The Real Estate Development and Regulation Bill

The Real Estate Development and Regulation Bill   @atulaynehra

“Common Man” is the most commonly and recently coined term that has been used time and again in last one decade. Atleast when it comes to exploitation of right and duties of a common man in various spheres of life. One such important aspect of anybody’s life is ownership of a real estate – and when it comes to real estate, most of the people may or may not be interested in the topic altogether due to the cobweb intricacies that are involved when someone have to deal with .

Given the facts that the economy has major contribution from the real estate and building industry which does not have any specific guidelines to control the menace by the businesses involved, and for the benefit of the Common man – On the June 4^th 2013 , the much awaited draft of the bill regulating real estate and building industry was approved by the Union Cabinet.

There has been some noteworthy provision that has been proposed, though some of those have created a ruckus within the entire builder lobby. As a business model across India the developers use to pay a small amount for the land followed by launching the project and marketing it to the prospective buyers. As a result the project get’s funded from the money that has been collected from the prospective buyers. With this all the risks involved in delay of project due to permissions , approvals or any litigation's etc directly passed on to the buyer, making them to suffer excessively. Now the above will become a thing of past if the provision of NOT Selling and promoting till all the approvals which are required for completion of the project are received. This provision if opted will restrict developers will not be able to market or sell any project without 100 percent approvals.

The above provision also restricts the developers to divert money from one project to any other or for any other purpose.

There has always been and ambiguity in terms of the area being defined as super area and covered area , where in carpet area was always a mystery, the real estate regulation and development bill on other hand will bring in standardization in the industry introducing definitions to apartment, carpet area, common area etc

The bill in addition to above also fulfills the demand of having an independent dispute resolution judicial mechanism to resolve the issues between builder, developer and the investors. Having such Tribunal in place will be a relief for all those investors, flat purchasers, housing societies who has been in pain all ways when it came to resolution.

  

The bill although has a long way to go to be considered as a law, we hope this is would soon be approved and come in force.  

How to register or transfer your property

The Transfer of property in India is covered under the transfer of property act 1882. The Transfer ofproperty act defines ‘transfer of property‘ as an act by which a person conveys property to one or more persons, or himself and one or more other persons. The act of transfer may be done in present or for future. The person may include an individual, company or association or body of individuals, and any kind of property may be transferred.

A registration of property is done at the time of transfer of property from one owner to another by payment of required stamp duty and registration charges. Registration of property means the registration of documents under the provisions of the Registration Act, 1908. The documents are submitted to the registrar and the buyer and seller both has to be present at the time of registration of property.

Transfer and registration of property can happen or be required to done under many circumstances, for each situation the documents required or the instruments used can be different and can have different purpose. Below mentioned are few instruments used to transfer property or share in property.

Sale Deed

A document prepared on the basis of previous ownership document for the transfer of property from seller to buyer, providing the buyer the absolute and undisputed ownership of property

Gift Deed or Will

Transferring a property can be either as a gift or by a will. A gift deed is mostly use while the transfer of property is within the family, a gift deed for an immovable property is compulsory to be registered with the sub-registrar of assurances as per Section 17 of the Registration Act, 1908, failing which the transfer will be invalid. Additionally, such a transfer is irrevocable. Once the property is gifted, it belongs to the beneficiary and you cannot reverse the transfer or even ask for monetary compensation.

A will is applicable only after the lifetime of the executor. A registered will entitles the beneficiary to get the property transferred on their name after the lifetime of the executor.

Relinquishment deed

Relinquishment Deed

A relinquishment deed is used if one wants to transfer his rights in a particular property to another co-owner. Such a transfer is also irrevocable even if it is without any exchange of money. As with all documents related to the transfer of immovable property, a relinquishment deed needs to be signed by both parties and registered.

As transfer of property involves transaction of large sums of money, it is important to be assured on the documents that are required and used under different way of transfer of property. It is a good idea to get the property documents prepared and verified by a property lawyer beforehand.

Original publication at Content.magicbricks.com by AtulayNehra