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Housing act will give flat buyers a say
The next time a developer doesn't keep his commitment of providing a club house or a flat with a specific carpet area or view, the home buyer can drag him to the housing regulatory authority.
The next time a developer doesn't keep his commitment of providing a club house or a flat with a specific carpet area or view, the home buyer can drag him to the housing regulatory authority.
The authority, which will have the powers of a civil court, can sentence the developer or promoter to three years' imprisonment or charge a penalty of Rs. 10 lakh for not complying with its orders. It can also cancel registration of a project if the developer does not have valid right to the land.
The landmark housing legislation, the Maharashtra Housing (Regulation and Development) Act, 2012, will be tabled in the legislative council on Tuesday, said minister of state for housing Sachin Ahir.
It will empower the consumer by putting a check on malpractices. It will make it mandatory for all real estate projects to be registered with the website of the housing regulatory authority.
The developer will also have to disclose details such as land title, layouts, flat size, structural and financial details.
Also, if a builder alters or adds to the layout without the consent of the buyers, or doesn't register the sale agreement, he can be liable to a fine of up to Rs. 1 crore.
Even a home buyer can face a penalty of Rs. 10,000 or 1% of the sale price for not complying with the sale agreement.
The bill, which was reintroduced in the state assembly on Monday, went through 24 amendments by the joint select committee of legislators from both the houses of the legislature.
One of the big changes introduced is that the developer will now have a defect liability period of five years. This means the developer will have to make up for all defects in constructions for free.
In case a builder abandons a project, the law will allow setting up of a legal entity of 60% of home buyers, who can then hire a private contractor.
It also makes it mandatory for the developer to keep 10% flats aside until the occupation certificate is granted to the project.
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