Gaining Clarity on the new Real Estate Bill Taking into considering the growing number of real estate scams that have gained lime light over the last few years, the cabinet has recently made the decision to pass a new bill that aims to protect unaware buyers from con property deals.
Over and above making sure that you deal with only reliable developers and projects such as Panchsheel Greens 2, Noida Extension; it is also important that you familiarize yourself with the new laws and find ways to benefit from them.
Why is the Bill being formed?
It is the aim of the bill to create a regulator for the real estate sector in the country. The board created herewith will be designed by using the regulations of the Telecom Regulatory Authority of India as a reference point.
Who does this Bill Apply to?
The bill in question is only applicable to residential projects such as Panchsheel Greens 2 in noida extension and others. This means, that if you are looking for a commercial property in Noida, fo instance, you will not gain any protection under this bill.
What does the Bill Consist of?
The bill has developed some extremely stringent provisions in the form of penalties for developers who publish deceptive or misleading advertisements about a project in question. First time offenders will be liable to pay as much as 10% of their total project costs. Furthermore, repeat offenders can be sentenced to a jail term going up to 3 years.
How else does this Bill Enforce Laws on Developers?
This bill makes it compulsory for developers to acquire all the requisite clearances before any of the apartments are put on sale. This means that developers can no longer permitted to prelaunch projects with an aim to collect additional funds to complete construction.
How Does this Help?
This mandate is designed to protect buyers from developers are regularly known to miss their deadlines with regards to project completion. It is not uncommon for buyers to complain about capital being stuck in projects where the developers have not cleared any relevant land acquisition permits.
Furthermore, buyers must understand that developers are no longer allowed to accept more than a requisite 10% as advance payment from a potential buyer without the existence of a written agreement. Finally, you as a buyer also have the right to demand complete refund along with interest in case of a delay in a project.
Published on May 23, 2014
Published on May 23, 2014
The bill in question is only applicable to residential projects such as Panchsheel Greens 2 in noida extension and others. This means, that...