Expert highlights legal aspects of real estate sector

NEW DELHI: Advocate Avishkar Singhvi on Friday highlighted the legal aspects of the real estate sector and shared insights on consumer cases, legal frameworks.

Singhvi was speaking at the Real Estate Summit of Right To Excellence series organized by the Times of India.

The discussion focused on the changing landscape of real estate regulations, the importance of balanced legislation, and the challenges encountered by homebuyers and builders.

Singhvi highlighted the significant changes in the real estate sector over the last decade, emphasizing the shift in regulations and courts' proactive stance. He mentioned the state's authority over land matters, stating that despite central regulations like the RERA act, states need to tailor remedies to their specific issues.

"We must remember that land is a state subject. So no matter how much central regulation comes in the form of the RERA act or the consumer disputes act or any other legislation by parliament, the states will have to nuance it and develop their own remedies on the basis of the problems they face," he said.

Speaking about the impact of RERA, Singhvi pointed out its key features such as mandatory builder registration, penalties for misrepresentation, and consumer court intervention in unfair contracts. He said, "If it's followed in its letter and spirit today, then it does solve a lot of the problems that the common home buyers or the consumer faces."

Addressing concerns about biased agreements favoring builders, Singhvi referred to a recent Supreme Court case advocating for a standard builders-buyer agreement. He suggested that although a disparity may persist, there are available solutions for homebuyers.

Singhvi stressed the importance of thorough due diligence by homebuyers, noting that the RERA act has facilitated this process. Reflecting on cases like Amrapali and JayPee, he highlighted the courts' role in safeguarding homebuyers and ensuring project completion even in cases of builder insolvency.

He encouraged buyers to carefully assess builders' credibility and project details before entering agreements, assuring that investing in under-construction projects can be a beneficial decision.

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