How Real Estate Regulatory Bill would benefit buyers/consumers?
Real Estate Regulation Bill, which was introduced earlier UPA Government in 2013 has been approved last week. Real Estate investors has been cheated by builders / developers in some or other aspects. This real estate regulatory bill would protect buyers / consumers and have several benefits.
The government said the Bill is expected ensure greater accountability towards consumers, and to significantly reduce frauds and delays. It said the proposed legislation is expected to promote regulated and orderly growth of the real estate sector through efficiency, professionalism and standardization. In this article, I would touch upon the key benefits of Real Estate Regulatory Bill and how it would benefit buyers / consumers.
Highlights of Real Estate Regulatory Bill
- Real Estate Bill now covers both residential projects and commercial projects. This includes plots, apartments, commercial buildings, residential buildings etc.
- Bill provides for establishment of the Real Estate Regulatory Authority in each state / union territory to settle disputes and impose compenstation and interest.
- Builders / Developers need to compulsory register real estate projects and registration of agents with the Real Estate Regulatory Authority.
- Bill is aimed to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects.
- Builders / Developers have to follow mandatory public disclosure of all project details, including promoters details, projects, land status, status of statutory approvals, names and addresses of real estate agents, contractors, architects, structural engineers etc.
- Promoters of projects will now have to follow a host of guidelines and compulsorily deposit 50% of the amount realized from allotees within 15 days in a escrow account of a scheduled bank. This needs to be utilized only for construction purpose.
- Developers / Builders are barred to make any changes in plans, structural designs, specifications of the plot / apartment / building without consent of 2/3rd allottees after disclosure. Minor changes allowed due to architectural / structural reasons.
- It provides for a uniform regulatory environment, to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector
Does this Real Estate Regulatory Bill would really benefit buyers/consumers?
- Currently, the real estate and housing sector are largely unregulated and opaque, with consumers often at the receiving end. Complaints of cheating and project delay have been rampant.
- Errant builders, who until now had a free run, would now it find it difficult to dupe innocent buyers. The Bill is expected to ensure greater accountability towards consumers, and to significantly reduce frauds and delays. The Bill seeks to ensure consumer protection, without adding another stage in the procedure for sanctions.
- I feel this Real Estate Bill would definitely protect home buyers/consumers.
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How Real Estate Regulatory Bill would benefit buyers/consumers
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