With the increasing demand of properties and decent spaces in the country, there has been a shortage in the supply. It is due to this reason that, the prices of buildings are sky rocketing. The property market India is really volatile these days and in order to make things better for the buyers, the country’s law has formulated some property rights that would put the buyers in a better position and would also impose harsh penalties on some of the erring home builders. Before we start to explore the various aspects of property rights, let us try to understand what property right is all about. Property right is the basic right that each individual have on their own property. But unfortunately, many Indians neither have the knowledge nor the protection to save their properties from all kinds of related problems. This mainly happens with the poor or uneducated people and the reason is quite obvious. Even though you might have quite some knowledge about the property rights of the country, but recently they underwent certain types of changes. In order to make you and your developers aware about the new rules, we present you the list of changes in laws that has taken place for properties across India.
- Even though the main property rights are looked after centrally, but each state of the country would also have to ratify their own rules. They would also need to have their own regulatory authorities. This would ensure that the sale and purchase of properties is authentic at each level and neither the buyer nor the developer has to suffer for each other’s action. The newly building projects along with the currently ongoing projects would have to follow the laws.
- The laws have also increased the screenings on the real estate developers and they give close attention to all the details. Starting from registering to providing regular status updates, the developers now are kept under surveillance all the time. They even have to disclose the exact amount they are investing to build the properties and how much advance they are taking from the buyers. Even for advertising their properties or making any major changes in the structure, the developers have to take approval from the home owners.
- The India property builders would now only be able to advertise about their properties once they have got all the regulatory permits. Also they can take only collect 10 per cent of the home value at the booking time exceeding which they would have to go through a registered agreement of sale.
- According to the new laws, in case the builders are unable to complete the project within the stipulated time, then they would either have to refund the whole amount back to the buyer or else they would have to pay interest for the time the project got delayed. This was done so that buyers can make property investment without any worries. In case the builders are unable to give the money, they might get imprisoned for up to 3 years.
- The law has formulated special real estate courts in each state for all types of property related problems. Now you would not have to go civil courts for solving your real estate issues and hence the decisions would be taken at a much faster rate.
- The RERA or Real Estate Regulation and Amendment Act have also decided that in case of any structural defects, the builders would have to rectify them without any additional charges within thirty days and in case they are unable to do so, they would have to provide appropriate compensation amount to the property buyers. However the defects need to have been caused by the negligence or unfair practices of the builders.
- The development plans of all the builders needs to be crystal clear and at par to the National Building Code. There should not be any violation regarding the height, size or any structural aspect of the building. Doing so, the law can prevent the builders from proceeding with the project and this might cause a huge monetary and image loss for them.