UP to regulate real estate agents with new law
Realty experts said that the new law should not be limited to generating revenue for government and issue licenses and should rather work in the interest of home-buyers, who often are taken for a ride.noida Updated: Feb 17, 2014 20:00 IST
The Uttar Pradesh (UP) government has decided to enact a new law aimed at regulating real estate agents and ensure better services to home-buyers across the state.
Officials said under a new law a property dealer/broker will have to register himself/herself with a government local body and obtain a license number before starting his business.
"The UP urban housing department is busy drafting a new bill to regulate property brokers. Once the draft bill is ready, it will be approved first by the cabinet principally and then passed by legislative assembly to make it a law. The aim of the new law is to bring down rising property fraud cases, and ensure quality services to home-buyers," said a senior UP government official in Lucknow.
As per the draft, district magistrate or any other top official in each district will be appointed as the nodal officer, who will issue licenses and address home-buyers' grievances against erring agents, who, in the absence of any regulatory authority go scot-free in case of cheating or poor services.
Home-buyers in Noida, Greater Noida, Yamuna Expressway and Ghaziabad cities, which have emerged as a hub of affordable housing in Delhi-NCR, welcomed the new law.
Gautam Budh Nagar district--Noida, Greater Noida and Yamuna Expressway areas--alone has 50,000 unregulated and unregistered property agents doing business.
UP approximately have 5 lakh unregistered agents, said officials.
Realty experts said that the new law should not be limited to generating revenue for government and issue licenses and should rather work in the interest of home-buyers, who often are taken for a ride.
"Five years ago, the Haryana government had come up with a similar law but it served no purpose because the government was only interested in revenue, and not in regulation of business. The new law in UP should bring accountability, transparency and better quality to home-buyers. It can only happen when local officials implement it in true spirit," said Satyendra Tomar of FinlaceConsulting Pvt Ltd, a real estate consulting firm.
The draft bill said a certain educational qualification will be fixed for a real estate agent to be registered with the government.