7 Things Home Buyers Must Know About the Real Estate Bill
Recently passed, the Real Estate Bill seeks to protect the interest of home buyers. It also aims to bring accountability, transparency and efficiency in the real estate sector.
1. All commercial and residential projects, which include eight flats or cover an area of 500 square meters or more, will now need to be registered with the Real Estate Regulator.
2.The bill ensures completion and delivery of flats on time as strict regulations are imposed on real estate developers for any violations or delay. In case of violations, monetary penalties, imprisonment or both could be slapped.
3.Construction will begin only after acquiring necessary clearances. Before the project gets launched, developers will need to get all the clearances required to move ahead. The reason for this is many developers today offer large discounts to buyers at the pre-launch stage before providing any details to them about the clearances.
4. The Bill requires registration of all real estate projects with Regulatory Authorities. Real estate Developers will need to disclose project information including details of the promoter, lay-out plan, land status, project, and agreements along with details of real estate agents, status of approvals, architects, contractors, and structural engineers.
5. Real estate developers cannot sell property on the basis of super area (flat area plus common area). They will have to clearly define the carpet area which includes spaces like toilets and kitchen. So a buyer will exactly know what he is getting as living area for the amount he’s paying.
6. The Bill has increased the service period from 2 to 5 years for developers to be liable for any structural defects. They also cannot make changes in plans without the agreement of two-thirds of home buyers. Home buyers just need to inform the developer about the problems within one year of the purchase.
The Bill provides imprisonment of up to three years in case of promoters and up to one year in case of real estate agents and buyers for any violation of orders of Appellate Tribunals or monetary penalties or both.