Model Real Estate Act

Published: November 11, 2009

With the announcement of the much awaited Model Real Estate Act, by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), the Real Estate sector seems to have become a little more disciplined and ethical. It’s now going to be an arduous task for the builders and developers to dupe the buyers by using misleading details of the property or confusing them with jargon terms. The Act will surely provide a balance to the disorganized Real Estate sector and eventually induce the coveted transparency needed from a long time.

For a buyer investing the hard earned life savings, the only wish is that he/she should get whatever promised, on time and with proper paperwork. The establishment of a regulatory body is surely going to give the buyers a chance to take a sigh of relief as developers are going to be more cautious lest they can be penalized and in some case even put behind bars.

The key highlights of the Act are:

•    The project can not be advertised before it is registered with the authority. This registration will ensure that the project has obtained all sanctions.
•    The advertisements should be specific and clear. There should not be any misleading images or highlights about the project.
•    Builders should use proper terminologies and will be required to give a detailed specification of carpet area, super built up and floor area. In addition to that, they also need to give information about all the extra charges levied for common spaces such as corridors, parking and lifts, etc.
•    Any individual who plans to buy a property can inspect all the documents pertaining to approvals, sanctions, any other relevant document related with the property. The draft has made it mandatory for developers.
•    Developers are required to make the buyers aware of the fact if they have taken any loan against that property.
•    The regulatory body shall make it sure that the end products delivered to the buyers is what they had invested into, at the very first place.

•    All the property transactions, sale or purchase, will be logged into an AIR thereby making Income Tax an obligation. This step would also ensure that there is no illegitimate property and black money involved.

Given the present real estate scenario in India, there is no set standard and guidelines for becoming a real estate agent and anyone can become one. A good idea, for the regulation would be to create some kind of certification that would help recognize and evaluate good and trustworthy agents. The emphasis should be laid upon ethics and best practices in addition to procedural and business knowledge. Addition of such professionalism to the business would not only help the buyers but also for developers and sellers. Distribution is extremely essential as the market is demonstrating an upsurge with extra attention being given to the affordable housing segment.

The above mentioned improvements in the Real Estate sector are for sure going to give the segment a boost will add much to the relief of the buyers. It will ensure transparency and accountability.

Posted under categories: Laws & Regulations
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11 Comments so far

  1. Rajesh January 18, 2010 12:32 am


    I have purchased flat of about 1340 SFT super built up area in Feb, 2008 in Hyderabad. Offlate I came to know that only 900 SFT is carpet area. I personally beleive it is a cheating by the builder. Is it according to rules of building regulations, moving to cousumer court would benefit me in anyway.

    Thank You.

    Rajesh B

  2. praveen February 7, 2010 3:06 pm


    Is there any written rule for calulating the terrace area is it 50% or 100%.


    Praveen Laad

  3. Mayur May 13, 2010 10:46 pm

    Every state has its own laws regarding flat buying and selling.These laws specify what the builder is supposed to mention in the agreement.If he has not mentioned those things,you can take him to court and screw him.Consult a lawyer.The courts are very strict when it comes to builders and their non sense.
    You will succeed.Contact a lawyer.Either you will have to go to consumer court or small causes court.Consult a lawyer.They will consult you for free.Good luck.

  4. Arghya June 28, 2010 11:25 am

    Hi, I have purchased a flat of about 750 sqfeet and a garage about 160 sqfeet in Kolkata.Is there any difference between Garage super builtup area and carpet area?

  5. Bharadwaj November 23, 2010 10:59 pm

    I bought a property in Hyderabad about 4/5 years back. The apartments did not have any internal roads at the time of taking possession, but the Builder had made verbal commitment that the roads will be available within 3 months.

    It’s been 4 years, and there are no roads yet.

    What action can I take against the builder without getting into unnecessary fight with the builder?

  6. Vrindavan November 25, 2010 1:19 pm

    Mr. Rajesh please contact Mr. Giriraj Chary ( Advocate) for your problem His mobile number is 9553441464

  7. Rahulraj December 29, 2010 4:15 pm

    Mr. giriraj chary looks fake advocate and marketing himself.

    beware of such advocates

  8. Dhanabal June 21, 2012 10:15 pm


    I have purchased flat of about 600 SFT in Chennai. They mentioned its a builtup area only. I booked a flat and gave a advance amount also. Offlate I came to know that only 360 SFT is carpet area. I personally beleive it is a cheating by the builder. Is it according to rules of building regulations, moving to cousumer court would benefit me in anyway or shall i cancel the flat due to this reason.

    If i cancel the flat means they will took some cancellation charges also. Kindly advice how to move

    Thank You.


  9. Rajashekhar Hegde August 12, 2012 8:42 pm

    I have booked a flat in Pashan, Pune. The Super built up area is 1006 Sqft - Carpet area 774 Sq.ft + 30% of carpet area. Those who are booked earlier than me. Them super built up area is 948 Sqft - Carpet area 774 Sq.ft +22.5% of carpet area for the same type flat/same carpet area in same apartment. Is it any standard rule for calculating the super built up area? I hope this one will be the same rule for all the flats buyers from one builder/project.

  10. D V.Ilhe February 8, 2013 10:00 pm

    I purchased 555sft.flat built up flat at boisar thane,but it measured only 380sft carpet, built up 456sft,superbuilt up is 555 sft. Builder made cheating. Pls. Guide me.with me sending ur mobile no.

  11. K A Parab February 27, 2013 3:39 pm

    I had purchased a flat in nalasopara asn Investment.. in April 2012…the builder told me that it is 430 sq ft superbuiltup..and when i asked him what will be the carpet area he told it will be round about 310 -325 sq ft carpet ..after signing the agreement and all procedures done he wrote 265 sq ft carpet area….As per my information he had cheated me for 30-35 sqft less.and the payment i had paid its according to 430 sqft…can you advice what i need to do..?

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