You might have seen real estate developers completing the project work in a hurry in recent time. If you try to find the reason for their rush, you will get government’s new realty law behind it. The government has passed the Real Estate (Regulation & Development) Bill in Rajya Sabha on March 11, 2016, and after learning about it, all the real estate developers have put their best efforts to complete their work as soon as possible. However, all the builders presently working on their project will get at least 16-17 months time, as according to the government, the new law will take time to come into the effect.
Builders Will Have to Provide All Details:
The new realty law introduced by the government suggests that all real estate developers including real estate builders in Rajarhat will have to disclose their project details that should include the details of regulatory approval, the assured time of project completion and the master plan of the project before beginning of the project work.
According to the new law, builders should start the work of their project with individual escrow account and the account should have 70 percent of sales proceeds deposited in it. However, the no-compliance of the regulation can put a builder in jail for three years or court could ask for heavy fines.
Projects Will Be Treated Differently:
Soon after the declaration of the new law, several real estate developers decided to snap their larger projects in different parts and they have even done it with their township projects. This act simply suggests that each phase of a project would be registered and treated as an independent project.
As per the new law, real estate developers can divide their projects into different phases and can make them recognized as an independent project. However, many builders in the industry said that this can be a better option, because if each phase of the project counts as an independent project, then they will avail longer period of time to construct and sell them.
State-Level Regulatory Body Will Be Established:
The new realty law suggests that state-level regulatory bodies will be set up that will regulate and keep a close watch on all kind of transactions in the real estate industry. In addition, an appellate tribunal will be established that will address all the complaints registered by consumers. It seems that the law will force all real estate developers to work under a strict guideline and take care of their commitments towards consumer satisfaction.
A lot of Pending Projects Will Be Completed Soon:
Many real estate companies including real estate developers in Rajarhat that are working on 40-50 projects across the country from more than 5 five years, will finish all their work within next 16-17 months, because all the developers will have to finish the work of their current projects before the new realty law comes into effect.
However, the rush in the project completion will require an unstoppable flow of funds and that will not be an easy task for projects running on bank loans because banks can make delay in sanctioning the fund.
Builders Will Have to Provide All Details:
The new realty law introduced by the government suggests that all real estate developers including real estate builders in Rajarhat will have to disclose their project details that should include the details of regulatory approval, the assured time of project completion and the master plan of the project before beginning of the project work.
According to the new law, builders should start the work of their project with individual escrow account and the account should have 70 percent of sales proceeds deposited in it. However, the no-compliance of the regulation can put a builder in jail for three years or court could ask for heavy fines.
Projects Will Be Treated Differently:
Soon after the declaration of the new law, several real estate developers decided to snap their larger projects in different parts and they have even done it with their township projects. This act simply suggests that each phase of a project would be registered and treated as an independent project.
As per the new law, real estate developers can divide their projects into different phases and can make them recognized as an independent project. However, many builders in the industry said that this can be a better option, because if each phase of the project counts as an independent project, then they will avail longer period of time to construct and sell them.
State-Level Regulatory Body Will Be Established:
The new realty law suggests that state-level regulatory bodies will be set up that will regulate and keep a close watch on all kind of transactions in the real estate industry. In addition, an appellate tribunal will be established that will address all the complaints registered by consumers. It seems that the law will force all real estate developers to work under a strict guideline and take care of their commitments towards consumer satisfaction.
A lot of Pending Projects Will Be Completed Soon:
Many real estate companies including real estate developers in Rajarhat that are working on 40-50 projects across the country from more than 5 five years, will finish all their work within next 16-17 months, because all the developers will have to finish the work of their current projects before the new realty law comes into effect.
However, the rush in the project completion will require an unstoppable flow of funds and that will not be an easy task for projects running on bank loans because banks can make delay in sanctioning the fund.
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