The new and the very stringent Real Estate Regulatory Bill was passed in the Union Cabinet last week. Now that is something I would call a bill that would change the real estate business or rather to say ” the way of doing real estate business (positively and negatively)”. Concerns have always been there regarding the integrity, confidentiality and customer’s interest and bla bla bla. This bill has its prime focus on the eradication of the malpractices in the real estate. The most common malpractice being the diversion of the funds from one project to another based on the demand.
Some key points of the Dashing Real Estate Regulatory Bill:
- Buyers who have book a house can see the progress of the project online and lodge a complaint with the regulator if not on schedule.
- Only project registered with the regulator will be allowed for sale
- Builders will be depositing half of the booking money in an escrow account so that the end use of funds is administered.
- Before marketing the project, all the clearances must be in place.
- Online portals as well might come under this bill to showcase on those properties which are registered (housing.com, Indiaproperty.com etc)
- Setting up a special tribunal for decision making within 60 days.
I dont know about the passing of the bill ( it might even be passed) but the implementation?? i really doubt its efficiency. Mostly importantly the centre’s bill is not a binding on all the states (wheres the uniformity of the law). The money to be deposited in the escrow is going to be huge problem to track, (lets not forget we live in India for god sake we own the “black money” market), how is the regulator going to manage that I really cant predict at this point of time. That is why I said it might change the way of doing business which might as well become worse. But some of the points of registration and clearances are fantastic for the buyer’s interest.
Last but not the least regulations always come with a cost, both for the builder and subsequently for the buyer as well. The real estate prices are already sky high, the regulation is going to make it worse to buy (at least in the metro cities).
So for all those wanting to buy a flat in a nice lavish project in metros gear it up!!! 😉 Others with individual plots of less than 10000 sq.ft of area can relax..that bill wont be applicable anyways.