REAL ESTATE REGULATORY BILLadmin
Real Estate Regulatory Bill now allows setting up of an apex body to regulate all Real Estate activity in the country
1. The Bill seeks to clamp down on developers by disallowing pre-launches of projects where approvals from the local authorities and registration from the regulator are pending.
2. Developers will have to disclose approval status, project layout and timeframe for completion to the regulator and customers.
3. The developer will now have to park 70% of the project funds in a dedicated bank account at the outset, which can only be used for the earmarked project to ensure timely possession.
4. Developers will now have to sell homes on the basis of ‘carpet area’ and not the ‘super built-up area’.
5. Developers will now have to return payment with interest to buyers who are misled by statements or representations in any form.
6. The developer will not be allowed to make any changes to the original plan midway without the written consent of at least two-third of buyers.
7. The Act proposes to bring parity between the buyer and seller by making the latter liable to pay the customer the same interest as demanded of the buyer
8. Existing buyers facing delay in getting possession will also be covered under the new Act.
Source: Economic Times