The Real Estate (Regulation and Development) Bill 2016 which inter alia seeks to promote fair practices in the real estate sector and protect the interests of the consumers by ensuring that home buyers get timely deliveries from builders among other aspects was passed by the Lok Sabha yesterday, i.e. 15th March, 2016.
Few highlights of the provisions under the Bill are as under: State level authorities, i.e. Real Estate Regulatory Authorities would be set up to regulate both residential and commercial transactions in the sector which will ensure timely execution of projects.
Promoters shall be required to register their projects with the Regulatory Authorities disclosing project information including but not limited to details of the promoter, project including schedule of implementation, layout plan, land status, status of approvals, and agreements along with details of real estate agents, among others.
As per the provisions of the Bill, builders may not be allowed to advertise anymore and sell homes until all approvals are procured and the project is registered with the relevant Regulatory Authorities. Registration with the relevant Regulatory Authority shall be applicable for the ongoing projects as well.
As per the provisions of the Bill, both consumers and developers will now have to pay the same amount of interest for any delays on their part. The Bill also directs the builders to deposit 70% of the money collected from the buyers into a separate account that will be utilized only for construction and payment for land.
In view of the aforementioned, the Bill is also believed to enhance the credibility of the real estate construction industry by promoting transparency, accountability and efficiency in execution of their projects. The same will now be forwarded to the President of India for approval.