Brokers on Alert With New Realty Bill

Brokers on Alert With New Realty Bill

By siliconindia   |   Monday, January 23, 2012


Bangalore:  The forthcoming Real Estate Bill on Regulation and Development has one crucial point included that aims to safeguard home buyers interest in real estate. This Bill is likely to bring the real estate brokers into the realm of regulations and brokers who provide wrong information to home buyers would face imprisonment, reports Anuradha Shukla of Business Today.

A senior government official from the ministry of urban development told Mail Today that, in many cases, brokers are the one who misguide buyers not the developers and so it’s unfair to punish only the developers.  The ministry is likely to bring even the brokers under the domain of law after discussing with various stakeholders.

The upcoming Real Estate (Regulation and Development) Bill is a major step taken by the government to protect home buyers from unreliable developers by imposing heavy penalty and the Bill also proposed penalties for project delays.

Several developers also claimed that most of the times it is the brokers who sell inventories by giving wrong information to buyers not the developers. Pranay Vakil, chairman, realty consultancy Knight Frank, and co-chair, Ficci Real Estate Committee cited that "Why penalize only the developers? There should be accountability on the part of other stakeholders, such as government agencies and authorities at the Centre, state and municipal levels, financing agencies and brokers," reports Business Today.

 Pranay also said that "The draft Bill in its current form has some serious flaws. For example, the minimum threshold for regulation is set at 4,000 square metres of land, which is too high”. The bill has excluded projects that include undersize developers and their projects respectively.

The ministry had set a minimum threshold of 1000 square meters in the previous draft, which was increased to 4000 square metres in the current from of the bill. However, the ministry has reviewed the bill and agreed to remove the minimum threshold area which would have left a large part of realty sector unregulated.

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