As a house buyer, 7 things you need to know about real estate bill

Updated - May 01, 2017 11:07 am IST

Published - April 08, 2015 12:32 pm IST

The Real Estate Regulation Act, which comes to effect from May this year, promises to secure the interests of home buyers and expunge corruption and inefficiency from the sector.

An industry estimate suggests that about 10 lakh buyers invest every year in a house. According to Union Ministry of Housing, a total of 76,044 companies are involved in the real estate sector. It is estimated to contribute about 9 per cent of GDP.

As a house buyer, these are the seven things you need to know about real estate bill

1The Bill provides for mandatory registration of all projects with the Real Estate Regulatory Authority in each State. Real estate agents who intend to sell any plot, apartment or building should also register themselves with this authority.
2It makes mandatory the disclosure of all information for registered projects like details of promoters, layout plan, land status, schedule of execution and status of various approvals.
3It seeks to enforce the contract between the developer and buyer and act as a fast track mechanism to settle disputes.
4Fifty per cent of the buyers' investment has to be deposited into an escrow account that would be used only for the construction of that project.
5The Bill prohibits a developer from changing the plan in a project unless two-thirds of the allottees have agreed for such a change.
6Builders would be responsible for fixing structural defects for five years after transferring the property to a buyer.
7In case builders still cause delays in transferring properties to buyers, the appellate tribunals would intervene and slap fines on them within 60 days.
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