Benefits of real estate bill to the flat buyers May 19,2016 | Posted By Admin
Transparency and accountability are the two wonderful gifts that have been presented by the Real Estate bill to the property buyers in Tier-2 and Tier-3 cities. The endeavour will allow people to know the status of building approvals and enable them to take accurate decisions. The main aim is to promote affordable housing for everyone. Every coin has two aspects so does the real estate bill.Let’s focus to know more about the benefits of it:
- Meeting deadlines:We all are aware about the false promises made by the developers at the time of showcasing the blueprint. One of the promises has always been the completion of the project on timely basis. But they hardly meet the deadline. As per the bill, it is mandatory for the builders to deliver the flats on schedule. It will also ensure that constructions run on time without any hindrances. If any developer could not follow the regulations, he has to refund the purchaser with interest.
- Presentation of accurate project details: Builders boast of many lucrative plans defining various amenities and features to promote their projects. But in reality, things do not turn as per plans. As per the bill, offers and other policies will be in black and white and the builders have to adhere to the regulations. If any builder fails to do so, he will be penalized 10% of the project cost or jail time of up to 3 years.
- All clearances are mandatory before embarkation:All builders have to abide by the rule of getting clearances from the required organisations. Buyers often get tempted by the huge-discounts and pre-launch offers without paying attention to clearance. Buyers do not get possession of flats due to delays in getting clearances. This real estate bill will make sure that developers get all the clearances before selling.
- Formation of balanced agreement: This is one of the most crucial documents when you buy a property but not given due attention. The new bill condemned the one sided contract favouring builders whereas it focusses on the formation of balanced builder-buyer agreements protecting interest of the involved parties.
- Individual bank account for individual project: Pre-launch offers are one of the best ways to raise funds for developers. And they misuse that fund to purchase some other land. Now it will be a compulsion to have separate bank account for each project.Each transaction will be recorded to maintaintransparency and authenticity.According to the recent amendment, the builder has to deposit 70 %( earlier 50%) of the sales proceeds in a separate escrow account in order to safeguard investment.
- Regulated broker environment: The new bill also safeguards buyer’s interest by ensuring mandatory registration of real-estate projects and real-estate agents with the authority. This endeavour will prevent concerns regarding money-laundering and other unfair practices.
- Right to after sales services: As per the bill, a buyer can ask the builder for after sales services if he finds any structural deficiency in the development of the building.Due to increase in the defect liability period (now 5 years), increase in the quality of construction is the need of the hour.
- Dispute settlement mechanism: A fast track dispute resolution mechanism has been established to take care of the complaints in a speedy manner. A Real Estate Appellate tribunal will have to adjudicate cases in 60 days (earlier 90 days). It has to dispose of the complaints in the stipulated time period.This amendment will ensure a committed legal help to both the parties involved.
- Specification of carpet area: Many buyers are unaware about the actual concept of carpet area.Developers often attract people on the basis of built-in area which includes stairs, common passage area and other spaces which are 15%-25% more than the actual flat area. This bill directs the builders to specify the exact carpet area.