With Real Estate Bill becoming a realty, business in real estate will not be as usual. Home Buyers has many reasons to cheers as The Real Estate bill, whose main focus is to protect the home buyers rights makes registration of projects essential, including those that have not got completion or occupancy certificates. Registration will require builders to set aside funds collected from buyers and pay interest in case of delays. Hence, The real estate bill would force the Builders and Developers to finish construction and development work quickly as registering existing projects might delay them further.
The Real Estate Bill which has been passed recently by both the houses of parliament is ready to receive the assent of the President says that Builders have to deposit 70% of the amount collected from buyers in a separate account to cover the cost of construction, including land. Developers will also have to pay the same interest rate for any delays on their part as buyers do when their payments to the builders are late.
Real Estate investment has always provided a sense of security and emotional attachment to property buyers and investors. Real Estate is far less volatile than other growth oriented asset classes and financial institutions lend money easily to a real estate buyers. Real Estate is one of the very few asset classes which has beaten inflation consistently in the long run. Government’s commitment on Housing for All and Real Estate Bill to make it a realty will certainly help to strengthen the morale of realtors in coming days.