Union Territory Property Owners Gain Benefits From Real Estate Dealings

The Real Estate (Regulation and Development) Act, 2021 is an Act of India that seeks to protect home buyers and help boost commercial investments in the real estate sector. It was brought into being by the Central Statistics Office of India, which is a part of the Ministry of Statistics of India. The Act has been in operation since last thirty-one years and its aim is to regulate the real estate market. Within this Act, all real estate transactions are governed through its many legislation and various sections. With this Act, some major changes have come into effect in the real estate market in India.

The first legislation under the Act came with the implementation of the Real Estate Transaction Act, 1994. This was one of the earlier legislation brought in by the government to improve the real estate sector in India. Under this act, every real estate transaction has to be registered and it is mandatory for all buyers and sellers to conduct property inspections and tests before buying any property. This helps the government in maintaining the integrity and credibility in the real estate sector and protects buyers and sellers from being defrauded in the real estate market.

With the Real Estate (Amendment and Reform) Act 2021, the Government amended some of the provisions of the Real Estate Act. One of these amendments deals with the payment of stamp duty. Earlier, the Developers were required to pay the duty after selling the property. With the new orders, developers are now required to pay the duty right after putting the property up for sale. This helps avoid delay in the payment of the stamp duty to the developer and enable the real estate investor to take advantage of better rates.

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Another significant amendment in the Act comes with the Real Estate Mutual Benefit Society (REMIBS) policy. The policy states that any real estate development company which receives a bond from the Union Territory Board of Association must also register under the Real Estate Mutual Benefit Society (REMLS) scheme. Under the Union Territory Board of Association (UTB), all companies that wish to become members must secure membership of the society. The Union territory government has been working over the policy for quite some time and the impact on the real estate sector was therefore very well appreciated. The UTB has been instrumental in helping the developers and builders to receive clear waivers from the law regarding the dues for properties built in or out of the union territory.

With the introduction of dispute resolution as one of the procedures covered by the Act, disputes between the developer and the buyer/buyer will no longer be handled by the real estate agent. The new procedure now involves the developer filing a complaint through the competent Registry Authority who will then forward the case to the Board of Arbitration. The Board of Arbitration then makes the decision based on the complaint filed by the developer.

The State Government has also done its best to work with the union to make sure that the regulation and development of the real estate sector take into consideration issues affecting both the union and home buyers. On a few occasions, the Federal Government has also made statements supporting home buying processes. It is therefore hoped that home buying processes are more relaxed in the coming years. The Federal Government’s stance is that the intention behind the Real Estate Mutual Benefit Society Act is to support the home buyers and the Union and thereby help the real estate sector grow. The ultimate aim is to enable the home buyers to get a good deal and earn good profits from their investment.