Real Estate bill passed for buyers delight

Five years or so in the making, the Real Estate Regulation and Development (RERD) Bill has finally been cleared by the Cabinet.

Developers had originally resisted the move to be brought into a regulatory framework, arguing that there were already too many municipal and planning regulations that were applicable to them. So, the genesis of the bill needs to be recalled to put things in perspective.

The Bill is essentially a consumer law. The main difference between the existing consumer laws and this one is that movable consumer items are invariably manufactured before the consumer pays for the item while that is not true for immovable goods like property and buildings. So, in the former case, the customer can see, touch and feel the product he buys; he has ISI and other standards to refer to for checking specifications and performance before he buys; and, what’s significant, he buys after the item has been produced.

Real estate, on the other hand, is immovable. So, the customer has been getting only promises when he booked his dream house. He would leave it to the developer to decide when he would get that much coveted house, specifications to be followed, facilities to be provided, how municipal and other laws were to be complied with, and when and how the infrastructure necessary to make the product live-able would be provided.

The Bill shall bring in the much needed transparency on products and projects for the consumer. Provisions in the Bill regulate at what stage he can advertise his product, and therefore restrict collection of advances before the project has received all legal clearances. It also defines what terms like super area, carpet area etc shall mean and how these connect with the terms used in municipal laws and planning regulations – thus reducing the risk of usage of terms which promise more than what can be legally built.

The Bill envisages the creation of a tribunal for dispute regulation. Such a tribunal shall have both technical and judicial members – a welcome move as it will help in creating a techno-legal environment for developer projects and shall make all transactions more transparent.

The Bill’s provisions work both ways. It will hold the customer responsible for making promised payments on time as also the developer for performing on all aspects that he promises.

It also stipulates how 70% of the money collected from customers for a specific project would be used only for that particular project. Developers will not be able to collect money from one project and invest it in another.

Real estate agents and dealers, now plying an unregulated trade, will also come under the umbrella of regulation and law – another welcome move, considering how this trade has run a muck without any reins at all till now.

Finally, the Bill has been drafted after consultation and debate with the states. It envisages creation of regulatory bodies in each state with broadly similar structures and mandates. This will bring in consistency in the legal framework for the real estate industry.

Source: The Times of India, Bangalore

Things to remember before buying a property

Finding the right Property

Things to remember before going for a property hunt

 

Title Deed (Certificate of title of the land)

  • Hi people when you are planning to buy any property, first and foremost thing is what to check down the title deed of that property. A title deed is a legal document which is used to prove ownership of a piece of property. Most commonly, title deeds are used as evidence of ownership for homes and vehicles, although technically a deed of title could be issued for another form of property.
  • A typical title deed includes a description of the property in question, worded in such a way that it cannot be confused with another property, along with the name of the person who legally holds the property; multiple people can also be listed on a title deed.

E.C (Encumbrance certificate)

  • The “Encumbrance” means the charges or liabilities created on a particular property, whereby it is held as a security for any debt of its owner which has not been discharged as on date. The encumbrance certificate contains all the transactions registered relating to a particular property for a period of a time.
  • Encumbrance certificate is a document listing all the outstanding encumbrances affecting real estate. It would include such items as mortgages, liens, easements, restrictions, conditions, life estates, etc

Torence Plan

  • Torence plan is detailed plan of the property which is done by a licensed surveyor. All the measurements details in it are accurate in terms of length, width, borders etc. this plan is necessary for some specific areas only.

Pledged land

Some people may have taken loan from the bank by pledging their land.

  • Ensure that the seller has paid back all the amounts due.
  • Ask for a release certificate from the bank, which is necessary to release all the debts over the land legally.

Property Tax and receipts

  • Use the information from your current paid property tax receipt, such as your account numbers, property legal description and county information to access the website for your county tax office. There should be an option on their web page where you can request a duplicate tax receipt. There may be a charge for this duplicate property tax receipt. Some areas may have separate taxing authorities that keep individual records. You would have to contact each taxing authority separately to request a duplicate property tax receipt, such as school districts, city and utility districts.

Measurement of Property 

  • It is prudential to measure the land before registering any property. In this way you can ensure the measurements and borders of land are perfect and accurate. You should get done it with authorized surveyor as you will avoid many problems coming in future. For the sake of your knowledge you should take surveys sketch from survey department and do ensure the accuracy.

Purchase and sales agreements

  • Purchase and sales agreements are contracts used primarily for complex sales transactions like those involving real estate and business assets. These agreements differ from bills of sale in that conditions must first be met in order for the sale to be finalized. Purchase and sales agreements are sometimes known by different names, depending on the transaction and state where the sale takes place, but they are all detailed contracts outlining the conditions and terms of a financial purchase.

Property Registration

  • The land can be registered to the concerned authority, which may be the Sub-Registrar or the SDM (Sub District Magistrates) of your area. You can get title deed written from a government licensed writer or a lawyer. But the deed can only be computerized not handwritten as Land and Property Registration system has become computerized now.
  • Make sure all the details are accurate in the deed because if there is any incorrectness then you have to register secondary document with correct details and depending on incorrectness, the registration fees repeats. Make sure the deed is registered within the time limit shown in agreement.

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