PANAJI
Stakeholders comprising of Goa Chamber of Commerce and Industry (GCCI), Institute of Engineers (IOE), Indian Institute of Architects (IIA), Indian Institute of Interior Designers (IIID) and Goa Association of Realtors (GAR) have urged the state government to reduce the five years' warranty proposed for structural defects to be given by promoters to buyers under draft RERA (Real Estate Regulation and Development Act) rules.
The stakeholders were required to give suggestions to draft RERA rules by September 11.
It is reported that the stakeholders have argued that it is impossible to define ‘defects on account of workmanship' without resulting in disputers between builders and allottees.
They further said that flat allottees often
can't distinguish between ‘wear and tear' and ‘defective workmanship'.
Suggesting a way to deal with this, the GCCI mail said, "It is suggested that the promoter give such a service for one year and for any subsequent period,
it may be left to the promoter and flat purchaser to decide on the terms of such a service including the cost for the same. The flat allottee may be allowed to waive such a service."
The suggestions have attempted to protect the interest of builders, real-estate agents and other stakeholders in this industry.
The draft RERA rules had also provided that the conveyance should be granted to allottee by the builder within 3 months of receiving occupancy or 51% of total allottees have paid full consideration to the builder, whichever is earlier.
The stakeholders have argued that the draft RERA rules do not factor in a
situation wherein an allottee has not paid balance after the builder has received possession.
To make amends to this, the stakeholders have suggested that a provision should be made allowing the builder to withhold the possession in case the allottee has not made the payment.
The suggestions have also sought to safeguard the interest of real-estate agents.
For instance, a clause under draft RERA rules says that penalties amounting between 5 per cent and
10 per cent of the value of the project will be imposed upon an agent in an event of misrepresentation.
The stakeholders have argued that penalizing agents for an amount several times that of his earnings, which are normally a mere 2%, is against the principles of natural justice.
The stakeholders have suggested that the penalty against the agents should be between 5 per cent and 10 per cent of the commission earned by him on the said project.
Further to that, the stakeholders have also given suggestions, which will bring more transparency in the real-estate sector.
One of the suggestions says that any person authorised by the promoter/builder, while registering under the
RERA, should provide photo ID proof to prevent impersonifications.
The stakeholders have also demanded that government departments responsible for giving permissions
to the real-estate sector should be made responsible for giving permissions and clearances in a time bound manner.
The central government came out with RERA rules to provide protection to buyers in a very unregulated market like real estate in India.
All states are supposed to amend those rules and implement the same. Goa has not yet done that.
Post the suggestions deadline of September 11, the government will be expected to notify the draft RERA rules as soon as possible.
