As the real estate comes into effect from today, we look at the key features of the law:
Time is essence: Stating that “time is the of essence for the promoter as well as the allottee”, the law focuses on sticking to deadlines. Under the rules, while developers will have to firmly stick to the project completion and delivery dates mentioned in the sale agreement, buyers will have to stick to the timely payment schedule. The only excuse that developers might cite for project delays is Force Majeure. This means a delay will be forgiven in case of a war, a flood, a drought, fire accidents, a cyclone, an earthquake or any other calamity caused by nature.
- Stick to the plan, show details: Developers will have to provide each detail of their projects to the buyer and will have to stick to each one of them. The promoter also has to strictly abide by the sanctioned building plans.
- Proper and timely handover: After getting an occupancy certificate, a developer has to hand over the property to the buyer within three months. However, this will be subject to the buyer making all the necessary payments. Even if a buyer fails to take possession within the time provided, he will be liable to pay maintenance charges.
- Meet the commitment or lose money: In case a buyer cancels the deal while the developer keeps his end of the deal, the booking amount by the former will not be refunded.
- No room for defects: The draft rules also say that a developer has to pay for any losses that a buyer might incur due to a defective land title. This clause will ensure that developers carry out project work on land which is not subject to any disputes.
- Buyers’ association responsible for maintenance: The responsibility of maintaining the project lies in the hands of the buyers’ association after a developer has given the possession. The cost of maintenance will be included in the total price of apartments. The total charge of a unit includes the cost of land, construction and common areas, along with internal and external development charges and other taxes. This will also include the expenses made in setting up electric wiring and fire-fighting equipment.