The much talked about 2013 real estate regulatory bill, in simple terms aims to bring in a systematic approach and much more transparency into the Indian realty sector.
Before a detailed peek into the provisions mentioned in the bill, let’s have a look at some of the issues prevailing in the sector.
The data says that the following few years, specifically speaking the next eight years would see an average of 8.5 lakhs units being developed across the nation. This obviously is a significant figure, and a large percentage of them are going to be huge apartment complexes. But, several concerns are expected with such large figures.
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Buyers often have to encounter problems due to lack of transparency regarding the property documents and many times, the projects are not ready by the calculated time. With delay in completion, customers have to bear more expenses. Some of these projects may take a few years and certain changes in policies regarding construction are not ruled out.
The problems do not always end with the possession, at times, the developer might show hesitance to handover the property to the society. And, grievance redress policies might not be always properly implemented.
These circumstances call for an organized way of functioning. And, authorities have commenced taking action. The introduced real estate regulatory bill seems to be a great beginning towards proper functioning of the sector. The bill was presented in the Rajya Sabha. The salient aspects of the bill are as follows.
Properly Defined Terms: With the bill, there would be clear-cut definitions of Common Area, Advertisements, carpet areas, apartments, prospectus, common area etc. The term built-up areas, carpet areas are commonly used in most of the property advertisements. What is aimed with this bill is making only carpet area payable. And, there is no need to spend money on built up or super built up areas.
The bill makes it compulsory for real estate agents to be authorized before actively getting involved in property deals. Agents are also supposed to maintain books of accounts and all property related documents. Also, the documents have to be taken care of until handed over to the customer.
The bill would make it easy for the buyers to get the entire information regarding all aspects of the property whenever required. This applies to details regarding the promoter, venture, layout structure, development works, definition of land, carpet area, booking status, legal approvals, architects, contractors, structural engineer, agents etc. Also, buyers are entitled to compensation in case the developers default. And, before sale the necessary approvals would have been sought and registration completed.
And, promoters often have to open an account to credit 70% of the investment received for the concerned project. The amount to be deposited might change as per the government regulations.
There are provisions to set up a new committee and fast track tribunal for an organized approach.
Before a detailed peek into the provisions mentioned in the bill, let’s have a look at some of the issues prevailing in the sector.
The data says that the following few years, specifically speaking the next eight years would see an average of 8.5 lakhs units being developed across the nation. This obviously is a significant figure, and a large percentage of them are going to be huge apartment complexes. But, several concerns are expected with such large figures.
Buyers often have to encounter problems due to lack of transparency regarding the property documents and many times, the projects are not ready by the calculated time. With delay in completion, customers have to bear more expenses. Some of these projects may take a few years and certain changes in policies regarding construction are not ruled out.
The problems do not always end with the possession, at times, the developer might show hesitance to handover the property to the society. And, grievance redress policies might not be always properly implemented.
These circumstances call for an organized way of functioning. And, authorities have commenced taking action. The introduced real estate regulatory bill seems to be a great beginning towards proper functioning of the sector. The bill was presented in the Rajya Sabha. The salient aspects of the bill are as follows.
Properly Defined Terms: With the bill, there would be clear-cut definitions of Common Area, Advertisements, carpet areas, apartments, prospectus, common area etc. The term built-up areas, carpet areas are commonly used in most of the property advertisements. What is aimed with this bill is making only carpet area payable. And, there is no need to spend money on built up or super built up areas.
The bill makes it compulsory for real estate agents to be authorized before actively getting involved in property deals. Agents are also supposed to maintain books of accounts and all property related documents. Also, the documents have to be taken care of until handed over to the customer.
The bill would make it easy for the buyers to get the entire information regarding all aspects of the property whenever required. This applies to details regarding the promoter, venture, layout structure, development works, definition of land, carpet area, booking status, legal approvals, architects, contractors, structural engineer, agents etc. Also, buyers are entitled to compensation in case the developers default. And, before sale the necessary approvals would have been sought and registration completed.
And, promoters often have to open an account to credit 70% of the investment received for the concerned project. The amount to be deposited might change as per the government regulations.
There are provisions to set up a new committee and fast track tribunal for an organized approach.
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