Dubai
If the new Indian government does make a concerted push to reform the property market, topping the agenda would be the full scale launch of the ‘Real Estate Regulatory Authority’.
“The long-awaited Real Estate (Regulation and Development) Bill, 2013, could be a reality very soon — it aims at establishing the Authority for enforcing fair practice and accountability,” said Ajit Jakhadi, advocate at the Mumbai High Court. “There is also fast-track dispute resolution mechanism in real estate transactions.
“The Authority is certainly required for the protection of the interests of property buyers at large and the government (state as well as federal) now, seems determined to introduce the same.”
What the Authority if it comes into being can do:
Launch of a new project can be done only after registration with the Authority and getting all necessary clearances.
All project information along with the approvals to be listed on the Authority’s website.
Sale on the basis of carpet area need to be clearly defined.
Misleading advertisements using exotic colourful pictures will not be allowed. Only pictures representing actual project to be used.
Developers to stick to approved plans.
Money to be collected from the buyer only after obtaining necessary approvals.
Developers to deposit 70 per cent of the amount from the sale of the project in a separate bank account, which will be used only for the development of that project.
In case of default, the developer will have to refund the money to buyers.
Developers to pay interest at the prescribed rate for delays in completion of the project.
Prescribes penalties and punishments (including imprisonment) for the developers in case of default.
To render advice to the appropriate government pertaining to the development in real estate;
To publish and maintain website of records of all real estate projects;
To maintain a database on its website and enter the names of real estate agents who have applied and registered under the Bill,
To fix through regulations for each areas under its jurisdiction the standard fees, to be levied on the allottees by the promoter or the association of allottees, as the case may be;
To ensure compliance of the obligations cast upon the promoters, allottees and real estate agents under the Bill;
To ensure compliance of its regulations or directions made in exercise of its powers under the Bill;
To perform such other functions as may be entrusted to the Authority by the appropriate government as may be necessary to carry out the provisions of the Bill.
To make the registration of a real estate project compulsory in case where the area of land proposed to be developed exceeds 1,000 square meters or the number of apartments proposed to be developed exceeds 12.
