The end of the year 2016 is coming closer and along with comes the 4 prime factors that will primarily help the home buyers. But the question that arises is very simple, what are those 4 factors that will aid an impact?
The answer to this question is unfolded with a very simple fact that a proactive government and the vigilant courts have taken significant steps in bringing the much-anticipated transparency in the real estate sector. This, however, will in turn now benefit the end-user.
The market which is completely driven by the banking channels will likely have zero negative impact. But the one of which have been driven with the help of black money will experience an immediate hit. The impact of liquidity crunch which led to the price correction in the secondary market might lead to the correction in the primary market too.
- The Benami Transactions (Prohibition) Amendment Act, 2016
This new law is designed in such a manner that will only take over those who have acquired property in their name either directly or indirectly with black money. The law has a provision of imprisonment up-to-seven-year and fine. All immovable, movable, intangible, tangible properties are covered under this law which will also comprise of any right or interest in any such property. Further, the law also provides the power to authorities of conducting inquiries on any kind of Benami transaction. Such an expected crackdown on Benami property will cause the prices to go down as such investment will be discouraged.
- The Real Estate (Regulation and Development) Act, 2016
This newly amended law will protect the interests of home buyers by placing the institutional infrastructure in order. For any delayed possession, the home buyers will now be able to secure interest at 10.9 per cent per annum for the investment done by the buyers in the real estate projects. Such a law will increase the transparency in the sector which will decrease the litigation and thus, will ensure speed up delivery.
- Court Warnings
Recently, the court ordered the renowned developers, Supertech to present a complete chart of payment to 14 buyers. In the month of July 2016, the Supreme Court asked another builder, Unitech to provide with Rs 5 crore to the buyers in a month for the delay in the completion of a high-end residential project. Such actions from the court indicate that there will be no more delays in future in the completion of projects which will only benefit the home buyers.