7 things you should know about Real Estate Regulatory Bill
The Rajya Sabha recently passed the Real Estate Regulatory Bill, which will help regulate the sector and bring in clarity for both buyers and developers. Here are 7 things we thought you should know about this important bill, touted as a key reform measure in the vast unregulated real estate sector.
1) This bill establishes the Real Estate Regulatory Authority (RERA) for that particular state as the government body to be approached for redressal of complaints against any builder. This will happen once every state applies this Act and establishes a state authority on the guidelines set up by this law. This law gives authority to the real estate regulator to govern both residential and commercial real estate transactions.
2) This Act states that the developer has to park 70% of the project funds in a dedicated bank account. This will ensure that developers are not able to invest in multiple projects with the proceeds of the booking money from one project, thus it ensures to reduce/ end delaying in project completion and possession.
3) This law makes it mandatory for developers to submit all information on areas such as project plan, layout, government approvals, land title status, subcontractors, the schedule for completion with the State Real Estate Regulatory Authority (RERA) and then convey this information to the buyers.
4) The current practice of selling on the basis of the dubious 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) The consumer can contact the developer within one year of taking possession to demand any after sales services if any insufficiency is noticed in the project.
6) The developer cannot make any changes to the plan that had been sold without the written consent of the buyer. This is to stop a common and unpopular practice by developers to increase the cost of the project.
7) Lastly, every project measuring more than 500 square metres or more than eight apartments will have to be registered under the RERA.