Home owners who prefer to get their own insurance policy can compare multiple offers and pick the plan that works best for their needs.The Real Estate Bill,which aims at protecting home buyers\u2019 interest, moved closer to becoming law after it was cleared in the Rajya Sabha.The bill, designed to bring transparency and accountability to the realty sector,is expected to\u00a0 revive investor and buyer confidence.Here\u00a0 are five ways how the bill will protect home buyers:<\/p>\n
1) All residential and commercial projects that include eight flats or cover an area of 500 square meters or more, will now have to be registered with the Real Estate Regulator. This pretty much covers most real estate being built in the cities of India. No project will be allowed to be sold to the buyer, unless it has all necessary permissions from local authorities to start construction.<\/p>\n
2)\u00a0 Buyer-seller\u00a0or\u00a0 builder-buyer\u00a0 agreements\u00a0are extremely lopsided,\u00a0 offering\u00a0 almost\u00a0 no\u00a0 rights\u00a0or protection\u00a0 to\u00a0 the\u00a0 home\u00a0 buyer\u00a0 today.Once\u00a0 the\u00a0 bill\u00a0 becomes an Act, one-sided agreements will become a thing of the past. Any delay in payment by the builder will attract the same penalty as what the buyer needs to cough up, if his payment is delayed. Builders who are notorious for changing project plans, midway, including the number of floors in a building or the layout of a flat, will now be barred\u00a0 from\u00a0 doing\u00a0 so,\u00a0 without\u00a0 the approval of 2\/3rd of the buyers.<\/p>\n
3)\u00a0 Realty\u00a0projects\u00a0often\u00a0get\u00a0delayed\u00a0 because\u00a0 developers divert funds meant for one project to another.But once the bill becomes law, real estate developers will have to deposit at least 70 per cent of money collected from buyers in an escrow account to meet construction costs.This will ensure that developers who run out of cash don\u2019t stall projects.<\/p>\n
4)\u00a0 Developers\u00a0 cannot\u00a0 sell\u00a0 property\u00a0 on\u00a0 the\u00a0 basis\u00a0 of\u00a0 super area (flat area plus common area). They will have to clearly define the carpet area which includes spaces like kitchen and toilets. So a buyer will know exactly what is he getting as living area and the price he\u2019s paying for it.<\/p>\n
5)\u00a0 What\u2019s\u00a0 more,\u00a0 developers\u00a0 are\u00a0 also\u00a0 banned\u00a0 from making claims in advertisements or publishing pictures of site\/project which are untrue. Misleading advertising has been made punishable. For flouting any of rules laid out in the Regulator Act, the developer can be fined 10 per cent of the total project cost. And for repeated offense,the builder can also be jailed.<\/p>\n","protected":false},"excerpt":{"rendered":"
Protection For Home Owners Home owners who prefer to get their own insurance policy can compare multiple offers and pick the plan that works best for their needs.The Real Estate Bill,which aims at protecting home buyers\u2019 interest, moved closer to becoming law after it was cleared in the Rajya Sabha.The bill, designed to bring transparency …<\/p>\n","protected":false},"author":2264,"featured_media":2836,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"two_page_speed":[],"footnotes":""},"categories":[26],"tags":[414],"class_list":["post-2835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gendral-civil-engineering","tag-home-owners"],"yoast_head":"\n