Real Estate Bill, 2015 – Amendments in Real Estate Bill, 2013, The real estate sector has always been in talks and in media because of its pricing going up and down day by day. The Real Estate Bill, 2013 had been brought in by the UPA government but due to some loopholes in the bill, it was a very liberal bill which allowed the builders to escape from the wrong happenings. So the NDA government amended the bill by taking the suggestions of the opposition party and making it a comprehensive bill. There has been notable changes in the bill, which are described here.
Amendments in the Real Estate Bill, 2013:
- Firstly, the major amendment in the bill is to include Commercial properties now onwards and not only residential properties. Commercial property owners need to register themselves with the local authorities and follow the respective compliances.
- The second important change in the bill was to make liable the builders for any defect or wrong happening to the building for 5 years which was 2 years previously. It is an important step because now the builders would be using good materials for making the building because if any thing happens to the building within a time period of 5 years than they would be held liable.
- The size of the building or square meter for which they need to get themselves register was 1000 square meter and 12 apartments which has now become 500 square meter and 8 apartments which is a better step towards good control, as almost all of the buildings would be coming under the said criteria and they need to get themselves registered.
- There has been made safer way for the investors in this bill as they have inserted an provision for delayed possession of the house with the rate of interest as prescribed in the document for the payment of interest in case of late payment of the instalment.
- The main reason behind the delay in giving possession to the owner of the property was that the builder was not able to construct the building fast because of the finance being not enough, as they were investing the money of the property owners in some other property and transferring the money to the other part and not investing in the said property. So now the government has brought the rule that at least 70% of the receipt should be transferred to separate account called “ESCROW” account, which the money would be utilised for the said purpose only.
- The dispute resolvance clause has also been amended as the previous time limit of 90 days for solving a adjudication case has been reduced to 60 days which is a good sign towards better India.
- The illegal activities conducted by the builders or the real estate agents may also face some severe liabilities such as builders would be imprisoned for 3 years or 10% of the project cost if found guilty, while the real estate agents would be imprisoned uptown 1 year or 5% of the apartment cost.
Through the above points, we can clearly analyse that this amendment bill is surely a customer oriented or investor friendly which would create trust amongst the investors for what they are buying and is it safe to buy or not.
In today’s world the real estate world was very much unregulated and not transparent. People were not able to put trust on the builders or the developers as there were many cases of customers being cheated in the name of schemes. So this bill will surely create trust amongst the people if it being implemented seriously and proper awareness programs have been conducted amongst the people for the proper benefit of the same.