Real Estate Bill: Advantages

1. Real Estate Bill: Advantages & Disadvantages

2. The Real Estate Bill, which was passed in June this year, provides transparency and accountability in the realty sector. Its objective is to make known the status of building approvals, to enable customers to make accurate decisions. This apart, the bill aims to take steps to promote affordable housing for everyone. When the Real Estate Bill comes into effect, home or property buyers can expect to get timely ownership, and as per the promises made by developers.  The real estate sector in India is famous for being unregulated and unorganized, with no proper guidelines for builders to follow, because of which buyers are routinely taken for a ride. Ref: http://www.mashsizz.com/real-estate-bill-advantages-disadvantages/

3. It proposes to get real estate companies registered with the proposed regulator if the project is being developed in more than 1000 meters of land. • Developers or builders will have to submit detailed project reports that will include: • Completion date • Land title • Names of architects and agents • Details of the bank account where the amount generated from project sales will be deposited. This amount will not be used for other activities • In addition, the bill seeks to enforce strict penalties for various offences • For example, in case a builder does not present a detailed project report, the penalty may extend up to 5% of the estimated cost of the project. What’s in the bill? Ref: http://www.mashsizz.com/real-estate-bill-advantages-disadvantages/

4. Timely delivery of flats: If the builder is not able to deliver the flats on time, he/she will have to refund the purchaser’s money along with interest. • Furnishing of accurate project details: In the construction stage, builders promote their projects defining the various amenities and features. As per this Bill, there can’t be any changes to a plan. And if a builder is found guilty of this, he/she will be penalised to pay10% of the project’s cost or face a jail time of up to three years. • Specifying carpet area: Generally, builders sell flats on the basis of built-in area, which includes a common passage area, stairs and other spaces which are 20-30% more than the actual flat’s area. But, not all buyers are aware of the concept of carpet area. With this Bill it will become mandatory to declare the actual carpet area.  • All clearances are mandatory before beginning a project This Bill ensures that developers get all the clearances before selling the flats. Advantages of the bill Ref: http://www.mashsizz.com/real-estate-bill-advantages-disadvantages/

5. Past real estate projects not included in the Bill: Projects that are ongoing, completed or stuck due to clearance or financial issues are not covered up under this Bill. • Delay from Government agencies: There can be delays caused by the Government, which sometimes takes a lot of time to clear a project. It is up to the Government bodies to follow strict time frames to approve projects, so that developers can launch, complete and deliver them on time. There is no cause and effect terms for such delays from the Government’s side. All said, the real estate bill promises complete justice, by ensuring buyers get their dream homes on time and at an affordable price. Disadvantages of the bill Ref: http://www.mashsizz.com/real-estate-bill-advantages-disadvantages/

6. Thank You