the buyer the same interest amount that he charges in case of the buyer’s failure to make payment. It has also made it clear that the property cannot be sold on the basis of super area that includes both flat area and common area. If the developer does not abide by the same then the person can get a jail term of up to three years of penalty.
Allottees association and after sales service:
The bill has made it mandatory to set up an allottees association within three months of the allotment of major units/properties. It has been passed so that the residents are able to manage common facilities like a library and a common hall. Also if the buyer discovers any structural deficiency in the property, then he/she can contact the developer for after sales services within a span of a year after receiving the possession. The bill moreover states that the promoters or developers cannot make any amendment in the plan of the property without the consent of the buyer.
The advantages of the bill can be stated in such a way that it proves to be favourable for the buyers and quite strict for the builders and sellers. So, it is quite evident that the bill has proved to be positive for the real estate buyers with strict laws against any kind of property related sufferings that they has to face earlier. Clarity, smooth execution of the dealings and right payment structure for the buyers as well as developers has been ensured with the new bill passed by the Indian government.
Better organised real estate sector:
The real estate sector in India has been unorganised that leads to different discrepancies in the functioning. The bill will establish state-level authorities called Real Estate Regulatory Authorities (RERAs) that will regulate transactions of both residential and commercial projects. The authority will thus grade the projects assisting the customers to make better decisions.
Timely completion and handover:
One of the problems faced by the buyers in Indian real estate market is that they don’t get the possession of the property as promised by the seller. The new bill promises that 70% of the money received from the buyers has to be kept aside in a separate bank account and the money must be used for construction works in order to avoid delays. This will also ensure that the developers don’t invest the money received for a single project in any other project.
Accurate information:
As per the newly passed bill, it will become mandatory for sellers to disclose every information starting from the project layout, approval, land status, contractors, project completion status and schedule with the customers as well as the Real Estate Regulatory Agency (RERA).
Appropriate punishment:
The bill has made the law against the failure to hand over property to the buyer stricter in order to ensure maintain smooth flow of law and order. If the seller is unable to hand over the property on time then he is liable to pay the buyer the same interest amount that he charges in case of the buyer’s failure to make payment. It has also made it clear that the property cannot be sold on the basis of super area that includes both flat area and common area. If the developer does not abide by the same then the person can get a jail term of up to three years of penalty.
Allottees association and after sales service:
The bill has made it mandatory to set up an allottees association within three months of the allotment of major units/properties. It has been passed so that the residents are able to manage common facilities like a library and a common hall. Also if the buyer discovers any structural deficiency in the property, then he/she can contact the developer for after sales services within a span of a year after receiving the possession. The bill moreover states that the promoters or developers cannot make any amendment in the plan of the property without the consent of the buyer.
The advantages of the bill can be stated in such a way that it proves to be favourable for the buyers and quite strict for the builders and sellers. So, it is quite evident that the bill has proved to be positive for the real estate buyers with strict laws against any kind of property related sufferings that they has to face earlier. Clarity, smooth execution of the dealings and right payment structure for the buyers as well as developers has been ensured with the new bill passed by the Indian government.
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