Experts favour proper real estate law to protect flat buyers' interests
Jasim Uddin Haroon | Monday, 4 August 2008
Experts and a cross section of people have suggested enactment of a law for the real estate sector protecting the interests of flat buyers.
The country has no legal provisions to protect the interest of flat buyers who are often cheated by the realtors, and they cannot seek any legal recourse in absence of a proper law in favour of them, the experts observed.
The council of advisers in its meeting on July 29 last approved in principle promulgation of the proposed Real Estate Management Ordinance-2008 to streamline the sector amid allegations of frauds, irregularities and other forms of cheating by the real estate developers.
The Real Estate and Housing Association of Bangladesh (REHAB), an organisation of the country's 361 realtors, at a press conference Saturday last said that the proposed ordinance would affect their business to a great extent and many companies would be forced to stop their business because of the stringent conditions set in the proposed ordinance awaiting promulgation.
REAHB leaders at the press conference warned that they would stop their business if the government promulgates the ordinance in its present form.
Abdul Kayam, chairman of the National Housing Authority (NHA), told the FE Sunday that the government drafted the ordinance to protect the interest of flat buyers.
He said: 'The existing laws are not enough to handle the irregularities in the real estate sector. I think it is a good move by the government to protect the interests of hundreds of flat buyers,' he added.
He also said: 'The country has not a single law than can handle disputes over flat buying and selling. I think the government has rightly taken the decision of drafting the ordinance.'
Nazrul Islam, chairman of University Grants Commission (UGC) and geology professor, told the FE that the government took the move to promulgate the ordinance following allegations of irregularities brought against the realtors.
'I think there is a necessity for framing a law for the real estate sector and the existing laws cannot solve the disputes concerning the land owners, developers and flat buyers,' Mr Nazrul, who is also an urban planner, added.
He also said the government should take care of the issues, especially the frequent changes of prices of building materials.
Khondeker Golam Moazzem, a research fellow of the Centre for Policy Dialogue (CPD), told the FE that there should be a policy which would ensure interests of both apartment sellers and buyers.
He also said the government should bring concerned government departments under the ordinance, because in many cases projects are delayed due to callousness of the government agencies concerned.
'We welcome any law to streamline the sector, but there should be provisions to ensure transparency and accountability of government departments like the RAJUK and other utility service providers,' Mr Moazzem added.
He said the government should not promulgate any ordinance, which will hamper the smooth growth of the construction sector as it contributes significantly to the country's Gross National Product, apart from creating huge jobs both directly and indirectly.
Serajul Islam, an urban planner of the Dhaka City Corporation (DCC), told the FE that the government should look into the modifications put forward by REHAB.
"There is no doubt we urgently need framing a law to regulate the real estate sector, but the government should incorporate the REHAB's points for valid reasons," the DCC urban planning department chief added.
He also said his department receives a large number of complaints made by the flat buyers, who find no other alternative in case of seeking justice.
"Buyers don't know where they will lodge complaints, in fact, they don't have any place to file cases against frauds and irregularities by the real estate companies," he added.
The country has no legal provisions to protect the interest of flat buyers who are often cheated by the realtors, and they cannot seek any legal recourse in absence of a proper law in favour of them, the experts observed.
The council of advisers in its meeting on July 29 last approved in principle promulgation of the proposed Real Estate Management Ordinance-2008 to streamline the sector amid allegations of frauds, irregularities and other forms of cheating by the real estate developers.
The Real Estate and Housing Association of Bangladesh (REHAB), an organisation of the country's 361 realtors, at a press conference Saturday last said that the proposed ordinance would affect their business to a great extent and many companies would be forced to stop their business because of the stringent conditions set in the proposed ordinance awaiting promulgation.
REAHB leaders at the press conference warned that they would stop their business if the government promulgates the ordinance in its present form.
Abdul Kayam, chairman of the National Housing Authority (NHA), told the FE Sunday that the government drafted the ordinance to protect the interest of flat buyers.
He said: 'The existing laws are not enough to handle the irregularities in the real estate sector. I think it is a good move by the government to protect the interests of hundreds of flat buyers,' he added.
He also said: 'The country has not a single law than can handle disputes over flat buying and selling. I think the government has rightly taken the decision of drafting the ordinance.'
Nazrul Islam, chairman of University Grants Commission (UGC) and geology professor, told the FE that the government took the move to promulgate the ordinance following allegations of irregularities brought against the realtors.
'I think there is a necessity for framing a law for the real estate sector and the existing laws cannot solve the disputes concerning the land owners, developers and flat buyers,' Mr Nazrul, who is also an urban planner, added.
He also said the government should take care of the issues, especially the frequent changes of prices of building materials.
Khondeker Golam Moazzem, a research fellow of the Centre for Policy Dialogue (CPD), told the FE that there should be a policy which would ensure interests of both apartment sellers and buyers.
He also said the government should bring concerned government departments under the ordinance, because in many cases projects are delayed due to callousness of the government agencies concerned.
'We welcome any law to streamline the sector, but there should be provisions to ensure transparency and accountability of government departments like the RAJUK and other utility service providers,' Mr Moazzem added.
He said the government should not promulgate any ordinance, which will hamper the smooth growth of the construction sector as it contributes significantly to the country's Gross National Product, apart from creating huge jobs both directly and indirectly.
Serajul Islam, an urban planner of the Dhaka City Corporation (DCC), told the FE that the government should look into the modifications put forward by REHAB.
"There is no doubt we urgently need framing a law to regulate the real estate sector, but the government should incorporate the REHAB's points for valid reasons," the DCC urban planning department chief added.
He also said his department receives a large number of complaints made by the flat buyers, who find no other alternative in case of seeking justice.
"Buyers don't know where they will lodge complaints, in fact, they don't have any place to file cases against frauds and irregularities by the real estate companies," he added.