Housing ministry plans to introduce real estate regulator in the Cabinet. The regulator is expected to curb the illegalities in the realty sector.
Realty sector may get a cleansing if the union government sets real estate regulator to control the sector. The regulator is believed to be stiff towards unscrupulous builders.
Under the real estate regulatory bill the builders will be put into jail in circumstances of proved misbehavior. They will not be allowed to put any advertisement about their projects before they get the approval from the regulator.
Despite the opposition of the realty developers, the housing ministry is all set to implement real estate regulator bill to safeguard home buyers from unscrupulous builders. The bill is expected to be passed in the current parliament session.
On Sunday, minister for housing and poverty alleviation, Ajay Maken said that the bill will be introduced first in the Cabinet. Once it gets the approval of the cabinet, it will be placed in the parliament.
The consumer-friendly bill was once rejected by some senior ministers. It has been pending since the year 2009. However it would be interesting to see how the government will implement the bill before 2014 polls.
As the legislation will clearly define the ‘Carpet area’, developers will not have a chance to squeeze the buyers in the name of ‘super area.’ They won’t be allowed to sell any housing units on the basis of this.
A real estate regulator will be appointed in every state. The builders of the state will have to register their each project before the regulator. Additionally they will be allowed to sell any of their property only after getting all clearances.
Incomplete clearances are one of the main issues which the buyers suffer from the developers. The bill further blocks the advertisement of the project before its registration with the regulator. Under the bill the developer can collect money from the buyers only after gaining all necessary clearances.
Realty agents also will have to be registered with the regulator. A buyer-builder agreement also is made; under the bill, to provide better clarity to the property deals.