Law drafted to prevent Real Estate fraud
In a bid to regulate the construction and sale of flats, shops and other accommodation, the Goa law commission has drafted a legislation-Real Estate (Promotion, Control and Development) Act, 2011, to prevent frauds and irregularities in this sector.
Speaking to reporters, law commission chairman Ramakant Khalap said a report on the draft law seeking to regulate the ownership, promotion, construction, sale management and transfer of residential and commercial buildings, flats, apartments and commercial buildings and similar property has been forwarded to the government.
“The growth of Goa’s population from 7.6 lakh in 1961 to 15 lakh in 2010 has created a huge demand for residential, commercial and industrial accommodation,” Khalap said. The builders, contracts and real estate agents lure investors, but often there are no proper marketable titles to the property, leaving purchasers in a piquant situation that can result in litigation and even a loss of their investment.
After the law commission put up a draft bill for comments, it received complaints regarding illegalities regarding licenses and approvals, lack of proper title, failure to constitute cooperative societies and other problems, in addition to suggestions from a cross-section of the society.
The bill seeks to plug loopholes for malpractices, including the advance booking of accommodation on the basis of advertisements, allowing investors to withdraw from the deal if they are not satisfied.
The bill also seeks to cover the responsibilities of promoters of housing projects in various respects ranging from agreements to forming of cooperative societies.