Planning to buy a new house? These are the 8 things you must know about “The Real Estate Regulation Bill”

Rajya Sabha has passed the Real Estate (Regulation and Development) Bill this Thursday. The bill promises to secure the interest of the buyers and  curb corruption and inefficiency that has captured this sector. 

Here are the 8 things you must know about the Real Estate Bill:

  • The Bill regulates transactions between buyers and promoters of residential real estate projects.  It establishes state level regulatory authorities called Real Estate Regulatory Authorities (RERAs).
  • On registration, the promoter must upload details of the project on the website of the RERA.  These include the site and layout plan, and schedule for completion of the real estate project. Residential real estate projects, with some exceptions, need to be registered with RERAs.  Promoters cannot book or offer these projects for sale without registering them. Real estate agents dealing in these projects also need to register with RERAs.
  • 70% of the amount collected from buyers for a project must be maintained in a separate bank account and must only be used for construction of that project.  The state government can alter this amount to less than 70%. The promoter shall not accept more than 10% of the total cost of the property as an advance payment without entering into a written agreement.
  • The Bill establishes state level tribunals called Real Estate Appellate Tribunals.  Decisions of RERAs can be appealed in these tribunals.
  • Penalties – In case the promoter fails to register the property, he may be penalised up to 10% of the estimated cost of the project.
    Failure to register despite orders issued by the RERA will lead to imprisonment for up to three years, and/or an additional fine of 10% of the estimated cost of the project. The promoter will have to pay up to 5% of the estimate cost of the project if he violates any other provisions of the Act.
    Real estate agents will have to pay a fine of Rs 10,000 for violating any provisions of the Act, for each day the violation continues.
  • The Bill prohibits a developer from changing the plan in a project unless two-thirds of the allottees have agreed for such a change.
  • Builders would be responsible for fixing structural defects for five years after transferring the property to a buyer.
  • In case builders still cause delays in transferring properties to buyers, the appellate tribunals would intervene and slap fines on them within 60 days.

 

Image Courtesy: Pixabay
Information Source: prsindia

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Sonali Anand

Sonali Anand

She is a propagator and patron of women empowerment and self-dependency. Through her writings, she wants to infuse confidence in this section of society so that they can emerge strong. Hence, she quit her job to start blogging as her full-time engagement. She provides counselling to women to start their career in different fields which vary from management to home science.

She is an MBA in Finance.
Sonali Anand

Sonali Anand

She is a propagator and patron of women empowerment and self-dependency. Through her writings, she wants to infuse confidence in this section of society so that they can emerge strong. Hence, she quit her job to start blogging as her full-time engagement. She provides counselling to women to start their career in different fields which vary from management to home science.She is an MBA in Finance.

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