The bill is aimed to prevent buyers from being duped by builders who fabricate the worth of properties and bluff their customers.
New Delhi, Mar 10: Rajya Sabha passed the Real Estate (Regulation and Development) Bill 2015 today. The pending legislation was tabled by the Government in the Upper House of the Parliament. Upon apprehensions shown by the Opposition in the previous parliamentary sessions, Centre inserted all the 20 amendments which were recommended by the ethics committee. The legislation, intended to curb the malpractices in the real estate sector, would come as a boon for the middle-class section of the society who aspire to own their homes or retail shops.
The bill is aimed to prevent buyers from being duped by builders who fabricate the worth of properties and bluff their customers. It also addresses the concerns raised by buyers before investing in proposed or under-construction projects. Here are the provisions of the transformative legislation:
Organization of real estate sector
New Delhi, Mar 10: Rajya Sabha passed the Real Estate (Regulation and Development) Bill 2015 today. The pending legislation was tabled by the Government in the Upper House of the Parliament. Upon apprehensions shown by the Opposition in the previous parliamentary sessions, Centre inserted all the 20 amendments which were recommended by the ethics committee. The legislation, intended to curb the malpractices in the real estate sector, would come as a boon for the middle-class section of the society who aspire to own their homes or retail shops.
The bill is aimed to prevent buyers from being duped by builders who fabricate the worth of properties and bluff their customers. It also addresses the concerns raised by buyers before investing in proposed or under-construction projects. Here are the provisions of the transformative legislation:
Organization of real estate sector
The bill would set-up Real Estate Regulatory Authorities (RERAs) which would grade under-construction projects after surveying them. Based upon their worth, quality and builder’s goodwill, the grades would be allotted. This would immensely help buyers before making a careful choice.
On-time handover of residential and commercial premises to the buyers
One of the most serious issues faced by buyers in urban areas is that the builders miserably fail to handover them the possession of their properties on the assured dates. In most of the under-construction projects, builders end up delaying their projects by 1-3 years. This raises several issues for the common man who has invested his money in the project without any gains.
Prevention of buyers from getting duped
RERAs would instruct builders to set aside 70 per cent of the booking amount received from buyers separately for construction of the project. Often, real estate players use this amount to invest in another project which delays the ongoing construction. It has also pronounced a three-year jail term or heavy fine to builders who cheat their customers. If the buyer is not allocated his house or retail shop within the assured time frame, then the builder is liable to pay interest according to the prevalent market rates to the buyer.
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