Real Estate Bill: Advantages & Disadvantages

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Real Estate Bill Advantages Disadvantages
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• The Real Estate Bill, which was passed in June
  this year, provides transparency and
  accountability in the realty sector.
• Its objective is to make known the status of
  building approvals, to enable customers to make
  accurate decisions.
• This apart, the bill aims to take steps to
  promote affordable housing for everyone.
• When the Real Estate Bill comes into effect, home
  or property buyers can expect to get timely
  ownership, and as per the promises made by
  developers. 
• The real estate sector in India is famous for
  being unregulated and unorganized, with no proper
  guidelines for builders to follow, because of
  which buyers are routinely taken for a ride.

Ref http//www.mashsizz.com/real-estate-bill-adva
ntages-disadvantages/
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Whats in the bill?

• It proposes to get real estate companies
  registered with the proposed regulator if the
  project is being developed in more than 1000
  meters of land.
• Developers or builders will have to submit
  detailed project reports that will include
• Completion date
• Land title
• Names of architects and agents
• Details of the bank account where the amount
  generated from project sales will be deposited.
  This amount will not be used for other activities
• In addition, the bill seeks to enforce strict
  penalties for various offences
• For example, in case a builder does not present a
  detailed project report, the penalty may extend
  up to 5 of the estimated cost of the project.

Ref http//www.mashsizz.com/real-estate-bill-adva
ntages-disadvantages/
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Advantages of the bill

• Timely delivery of flats
• If the builder is not able to deliver the flats
  on time, he/she will have to refund the
  purchasers money along with interest.
• Furnishing of accurate project details
• In the construction stage, builders promote their
  projects defining the various amenities and
  features. As per this Bill, there cant be any
  changes to a plan. And if a builder is found
  guilty of this, he/she will be penalised to
  pay10 of the projects cost or face a jail time
  of up to three years.
• Specifying carpet area
• Generally, builders sell flats on the basis of
  built-in area, which includes a common passage
  area, stairs and other spaces which are 20-30
  more than the actual flats area. But, not all
  buyers are aware of the concept of carpet area.
  With this Bill it will become mandatory to
  declare the actual carpet area. 
• All clearances are mandatory before beginning a
  project
• This Bill ensures that developers get
  all the clearances before selling the flats.

Ref http//www.mashsizz.com/real-estate-bill-adva
ntages-disadvantages/
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Disadvantages of the bill

• Past real estate projects not included in the
  Bill
• Projects that are ongoing, completed or
  stuck due to clearance or financial issues are
  not covered up under this Bill.
• Delay from Government agencies
• There can be delays caused by the Government,
  which sometimes takes a lot of time to clear a
  project. It is up to the Government bodies to
  follow strict time frames to approve projects, so
  that developers can launch, complete and deliver
  them on time. There is no cause and effect terms
  for such delays from the Governments side.
• All said, the real estate bill promises complete
  justice, by ensuring buyers get their dream homes
  on time and at an affordable price.

Ref http//www.mashsizz.com/real-estate-bill-adva
ntages-disadvantages/
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Thank You