Tag Archives: real estate bill

Tough times changing time, those who evolve will succeed : Real Estate

Last few years were tough time for reality sector and with sudden announcement of demonetization it became tougher bringing fear and insecurities to the real estate sector. But, somehow with changing times it gave a new ray of hope to the sector for clean and transparent market ahead. With new government policies of RERA and GST shaping the reality sector we hope for better and more stable real estate market. With every change fears and insecurities comes along as we get comfortable in the way we’re doing things and we have to go through some difficulty adjusting to the changes, But, those who embrace changes sees opportunity in every changes and they not only succeed but thrive. The secret to change is to focus on the opportunities lying ahead, not the old comfort way.

To survive, organisations have to embrace change. The strategy to survive and become a leader one needs to be constantly adapting to the change in an ever changing landscape. In order to achieve this, the focus must be on the opportunities lying ahead and aim for long term benefits of changes happening around even in a turbulent and continuously changing environment. Need to evolve a strategy for coping with unanticipated events. Those who evolve will succeed change happens fast and you must evolve to keep up with those changes or fail in the way. Changing times can imperil even the most successful companies. People who change after change will survive, people who change after change will succeed and people who cause the change will lead.

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Benami Transaction Act and Its effect on Real Estate Market

The amendment in Benami Transaction Act  is a step in right direction to improve the overall confidence of the real estate buyers.  All real estate transactions shall be in the name of the actual owner who is paying the amount.

It would make real estate operations easier and establish professionalism increase transparency and clarity in ownership of the property. It would also  put the restrictions on black money into the reality market. It will bring the much needed confidence in investors . We may face an increase in real estate transactions prices. The realtors  entering into Benami Transactions may have to face punishment and pay  the hefty amount as penalty.  The act should impact the real estate transaction volume especially land transactions and real estate prices adversely.

Benamidar, or the beneficial owner or any other person who abets any person to enter into such a transaction, will face rigorous punishment ranging from a year to seven years in jail. These persons will be liable for a fine of up to 25 per cent of the fair market value of the property.  And, Those giving false information may face Imprisonment from six months to five years. Up to 10 per cent of the fair market value of the property. This act would be applicable on any kind of assets movable, immovable, tangible, intangible, corporeal or incorporeal.
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Real Estate Bill a Big Boost for Property Buyers

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.

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