After long-term deliberation Real Estate Bill is finally approved. This Real Estate Bill is introduced to regulate reality sector. It is expected that this bill will bring transparency and protect human rights for the real estate sector. As we know real estate sector is totally unorganized and it is one of the key source of black money circulation in India. An Introduction of this bill will bring real estate sector in order. It will also bring good days for the real estate sector. Let’s check the detail of real estate bill.
Real Estate Bill 2016 – Key Points for the Home Buyers
- A new real estate regulatory authority shall be formed in every state. A home buyer can directly approach this authority in case of any disputes, delay or grievances.
- This real estate bill shall ensure that developer disclosed all project information like a project plan, layout, land title status, schedule of implementation, project cost, government approval, agreements, details of real estate agents, contractors, architects and structural engineers to home buyers and to real estate regulatory authority.
- Current malpractice of selling property on a super built up area is stopped. All projects should be sold on carpet area and not super built up area. This is a major relief to home buyers as now builder cannot cheat you by selling property on the super built up area.
- This act enforced builders to keep 70% of fund collected from home buyers in a dedicated bank account. This will ensure that money taken from one project cannot be used for other project or for new investment by builders. This will ensure faster completion of the project and also increase competitiveness.
- No pre launching of projects shall be allowed. Builder need to take all necessary approval from local municipality, government authority and real estate regulator.
- Builder cannot change project plan on their own. Any change in project plan required consents of 2/3 allottees.
- In case of delay in project developer is liable to pay penalty along with interest. Any violation may lead to imprisonment.
- The builder has to give after sale service for any defects up to 1 year from the date of allotment.
- The misleading advertisement shall not be tolerated. A real estate regulatory authority can order builder to give compensation for the misleading advertisements.
Real Estate Bill 2016 – Key Points for the Builder
- Developers need to provide historical projects details both completed and under construction to real estate regulatory. This detail shall be placed on the website of regulator for the benefit of consumer.
- The bill covers any project with starting from 500 Sq m or has more than eight apartments.
- Penalty to builder includes severe impact including jail or project deregistration.
- Commercial real estate also brought under the ambit of the Bill and projects under construction are also required to be registered with the Regulatory Authority.
- The liability of developer for the structural defects has been increased from 2 to 5 years.
Image Credit – Times of India
The real estate bill will protect real estate consumer and also bring transparency and accountability. As per me price of real estate would be stabilized and inflow of black money will stop. As more consumers will be interested to invest in real estate and it will surely bring good days for real estate sector.
After the bill passed PM Modi Tweeted:
Real Estate Bill fully ensures more transparency, accountability & efficiency in real estate sector, freeing it from many existing flaws.
— Narendra Modi (@narendramodi) March 10, 2016
You can find press a release about Real Estate Bill 2016 from here.
Do you think real estate bill 2016 will revive sleeping real estate sector? Do share your views by commenting.