While you were jostling with the sweltering heat in the month of March, the Rajya Sabha members were initiating a regulatory mechanism to bring relief to several home buyers across the country. They passed the Real Estate Regulatory Bill during the Union Budget 2016 that sought to cheer the buyers and developers alike and give the required impetus to a rather laid-back sector.
Here are some key reasons why this bill was ‘the need of the hour:
Housing for All
1.Affordable housing was only a term till now but its real implementation is likely to happen; henceforth, lending the buyers some relaxation from paying multiple taxes, apart from the stamp duty and registration charges.
2.With the timely completion of projects, accountability and a mutual trust between developers and buyers, the national dream of ‘housing for all’ can be achieved.
3.Illegal and unplanned infrastructures or developments will be regulated, putting an end to people losing their homes to such unfair practices.
Freedom from disorderliness and frauds
1.The real estate sector has a tarnished image for much unaccounted money, false promises from the builders, assured rental returns where rental rate listings turn out to be fake, deliberate delays and last-minute changes in approved plans, mortgaged spaces where the owner has not got the property registered in the buyer’s name, title frauds, and many more such scams.
2.However, this Real Estate Development and Regulation Bill assures the buyers complete transparency and commits to bringing more orderliness in the property market. This would include revealing the ‘carpet area’ for sale and curtailing on any one-sided agreements.
3.The exchange of black money between the lenders and buyers will be curbed that will, in turn, help control price rise in properties.
4.Dispute adjudication will become easier and faster with more accuracy of facts and preventive measures in place.
Specialized regulations and enforcement
1.Sectors like electricity, banking, telecom, insurance, mutual funds and securities have specialized regulations enforced on them and this bill ensures that real estate too has those regulations implemented.
2.It will encourage standardization, boosting the confidence of home buyers, furthering the cause of orderly growth for the realty industry.
Private participation and FDI
1.The bill would help the real estate sector grow both domestically and globally with more private bodies joining in.
2.It will also reel in investments from foreign countries and industries, which was earlier not feasible due to lack of a regulator.
Credibility and channelizing the sector
1.The financial transactions would be more efficient, given that the sector can now rely on banks, securities, and other financial institutions with the regulatory mechanism in control.
2.Home buyers are likely to have their investment decisions restored, thus buying more real estate stocks, channelizing investments and reducing inventory accumulation.
3.Temporary developers practicing illegal trades would cease to exist; Thus, adding to the credibility of the responsible ones.
As the difference between what the developer shows and what he actually sells diminishes largely with this regulatory bill, so does the housing sector’s discrimination on lower castes, women, transgender and minority groups. Looks like, a lucrative realty future is in the making.
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Published Date: May 24, 2016 18:31 PM | Updated Date: May 27, 2016 14:17 PM