Good News for home buyers,real estate regulatory bill cleared by Lok Sabha

The Real Estate (Regulation and Development) Bill was passed by the Lok Sabha, five days after its passage by Rajya Sabha. Minister of Housing and Urban Poverty Alleviation Venkaiah Naidu said after passage of this Bill, existing/ongoing projects would not come to a standstill. It does not provide that the existing projects should stop all operations until complied with the provisions of the Bill. Under the provisions of the bill, builders cannot advertise and sell homes till all approvals are in place and the project is registered with the regulatory authority that will be set up in every state, alongside appellate tribunals for dispute resolution. Even ongoing projects will have to register with the authority. At the time of the registration, the developer will have to disclose all project information including details of promoter, project plans, including implementation schedule, land status, layout plan, status of approvals, agreements, details of real estate agents, among many others, empowering buyers. A window of 3 months from the date of commencement of the said clause/ section has been given to the promoters for registration.The developers need to to specify the project details of such apartments so that prospective buyers will make informed choices, project status is known to all and to ensure that the projects are completed on time. It will protect consumer interest, ensure efficiency in transactions, improve accountability of developers, boost transparency and attract more investments, according to the government. Home buyers will also now be able to buy homes knowing the carpet area of the apartment rather than being sold based on the super built up area. Also both consumers and developers will now have to pay same interest rate for any delays on their part. The mandatory registration for projects has been brought down to 500 sq m area, or those comprising eight flats. It also provides for a clear definition of carpet area and a system that would require the consent of two-thirds of the buyers in case there are changes in project plans.

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