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Buying a home in India can be difficult and complicated with many steps and paperwork involved. This includes applying for a loan, obtaining a home loan sanction letter, transferring the property title, obtaining a no-objection certificate from the builder, and registering the sale deed.
The home buying process can take an extended time and involve multiple agencies. To help streamline the process and protect consumers, the government is setting up a committee to create a standardised buyer agreement that will be applicable across the country.
This will resolve disputes between homebuyers and developers and provide speedy justice. More than 5 lakh cases are pending in consumer courts, with over 54,000 cases related to the housing sector.
The committee to create the model buyer agreement will be composed of members from various bodies such as judges, national and state consumer commissions, consumer organizations, lawyers, and the Ministry of Consumer Affairs.
There Are Several Key Issues That Homebuyers Face In India
- These include delays in possession of the property
- Biased and unfair builder-buyer agreements
- Lack of compensation for delay in possession
- Amenities not provided as per the agreement
- Misleading advertisements by developers and influencers
Here’s How Home Buying Could Get Easier
These issues can cause problems for homebuyers, and a standardized buyer agreement could help to mitigate some of these problems. The government plans to develop the model agreement in consultation with all stakeholders and submit it to the Supreme Court and all states.
If the model agreement is accepted, it could make the process of buying a home in India much easier and less time-consuming, and provide a much-needed boost to the real estate sector. The standardised buyer agreement could help reduce disputes between buyers and builders by creating a uniform document applicable across the country.
The standardised agreement could also provide greater protection to homebuyers, as it would be developed in consultation with all stakeholders, including consumer organizations, lawyers, and judges. This would help to ensure that the agreement is fair and unbiased, and that it provides adequate protection to homebuyers.
Overall, the model buyer agreement is a significant step towards simplifying the home buying process in India and providing greater protection to consumers. If successful, it could help to boost the real estate sector and make it easier for people to purchase their dream homes.