For too long, buying a house has implied gambling your life's savings on shady estate agents. A bill being finalised by the government could change all that.
The proposed Real Estate Management (Regulation and Control) Bill 2006 — to be introduced in Parliament shortly — for the first time brings builders under a stringent legal regime and makes them accountable to buyers as well as the government.
For one, the bill will demand that property developers produce accounts detailing how they utilise the money collected from potential buyers. Developers will have to utilise the money collected entirely on the project.
Pre-launch offers made by builders and developers in the NCR, and advertised prominently in newspapers, will be strictly prohibited in Delhi once the bill is enacted.
A builder will have to furnish all details to prospective buyers and accept advance payments only after entering into a written sale agreement that is duly registered.
Providing essential services like water, electricity and sewerage will be mandatory. A builder will also be liable to compensate a buyer for defective or sub-standard work.