6 Things Buyers need to know about Protection in Real Estate Bill
Real estate sector is quite disorganised and unfettered. In this sector there are a lot of variations in the prices and above all no standards have been implemented regarding the building structure and regulations. Furthermore, in this scenario some builders are providing earthquake proof homes while others are not bothered about it.
However, with the introduction of Real Estate Bill in Rajya sabha, some guidelines have been implemented. Much to the relief of buyers, many things have been streamlined. Real Estate Bill aims at protecting the interest of buyers and bring transparency in the deals. So, that buyers know where they are investing and they are not at losing end. From past few decades Real estate sector is in trouble because it lacks builder’s reliability and buyer’s trust. Delay in possessions, low quality building material are adding more troubles. Hence, real Estate Bill need to come in to picture so that things can be synchronized and best solutions can be worked out. Here are some points that you need to know about the clauses of real Estate Bill
. Timely completion of projects
This is one of the major setback of real Estate Bill. There are many projects where the buyers have already paid the booking amount, but actual construction has not started. With the introduction of real Estate Bill, strict regulations are imposed on Developers Completion and delivery of projects as promised. In case of any violation in terms of contract, serious monetary penalties are imposed.
. Carpet area to be defined
Bill also defines regulations to put an end to conflict on prices charged on carpet area and saleable area. This comes as a big relief for buyer’s as earlier builder’s used to quote prices on saleable area. According to the clause, now sellers are required to quote prices on the carpet area and not saleable area.
. Punishable offences
In case if any party entering into the contract be it a developer or promoter and real estate agent and buyer violates the term of contract, then it will be considered a punishable offence and will be imprisoned for three years in former case and in latter case the imprisonment is up to one year. This clause will seriously help in regulating the sector.
It is mandatory for real estate developers to get all the clearness from the statutory authorities. Actual construction can only get started once all the conditions are satisfied. This is actually save buyers, as earlier sellers used to give big discounts to buyers in prelaunch offers and no details were provided for clearances.
. Part of home buyer’s money to be deposited in Bank
According to the clause, developers need to deposit seventy percent of total buyer’s money collection into separate escrow account to cover cost of production and land. This will regulate the funding in the sector as the money is to be deposited in bank account through cheques.
. After sales services
This clause states that developers need to provide after sales services to the buyers for a period of five years. Any changes in the plans need to be informed to the buyers and after obtaining the consent of two-thirds buyers the changes can be implemented. Homebuyers need to inform developers about any complaints or structural defects within a year of purchase.
There are many other clauses in real Estate Bill covering insurance on land title, interest in case of delays and mandatory registrations.
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