Taking cognizance of the rampant illegalities and flouting of rules and laws by real estate developers in Goa where the consumer is most often the victim, the State Law Commission has recommended enactment of “The Goa Real Estate (Promotion, Control and Development) Act 2011”.
The act seeks to address the various complaints against real estate developers and builders and also recommends stringent punishment against them which includes imprisonment of up to two years and a maximum fine of Rs10 lakhs.
Speaking to media persons, State Law Commission Chairman Ramakant Khalap admitted that people wanting to purchase flats have a harrowing experience and further admitted that sometimes the developer does not even have proper marketable title to the property due to which neither the property nor the apartments constructed therein can be transferred.
He also admitted that various illegalities like converting parking areas into shops, terrace into apartments to people. Besides, the most common lacuna is the fact that flats are sold only on the basis of an agreement of sale and the land and building is not transferred to the housing society, which in many cases is not even formed.
The act recommended by the State Law Commission seeks to make it mandatory for all agreements to contain details of the flat including carpet area, transferring the property to the housing society or association. However, it does provide for individual Deeds of Sale in cases where a housing society cannot be formed.
There are various other recommendations aimed to benefit the purchaser like prohibiting mortgage on the land or apartment without the consent of the purchaser, no receipt of any money without issuing letter of allotment or without entering into agreements for sale.
Besides, the proposed law seeks to totally ban acceptance of the total consideration without handing over possession of the apartment.
In a recommendation that would bring relief to residents of the buildings, the State Law Commission has suggested that the Stamp Duty for deeds of conveyance in favour of housing societies be reduced to one per cent and so also the registration fee be reduced to one per cent.