New rules give buyers assurance

Buying a property is not a joke. An individual makes the maximum investment in his or her life by buying a house.

As many real estate companies have been going bankrupt, many investors have been losing their investments. There are many examples to quote. Real estate groups like JP, Amrapali, Unitech, Today Homes, Supertech, and so on have gone out of business, causing concern to investors. Over 20,000 investors have been waiting eagerly to get back their investments as JP Group has gone bankrupt.

Therefore, several buyers have been treading carefully before buying properties. In this backdrop, the rules framed by the Centre have been giving much relief to the buyers. The Insolvency and Bankruptcy Board of India effected some changes in the insolvency proceedings. The Centre is keen to move the relevant bill to the Winter Session of Parliament and get it approved. Once the rules come into force, the property buyers will get a lot of relief. In case a builder fails to hand over the property to the buyers, the rules will help cause no loss to the buyers.

New rules are as follows:

• Builders should register their projects with the RERA. They are required to open a separate bank account for each project.
• Those who have paid the full amount and taken possession of the property can get ownership rights transferred to them with the approval of the creditors’ committee.
• The registration of properties should be carried out only with the approval of the sub-dealers and creditors’ committee.
• A new proposal has been formulated that the property, of which the allottee takes possession, would not be part of the liquidation estate.
• A special resolution for each project under consideration to give permission to the Committee of Creditors’ to be given permission since real estate companies execute many projects simultaneously.