New Delhi(PTI): Union Cabinet on Wednesday approved the Real Estate (Regulation and Development) Bill, 2015,…
The Real Estate Regulation Bill, which was passed on Thursday in the Rajya Sabha promises to secure the interests of home buyers and expunge corruption and inefficiency from the sector.
Soon after tabling the Bill in the Upper House, Parliamentary Affairs Minister, Venkaiah Naidu, who also heads the Urban Development Ministry, said the government has considered the “views and suggestions of various stakeholders and different political parties in the matter.”
1 The Bill provides for mandatory registration of all projects with the Real Estate Regulatory Authority in each State. Real estate agents who intend to sell any plot, apartment or building should also register themselves with this authority.
2 It makes mandatory the disclosure of all information for registered projects like details of promoters, layout plan, land status, schedule of execution and status of various approvals.
3 It seeks to enforce the contract between the developer and buyer and act as a fast track mechanism to settle disputes.
4 Fifty per cent of the buyers’ investment has to be deposited into an escrow account that would be used only for the construction of that project.
5 The Bill prohibits a developer from changing the plan in a project unless two-thirds of the allottees have agreed for such a change.
6 Builders would be responsible for fixing structural defects for five years after transferring the property to a buyer.
7 In case builders still cause delays in transferring properties to buyers, the appellate tribunals would intervene and slap fines on them within 60 days.