Real transparency: Real estate bill will empower consumer
The Bill’s provisions work both ways. It will hold the customer responsible for making promised payments on time as also the developer for performing on all aspects that he promises.
Jun 12, 2013
Source : The Economic Times

 

DELHI: Five years or so in the making, the Real Estate Regulation and Development ( RERD) Bill has finally been cleared by the Cabinet.

Developers had originally resisted the move to be brought into a regulatory framework, arguing that there were already too many municipal and planning regulations that were applicable to them. So, the genesis of the bill needs to be recalled to put things in perspective.

The Bill is essentially a consumer law. The main difference between the existing consumer laws and this one is that movable consumer items are invariably manufactured before the consumer pays for the item while that is not true for immovable goods like property and buildings. So, in the former case, the customer can see, touch and feel the product he buys; he has ISI and other standards to refer to for checking specifications and performance before he buys; and, what’s significant, he buys after the item has been produced.

Real estate, on the other hand, is immovable. So, the customer has been getting only promises when he booked his dream house. He would leave it to the developer to decide when he would get that much coveted house, specifications to be followed, facilities to be provided, how municipal and other laws were to be complied with, and when and how the infrastructure necessary to make the product liveable would be provided.

The Bill shall bring in the much needed transparency on products and projects for the consumer. Provisions in the Bill regulate at what stage he can advertize his product, and therefore restrict collection of advances before the project has received all legal clearances. It also defines what terms like super area, carpet area etc shall mean and how these connect with the terms used in municipal laws and planning regulations – thus reducing the risk of usage of terms which promise more than what can be legally built.

The Bill envisages the creation of a tribunal for dispute regulation. Such a tribunal shall have both technical and judicial members – a welcome move as it will help in creating a techno-legal environment for developer projects and shall make all transactions more transparent.

The Bill’s provisions work both ways. It will hold the customer responsible for making promised payments on time as also the developer for performing on all aspects that he promises.

It also stipulates how 70% of the money collected from customers for a specific project would be used only for that particular project. Developers will not be able to collect money from one project and invest it in another.

Real estate agents and dealers, now plying an unregulated trade, will also come under the umbrella of regulation and law – another welcome move, considering how this trade has run amuck without any reins at all till now.

Finally, the Bill has been drafted after consultation and debate with the states. It envisages creation of regulatory bodies in each state with broadly similar structures and mandates. This will bring in consistency in the legal framework for the real estate industry.

 

Latest Realty News

Real Estate Bill alarm bell for dubious builders
Jun 12, 2013
LUCKNOW: The Real Estate Regulation and Development Bill will possibly weed out non-serious developers in the business to make easy money, claim big developers of the city. More than 70% projects in the city, big as well as small, have some lacuna or the other in terms of obtaining necessary approvals, claim industry experts.
Credai to treat medical waste
Jun 12, 2013
KOCHI: With biomedical waste treatment becoming a major issue in city apartments, the Kochi-chapter of the Confederation of Real Estate Developers' Association of India (Credai) has decided to launch a project to address the issue under the Clean City Movement.
Housing scheme for 2L rural poor
Jun 12, 2013
CHANDIGARH: To provide affordable housing facilities to rural poor, Haryana chief minister Bhupinder Singh Hooda on Saturday launched an ambitious housing scheme -- Priyadarshani Awaas Yojana -- to construct two lakh houses at a cost of Rs 1,350 crore.
BDA's land given to its employees at throwaway price cancelled
Jun 12, 2013
BANGALORE: After being summoned by chief minister Siddaramaiah, who was upset over reports of a land dealing in the BDA, its commissioner T Sham Bhat who on Tuesday promptly cancelled the allotment and sale deed done in favour of BDA Employees' Welfare Association.
Property buyers, first pay up TDS
Jun 12, 2013
BANGALORE: Buying property worth over Rs 50 lakh? Then pay TDS before registering it, or income tax sleuths will come knocking on your door.
BDA’s giveaway deal stopped
Jun 12, 2013
BANGALORE: A day after Chief Minister Siddaramaiah was accused of “moral responsibility’’ for allowing the sale of Bangalore Development Authority land at throw-away prices to its employees’ association, the government set aside the sale.
Brokers excuse: Many go online to look for homes
Jun 12, 2013
CHENNAI: Avaricious brokers and argumentative middlemen can take a walk: Prospective tenants are logging on to find houses the easy way.
Chennai residential real estate report to remain firm, says report
Jun 12, 2013
Bangalore: Property prices in Chennai is expected to remain firm with upward bias in growth corridors, says a recent report by ASK Property Investment Advisors the real-estate private equity arm of ASK Group.
Pallikaranai and Medavakkam – hot realty destinations in South Chennai
Jun 12, 2013
CHENNAI: South Chennai is witnessing a steady growth when it comes to residential real estate market. Many experts believe that it continues to dominate across Chennai as a hub for residential development.
Probe chit fund companies, Ollywood link: NCP
Jun 12, 2013
BHUBANESWAR: While there is a growing public demand for fair probe into the alleged nexus between some politicians and controversial chit fund companies, the NCP on Tuesday urged the city police to unearth the possible links of cinestars with these companies.

Latest Realty News Of State

Realty Talk's