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2013, Bill, bill news, developers, Real Estate Agents, real estate bill, real estate industry, Regulation
When it comes to buying a property, buyers are faced with big promises and presented with a larger than life picture of our dream homes. We have to deal with non-transparent policies and a great deal of confusion.
To tackle this ever-growing menace, the government has introduced the Real Estate (Regulation and Development) Bill, 2013 in the Parliament. Once the bill is passed, it will safeguard consumer rights, and the entire real estate industry will see a transparent and uniform environment.
Let us take a look at the features of the bill:
- Standardization in the Real Estate Sector – Standard definitions for terms (such as carpet area) will be used, which will help in curbing unfair practices.
- Specialized Regulation and Enforcement – Like other sectors (telecom, banking, etc.), real estate will also go through various curative and preventive measures, which will improve the entire industry.
- Registration of Real Estate Agents – The hitherto un-regulated real estate agents who play a major role in the sale of apartments will now be regulated with set responsibilities. This will help in curbing money laundering to a great extent.
- Ensure Consumer Protection – This will be done by ensuring clarity on the duties and functions of the promoter which are very vague as of now.
- Enforcing Rights and Duties of the allottees -The allottee has the right to ask for all the information about the property and claim a refund with interest in case of promoter default. The duty of the allottee is to make timely payments and adhere to other compliances as stated by the promoter.
- Registration of projects prior to sale – It will be mandatory for builders to register their project prior to the sale of the project.
- Mandatory public disclosure related to the project -The builder will have to make details like layout, carpet area, number of apartments booked, etc. Also, advertisements will start only once all the necessary clearances are in place.
- Separate Bank Account for each Project – The promoter will have to open a separate bank account for each project and deposit 70% of the amount received by him for the project in this account.
- Fast Track Dispute Resolution – Another initiative to help the buyer.
It will be interesting to see what happens to the prices, if the term “super-built up area” is replaced with “carpet area.” Although the bill paints a rosy picture for the buyers, it remains to be seen whether the developers will actually adhere to all the regulations in the bill or figure out ways to escape from the same.Also, this bill is seen as one last attempt of the ruling party to woo the middle class that has lost faith in the government due to issues like inflation and price rise.
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