The real estate scene is on the boom in the country and to provide it further direction the need of the hour is a well constituted and all- encompassing bill. However, as is the case with most unorganized sectors, the real estate sector- behind all its glamour, is in dire need of stricter guidelines to improve and increase the communication and symbiotic relationship between buyers and builders. The bill is set to just do that! The Real Estate (Regulation and Development) Bill is expected to be cleared in the winter session of the parliament. It is expected that once the bill is passed, it will help instill a much stronger buyer’s market.
The bill is already in talks to be more vigilant and strict about fly by night operators,bringing more relief to buyers. There will also be provisions for meting out penalty to defaulters who hold back on their promise of delivering a builder project timely. Not only that, repeat offenders also stand to be put behind the bars for a term of three years on non-compliance as per the proposal in the draft version of the bill.
Thus, these safeguarding measures are going to enable to cast the sector in grow in a definite direction and avoid loopholes that might create a bad air and cast the overall sector in bad light.
Also included in the bill would be additional safe guarding measures to be able to regulate various kinds of transactions between buyers and builders, commencing from registrations of projects to possession!
The other features of the bill include preventing realtors from diverting more than 50 percent of the money invested by a buyer, to other projects. To implement stricter ground rules, the various state governments could enforce measure to increase the threshold figure to more than fifty percent, but lower it, which will ultimately help put liquidity starved builders on the back burner.
Individually, each state would be required to set up a Regulatory Authority and as quasi-judicial Appellate Tribunal as the two tier-dispute resolution mechanism.
No doubt then that it will only benefit a sector that is on the roll and is expected to excel its past results and projections in the days to come. Housing projects that are over 500 sqmt would be required to register with a proposed real estate regulator.
The bill hopes to ensure consumer protection and thus, increase upon the credibility of the sector that is touted to achieve bigger things in the future and chart out a clearer and more defined roadmap.
The bill once passed, will be covering both residential as well as commercial properties. With so much focus being shined on the sector, it is easy to gauge its importance. And can only mean, that the sector is set to be on a winning roll in the near future. Therefore, if you are planning on investment on property, go ahead and do it! It is just about the time as favors will be in your way.