Real Estate Regulatory Bill 2015 Full Details with Pros & Cons: On 5th June, 2013 the union government of india passed this Real Estate Regulatory Bill in order to maintain transparency and justice in Real Sector of India. In fact, Real Estate Sector in india a great sector since it deals with the shelters of several people in India. As per the norms given by the government, this Real Estate Regulatory Bill Applicable only for Residential Projects and Economical, Commercial Projects were excluded from this Bill. It’s a great Initiatory by government in order to skill scams in Real Estate Sector. In fact, this Bill will help Common people to keep them away from Frauds and Cheating.
What exactly Real Estate Regulatory Bill is?
As per the statement given by government, Real Estate Regulatory Bill is “A Bill to establish the Real Estate Regulatory Authority for regulation and planned development in the real estate sector and to ensure sale of immovable properties in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and establish an Appellate Tribunal to adjudicate disputes and hear appeals from the decisions or orders of the Authority and for matters connected therewith or incidental thereto.”
This bill has great value and important for common people. With this Bill, there are advantages as well as disadvantages. Overall, this bill helps to maintain consistent environment between Buyer and a Developer. Though the bill has Pros and Cons for Buyers as well as Developers. Since I have chosen to discuss the Pros and Cons of Real Estate Regulatory Bill in the aspects of both buyer and Developer.
|· In time Delivery to Buyers: Earlier, the real estate Developers won’t consider of delivering flats in a pre-assigned time. Few of the Builders will make a year or two years delay to deliver flats to the buyers. But As per the norms of the Real Estate Regulatory Bill, One Builder should deliver Flat in a fixed time. There shouldn’t be any delay in Delivering flats to the buyer!
In case there is a long delay in delivery of flats then the builder must refund the money to buyers with interest· Exact Project Disclosure: It’s a very common issue faced by Buyers. As the Builders initially mention that they are gonna provide ultra modern facilities before Buyer commits to buy, after buyer commits to buy and completes registration, then they realize that lot of things missing in that flat. This means complete irrelation between Existed Project to the Project Disclosure. So Builders must provide genuine information when they meet buyer, and the exact plan blue print must be given to the buyer, if any builder failed to do so then 10% of money from the project should be refunded to the buyer and three year imprisonment to the builder
· Giving detail information of each and everything to the Buyer, which is nothing but doing justice to the money they are spending.
· Different Bank accounts for Different Projects: It’s a common practice among developers to raise funds from buyers in the pre launch offer and then utilizing the fund for buying land for other projects or engagements, but not using it in current project. Now, with this bill it’s mandatory to maintain separate bank accounts for each project and transactions need to be maintained. Diversion of funds from one project to another will not be permitted. Developers / builders have to put aside 70 per cent of the proceeds of a particular project in a separate bank account which will help to fund the project and leads to complete it on schedule time.
|· This Bill Applicable to Future projects, and new projects only. Projects which are taken in the past are excluded from this bill. Though it is a legit thing but the buyers may feel unsatisfactory, still the government had to think from the side of builders as well. Government passed bill recently, if it is applied to past projects then it will be huge loss to builders.
· Due to the policies in the Bill builders may get losses. Since to build a flat, Builder must take liable and required permissions from the government officials. If it takes time then constructional delay’s take place, resulting a big loss to Buyer. Since, the bill itself says In time Delivery to Buyers, if government makes delay in giving permission then builder has to face loss and as per the bill he had to refund the money to buyers with INTEREST. It’s like a curse to Builders and developers.
· The Major CON OF Real Estate Regulatory bill is Registration with the regulator won’t be mandatory for projects less than 4000 sq mt. So, many small developers across metros like Mumbai, Bangalore, etc will escape from registration and government regulator’s control.� In these metro cities, project areas tend to be smaller due to lack of large land parcel
Though the Real Estate Regulatory Bill 2015 Full have some Pros & Con, I agree to go with the Bill, in fact it ain’t gonna affect whole Real Estate System, this gonna do justice to common people, and if you ask me then I recommend few suggestions in the bill and in fact, it’s a legit bill. Big thumbs up for Shri Narendra Modi ji making this available now. If it implemented so we can see less frauds and losses in the field of Real Estate. Do let us know your opinion on this Real Estate Regulatory bill.
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