The all important central government on 7th April 2015 tabled the highly crucial and anticipated real estate bill. A lot many changes were made to the bill, much to the delight and pleasure of home seekers and realty investors. India’s infamous realty industry is marred by delayed possession and black money transactions. But all this is set to change for the better with the real estate development and regulation bill 2013 finally coming of age. Customers all over our great nation will now be protected from the errant behavior of the realty developers. Below are a few ways in which the bill is all set to change the landscape of the realty arena:
1) Every state, without exception, will be home to real estate regulator or a realty supervisor. The supervisor will be accountable for settlement of all real estate related disputes and their timely settlement. All the commercial and residential realty projects will have to be compulsorily registered with the supervisor. Thus the otherwise hapless buyers will have access to truthful information about all the genuine projects.
2) No advertising campaigns, of any kind can be undertaken by realty developers anymore, without registering these projects with the state’s realty supervisor.
3) Realty developers using super area are now a thing of the past. From now on developers can only advertise and sell properties using only carpet area which is the actual area inside the walls of a flat.
4) Names of the structural engineer, architect and contractor associated with the project will have to be compulsorily disclosed. Clearances will have to be filed with the mighty authority, thus extending and improving transparency related to all realty projects.
5) In order to make sure that the otherwise delayed projects are delivered on time, a humungous 50% of the amount realized from the buyers will have to be deposited into a separate bank account within a span of 15 days.
6) Property purchasers can seek a refund if developers fail to deliver a project within the agreed stipulated timeline.
7) Brokers who act as intermediaries in selling developers projects will also come under the purview and radar of the real estate bill and will be violated in case of non compliance.
8) In order to rectify and alter specifications, structural designs and plans of a building, the developer will require written approval from atleast two thirds of the cumulative buyers.
9) No realty builder whatsoever can demand part payment in cash. This will curb money laundering and an increase in tax revenue of the government, therefore leading to overall development of the nation.
10) If even a single rule is violated, heavy financial penalties will be levied on the developers along with deregistration of the given project. Non compliance with rules will be severely dealt with a gigantic 10 percent penalty while spreading of misinformation will attract a whopping penalty of 5% of the cumulative project cost.
All of the above are set to tighten the grip on realty developers and empower the hapless buyers who are generally taken for a ride and end up suffering massive financial losses due to the reckless behaviour of the developers. So all the end users and investors out there rejoice now is the perfect time and opportunity to explore the phenomenon called real estate.