Rajya Sabha on Thursday cleared Real Estate Bill. Let’s go through ten key features of it:
1)All projects will have to be registered with supervisory authorities. Developers will have to disclose project information.
2)There won’t be any discrimination of any kind on basis of caste, religion, region, caste, sex and gender. The government may bring in clause to allow anyone, including a transgender, to buy property.
3)Builders are required to deposit a minimum of 70 percent collections from buyers in an escrow account to cover cost of construction. Real Estate Regulatory Authorities in states will be established to regulate transactions linked to both residential and commercial projects.
4)No pre-launch will be permitted without getting all clearances from the local authorities and without securing registration from the regulator.
5)Bill covers any venture that is more than 500 sq m or has more than eight apartments.
6)Builders will no longer go scot-free after putting flamboyant designs or photographs of a project to attract buyers and failing to deliver projects that match the pictographic claims.
7)Builder has to return the payment with interest to buyers who are affected by false statements contained in advertisement, prospectus or notice or the model apartment, plot or building as the case may be.
8)Bill provides jail of up to three years for promoters and up to one year for real estate mediators and buyers and/or monetary penalties if orders of appellate tribunals are violated.
9)Authority can even order compensation to buyers in case of false advertisements.
10)Developers will have to provide small details of projects launched in past five years, both under-construction or completed, and current status of projects.