Real estate Bill: Impact on home buyers

The need for a regulatory authority has been felt since a long time in the real estate sector, struggling for many years due to tough market and economic conditions. Although overall demand has seen an upward trend, delays in completion of projects have punctured retail home-buyers' confidence. It also adversely impacted the sector's overall image. The additional cost on home buyers on account of prolonged bank interest has been adding to their existing pain.

The wait got finally over with introduction of The Real Estate (Regulation and Development) Bill, 2013. The Cabinet's approval on certain amendments in the Bill (recommended by a panel) brings it closer towards final enactment. Some of the amendments approved by the Cabinet include measures to encompass a large number of projects under the regulator's ambit and stringent compliance for real estate developers, which include builders' liability for structural defects, deposit of sale proceeds in an escrow account, interest on delays in completion of projects, time limits on disposal of customer complaints and formation of residents' associations, etc.

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