The Real Estate Regulator bill was recently launched by the Rajya Sabha to structure the sector and bring clarity in its functions for the buyers as well as the developers and sellers. While this bill is claimed to be the key reform in the realty sector.
Here are 10 important points one must know about the recently launched Real Estate Regulator Bill.
#1 The bill deems the State Real Estate Regulatory Authority as the sole governing body to meet the redressal needs in case of grievances against any real estate builder of that particular state. Such will be the system once every state ratifies this act and sets up the line of system as per the law.
#2 As per this new law the authority is vested on the real estate regulator to oversee and regulate all residential as well as commercial transactions real estate.
#3 The developer as per this act has to maintain at least 70 percent of a particular project funds at a particular bank account. This ensures that the developers will not be able to invest in multiple projects at the same time, with the funds accumulated from the booking deposits of a project so as to avoid delay in completion of a project and thus, late handover.
#4 This law will also bring a stop to the practice of selling a property on the basis of ambiguous super built-up area as it has declared such practices as illegal. The law states that the carpet area has to be defined clearly in the law.
#5 The Law also makes it compulsory to keep the Real Estate Regulatory Authority (RERA) of the state informed about things like, land title status, issues on layout, project plan, and sub-contractors to the project, government approvals the schedule of completion and in turn also pass this information to the consumers associated with the project.
#6 Those developers who violate the order of the appellate tribunal of the RERA should have to serve a jail term of 3 years or more either with or without a fine.
#7 The developer cannot change any part of the plan without written consent of the buyer. Thus, this will reduce this widely practiced yet unpopular attempt of developers which they use to increase the price of the project.
#8 A of now the law does not put the developer through any problems on delay of a project. But with this new law if a project is delayed then the developer will have to pay similar rate of EMI as the consumer will be paying to the bank, back to the buyer to compensate for the delay.
#9 If after possession of the property the buyers encounter any deficiency in the project, then they can contact the developer about after sales service in writing within one year after possession.
#10 Finally, the law also dictates that every project more than 500 square meters in area or more than 8 apartments must be registered with the Real Estate Regulatory Authority (RERA).