Govt sets rules for hiking flat prices

To ensure that real estate developers don’t fleece buyers, the government has directed that the total price of an apartment or a plot is escalation-free.

According to the proposed buyer-seller agreement norms under the Real Estate Act announced by the Ministry of Housing and Poverty Alleviation, the escalated price can be set only in situations where allottees agree to pay more due to increase in development charge by the local authorities.

“Total price is defined as including cost of land, cost of construction of apartment and common areas, internal and external development charges, taxes, cost of electric wiring and fire fighting equipment. Rules stipulate that the total price is escalation free except when development changes are altered, said the draft rules.  

As per the draft agreement for sale rules, 2016, there shall be a clear mention in the agreement of date of grant of commencement certificate, clear land title giving the area of project and khatha/survey numbers, number of storeyes and plots in the project, carpet area and common area, share of allottee in common area and total price.

In case of loss caused due to defective land title, the promoter shall compensate the allottee and such a claim shall not be barred by limitation provided under any law for the time being, said a statement from the ministry.

“Under these draft rules, the promoter is required to clearly indicate the date of delivery of possession to the allottee in the agreement itself. However, there is a provision for extension of this date in case of delay caused due to war, floods, drought, fire, cyclone, earthquake or any other calamity caused by nature,” the ministry statement further read.

The rules also propose that on promoters failing to achieve construction milestones on time, the allottee can stop making payments. In such cases, the promoter shall take corrective measures and only after completing the milestones, the allottee would be required to make payment without any penal interest.
DH News Service