Real Estate Bill to protect home-buyers

BACKrestateThe long anticipated Real Estate Bill that aims to protect the interests of buyers, and introduce more transparency to the sector, has been passed in the Rajya Sabha.

The Bill was first introduced in 2013 and amendments have been made by the present government.

Some important features of the bill include:

A better organised sector, as the Bill will establish state-level authorities called Real Estate Regulatory Authorities (RERAs), who will regulate both residential and commercial projects and grade the projects thereby helping customers make better decisions.

Timely completion and hand-over has been specified, which is currently one of the problems buyers face. The bill now ensures that 70% of the money taken from buyers must be set aside in a bank account and can only be used for construction. This will ensure that sellers do not divert money received from one project into another project.

The Bill also says accurate information will be mandatory, compelling sellers to disclose details such as project layout, land status, schedule of completion etc. to customers and the RERA. It is now also mandatory to set up an allottee’s association in 3 months, so residents can manage common facilities. If the buyer finds structural deficiencies they can contact the developer for after sales service within a year . Developers or promoters are also not permitted to make changes to the plan without the consent of the buyer.