Real Estate Bill
Q. Which of the following is/are true?
1) The Real Estate Bill covers any project that is more than 1000 sq m or has more than eight apartments.
2) State-level Real Estate Regulatory Authorities will be established to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover.- Published on 14 Mar 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Only 2
Few features of the bill are –- The bill covers any project that is more than 500 sq m or has more than eight apartments (states can lower this requirement further).
- All projects will have to be registered with regulatory authorities, and developers will have to disclose project information including details of the promoter, project, layout plan, land status, status of approvals and agreements along with details of real estate agents, contractors, architects and structural engineers.
- There will be no discrimination of any kind on basis of religion, region, caste, creed or sex and gender and we will include that in the rules. The government may bring in a "non-discriminatory" clause to allow anyone (including a transgender) to buy property in a complex.
- Builders will have to deposit a minimum of 70% collections from buyers in an escrow account to cover cost of construction and land.
- Builders can no longer go scot-free by putting up flashy designs or photographs of a project to attract buyers and failing to deliver projects that match the pictorial claims.
- The bill states the builder has to return the payment with interest to buyers who are affected by such "incorrect, fast statements contained in the notice, advertisement or prospectus or the model apartment, plot or building as the case may be".
- The authority can even order "compensation" to consumers in case of misleading advertisements.
