The onset of the new Real Estate Regulatory bill has created a stir among the customers, developers and brokers as it seeks to bring forth phenomenal changes in the real estate sector.
For generations, this sector has been known to be one of the most notorious and its tarnished image has been portraying a shadowed reputation for ages. Several customers have been duped by brokers on numerous occasions like value of a credit note, inflated discount rates, interest rates etc. The unprofessional environment and unorganised style of work make this sector as one of the most challenging and a lot more difficult to get promoted to higher levels of management.
Crores of rupees go down the drain due to the lack of consistency in the services provided by brokers. Thousands of cases with regard to misrepresentation of facts, financial duping, misuse of trust and false or misleading advertisements have been going on for ages in the civil/ high courts. With the ever growing demand of residential or commercial properties, the rise in the number of brokers has been phenomenal catering to their need and requirements, however, in majority, not more than 50% of the total number of brokers are genuine. Due to the numerous loopholes in the laws laid for this industry, several frauds have occurred over the years.
There has been a huge sigh of relief with the new Real Estate Regulatory Bill which has set the ball rolling; yet, it still is in the phase of being passed as an act.
Seeing the growing potential of the real estate sector, the government sprung into action and has taken major steps to bring out a customer-centric bill, which has become a nightmare for most developers which in turn will also affect the brokers. The bill clearly states that it is mandatory for all brokers to register themselves with the proposed RERA (Real Estate Regulatory Authority).
The air has been cleared with regards to the unfair practices which brokers need to restrain themselves from i.e. any statement which falsely represents services of any particular standard, statements representing that they have all the due approvals and any misleading statements regarding services provided.
One of the major changes in the bill have been regarding the penalties and sentence for non-abidance of the laws laid in the bill. For developers deliberately providing false information will be liable to pay a penalty.