Rajya Sabha has passed the long pending Real Estate Regulatory Bill on Thursday. There are plenty of provisions mentioned in the Bill for both the end-users and the developers to look forward. The Bill is widely claimed to bring sense to the unorganized real estate sector. Though late, the bill has arrived at the one of the finest stages of our economical growth. Here are some of the features you should know about the Bill, which is to be taken up in Lok Sabha on March 14:
Why Real Estate Bill is crucial?
- To refine one of the backbone sectors of Indian economy.
- Real estate sector accounts for nearly 6% of India’s GDP.
- To resolve one of the biggest problems faced by home buyers: Delayed possession.
- In around 2 Lakh units, 25% have been actually completed in the NCR region in 2015.
What does Real Estate Bill proposes?
- That, builders will have to deposit 70% of the money from buyers into a separate account which is only used for the completion of project.
- To set up a real estate regulatory authority to (RERA) where developer’s has to compulsorily register and disclose properties.
- That rate of interest shall be payable by the promoter or allottees in case of any default and delays.
- That, it is the developers liability to repair structural defects in the sold property.
- That, developers cannot change project costs after selling a plan. If done so they will face penalties.
- That developer’s can face a jail term upto 3 years if they try to dodge the regulation.
How the Bill address to buyers?
- A buyer friendly model contract.
- Proposals assuring timely completion and hand over.
- Disclosure of carpet area must.
- Consent of 2/3rd allottees required for any change in project plans.
- Applies to all ongoing projects without a completion certificate.
- Penalty on builders as well as on buyers for payment delays.
- Mandatory to set up an allottees association within three months of the allotment.
- Developers liability to repair structural defects increased to 5 years.
- Real estate appellate tribunals now required to adjudicate cases in 60 days
How the Bill address to developer?
- All project details are now to be public.
- Penalty if builders don’t honour their commitment.
- Penalty if they fail to register themselves with regulator.
- Penalty upto 10% of the total project cost or even imprisonment.
- Penalty includes project de-registration.
- Liable for structural defects for five years.
- Provision for insurance of land title.
- 70 % sales income must for building and land cost.
- Real estate agents to register with regulator.
- Non-compliance with the tribunal order could mean jail.