Real estate bill likely to favour property buyers
Property buyers will have many reasons now to cheer. The Real Estate (Regulation and Development) Bill is in its planning stage and Parliament is likely to discuss the same in its coming budget session.
As per real estate experts, a strong law will be put forward to stop unethical and unscrupulous practices in the real estate industry. These practices might look very fascinating from outside when the skyline of several Indian cities is changing but for property buyers, these can be pain.
A penal interest provision in real estate in India will be implemented which might hurt realty developers sentiments but is sure going to interest of several buyers – especially the middle class. For these property buyers, purchasing a property has been a herculean task due to hike in property rates.
Witnessing the current property transactions, the bill has been formed in such a way that it deals with them in the concurrent list of the Constitution that applies to states, making the proposed legislation more than a model law.
Some of the pointers which the Real Estate (Regulation and Development) Bill has proposed, which intends to protect the interest of property buyers are:
*All the project details will be disclosed to the property buyers by the developers to ensure transparent, fair and ethical business practices. There is a chance of preparing a model agreement to reduce ambiguities in real estate transactions.
*All property developers will have to mandatorily register their projects before the they sell property to buyers. All necessary clearances have to be obtained and major concerns of the buyers have to be addressed.
*If status of clearances are not declared by the developers, the Bill provides for levying a fine that can amount 10% of cost of project or three years of imprisonment.
*Developers should adhere to the time which they had mentioned at the time of launch of properties. The developers have to deposit 70% of funds in a particular bank account, thereby precluding resources from being diverted and thus safeguarding property buyers.
*Also, developers are supposed to sell flats according to carpet area instead of the current practice of super area, so that buyers get a better deal and transparency of how much carpet area they get in actual.
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Carpet area, Properties in India, Property Buyers, Property transactions, Real Estate (Regulation and Development) Bill, Real estate bill, Real estate in India, Realty News
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