Rajya Sabha cleared a long awaited real estate bill on March 10, 2016. PropertyChek welcomes the bill since it is a huge step in creating trust and transparency into the real estate ecosystem. There are a several items in the bill that are especially welcome:
1. Regulation of real estate as an industry by establishing Regulatory Authority and Appellate Tribunals, appointment of Adjudicating Officers to settle disputes, and registration of real estate projects and real estate agents with the Authority -> this will bring transparency into the system and result in reduction of “fly by night” operators. I am sure you have heard stories about agents disappearing after making fraudulent sales; this regulation should put an end to that.
2. Higher transparency and accountability from developers by requiring them to submit 70% of collection from buyers in a separate account towards cost of construction, clearly defining carpet areas for houses and increased liability for structural defects from 2 to 5 years -> this will ensure higher accountability and transparency with developers. We can expect to see less delays in construction/possession, less confusion on vast differences between super built up and carpet areas, and better construction quality. Also included are provisions for strict penalties (imprisonment up to 3 years for developers and up to 1 year for agents) for violations
3. Ability to arrange title insurance to protect consumers from defective titles. We have seen numerous stories of developers and agents selling land with defective titles and people getting stuck in multi-year court cases – title insurance will protect us from that.
You can read more at the Press Information Bureau site here
Also find a quick snapshot below
Salient Features of the Draft Bill #RERABill #homebuyers #PassRERABill #RERABillToday #RealEstateBill pic.twitter.com/OfDWW8bFLI
— M Venkaiah Naidu (@MVenkaiahNaidu) March 10, 2016