The Union cabinet cleared a legislation to set up real estate regulator aiming to protect home buyers from unscrupulous developers and builders.
A real estate regulator to be set up in every state will ensure that private developers get all projects registered with it before sale of property and only after getting all necessary clearances. The private builders could not advertise or start a housing project before getting all necessary clearances and reporting before a regulator. The developers cannot collect any money from buyers before completing all necessary permits to start construction on the project.
“It will be mandatory for developers to get every project registered with the regulator before selling any immovable property,” an official said.
While the commercial real estate has been kept out of purview of the proposed bill, it will apply to residential real estate. There is a provision for mandatory public disclosure of all project details.
The consumer-friendly legislation will clearly define carpet area.
Private developers will not be allowed to sell houses or flats on the basis of ambiguous super area.
The builders will not be allowed to publish misleading advertisements to lure buyers while advertising the project. “They will have to use the pictures reflecting the actual project which will be delivered to homebuyers,” an official said.
The developer will have to deposit 70% of funds received for a particular project in a separate bank account to cover the construction cost of the project. This provision was made to discourage developers from diverting money of a particular project to other which caused delays.
A real estate regulator to be set up in every state will ensure that private developers get all projects registered with it before sale of property and only after getting all necessary clearances. The private builders could not advertise or start a housing project before getting all necessary clearances and reporting before a regulator. The developers cannot collect any money from buyers before completing all necessary permits to start construction on the project.
“It will be mandatory for developers to get every project registered with the regulator before selling any immovable property,” an official said.
While the commercial real estate has been kept out of purview of the proposed bill, it will apply to residential real estate. There is a provision for mandatory public disclosure of all project details.
The consumer-friendly legislation will clearly define carpet area.
Private developers will not be allowed to sell houses or flats on the basis of ambiguous super area.
The builders will not be allowed to publish misleading advertisements to lure buyers while advertising the project. “They will have to use the pictures reflecting the actual project which will be delivered to homebuyers,” an official said.
The developer will have to deposit 70% of funds received for a particular project in a separate bank account to cover the construction cost of the project. This provision was made to discourage developers from diverting money of a particular project to other which caused delays.
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