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SUGGESTIONS TO DRAFT MODEL REAL ESTATE ( DEV & REG) ACT, 2009 (email to mhupa in nov 2009)

In order to establish the correct connotation/meaning of various words used very loosely in common parlance - such as builder, promoter,realtor, colonizer, developer, land aggregator, etc, it is high time some organization takes the lead in doing so. Hence by taking this opportunity of the enactment of the MODEL REAL ESTATE (REGULATION & DEVELOPMENT) ACT, 2009, the Govt. should do the needful. As the scale of operation varies widely in the real estate sector, the definitions could be formulated to give an idea of such scale or magnitude of operation as also the involvement of the individual in various stages of real estate development from land assembly to offering finished product in terms of built up premises.

Such an initiative to define the terms will go a long way in also recognizing and standardizing the level of operation of an individual in the real estate sector. Like we have different classes of Civil Contractors defined by the Public Works Dept who are eligible to participate in the tendering process of civil works of varying magnitude, we need to benchmark. This will come in handy while giving accreditations also. Based on the scale of operation the realtors' worth and reputation in the market could be recognized by various statutory/professional bodies.

The following is therefore suggested for incorporation in the definitions section of the Act in terms of scale of operation and function/role:

Builder Class IV: Plot area upto 500 sq.m.
Builder Class III: Plot area upto 4000 sq.m.
Builder Class II: Plot area upto 20000 sq.m.
Builder Class I: Plot area upto 10 ha .... all these category operators are expected to actually give the finished product in terms of built up premises
Developer : Plot area upto 40 ha Sell serviced land at sector/pocket level, obtain detailed building permission, all statutory approvals required to commence construction
Promoter:  Plot area upto 100 ha Put up external services infrastructure upon seeking Layout sanction
Colonizer: Plot area upto 250 ha Put up trunk infrastructure at neighbourhood scale upon getting NA permission and zone conversion from agriculture to developable
Realtor: Plot area upto 1000 ha Agriculure Land trader,speculator at city scale
Aggregator: Plot area in excess of 1000 ha Agriculture land assembler

It is assumed that all these operation scales are for physically contiguous land parcels only.

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