Real Estate Regulatory Bill: 10 Most important points

Real Estate bill will help regulate the sector and bring in clarity for both buyers & developers. Here’s the 10 must known things about Real estate bill

1. It establishes the State Real Estate Regulatory Authority (RERA) for that particular state as the government body to be approached for redressal of grievances against any builder. This will happen once every state ratifies this Act and establishes a state authority on the lines set up in the law.

 

2. Real Estate Bill create authority on the real estate regulator to govern both residential and commercial real estate businesses.

 

3. In this bill, Developer have to deposit 70% of the project cost in the bank account so that developers are not able to invest in multiple new projects. It long terms it helps buyers as on time possession.

 

4. In this bill developer have to submit all details such as project plan, layout, government approvals, land title status, sub-contractors to the project, schedule for completion with the State Real Estate Regulatory Authority (RERA) and then in effect pass this information on to the consumers.

 

5. From onwards, Only carpet area is counted. Developers will be not be able to selling projects on Built up area.

 

6. Big Point, In Regulation bill – Developers have to pay interest per month same as the EMI being paid by consumer. If project is delayed.

 

7. If developer violate any terms of RERA than 3 years maximum jail term for developer.

 

8. Buyers can contact developer within a year if there is any Lack in after sales service.

 

9. The developer cannot make any changes to the plan that had been sold without the written consent of the buyer. This puts paid to a common and unpopular practice by developers to increase the cost of projects.

 

10. Every project which is measuring more than 500 square metres or more than eight apartments will have to be registered with the RERA.