Introduction: Real Estate Developers
A usual issue is that before the sale, the developer lubricated the land owner, but after the deal, the situation is entirely inverted. Again, free offers, transfers at particular times, advanced amenities – many people pour money into the water by jumping into the trap of many frauds, but even after years pass, that water does not lament, even the apartment is not seen. Hope then turns to despair. So before signing a contract or reserving an apartment or plot, everyone has to know certain things. The Real Estate Development and Management Act introduced in 2010 to remedy the issue has been discussed in this respect.
Real Estate Developers Registration and Responsibilities:
Before turning over the property to the developer, check out if the development firm is registered or not. Check that the list of registered developers is on the rehab list. If it is reserved with the authorities, you may find out from them. The developer needs to specify in their prospectus the name-address together with the registration number of the real estate and the memorial number and date along with the design number authorized by the competent government. No developer may publicize the project and engage in any contract of sale before the approval of the project. Before purchasing the site you must examine the official permission and land ownership papers and the developer is obligated to disclose them to you. Any individual who conducts a company without registration or begins work on a project without a developer’s consent or advertises may be penalized with imprisonment for two years or with a fine not exceeding Tk 10 lakh or with both.
Sharing agreement between owner and Real Estate developers:
For the purpose of real estate development, a bilateral agreement (Joint Venture Agreement) needs to be completed between the owner and the developer before the transfer of land. The agreement should have a comprehensive statement of who will obtain the share i.e. the developer’s share and the land owner’s share should be specified for the real estate development. If the owner of the property does not give over the share or show ownership within the prescribed period, the developer may be imprisoned for two years or fined up to 20 lakh rupees or both. If the owner of the property does not give over the control of the land to the developer within the period set in the agreement or cancels the contract made with the developer without any notification, he will also be punished. As per the provisions of the agreement, every developer should maintain the real estate for at least one year after turning it over and if repairs are necessary due to construction problems for two years at the estate developers own cost.
Real estate sale, registration, and transfer:
If you want to buy a flat, you have to enter into an agreement with the developer and the agreement will include full terms and conditions of sale and purchase. The contract or allotment must include specifics of the fittings-fixers etc. to be utilized in the construction. At the same time, care should be made to guarantee that the structural design is created by trained persons and that the building standards and building codes are followed throughout the preparation. The developer will be required to deliver you the authorized design. As per the agreement, the developer will grant you the desired unit and cannot modify the assigned plot or flat without your approval. You are not obligated to pay any more money beyond the conditions indicated in the contract, but if any upgrade of equipment is necessary, then the extra money may be paid with the mutual permission of both parties. Within three months after payment of the whole price, the developer will complete all the work of transfer of possession, execution of deeds, and registration, and if the area is less or greater during the transfer, the price should be adjusted according to the purchase price within three months. You have to pay the real estate price via the bank in a flat payment or in installments. If you fail to pay the price in a lump amount or in installments, the developer may cancel the allocation by sending a notice of 60 days in which case the developer will be obligated to repay your deposit by check within the following three months. However, you may pay installments with interest at the rate of 10 percent on the payment amount for the delayed period but not more than three times. Again, if the developer fails to hand over the flat within the specified time, he will return all the money to you within six months, including the compensation stipulated in the contract, but if the amount of loss is not specified in the contract, it will be determined at the rate of 15 percent on the amount paid. Again, if you wish to cancel the allocation for any reason, the developer will return 10 percent of the money paid in terms of your application and the rest amount by a one-time check or pay the order within three months.
Disputes and Adjudication Procedures:
Offenses are cognizable, bailable, non-executable, and triable by a Magistrate of the First Class or a Metropolitan Magistrate. According to the Code of Criminal Procedure, the trial would be handled in a summary way. However, if a dispute arises due to a breach of any provision of the executed contract, such as cancellation of allotment without notice, non-use of promised construction materials, unauthorized construction outside design, mortgage of real estate without permission, and so on, the parties shall first attempt to settle through compromise between themselves and, if this fails for any reason, shall resort to litigation. If the subject is to be decided in an arbitral tribunal in accordance with the Arbitration Act of 2001, and the parties fail to form the tribunal within 30 days, any party may file a lawsuit in the appropriate court for resolution of the disputed topic. After all, only when Sadha and Sadhya meet at the same location can the desired bliss be attained. So, if you want to achieve complete satisfaction by constructing a home or purchasing an apartment within your financial limits, you must be informed. Furthermore, developer firms are responsible for completing their task on schedule. As a result, efforts must be taken to achieve the aspirations of the owner or buyer via both sides’ knowledge and accountability.
Crime, Trial, and Punishment:
Any person who conducts a real estate business without being registered is subject to imprisonment for a period not exceeding two years or a fine not exceeding ten (10) lakh rupees, or both.
Any developer who begins work on any real estate developers projects without first obtaining approval from the appropriate authorities, or who advertises or sells unauthorized real estate projects, shall be punished by imprisonment for a term not exceeding two years, or by a fine not exceeding ten lakh rupees, or by both.
For breach of real estate services, the developer faces a fine of up to 5 (five) lakh rupees and imprisonment for up to 1 (one) year without work if payment is not made.
Any real estate developers who mortgage in contravention of the rules face imprisonment for one year or a fine of not more than five lakh rupees or both.
Any developer who, without the buyer’s knowledge and with the goal of generating an unlawful profit, sells the real estate promised in the contract elsewhere will be penalized with imprisonment for a period not exceeding 3 (three) years or a fine not exceeding 20 (twenty) lakhs, or both.
Any developer who uses substandard materials or fails to use the proper quantity of construction materials in lieu of the construction materials promised under the contract executed with the buyer with the intent of making an illegal profit shall be punished with imprisonment for a term not exceeding 3 (three) years or a fine not exceeding Tk 20 (twenty) lakhs, or both.
Any developer who creates real estate outside of the permitted design faces imprisonment for a period not exceeding three (three) years or a fine not exceeding twenty (twenty) lakhs, or both.
If a developer enters into a real estate development agreement with a land owner or executes a real estate allotment with a buyer, does not undertake any activities or undertakes partial activities as a result, and leaves the remaining work undone without reason, the owner of the land or the buyer, as the case may be, is liable. Failure to offer any financial advantage is a fraudulent crime under this Act, and the developer is penalized by imprisonment for a period not exceeding 2 (two) years or a fine not exceeding 20 (twenty) lakhs, or both.
After entering into a contract with a developer for the development and management of any land, the owner of the land shall be punished with imprisonment of up to 2 (two) years or a fine of up to 10 (ten) lakhs of rupees, or both, if the owner of the land does not hand over possession of the respective land in favor of the developer within the period specified in the contract.
If the owner of any land enters into an agreement with a developer for the development and management of real estate without providing at least 30 (thirty) days prior notice, the registered am-Mokhtar Nama executed in favor of the developer shall be punished with imprisonment for a term not exceeding 2 (two) years or imprisonment for a term not exceeding 10 (ten) years. will be penalized with an Rs.1 lakh fine or both
Under 2 (two) years after a developer enters into an agreement with a land owner for the development and management of the real estate, if the real estate development is properly completed according to the terms of the agreement and the land owner’s share is not transferred in favor of the land owner within the prescribed period or if possession is not shown, as the case may be, less than 2 (two) years shall be punished with imprisonment or a fine of Tk 20 (twenty)
If any real estate developers under this Act is a corporation, the owner, director, or any official of the corporation with knowledge and involvement in any infraction under this Act is personally accountable for the offense.
Offenses are cognizable, bailable, non-executable, and triable by a Magistrate of the First Class or a Metropolitan Magistrate. According to the Code of Criminal Procedure, the trial would be handled in a summary way.