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The government has announced plans to form a committee dedicated to creating a standardized model builder-buyer agreement, aimed at streamlining the homebuying process and protecting consumers from potential abuses. The committee, which is expected to be established within the next three months, will consist of judges, representatives from national and state consumer commissions, consumer bodies, lawyers, and the Ministry of Consumer Affairs. The model agreement will be developed in consultation with all stakeholders and submitted to the Supreme Court before being sent to all states.
In an interview captured by ET Realty, Consumer Affairs Ministry Secretary Rohit Kumar Singh highlighted the importance of standardizing the contract between a builder and a buyer to bring about uniformity and resolve disputes. He was quoted saying that having a unique document applicable across the country could help solve the problem to a considerable extent. The decision to form a committee and develop a model agreement document stems from the need to address the multitude of issues faced by homebuyers, such as delayed property possession, lack of compensation for delays, and misleading advertisements by developers and influencers.
According to Singh, over 5.5 lakh cases are pending across various consumer courts in the country, with more than 54,000 cases specific to the housing sector alone. This backlog of cases highlights the importance of providing speedy justice and streamlining the process for homebuyers. The Supreme Court has also issued a directive that a model agreement should be developed for use across the country. Some states have already implemented such a document, showcasing the need for a uniform approach.
The consumer affairs department will also hold a meeting with the top 50 influencers in Mumbai to discuss the issue of misleading advertisements. The department recognizes the role of influencers in shaping public opinion and aims to address any potential misrepresentation of properties to potential homebuyers. Ensuring accurate and reliable information is available to consumers is crucial in preventing disputes and establishing trust in the housing market.
Key suggestions made during the round table conference on 'How to Effectively Redress the Grievances Pertaining to Real Estate Sector', hosted by the Department of Consumer Affairs in association with the Government of Maharashtra, included sending the draft agreement to buyers before execution, clearly mentioning permissions and sanctions obtained from competent authorities on the first page of the agreement, and prohibiting builders from launching projects before obtaining all necessary permissions and sanctions.
In conclusion, the establishment of a standardized builder-buyer agreement will help resolve disputes between homebuyers and developers, ultimately benefiting both parties and reducing the backlog of cases in consumer courts. By providing a clear framework for agreements, the government hopes to address issues such as delayed property possession, lack of compensation for delays, and misleading advertisements. The collaboration between various stakeholders, including judges, consumer bodies, and the Ministry of Consumer Affairs, will ensure that the model agreement is comprehensive and effective in safeguarding the rights and interests of homebuyers across the nation.
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