It’s not just foreigners who are becoming increasingly dependent on Real Estate Companies for finding flats and apartments, the native residents are following suit. Grievances of Home seekers are in abundance, and are continuously echoed among those who have not received their homes despite having made the investment, the ones who were undone by half-completed projects, and those who did not receive what they were initially promised. A large number of victims remain reticent because they consider it preferable to undergoing never-ending disputes and arguments. For those who are setting out to buy their homes, it will be helpful to learn about this month’s real estate rules published by the central government.
Starting from now, only those projects registered with Real estate Authority formed by state governments under center’s law will have the legitimacy. While approaching the authority, developers are required to present their pan number and all financial details, including three year’s cash flow record supported by an auditor’s report. Furthermore, copies of property documents of planned place of construction and collaboration documents, if the place of construction does not belong to developer, should be submitted. Registration is only applicable to projects that are over 500 square meters and have more than eight floors. Developers must disclose to apartment buyers details about various sanctions and changes made to the projects after receiving clearance for building construction.
It will no longer be possible to build new projects using the money obtained from those who have booked flats and villas. The new ruling dictates that developers deposit 70% of buyer’s money in a specified bank and that the rest of the money should be spent on the completion of the booked projects. It will be the responsibility of Real Estate authority to enforce the observance of these regulations. The regulations are also aimed at preventing the abuse of black money and the rampant corruption in the industry. All the ongoing projects will also fall within the ambit of regulations.
People buying flats and apartments are required to form their own association within the first three months. The association will be expected to assume responsibility for operations in public spaces such as library and halls. Developers will be legally bound to deal with all construction works that may arise during the first year. Any construction changes in the authorized project will require the advance sanction of owners.
Developers are liable to pay the penalty to parties in the event of failure to complete the project. The penalty will be two percent higher than the loan interest based on a marginal cost existing in the state bank of India. Involved parties may register their complaints with state Real estate authority. There is provision in the law to prosecute or fine those developers and real estate agents who violate the laws. The advent of laws will create an environment conducive for effective and responsible real estate development, thus offering both physiological and economic reassurance to home seekers.