In the last few years, the state of the Indian real estate market has been inconsistent, to say the least. But the home buyers are always at the receiving ends. That changes now. The amendments in the Real Estate Bill are consumer-friendly and mainly aimed to protect the home buyers from errant builders and ensure timely completion of the projects.
The following are some of the benefits which the home buyers can avail of due to the Real Estate Regulation Bill.
1.) Each state and union territory will have a real estate regulator which will help to settle disputes and impose compensation if required. Moreover, all the commercial and housing projects will have to be registered with the regulator. This will help home buyers in buying genuine property.
2.) Without prior registration with the concerned real estate authority, builders and developers cannot launch any projects or advertise it. They have to submit clearances with the regulator and disclose the layout plans, names of the architect, structural engineer, contractor, and other details of the project. This will provide much-needed transparency regarding the project, which in turn will benefit the home buyers.
3.) The sale of property in India on the basis of the super area i.e., the area in which a flat is spread along with the common area has been prohibited. In fact, the builders have to disclose the floor area i.e., the area which is enclosed within the walls of the apartment while advertising about it.
4.) Promoters need to deposit half of the amount they receive from the home buyers and deposit it in a separate bank account within 15 days from the date of receiving the money. This will give an assurance to the home buyers that they have invested in the right place.
5.) If a builder wants to change plans, specifications, and other structural modifications, then the consent of two-third buyers is made mandatory. Otherwise, developers will not be able to make any changes to the project. This will help keep the home buyers in the loop about any changes made during the construction process. And in any case of default, builders will have to refund the money to the buyers.
6.) If the promoters are unable to complete the project in time, homebuyers can claim a refund along with interest and compensation.
7.) If a broker wants to sell apartments and plots of a project, then it’s mandatory that they get it registered with the regulator of real estate. And if any rules are violated by the developer, the project will get de-registered. Moreover, the developers will have to bear a penalty of 10% of the project cost for non-compliance and 5 % of the total project cost for wrong information. The amendment in the real estate bill has also restricted payment in cash. This will help curb the flow of black money in property markets. The buyers in turn will get relief from being paid more.
All these modifications in the Real Estate Regulation Bill will help the home buyers a lot. The chance of getting fooled by conniving builders is completely ruled out with the amendment of this bill.