The bill regulates transactions between buyers and promoters of residential real estate projects. It establishes state level regulatory authorities called Real Estate Regulatory Authorities (RERAs).
One of the main conflict is about the ambiguity regarding Super area .Super area is the area in which a flat is spread plus common area such as lobby, lift etc. Carpet area is the area enclosed within the walls of a flat.
To be registered with RERAs, Promoters cannot book or offer these projects for sale without registering them.
Instead of going to civil courts to settle disputes, the Bill envisaged setting up regulators at both the central and state levels who would lay down guidelines that builders are to follow and appellate tribunals to take care of disputes.
Builders and agents will have to register with the tribunals and all details will have to be transparently displayed on the regulators’ websites.
Certainly, aggrieved parties can still go to high courts and the Supreme Court, but the regulatory/appellate tribunals make the process quicker and bring in a lot of discipline in a sector which has traditionally been a bit like the American Wild West.
The government has been insisting that the bill is aimed to regulate and promote real estate sector and protect the interest of consumers.
Builders appear to have got a better bargain than customers in the revamped Real Estate (Development and Regulation) Bill
The government had also provided an escape route to builders if they fail to deliver flats or apartments within the promised deadline — the number one complaint of buyers.
Builders cannot be held liable for any delay if authorizing agencies fail to give statutory clearances on time, such as completion certificate and other approvals. In such cases, the bill says builders can seek extension.
Given the idea of the Bill is to protect home buyers, it is not clear why the government decided to water down this 70% figure to a 50% one, but presumably it was due to representations from builders who argued they needed more flexibility in order to run their business.
The new bill allows alterations, but it should be authorized by an architect or engineer and the buyer has to be informed about it. There are also agitations that buyers could now get flats different from the original design, with a spiked price for a bigger “super-area”.
One positive is that the scope of the Bill has been expanded to include commercial real estate, another area where buyers are in constant dispute with builders.
Discuss the Pros and Cons of the Real Estate Bill? Explain the Mandate of Real Estate Regulatory Authorities?
How Home Buyers Will Benefit From Real Estate Bill? Also explain how it boosts the Economy of Country.