The Union Cabinet on Wednesday approved amendments to the Real Estate Bill, which was first proposed in 2013. The Bill will now be taken up for consideration by the Parliament. The provisions of the Bill are aimed at protecting buyers and bringing in transparency in the sector.
Here is a 10-Point Cheat-Sheet
1) The provisions of the Bill will be applicable on both the existing projects as well as projects in which sales are in progress.
2) The promoters will be subject to imprisonment for up to 3 years and real estate agents for up to one year or monetary penalties or both in case they fail to adhere to the orders of appellate tribunals.
3) It requires real estate developers to deposit 70 per cent of the project cost in a separate account for timely completion of the project.
4) The developer will be liable to pay interest at the same rate in case of delay in possession as it is charging from the buyer in case of delayed payment.
5) A provision for insurance of the land tittle has to be made for avoiding loss for both buyers and developers in case of dispute in land title.
6) Buyers will have to take the possession of the house in two months after they receive the occupancy certificate to avoid delay in registration. A delay in registration hurts revenues of the state in the form of stamp duties and other charges.
7) Developers can’t sell property on the basis of super area (flat area plus common area). They will have to clearly define the carpet area that includes space like kitchen and toilets. The parking will have to be sold separately.
8) Formation of allottees associations has been made mandatory within three months of allotment of majority of units in a project so buyers get to manage facilities like common hall, club house, and reading room.
9) A real estate regulatory authority has to be set up in states/union territories to regulate property transactions. It is applicable both for commercial and residential real estate projects. Projects of 500 square metres area or 8 flats will have to be registered with the regulatory authority. The regulatory authority will be allowed to grade projects along with the promoters to enable consumers to make a more informed decision.
10) Apart from the regulatory bodies at state level, buyer will have access to 644 consumer courts at district level for quick redressal. Appellate tribunals will have to adjudicate cases in 60 days and regulatory authorities have to dispose of complaints in 60 days.