Real Estate Act was long passed by the parliament in March 2016, and now the center has finalised the rules for same. All these efforts are put in by the government to ensure earliest regulation of the real sector in terms of transparency and consumer interest.
At the occasion Union Urban Development Minister M Venkaiah Naidu urged the private sector to join in and contributes its bit to meet the shortage of houses in the country. Also, according to him the bill is a ‘regulation and not a strangulation’.
Here the 10 reformers that this new bill will bring along once it get communicated to the states. Also, states will be given a mere time frame of 6-months to appoint regulators and bring this act into implementation.
- Developers will now be required to deposit 70% money acquired from the buyers in a separate cost of construction and land account.
- Commercial projects registration with regulatory authority is now mandatory.
- For any delays on the part of the developers or consumers, the concerned party will have to pay interest. Thus, ending developers favouritism.
- Insurance of land title will be covered under the bill.
- Violation of rules will lead to imprisonment, 3 years for the developers and one year for consumer and real estate agent.
- Plot area of 500 sqm or 8 apartments are now covered under norms for registration.
- Reducing the scope of manipulation, the bill clearly defines carpet area.
- Developer now is liable for any structural defects up to a time frame of 5 years. Also, plans cannot be changed without the consent of at least 2/3 allottees.
- Remedies will now be disposed in a shorter time frame in tribunals and regulatory authority.
10. Regulators are now required to submit information concerning to lay out plan, agreements, status of approval, project detail, land status, implementation schedule etc. with the regulatory authorities.
