Prime Minister Narendra Modi's government on Tuesday approved changes to a Bill that seeks to regulate the country's property MARKET, notorious for black money and delayed possessions. The Real Estate (Regulation and Development) Bill, 2013 is aimed to protect the interest of consumers from errant developers and ensure timely execution of projects.
Here are 10 ways how the Bill will help property buyers:
1) Each state will get a real estate regulator; all housing and commercial projects will have to be compulsorily registered with the regulator so that buyers can have access to genuine projects. The real estate regulator will settle disputes and impose compensation.
2) Promoters will have to disclose layout plans and submit clearances for the project with the regulator. They will also have to name the contractor, architect, structural engineer, etc. associated with the project. This will ensure transparency about property projects.
3) To ensure projects are completed on time, promoters will have to deposit 50 per cent of the amounts realized from buyers in a separate bank account within 15 days.
4) Developers will need the consent of two-third buyers to alter plans, structural designs and specifications of the building.
5) Developers will have the responsibility to rectify structural defects and refund money in cases of default.
6) Brokers, who intend to sell flats and plots in a project, will also have to get registered with the real estate regulator. They will be punished for non-compliance.
7) Buyers can claim refund with interest and compensation if promoters fail to deliver projects in time.
8) If rules are violated, projects will be de-registered and penalties will be imposed on the developer.
9) Builders often demand part payment in cash, making many ordinary buyers party to corruption. The Bill will help curb undeclared "black money" in property markets that costs the government billions of rupees in lost taxable income.
10) To seek redressal of grievances such as delayed possession of flats or sudden alteration in building plans, home buyers can approach consumer courts.