You want to move into your new apartment, but it is still not ready? Builder promised you possession of your apartment in just three years, but it is nowhere near completion? Feel cheated by your builder and have nowhere to go?
There is good news for you. The Union Cabinet has passed the Real Estate Regulation and Development Bill 2015, just for people like you. The passing of the real estate regulatory bill, could be a game changer for the real estate industry.
For many years, buyers had to suffer due to delayed possession of apartments. Apartments were of poor quality. Builders used to divert money which was to be used for the construction of your apartment, to some of their other pending construction projects. What….take your money to build someone else a home and you can do nothing about it? No matter what your builder does he is not punished? Seems unfair.
The Real Estate Regulation and Development Bill 2015, could be the answer you seek.
Simple…It establishes a real estate regulator in the capital of most States and Union Territories in the country. Customers can place their disputes, before the Real Estate Regulator, present in the capital of each State. The authorities can punish and prosecute errant builders who do not follow rules, set by the real estate regulator.
The practice of builders advertising their projects even before they are complete, is called a pre-launch. The builder advertises his projects much before they are ready through a pre-launch, so that customers can book all apartments in his project.
Many builders do not have the mandatory approvals (Governmental approvals to construct your apartment or even environmental clearances), when they make the pre-launch offer. This comes later. If the builder does not get the mandatory approvals before constructing your apartment, it might mean a delay in completion, if the builder struggles to get the necessary Government approvals. You pay for the builders mistakes.
The real estate regulator makes it compulsory for the builder to secure all Government and other approvals including certificate of registration, before advertising and marketing the project. This means the builder has all the approvals, before you book the apartment.
Gone are the days when the builder could promise you, a ready to move apartment, in a couple of years and never deliver it. Many builders promise you possession of your apartment, in a couple of years. Unfortunately your apartment never sees the light of day.
The real estate regulator says that if the builder does not construct your apartment in time, he will have to refund your money with interest. You will be suitably compensated for any delay in the construction of your apartment.
Builders do several constructions (construct many projects). Builders may fall behind in some of their projects, due to lack of money. What do builders do? They divert the money you pay for the construction of your apartment, to some of their pending projects. The real estate bill has been passed to stop this practice.
The Real Estate Bill states that Builders will have to keep aside 70% of the project cost (money buyers pay them for their apartments), in a separate escrow account. They can use this money only for that particular project. This escrow account needs to be maintained with a scheduled bank. The builder needs to deposit money in this escrow account, within 15 days of getting this money from the buyers. This money can be used, only for the completion of that particular project.
The builder has promised you a massive apartment. Unfortunately when you take possession of your apartment you find it much smaller. Why does this happen? When the builder promises you an apartment, he considers super built up area. So what is super built area?
Super built up area includes the lobby, the corridor of your apartment, the lift and also the swimming pool or a small park, constructed within the building premises. These are common areas, which all people who live in the building use. The builder considers the super built up area, when he promises you the apartment. You are obviously disappointed, as you feel you are paying more for less.
The Real Estate Bill states that the builder can sell the apartment, based only on the carpet area and not the super built up area. Carpet area is the area within the walls of your apartment, which can be covered by a carpet.
Gone are the days when the builder could arbitrarily change the building layout plan, or modify the structure of the apartment, without the consent of the buyers of the apartments.
The Real Estate Bill states that if the builder wants to make structural modifications to the building, or change the building layout plan, he needs the consent of at least 66% of the buyers of the apartments.
Now all you need to do is relax and watch as your apartment takes shape before your eyes.
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