10 Key Features Home Buyers Need to Know About the Real Estate Bill

BENGALURU: The Real Estate Bill passed by the Rajya Sabha came as a big relief for the home buyers. This bill is made to preserve the normal interest of home buyers while also focusing to bring accountability, efficiency and most probably transparency in real estate sector that is basically known to be an unorganized and unregulated sector. This sector is losing the trust of the buyers because of the late completion of the projects by real estate developers. The developers were showing no accountability, there is also a lack of transparency in the project details and the structures of making payments are the factors that are spoiling the image of the sector. The main aim of this Bill is to rectify these deficiencies. The Indian property market is recognized as the largest black money generating sector in the world.

As Mr. M Venkaiah Naidu (Minister of Urban Development) said in his speech, that main aim of “The Real Estate (Regulation and Development) Bill” is to protect buyer’s interests and to bring more transparency in the sector. Here are 10 key points prepared by DNA India website that buyers need to know about this anticipatory bill.

Completing Projects Well Within Time

This bill ensured the timely completion and delivering of flats because strict rules are now being enforced on the developers. If they will be found violating the rules then strict action will be taken against him in the form of court conviction or hefty penalty or even both of them.

Carpet Area is Compulsory to Define

According to the bill, the carpet area is the net usable area of the flat and now the buyer will only be charged for the carpet area. This is a big relief for the buyers because the real estate developer’s charges for the super built up area that is 30-40% more than the apartment’s usable area.

Developers and Agents will be Punished

According to the sanctioned Bill, if promoters will violate the orders, then they will face imprisonment of up to three years, in case of agents and buyers, it is up to one year along with financial penalty or both. False advertisements will also come under punishable offence where 10% of project cost will be charged for offending first time while repeated offenders will find themselves behind the bars.

Project Launch after All Clearances

The developer is required to complete all necessary clearances before starting the construction. The reason behind this clause is that many developers offer big discounts before the launching of project without providing any details about necessary clearances.

Buyers Money to be Kept Till Project Completion

This Bill declares that minimum 70% of the money collected from the buyers required to be deposited in the separate escrow account that will cover the cost of land and construction. The Bill restricts the involvement of unaccounted money to inflate into the real estate sector that is why 70% money is compulsory to deposit in bank accounts in form of cheques.

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