5 Reforms For Everyone To Know
1. Centralised Office for any grievances against any builder
This real estate bill has introduced the idea of establishing State Real Estate Regulatory Authority one stop place for all real estate queries and complaints against any builder. This will happen once every state ratifies this Act and establishes a state authority on the lines set up in the law.
2. Regulation of Customers Money
According to the Real Estate Regulator Bill 2016, the developer is obliged to park 70% of the project funds in a dedicated bank account. This will ensure that developers are not able to invest in numerous new projects with the proceeds of the booking money for one project, thus delaying completion and handover to consumers.
3. Regulation on information passed by the developer
This law makes it mandatory for developers to post all information on issues such as project plan, layout and government approvals, land title status, subcontractors to the project, the schedule for completion with the State Real Estate Regulatory Authority (RERA) and then in effect pass this information on to the consumers.
4. Projects to be sold on carpet area
The current practice of selling on the basis of an ambiguous super built-up area for a real estate project will come to a stop as this law makes it illegal. Carpet area has been clearly defined in the law.
5. Developers to pay the fine in case of any delay
Currently, if a project is delayed, then the developer does not suffer in any way. Now, the law ensures that any delay in project completion will make the developer liable to pay the same interest as the EMI being paid by the consumer to the bank back to the consumer.