Thumbs Up to the Real Estate Bill

The ‘Real Estate Regulatory Bill – 2015’ receives the Cabinet nod and now it is the Parliament’s turn. The buyer sentiment: happy and heaves a sighing relief, who had to run from pillar to posts just to get what was promised! The home buyer market is ecstatic, full of hopes, to get a home which is delivered under the stipulated time frame and most importantly, it is delivered as promised. The emotion is not shared so vehemently by the realty players who are worrying about the new regulation which they may be deemed to fall under. They are now forced to speed up pending projects but the crunch of funds is restricting their flow.
The real estate market scenario is quite dynamic. It changes with the rate one flips a coin in the air. You never know which side it will fall… the consumer centric or favouring the realty players. Till now, the game has largely been won by the realty majors as well as minors duping the clients to make-believe things in air and delivering at a much later date things which were not promised. This trust deficit brought forward the long awaited sentiment of the buyer to not indulge in any buying. The buyer took his time, waited to receive a better deal and voila, he is proposed to get some in the form of the Bill! By this time, buying property in Delhi NCR or any metropolitan city was choked leading to the inventory of the developer to get stocked up. This is why we saw never before deals in the realty market like one plus one offers. The developers wanted liquidity and funds flow in the market which is why they offered the buyer with such lucrative deals.
No single window clearance
One major sentiment which is still unresolved among the real estate fraternity is that it is yet to attain an industry status. After all, they are working towards the government’s plan to fulfill housing needs. I have interviewed many real estate majors and one thing which they chorused individually was no single window clearance policy of the government. With 50 plus approvals required for a single housing project, it is the end user who ultimately suffers due to the builder not able to deliver projects on time.
Dilution of the use of funds from 70% to 50%
After much a hullabaloo about the real estate bill, there are still loopholes which require the attention of the government. Fine that they have thought of streamlining the funds flow scenario through the escrow account for timely delivery, but, what about diluting the percentage from 70 to 50. That means, a builder has to use the 50% of the amount paid by the client from the escrow account in the project while the remaining half, which is still enough to invest in any other property, remains on his discretion. And then, at the end, who will care to give a heed to the woes of the end user who still is not getting what was promised?
Transparency: a good move
With transparency in the working of the realty sector, the frustration of the end user might a little be doused. Now, the property consultancies and promoters will necessarily have to register themselves with the Real Estate Regulatory Authority and disclose all the information of the project, completion time frame, layout plan, status of statutory approvals, land status etc. Now, all the projects will have to be completed within the committed time-frame, failing which, the authority shall cancel the registration of the developer and the buyers will have to be compensated adequately.
Course correction in agreement
Investing anywhere is subject to risk but that clause does not deter any one from doing so. It is examining the documents carefully before investing that might save you from a plunder, but there is ought to be a catch when the documents are related to property. The Bill, thus, rightfully makes a provision for a model buyer-seller agreement and insists that any buying/selling deal will have to be in line with the model seller-buyer agreement recommended by the regulator.
Sales now will not be based on super area
Today, when you step out to buy those lush green flats in Gurgaon or flats in Delhi NCR or for that matter in any metropolitan city you will have to pay only for the carpeted area, the actual living space from inner wall-to-wall distance inside the house rather than shelling out for that extra common areas/ facilities which almost every developer today sells for a hefty amount. According to the Bill, now, the developer has to disclose the actual carpet area as homes will not be sold without this being declared first. Misleading brokers who have tarnished the image of the real estate industry will now be not allowed to do so since the Bill has the provision of the real estate agents to be made punishable. The Bill, once passed, will also cover all those projects which have not received their completion certificates offering a respite for the buyers and investors.
Real estate has always been the best and easy way to earn the hard earned money of the clients starting right from a builder over to broker, then to litigator and to even high profiled people. It is a source of easy and bulk money… all at one go! The Bill is a forthcoming factor in increasing transparency and accountability in the real estate sector and answering the unheard woes of those who have flowed in their lifetime income in owing an abode. The Bill, if passed by the Parliament (which they must), shall boost the confidence of even new buyers in the market emerging from oblivion.

Hi, this is Sumit Kumar Das. I work as a SEO in a real estate consultancy. This article describes the situation of Property in Delhi NCR, Gurgaon [http://www.siddhanthpromoters.com/].

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