Five ways the Real Estate Regulation Act offers confidence & security for house buyers
Many times, home buyers get the short end of the stick when it comes to dealing with builders and real estate brokers. The sad truth is that many buyers have faced similar problems and this has given the entire transaction a bad name.
Whether it is delayed projects, poor building quality, delayed possession, diversion of funds, or even arbitrary changes to layout plans, most buyers have faced this and accepted this as the grim reality, in silence.
This was because there was no regulation for builders and no standardization as such. If a buyer wanted to take up a cudgel against a builder, they had to choose the legal recourse, which is expensive, time-consuming and definitely not easy.
But times are changing.
With the Real Estate Regulation Act, buyers will find a much more positive atmosphere.
Here is a brief look at how buyers can benefit from this Real Estate Regulation Act and what it means for the real estate area.
No more suspicious projects where buyers lose money and peace of mind
Builders will no longer be able to start projects in their own mood. Before they can start a new project, the law will assure that they have to get approval from the relevant regulatory and planning authorities and only then can they be accepted.
This means that buyers will only invest their hard-earned money into legitimate projects. Also, the pre-launch discount opportunity, which is mostly a marketing plan to get more buyers, must also make room for reliability. Fly-by-night operators will not be able to bear this rigorous clearance policy.
Buyers are secured because their money cannot be redirected to other projects
One of the biggest bundles that buyers have is that builders distract the money they get from them towards newer projects. But now after implementation of Real Estate Regulation Act, this is not possible.
The act states that the money must be deposited by buyers in a separate bank account and that 70% of this money must be used in the development and completion of the project. This will definitely diminish delays in the project.
No surprises as builders have to make sure final project matches advertisements
Often the buyers are tempted to invest in real estate because they see the wonderful “artist representation” of the project being planned.
Also, most builders publish snazzy ads and their marketing plans are enough to ground even the most hardened buyers.
But what happens when expectations do not match reality? If the advertised house does not match what the buyer finally gets? Crushing disappointment and a feeling to be taken for a ride.
However, now the builders must pay the amount to the purchaser with interest if the final project does not match what was presented. This will definitely be a stop for reckless promises by builders as they must tread carefully.
Buyers can review previous construction projects to check quality claims
Sometimes, buyers can not verify the quality of the builder’s regarding their quality. This will no longer be the problem as soon as this bill becomes law.
Home buyers will be able to check the quality of builders previous constructions because the Real Estate Regulation Act makes it imperative for developers to get details of the projects that have been launched in the last five years.
These include a brief overview of the projects launched by the promoters over the past five years, whether they have been completed or developed, including the current state of the projects, delays in completion, details of pending matters, details of a type of land and the pending payments, etc.
This signifies that buyers can now make an informed and wise choice before they ask the builder for their dream home.
An extended repair time to ensure continuous support from builders
Take a look. This has happened with most buyers who own their home and a few years later, find that paint is exfoliating or there are leaks in the pipes. The honeymoon period is over because buyers were responsible for repairs for 1 to 2 years.
But with the new Real Estate Regulation Act, this will also change. The contractors are liable for all structural defects up to five years to ensure that they perform the necessary repairs.
So far, so good. This pro-buyer act spells no death penalty for builders. It just streamlines processes that have been up to now everywhere on the place and ensure that both parties are satisfied.
In the larger picture, regulation for builders makes housing more affordable for all and that is certainly a good thing.