Gendral Civil Engineering

Protection For Home Owners

Protection For Home Owners

Home owners who prefer to get their own insurance policy can compare multiple offers and pick the plan that works best for their needs.The Real Estate Bill,which aims at protecting home buyers’ interest, moved closer to becoming law after it was cleared in the Rajya Sabha.The bill, designed to bring transparency and accountability to the realty sector,is expected to  revive investor and buyer confidence.Here  are five ways how the bill will protect home buyers:

1) All residential and commercial projects that include eight flats or cover an area of 500 square meters or more, will now have to be registered with the Real Estate Regulator. This pretty much covers most real estate being built in the cities of India. No project will be allowed to be sold to the buyer, unless it has all necessary permissions from local authorities to start construction.

2)  Buyer-seller or  builder-buyer  agreements are extremely lopsided,  offering  almost  no  rights or protection  to  the  home  buyer  today.Once  the  bill  becomes an Act, one-sided agreements will become a thing of the past. Any delay in payment by the builder will attract the same penalty as what the buyer needs to cough up, if his payment is delayed. Builders who are notorious for changing project plans, midway, including the number of floors in a building or the layout of a flat, will now be barred  from  doing  so,  without  the approval of 2/3rd of the buyers.

3)  Realty projects often get delayed  because  developers divert funds meant for one project to another.But once the bill becomes law, real estate developers will have to deposit at least 70 per cent of money collected from buyers in an escrow account to meet construction costs.This will ensure that developers who run out of cash don’t stall projects.

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4)  Developers  cannot  sell  property  on  the  basis  of  super area (flat area plus common area). They will have to clearly define the carpet area which includes spaces like kitchen and toilets. So a buyer will know exactly what is he getting as living area and the price he’s paying for it.

5)  What’s  more,  developers  are  also  banned  from making claims in advertisements or publishing pictures of site/project which are untrue. Misleading advertising has been made punishable. For flouting any of rules laid out in the Regulator Act, the developer can be fined 10 per cent of the total project cost. And for repeated offense,the builder can also be jailed.

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Thomas Britto

I am Thomas Britto here to share my experiences in the civil engineering field to all my readers.Today many students are struggling to buy books at high prices. So I decided to start a blog and share my experience and knowledge with all my readers.

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