Skip to Content

(Un)Real Estate

up
143 users have liked.
Everything else

All of us who have bought a House/Land/Flat can understand how uncontrolled and scam ridden this sector is. I have also cribbed previously on this forum about the lack of a regulator in this sector. I have found that Real Estate Management (Regulation and Control) Bill is being formulated by the central govt for Delhi and is expected to serve as a reference and model for the rest of the states to follow. Some more thoughts on this is here 

Can Karnataka take a lead in this regard? The time to do it has already passed but better late than never. Is this a first step in that direction?

Update: Crossposting the entire article from my blog

Almost 5 per cent of GDP is contributed by the housing sector, and in the next few years it is expected to rise to 6 per cent. Moreover, the construction sector has also been responsible for the development of over 250 ancillary industries such as cement, steel, paints, brick, timber, building materials, etc. A study by a credit rating agency ICRA shows that the construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the Indian economy. A unit increase in expenditure in the real estate sector can generate a fivefold increase in income. 

Yet this is one of the most unregulated markets in the country with shady deals and obscene profits ruling the roost. This lassiez faire sector has allowed anti social elements to get in and muscle power to determine who get the most. This has also led to high prices forcing the unaffordable consumers out of the market. There are massive frauds occuring regularly where promises are not kept and the consumer is left in the lurch. While easy access to credit multiplied this boom it also raised the risk levels for the banks in case of a bust in the bubble and consequently devaulation of the properties.

So what needs to change?

Currently, land, a ‘state’ subject, is under the jurisdiction of the local governments. There is a kaleidoscope of interwoven state, centre and local laws dealing with every parcel of land. This means that there are varying rules, regulations, standards, practices, from town to town across India. The simple concept of replicating ‘best practices’ from town to town across the country does not exist due to a fragmented legal framework. -The Hindu


People take advantages of these loopholes and mostly out for a quick buck. Scams have become so common and brazen that consumers have no confidence in ANY real estate transaction irrespective of how much checking and verification has been done. 

Here is a recent scam from a company which made a splash in print and TV. I still remember them dishing out cars as a freebie in return for purchasing a flat from them inspite of retaining the rates at the same levels as the rest in the area. They even featured on TV channels for their freebies.

How long is lassiez faire going to last and where is the regulator?
Real Estate Management (Regulation and Control) Bill is being formulated by the central govt for Delhi and is expected to serve as a reference and model for the rest of the states to follow. It is now being discussed and various 
objections are being raised in various fora and industry associations. Some others have clearly come out in support. Clearly regardless of the objections the move to have a regulator is a definitely positive step and hope the state overnments follow likewise.

An authority that can issue licences, be responsible for renewal of licences to developers, ratings of developers, architects, contractors and real-estate consultants would have to be set up. Whether it is a regulator which is set up under the aegis of the government or whether self regulation by industry associations is the way forward, the need for some of the above activities to be carried out by a professional body is imperative for sustainable growth of this sector. - The Hindu


Karnataka has 
taken a step of setting up a certifying system. The need for that is clearly because the registration of deeds and documents does not guarantee the title of the property as it operates on the principle of presumptive rights. The prospective buyer has to consult various sources such as past transactions, mortgage deeds, revenue records and encumbrance certificate to verify the title. Hopefully this is a first step in a series of steps to bring credibility and professionalism in this sector.

 

Comments

silkboard's picture

post more, RE Mgmt bill

up
92 users have liked.

IDS - why only a summary you could cross-post full content from your blog here, put it under India or Karnataka.

Have you read the Real Estate Management bill - summary or full? Would be good to have a summary for us to understand.

thanks.

idontspam's picture

Nope

up
87 users have liked, including you.

I have been looking all over the internet for that bill and the title certification act GoK is trying to pass One of the objectives of this post is to make people aware that moves are afoot and we need to keep an eye out for the progress. Some pressure on GoK to get things moving will be a good start. I was hoping some of the more informed members in Praja may have an idea what it is all about and can start a conversation around it.

vinod_shankar's picture

draft bill under preparation

up
95 users have liked.

hi IDs,

According to the ministry of urban development, the bill is in the drafting stage.  Once the bill is drafted and finalized, it will be thrown open for public discussion.

This link might be useful

http://www.urbanindia.nic.in/moud/programme/ud/main.htm

idontspam's picture

Access to the bill

up
104 users have liked.

Right, but as you may have noticed prominent bodies already have access to the draft bill, I dont like the the aam junta being the last people to know as an FYI.

Naveen's picture

Annex to Bill - Any Links ?

up
109 users have liked.

The "announcement" quotes an Annexure-1 at the bottom, but without any link or matter following it.

Any idea/s ? This annexure may be the draft bill or may atleast contain a gist of the proposed bill.

vinod_shankar's picture

Draft Model Real Estate bill released

up
97 users have liked.

You can find the draft real estate bill at the below location

http://www.mhupa.gov.in/ in the whats new section.

We can take a look at the provisions and send a combined list of suggestions. Note this a model bill based on which the states have to enact their own bills.

vinod

idontspam's picture

Havent come very far

up
92 users have liked.

Arguably, Naxalism started in 1967 as a revolt against landowners exploiting people and grabbing land. We dont seem to have travelled very far. How backward can we be after all this claim to be club class invitees to the G8?

The "model" bill is a commendable attempt but since land is a state subject, unless all states implement a bill like this its going to be an uphill effort to call ourselves a mature country. I would hate to see Bangaloreans take to arms to protect their hard earned piece of plot on earth.

idontspam's picture

Property cards to fix glitches in records

up
103 users have liked.

Property cards to fix glitches in records

When the Karnataka Land Grabbers (Prohibition) Act comes into force... registration of sale deeds would be replaced with registration of titles. This will be done by introducing the progressive system of property titles and maintenance modelled on the Torrens System.

So no more running around different sub-registrar offices across the city for 30 years worth of Encumberance Certificates.

tech's picture

Closing thread due to spam

up
102 users have liked.

Seems like this page is a frequent target for spam (probably due to its high google rank for some searches). We are closing this thread for comments to prevent spam.

If you need to add a comment, please contact tech at praja.in through email or site contact form.

-Tech 

Praja.in comment guidelines

Posting Guidelines apply for comments as well. No foul language, hate mongering or personal attacks. If criticizing third person or an authority, you must be fact based, as constructive as possible, and use gentle words. Avoid going off-topic no matter how nice your comment is. Moderators reserve the right to either edit or simply delete comments that don't meet these guidelines. If you are nice enough to realize you violated the guidelines, please save Moderators some time by editing and fixing yourself. Thanks!



about seo | blog