Why Realty Sector Needs the Regulator Bill Urgently?

Another problem in real estate sector is the project delays. Under construction residential developments have become a frequent issue in real estate sector and home buyers are getting trapped into this problem. But if the bill comes into effect then the issue of project delays may reduce to a certain extent. As per the proposed regulation bill, private real estate developers have to register their projects before selling it to end-users.  To register a property, developers have to get all requisite clearances which in turn reduce fraudulent business in real estate sector. Also, the developers have to reveal project details and any kind of contractual obligations with the home buyers to maintain transparency and fair business. 

Moreover, if developers fail to affirm the project clearance status to home buyers then the bill imposes fine on levy charges of up to 10 percent of the total project cost or three years of imprisonment. The bill also states that when selling residential property to home buyers, developers have to sell the property based on “carpet area” and not on the basis of “super area”, which is practiced currently. This step is to give home buyers a little relaxation on property buying and also to bring transparency in the realty sector.

The Bill will hopefully bring some relaxation for the consumer and is expected to safeguard consumer’s interest from deceitful business. The quality of construction and services offered by developers are expected to improve with the introduction of the Bill.

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