MUMBAI: Leading consumer rights group Mumbai Grahak Panchayat (MGP) has written to the state government to speed up implementation of the new Real Estate Act and advised potential home buyers to defer booking flats till the new law is enforced.
“There are many consumer-friendly provisions in the new Real Estate Act which will bring in much-needed transparency, safety and efficiency in real estate Transactions,’’ said MGP on Saturday. “We call upon prospective home buyers to resist the temptation of booking their dream homes now on the basis of tempting offers and await the new act, which offers safety, security, and transparency,’’ it said.
Under the new law, every builder must first register his proposed housing project with the Real Estate Regulatory Authority. No such registration is possible unless the builder has necessary building permission from the competent authority like Municipal Corporation. Builders will have to display their registration number in advertisements and display all details about such housing project on a web page of the website of the regulator.
Developers will also have to display their past track record, details of completed and incomplete projects. They will have to deposit 70% of the amount received from the flat buyers in a separate account. Under the new Act, property developers are prevented from charging any exorbitant interest rate to flat purchasers in case of delay in their payments to the builder.
Credits ET Realty