Tired of staying in a rented house? Do you feel like a nomad each time you shift your house from one place to another? Well…. enough is enough. You have shortlisted a builder to construct your dream apartment. That was 2 years ago. Now there is a big problem. You get the feeling that your apartment will not be ready in this lifetime.
Your builder is delaying the construction of your apartment. Each time he comes up with one story or the other. Laborers are running away and construction is difficult….Cost of raw materials is going up….Getting this permit or that permit is so difficult…It’s a recession…. You fear your dream apartment might meet the same fate as your friend’s apartment. The builder who was supposed to construct your friend’s apartment, ran away with all the money.
Finally Relief…. The Real Estate (Regulation and Development) Bill, 2013, was passed in the Rajya Sabha, yesterday.
With the passing of the real estate bill, a real estate regulator would soon be created in each State. The real estate regulator protects your rights (rights of the buyers of apartments) and increases the accountability of developers and builders. If you have a grievance against your builder, you can place this grievance before the real estate regulator.
The Project (Building where your apartment is being constructed), has to be compulsorily registered, with the regulatory authorities of the State. Details such as promoters of the project, layout of your building (project layout plan), the status of the land where the building is being constructed have to be disclosed, before construction is started. Details of all the real estate agents, contractors, architects and structural engineers involved in the construction, need to be disclosed.
All commercial and residential real estate projects which have eight or more apartments, or land more than 500 square meters, will have to be compulsorily registered with the real estate regulator, before launching the project.
Remember the days of pre-launch, where the builder showed you flashy advertisements and made tall promises, to lure you to purchase his apartment. He even showed you the pictures….In the end you got nothing that was promised. The real estate bill states, no pre-launch without registration and necessary approvals
Your builder has to get the project registered and obtain necessary approvals, before announcing the pre-launch. If the builder promises much and delivers little (Misleading advertisements to lure you and then you get nothing), he has to return your money with interest. The builder has to disclose details of his past projects (both completed and under construction), for the last 5 years, so that you can make an informed decision, while making your purchase.
Builders will have to create a separate account (escrow account), where 70% of the money collected from you (buyer), will have to be deposited. This money will be used only in the construction of the particular project (land+ apartments). Now the builder cannot divert your money towards his other projects.
Carpet area is clearly defined, which includes kitchen and toilets and other usable spaces. Now your builder cannot sell you an apartment based on super built up area. Super built up area includes the lobby of the apartment, the lift, the corridors or the small parks you see within the building compound.
The builder cannot arbitrarily make any changes in the building layout and design (changes in the project plans), without getting the approval of at least two thirds of the buyers (customers). If after possession of your apartment, you find a defect in the structure, you can ask your builder for after sales service. Your builder is responsible for structural defects for up to 5 years, after you take possession of the apartment.
Your builder does not deliver your apartment in time. He gets punished.
You delay making your payments to the builder in time? He punishes you. He charges you interest on the delayed payment. Your builder delays the construction of your apartment. Well….nothing happens. After the passing of the real estate bill, if the buyer delays you the possession of your apartment, he will have to pay you the same amount of interest he would charge you, on a delayed payment.
Your builder cannot make a discrimination against you, based on religion, gender, region, caste or creed. Even a transgender can buy an apartment in your building.
There’s more good news… if your builder commits fraud he could be jailed for 3 years. If the builder does not follow the rules set by the real estate regulator, he could be jailed for 3 years or he would have to pay a fine as high as 10% of the cost of the project.
So relax….you’re the winner now.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
Subscribe to our Youtube Channel
Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.