In a recent press statement, Compare Casa, the only property comparison sites for L Zone has applauded the steps and measures taken by government with respect to new real estate bill. Apart from the transparency factor in the market as supported by the Compare Casa, the company has further focused on the point where the bill is stated to be a motivator for the industry credibility and accountability while encouraging the flow of funds into the market.
The bill as passed by the Upper House of the parliament on March 10 is also is being known as the Real Estate (Regulation and Development) Bill 2016. The bill is centrally focused around the protecting the interests of home buyers bringing in better transparency and accountability into the real-estate sector and areas.
Many financial firms in the market are optimistic about the fate of the bill for a longer period and range as it has enough teeth for protecting the interests of home buyers with respect delay of the housing projects and ensure the greater transparency.
It has been told to be a major reformation in order to regulate the extensive real estate sector. The mandatory disclosures and registration there could reduce the extensive lying black money transaction in this sector and the market. As the government has an absolute majority in Lower House, the bill would be going to be passed through and an easy manner effectively.
From an extensive range of activities in the bill, the key features of the bill include timely execution, accountability and transparency. The Bill proposes setting up state-level real-estate regulatory authorities in which it is mandatory for all the builders to register all projects above 500 sq mts (earlier 4000). This would apply to both residential and commercial real estate projects, including even those are at present are under construction. Further under the bill around state-level appellate tribunals will be set up for addressing complaints. A timeline of a maximum 60 days has been offered for the resolution of all disputes and failures. On the part of the developer in case of failure of registration for the project, a imprisonment for about three years for the developers is required or the fee cost of about 10 percent of the project therefore is the penalty or project cost or both are to be implemented. Home buyers and real-estate agents in case of any fault even can lend into upto one years of imprisonment.