The Real Estate Regulatory Bill passed by Rajya Sabha. This bill seeks to protect the interest of home buyers and at the same time aims to bring about transparency, accountability and efficiency in a sector which has been largely unregulated and unorganised.
Here is a list of things to know about Real estate Regulatory bill to benefit you as a home buyer –
1. All clearances before project launch: Prior to the launch of the project developers will have to get all the clearances necessary to go ahead.
2. Timely completion of projects: It ensures the completion and delivery of flats as strict regulations are imposed on developers for any violations of the Appellate Tribunals or monetary penalties or both.
3. Registration of all Real estate Projects: The RERA Bill provides for registration of all real estate projects with Regulatory Authorities to be set up, requiring developers to disclose project information including details of the promoter, project, lay-out plan, land status, status of approvals, agreements along with details of real estate agents, contractors, architects, structural engineers.
4. Speedy redressal of complaints: Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days.
5. Carpet area to be defined: The bill defines carpet area as net usable area of an apartment which means now you will be charged only for your carpet area.
6. Punishment for developers, real estate agents: The Bill provides for imprisonment of up to three years in case of promoters and up to one year in case of real estate agents and buyers for any violation of orders of Appellate Tribunals or monetary penalties or both.
7. Part of home buyers money to be kept till project completion: A minimum of 70% collections from buyers should be deposited in separate escrow account to cover cost of construction and land.
8. Developers to provide after sales services: The Bill has increased the period from 2 to 5 years for developers to be liable for any structural defects. They also cannot change plans without the consent of two-thirds of home buyers.
9. Delays to attract interest: Both builders as well as home buyers will have to pay the same interest rate for any delays on their part.
10. Insurance on land title: The Real estate Regulatory Bill ensures that there is an insurance of the land title. This is to benefit consumers if the land titles are found to be defective.
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