Another Law to Protect the Interest of Buyers, Soon
Nov 17, 2017 Legal Guidance
This year has brought a huge relief to the buyers with a reduction in interest rates, GST, RERA. Home buyers are able to enjoy the benefits more now.
Though there is still some confusion over the GST, but the government has assured that in long run GST will only bring more justice at the prices of the properties. Since there will be competition among the builder over the reduced prices, it is believed that the prices will slash down further.
Among the multiple benefits that the buyers are now enjoying, booking the property with 10 percent or the price is one of the most welcomed ones. Earlier the builders used to have a monopoly and the buyers had to pay as much as 40 percent of the total cost as the booking amount. The developers will not be able to use the fund of the particular project to fund another project. Seventy percent of the money that the buyer will pay will go into the escrow account and the buyer will not be able to access it for some other purpose.
The authorities across the country are making sure to provide the buyers seamless service and protection, even though some confusion is still there regarding the laws.
Government is also in the process of amending an earlier law to make sure the justice is served to the buyers.
What is the new law?
The government will replace the earlier Consumer Protection law, 1986 with a new law that has been worked keeping in mind the revised 2015 guidelines on the consumer protections.
The new law will bring down the misleading ads and will help the buyers address their grievances in a time bound and cost effective measure.
The Prime Minister of the country, Mr. Narendra Modi, assures promising future with the upcoming law, claiming that India will have the best Consumer Practices and Consumer Prosperity. He also added, “Stringent provisions are proposed against misleading advertisements. A Central Consumer Protection Authority with executive powers will be constituted for quick remedial action.”
This will provide the consumer two channels to lodge their complaints against the developer- the state authority RERA and the Central Consumer Protection Authority.
The real estate law also states that the real estate authority has the right to revoke the registration of the developer if "the promoter permits the publication of any advertisement or prospectus whether in any newspaper or otherwise of services that are not intended to be offered".
Though there is still some confusion over the GST, but the government has assured that in long run GST will only bring more justice at the prices of the properties. Since there will be competition among the builder over the reduced prices, it is believed that the prices will slash down further.
Among the multiple benefits that the buyers are now enjoying, booking the property with 10 percent or the price is one of the most welcomed ones. Earlier the builders used to have a monopoly and the buyers had to pay as much as 40 percent of the total cost as the booking amount. The developers will not be able to use the fund of the particular project to fund another project. Seventy percent of the money that the buyer will pay will go into the escrow account and the buyer will not be able to access it for some other purpose.
The authorities across the country are making sure to provide the buyers seamless service and protection, even though some confusion is still there regarding the laws.
Government is also in the process of amending an earlier law to make sure the justice is served to the buyers.
What is the new law?
The government will replace the earlier Consumer Protection law, 1986 with a new law that has been worked keeping in mind the revised 2015 guidelines on the consumer protections.
The new law will bring down the misleading ads and will help the buyers address their grievances in a time bound and cost effective measure.
The Prime Minister of the country, Mr. Narendra Modi, assures promising future with the upcoming law, claiming that India will have the best Consumer Practices and Consumer Prosperity. He also added, “Stringent provisions are proposed against misleading advertisements. A Central Consumer Protection Authority with executive powers will be constituted for quick remedial action.”
This will provide the consumer two channels to lodge their complaints against the developer- the state authority RERA and the Central Consumer Protection Authority.
The real estate law also states that the real estate authority has the right to revoke the registration of the developer if "the promoter permits the publication of any advertisement or prospectus whether in any newspaper or otherwise of services that are not intended to be offered".
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