Need for a Statutory Regulator for Property Transactions

Need for a Statutory Regulatory Property TransactionsFor most people, the process of buying a property requires great care. There is often a huge investment - possibly the largest one person can do, and they want real value for the money invested. Along with the decision to liberalize the rules for FDI in the construction sector, it comes as a surprise that the real estate industry continues to operate unregulated without a legal framework favourable to consumers, particularly when investment funds, insurance policies , bank deposits and fixed values are all subject to the guidelines of a market regulator. So far, only non-resident Indians (NRIs) and persons of Indian origin (PIO) were allowed to invest in housing and real estate sector. Foreign investors who are not NRIs were allowed to invest only in the development of integrated townships and settlements either through a subsidiary or through a joint venture in India, along with a local partner. Although the real estate sector in India is proclaimed to be the most promising sector today is still fraught with uncertainties of the market and inhibitions. The real estate market in India is still predominantly unorganized, fairly fragmented, mostly characterized by small players with a local presence. Thus, a transaction of 500 rupees has a regulatory structure in place, while a Rs 50.00000 contract runs on trust or might. What makes the buying process even more distressing is the total lack of professionalism. The sector is filled with builders and brokers are not only ignorant of the law, but also about the ways of civil engineering. The Ministry of Finance has also expressed concern about the exponential growth in the highly unorganized sector, which also means that one of the most corrupt sectors of the economy.In an attempt to protect consumers, the ministry of urban development plans to create a regulator for the real estate sector. A real estate commission will be established to frame guidelines and a code of conduct for dealers property. This would mean that property dealers and architects would have to get registered before doing business. These movements are all likely to be part of the proposed Bill of Real Estate Management. However, taking into account the strong opposition from a section of lobby builders and property agents, it remains to be seen whether the Government would be able to advance the bill. There are proposals for self-regulation of the industry. However, some of the builders have also supported the government& 39;s move, since achieving transparency in the industry and a guarantee for customers. Once that improves the level of trust, the amount of foreign investment in the sector between could increase substantially to the growth in the sector. According to one estimate, the real estate sector is expected to obtain an investment of more than $ 50 billion in next 5 years. Under the bill, community property dealers need to apply for a compulsory license of the proposed commission to practice specific catchment areas. To further protect the interests of consumers, the commission also complaints against licensees and have the power to take punitive measures. There are also plans to create a window of assistance in the commission proposal, where potential buyers can thoroughly check the background and other details of the property. It is also expected to act before the ban launch bids - a method of taking consumers for a ride in the housing sector. Realtors have enormous strides to the proposal immediately after the acquisition of floors of land, even without the endorsement. In some cases, developers have received money in advance before the land was even transferred. Most of the time, developers have sunk money into projects alternate. Once the project has been approved, builders will be barred from accepting any deposit or advance payment unless a sale agreement has been executed. The moves are expected to put an end to check the validity of reservations and advertising launch cats until property prices beyond market rates. This speculation seriously inconvenience real help to buyers while out to make a fast buck. Apart from the ban on these offers, the bill is also likely to mandate that the developer signed an agreement with the purchasers, ensuring the delivery of the goods within a specified time limit. However, the draft of the proposed Act reveals some serious flaws. These came mainly from India& 39;s federal constitution which puts the property subject to state law. The fear is that the new statute will face the fate of the National Building Code, which is being ignored by the States to the greatest extent possible. For most people, the process of buying a property requires great care. There is often a huge investment - possibly the largest one person can do, and they want real value for the money invested. Along with the decision to liberalize the rules for FDI in the construction sector, it comes as a surprise that the real estate industry continues to operate unregulated without a legal framework favourable to consumers, particularly when investment funds, insurance policies , bank deposits and fixed values are all subject to the guidelines of a market regulator. So far, only non-resident Indians (NRIs) and persons of Indian origin (PIO) were allowed to invest in housing and real estate sector. Foreign investors who are not NRIs were allowed to invest only in the development of integrated townships and settlements either through a subsidiary or through a joint venture in India along with a local partner.
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