Be it any sector or service, transparency always has a role to play as it bridges the communication gap between the buyer and the seller. I am extremely delighted with the cabinet’s decision to approve the long pending Real Estate Regulatory Bill which was first introduced by the UPA government in the Rajya Sabha in August 2013.
The bill will act as a controller between the buyers and sellers of housing properties. It will also launch a state level regulatory authority known as Real Estate Regulatory Authorities (RERAs). It is expected to have adopted a holistic approach as it currently applies to both residential and commercial projects, and will also address the regulatory and development aspects of the real estate industry.
I personally believe that the bill will provide the much needed standardization and will enable an efficient growth of the sector. Real estate as a sector in India is thriving and in order to maintain the momentum there is a need of a regulatory body for all the stakeholders to enhance the accountability among builders and promoters.
But, it is necessary for the customers to understand that this bill now needs to be approved by the parliament in order to become an Act which may take another one year. However the following benefits of the bill are commendable:
· Any new project by a developer and agents need to be registered under the Real Estate Regulatory Bill
· Consumers will have access to the project details
· 50% of the buyer’s investment needs to be deposited in a commercial bank account within 15 days of receiving the money which will be used only for the project construction
· The developer cannot change the plan in a project until and unless two-third of the consumers agree for the same
· ‘Consumer is King’ – the consumers will now be able to make better decisions while buying a house
· The developers will have to follow a list of mandatory guidelines
In my opinion, the bill will also supports Prime Minister Narendra Modi’s mission - ‘Housing for All by 2022’. It is in turn a welcome move by the government which will not only encourage investors but will also simplify the home buying process for the people of India.
We hope to get the best out of this much awaited bill!