The real estate regulatory bill that received a nod by the parliament on Tuesday last week brings in some good news for home buyers against delays in completion of housing projects. The bill that focuses on transparent and responsible business environment is also being billed as the one that will help attract funds from foreign investors and institutional investors for the whole real estate industry. Gulshan Homz gives you a lowdown on why it’s beneficial for home buyers
Timely execution and possession: The provides for setting up of a Real Estate Regulatory Authorities (RERAs), which will ensure timely execution of projects. Hence ensuring the efficiency. This will also result in possessions on the promised timelines.
Transparent transactions: Developers will now have to register their respective projects with the RERA wherein they have to disclose various aspects of the projects such as track-record, title of the project.
Accountability: The registration has to be done before any sort of advertisements and promotions. The fund-raised on proposed projects cannot exceed 10 % of the project cost without an agreement to sell; and the bill calls for 70 % of the funds paid by the customers to be parked in an escrow account (a temporary pass through account held by a third party during the process of a transaction between two parties.) These funds can only be used for constructions after due certification and in line with the completion of the project.
Regular updates: The bill calls to provide quarterly updates to the customers through a per-designated portal on the progress of the project hence bringing in the protective environment for home buyers.
Penalties: The bill provides for an imprisonment of upto three years in case of promoters and upto one year for real estate agents and buyers if they violate the orders of Appellate Tribunals
Timely execution and possession: The provides for setting up of a Real Estate Regulatory Authorities (RERAs), which will ensure timely execution of projects. Hence ensuring the efficiency. This will also result in possessions on the promised timelines.
Transparent transactions: Developers will now have to register their respective projects with the RERA wherein they have to disclose various aspects of the projects such as track-record, title of the project.
Accountability: The registration has to be done before any sort of advertisements and promotions. The fund-raised on proposed projects cannot exceed 10 % of the project cost without an agreement to sell; and the bill calls for 70 % of the funds paid by the customers to be parked in an escrow account (a temporary pass through account held by a third party during the process of a transaction between two parties.) These funds can only be used for constructions after due certification and in line with the completion of the project.
Regular updates: The bill calls to provide quarterly updates to the customers through a per-designated portal on the progress of the project hence bringing in the protective environment for home buyers.
Penalties: The bill provides for an imprisonment of upto three years in case of promoters and upto one year for real estate agents and buyers if they violate the orders of Appellate Tribunals
