THE NEW REAL ESTATE BILL, REAL ESTATE REGULATION ACT HAS COME INTO EFFECT FROM TODAY, MAY 1, 2017. HERE ARE 7 IMPORTANT THINGS TO KNOW ABOUT THE LATEST REAL ESTATE BILL AS A HOUSE BUYER
The real estate industry estimates that approximately 10 lakh buyers invest in houses, every year.
As per the details given by the Union Ministry of Housing, a total of 76,044 companies are involved in the real estate sector. The companies contribute to 9% of the total GDP of the country.
The Real Estate Regulation Act, came into effect today. The bill gives a security to the interests of home buyers and reduce corruption and inefficiency in the real estate sector.
Here are 7 important things about the latest bill:
1. The builders are to be responsible for fixing all the structural defects of the building for five years after the property transfer to the buyer.
2. Seeking to enforce the contract between the buyer and developer and to act as a fast track mechanism to settle the disputes.
3. It is made mandatory to disclose all the information for the registered products like layout plans, promoters, land status, status of various approvals and schedule of execution.
4. The bill gives the provision of mandatary registration of all the projects with the Real Estate Regulatory Authority in each state. The real estate agents which intend to sell any plot, apartment and building will also have to register themselves with the authority.
5.The bill prohibits the builder to change the plan into the project unless two-thirds of the allottees have agreed for such change.
6. Fifty percent of the buyers investment has to be deposited into the escrow account that would be used for only the construction of the project.
7. In any case if the builder delays in transferring the property to the buyer, the appellate tribunals will intervene and within 60 days the fines will be imposed on them.