In what could finally turn out to become a reality for the existing and future home buyers of India, the upper house of the parliament today has given a green signal to the much awaited Real Estate Regulatory Authority bill. The stage is now all set with the ball in Lok Sabha’s court to put a final stamp on the bill. With a few important changes made in the amendments, the Rajya Sabha has passed the bill with Lok Sabha to give it a final go ahead. This news is itself extremely important for all; buyers, developers and the realty sector as well which has been long reeling under the heavy burden of misconduct.
KEY HIGHLIGHTS OF THE BILL
Following points will help us to understand how the Real Estate Bill helps the property buyers, developers and the sector :
- Each state will get a real estate regulator who will help in settlement and imposition of compensation. All residential and commercial projects will have to compulsorily be registered with the regulator so that buyers can have access to valid projects. Even the ongoing projects that have not received the completion certificate will be covered.
- Without a prior registration with the real estate authority, developers cannot advertise or launch projects.
- Developers will have to sell property on the basis of carpet area and not super area.
- In order to ensure transparency about the projects, developers will have to disclose layout plans, submit clearances and name the associates, architect, contractor and others with the regulator.
- For timely completion of the projects, promoters will have to deposit 70 percent of the amounts realised from the buyers in a separate bank account within 15 days, for construction purposes. Consent of two-third buyers will be required to alter plans, structural designs and specifications of the building. In this case, each buyer, no matter how many properties they hold in one project, will be counted as one vote only. Developers will be responsible to rectify structural defects and refund money in cases of default.
- Brokers will also have to be registered with the real estate regulator; non-compliance of which will be punishable.
- Developers will have to deliver projects on the promised date mentioned by them. In case of failure of timely delivery of projects, the buyers can claim refund with interest and compensation.
- In cases of violation of rules by the developers, projects will be de-registered and attract heavy penalties. Non-compliance will invite fine up to 10 percent of project cost and misinformation will cause a fine of 5 percent of project cost. Meanwhile, the fine for the agents is Rs. 10,000 for each day during the tenure of violation of provisions.
- The loss in taxable income caused by builders asking the buyers to pay certain amount in cash will now be curbed, thus eradicating corruption.
- The bill will regulate both, residential and commercial projects.
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