CA NeWs Beta*: The Real Estate Bill is now applicable for both commercial and residential real estate projects

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Thursday, March 10, 2016

The Real Estate Bill is now applicable for both commercial and residential real estate projects

The Real Estate Bill is now applicable for both commercial and residential real estate projects. It also calls for the establishment of a 'Real Estate Regulatory Authority' in States or Union Territories (UTs) to regulate real estate transactions.

-- The Bill ensures mandatory disclosure of all registered projects, which includes details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate
agents, contractors, architect, structural engineer by the promoters to the customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority.

-- The approved Real Estate Bill has also made it compulsory for builders to deposit 70% of the amount raised from buyers into an escrow account in a scheduled bank within a period of 15 days to cover the construction cost of the project for timely completion of the projects.

-- Another major provision in the Bill is the inclusion of equal rate of interest to be paid by the promoters and buyers in case of default or delays. Currently, the mandate tilts in the favour of builders.

-- The cabinet-approved Bill has also proposed a jail term of up to three years or penalty, or both in case of builders. Further, it also includes one year for real estate agents and buyers if they violate the orders of the appellate tribunals.

-- It envisages establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and the appellate tribunal.

- The Bill also specifies that promoters are barred from changing plans and design without the consent of consumers

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