Real Estate Bill: 10 Significant Facts of You may have missed! The much-awaited Real Estate (Regulation and Development) Bill 2015 which finally got the green signal by the Cabinet ushered in new hopes in this erstwhile sector with buyers hoping for more transparent and consumer-friendly deals in real estate. Other than the prominent facts of the Bill that give buyers an upper-hand, there are more reasons for them to cheer about. It is imperative that the buyer knows the nitty-gritty’s of the Bill and, if need be, makes the most of the benefits he is entitled to. Some of these facts include: 1) No Advance payment without signing sale agreement: Under any law, the promoter cannot accept in advance a sum of money more than 10 per cent of the overall cost of apartment, plot or any building without first entering into a written agreement for sale and registering the said agreement. 2) Builders must fix structural defects up to 5 years: Any structural defect/s in the workmanship, quality or provision of services as per the sale agreement which is brought to the notice of the builder by the allottee within five years from the date of handing of possession has to be rectified by the builder within 30 days free of charge. In case the builder fails to do so within this time period, then the aggrieved allottee/s is entitled to receive appropriate compensation in the manner as provided in the Act. 3) Projects being developed Phase-wise: For all projects that are being developed in Phases, the builder/promoter has to register each phase separately. According to the Bill, each phase is considered a stand-alone real estate project. 4) Builder must give broker names during project registration: The Bill specifies that at the time of application for the registration of a particular project, the builder must provide the name and address of all the real estate agents associated with it. 5) Time period for project Completion: The builder needs to clearly specify the time period within which he intends to complete the construction of the concerned project or the Phase (of phased projects) at the time of registration. 6) Registration of project to be granted/rejected within 30 days of Application: The Bill states that on receiving the application of the concerned real estate project for registration, the authority has to grant registration as per the rules specified within 30 days of the application. It
has to provide a registration number including login ID and password to the applicant for accessing the website of the authority and create his webpage and fill therein the details of the project. Alternately, it can also reject the application within 30 days for reasons to be recorded in writing, if the application doesn’t conform to the provisions of this Act. 7) Advertisements and brochures will need to speak the truth: Promoters cannot publish an advertisement or brochure, whether online or newspaper, of services that will not be offered in the concerned project. Also, he cannot adopt any unfair method of promoting the sale or development of real estate project including falsely representing the services of a particular standard or grade. Further, the advertisement or brochures issued or published by the promoter has to prominently mention the website address of the authority wherein all details of the registered project has been entered including registration number of the concerned project from the authority and other such matters. 8) Revocation of Registered Project: On receiving a complaint or suo motu, the authority can cancel the registration of a project if the promoter defaults in doing anything required by or under the Act, violates any terms and conditions of the approval given by the authority or is involved in any kind of unfair practice or irregularities. 9) Registration of Real Estate Agents Compulsory: It is mandated that all real estate agents who shall facilitate the sale or purchase of plot, apartment or any other building that has been registered under section 3 has to obtain registration from the concerned authority. The agent/broker cannot do any such activity without getting registered. 10) Obligation of Promoter in case of Transfer of Real Estate Project to 3rd Party: As per the Bill, the promoter cannot transfer or assign his majority right and liabilities of the real estate project to a third party without getting the written consent from two-third allottees, and the prior written approval by the authority. Source: CommonFloor.com For Latest Updates on Real Estate Updates, Property News and Cities Infrastructure Developments Visit: https://www.commonfloor.com/guide
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