Real Estate Act Bill 2016 has been enacted on May 2016. Here are the benefits a home buyer has been looking for.
The much awaited Real Estate (Regulation and Development) Act, 2016 has finally come into force on 1 May 2016 after three years of opposition and modifications. The bill is meant to protect the consumer rights by ensuring the transparency, builder’s accountability, and better services. Here’s an overview of the benefits of the Real Estate Bill, 2016 for home buyers and builders:
That is the benefit every home buyer wants to be in the bill! Prior to the bill enactment, a consumer had to approach consumer or civil courts to make a complaint against the developer’s project delay. Besides, the lack of standard consumer protection measures and delay in settlement just added to the buyer’s woes. The bill will create the state level regulatory authorities to protect customer’s interests in such cases. The state level authorities will also impose penalty on the builders responsible for the project delay and poor services to the home buyers.
Besides redressing the grievances, the Real Estate Bill 2016 will put a check on the unfair practices of the builders. The act has the several provisions to maintain the transparency in transactions to ensure the timely delivery of the projects. The real estate act will make it mandatory for builders/brokers to disclose project details like plan, land status, government approvals and its delivery date. According to the bill’s provision, the builders/brokers will have to register the projectwith the Regulatory Authority before booking or selling, and have to seek approval to start the project. They can’t bring changes in project without the consent of the buying party. If they fail to do so, they will be charged with the fine of the 10% of the total project cost and they can be behind the bar if they repeat it.
A bill states that the developers have to transfer the 70% of the money from buyer to a separate account. It is the step to regulate the developer’s malpractices to invest the buyer’s money in a new project instead of completing the one for which it was paid. The provision against these misuses will make the builders to complete the construction on the time.
Given the money diverting and insufficient funding options, the developers may not hand over the project to the buyer as per their promises and agreement. With the enactment of the bill, the builder can be end up with penalties if he causes delays to the project. Its provision has ensured that in any delay a builder has to pay the same interest to the buyer as the latter paid EMI to the bank. Apart from that, the above listed benefit points in favor of buyer also make the builder to complete the project on the stipulated time. In this way, the Real Estate Bill 2016 saves the buyers from hassles and harassment.
Generally, the apartment space was determined by the super built-up area (wall thickness + floor area) while selling it to the customers. Needless to say that it was the inaccurate square footage area. But the Real Estate Bill made it mandatory for promoters to sell the space on the basis of the carpet area, which is the actual usable area. A builder is required to mention the carpet area, which means the space customers will get for the amount paid.
Though the bill is customer centric, it has many benefits for the developers. The bill also allows a builder to go the regulator authority on any dispute with a customer. The proposed legislation in the bill makes the allotte a subject to the penalty on not paying dues on time.
On the basis of above listed points, it can be said Real Estate Bill 2016 is the revolutionary step in protection of the consumer rights. The bill not only penalizes
Image Source: bit.ly