Investors should be aware of their property rights. Most of the illicit property transactions that take place in India are due to the ignorance of the buyers regarding their rights....
Hope this article sheds some light on the 'grey aspect' of real estate functioning.
Law to check builders from fudging FAR
Unscrupulous builders may soon find it impossible to hide behind terms like "super area" to conceal the real floor area of apartments they are selling. A new law to regulate real estate developers will require builders
to exclude common spaces and balconies while spelling out the floor space of a residential unit.
The proposed Bill, a draft of which the Centre is currently working on, will make it mandatory for the builder to specify the area of an apartment in the sale agreement. Besides, a break-up will have to be provided of what the builder is charging for the apartment and a separate calculation for charges levied for common spaces like corridors, parking and lifts.
The Real Estate (Regulation and Control) Bill would allow the buyer to know clearly which common facilities and areas can be used freely and where residents would have limited access.
Builders often juggle between carpet area and super area to confuse buyers, who end up not knowing the floor area of their houses. There have been instances of apartments in the same block having different floor areas and builders even adding parts of common spaces into the floor area of a flat.
Bill to bring discipline and control into the business
The article made interesting reading. To add to it.... I would say that this news of building regulation has been of much concern to the developers and builders.
The Central Government initiative to introduce the Bill is to sought out more discipline to be brought into the business. The legislation which will honour the buyers rights by not allowing developers to charge for the super built-up area, which in a way will help the common people get the real value of money. The Bill is likely tabled in the winter session of the Parliament.
But is a Bill enough to bring discipline and control into the business? Can anyone throw light on the other aspects of the Bill....
The proposed Real estate (Regulation & Control) Bill seems to be a consumer/buyer friendly legislation. The Bill when brought into effect will help the regulatory body on real estate business to check fraud and bring in greater level of transparency.
This will definitely curb the intentions of the real estate developers who promise the moon claiming that an apartment complex will have many facilities, for which the buyers are charged extra. The Bill will provide stringent safeguards against claims and 'big promises' that are not honored.
But it is also necessary for the buyers to be aware of their property rights and make proper enquiries regarding transactions. The Real Estate Bill is a revolution of its own kind. It will make it mandatory for the builder to specify the area of an apartment in the sale deed. Also he has to make seperate calculation of charges levied for the common spaces such as corridors, parking and lifts, etc.
This will help the buyer know clearly which common facilities and areas can be used free and which have limited access. Buyers ignorance sometimes lead the builders to juggle between carpet area and super built-up area to confuse the buyer who end up with a deal who end up a deal without knowing the floor area of their houses or apartments, which happen to be in the same blocks having different floor areas. There are several instances when builders even add part of common spaces to the floor area of a flat.
So besides a Bill it is also important that buyers are more aware of their rights.