 "Cabinet to take up real estate regulator Bill today")
Two key features of the Bill, which aims at setting up a real estate regulator, are that builders should register all projects with the state regulatory authority, and the need to adhere to the announced completion time-frame.
The Bill might also make it a punishable crime for builders coming out with misleading advertisements. Besides, it may make it compulsory for property brokers to obtain a licence to conduct business.
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The Bill has already seen a number of deferments in the Cabinet. The legislation was once returned by the Cabinet after objections were raised by some senior ministers. There is a possibility that this time, the Bill may be referred to a group of ministers (GoM) if differences persist, sources said.
The Bill is likely to clearly define ‘carpet area’, and private developers will not be allowed to sell houses or flats on the basis of ambiguous ‘super area’.
After the Bill is enacted, builders will be able to sell property only after getting all necessary clearances. This may address a major concern of buyers about builders not giving exact picture of land acquisition.
The Bill may also prohibit developers from collecting any money from buyers before completing all necessary permits to start construction on the project.
The Bill may also prohibit builders from using pictures of housing projects in foreign countries to lure buyers while advertising a project. They will have to use pictures reflecting the actual project, which will be delivered to home buyers.
The developers will have to maintain a separate bank account for a particular project, and will not be allowed to divert the money for other projects.
Some private developers are opposed to the Bill, which seeks to provide a uniform regulatory environment to the sector.
According to provisions of the Bill, the regulator will act only if there is a complaint of any deviation from the project details disclosed by a developer on the regulator’s website.