REAL ESTATE REGULATORS AND DEVELOPERS BILL 2016
(MAIN FEATURES OF THE NEW LAW )
SETTING UP OF REGULATORY BODY
• Establishment of State Real Estate Regulatory Authority for every state for redressal of grievances against any builder made mandatory
• It is to be paired with real estate appellate tribunals (REATS) to consider appeals against orders of RERAS
• Regulatory authorities will have to dispose of complaints within 60 days
• Under the new proposals, additional benches of appellate tribunals can be set up in a state if required for speedy adjudication of grievances.
CONSUMER COURTS NOT BARRED
• Bill allows aggrieved buyers to approach Consumer Courts at the District level, State level or National level as applicable
REGISTRATION WITH AUTHORITY
• Every project measuring more than 500 square metres or more than eight apartments will have to be registered with the RERA.
• The Real Estate Regulator shall have the authority to govern real estate transactions in both areas
ADMINISTRATIVE APPROVALS OF PROJECT
• A developer will not be able to market any project unless all approvals are in place. Property buyers will be able to check details about a project online
FUNDS UTILIZATION NORMS
• Developer obliged to park 70% of the project funds in a dedicated bank account to ensure that developers are not able to invest in numerous new projects with the proceeds of the booking money for one project.
CARPET AREA DEFINED
• Carpet area has been clearly defined in the law and the current practice of selling on the basis of ambiguous super built-up area for a real estate project will come to a stop as this law makes it illegal.
• Its mandatory for developers to post all information of project plan, layout, Government approvals, land title status, sub contractors to the project, schedule for completion etc.with the State Real Estate Regulatory Authority (RERA) and to the consumers& on the regulator’swebsite
COMPLETION AND OCCUPATION CERTIFICATES
• The issuance of completion and occupation certificates from authorities are brought under regulatory supervision along with other permissions
ALTERATION IN PROJECT
• No alteration in project at the free will of the promoters unless the consent of at least two-thirds of the buyers of the project has been obtained.
PENALITIES FOR VOILATION
• The De-Registration of the Project
• 5-10 per cent of the project cost
• Imprisonment of up to three years in case of promoters and up to one year in case of real estate agents and buyers for violation of orders of the appellate tribunals or monetary penalties, or both.
FRAMING OF RULES
• States will have to make rules within six months of notification of the proposed Act
• Allottees shall take possession of houses in two months of issuance of occupancy certificate.
PENALITY FOR DELAY
• The law ensures that any delay in project completion will make the developer liable to pay the same interest as the EMI being paid by the consumer to the bank back to the consumer.
• Accepting advance payments or application fees of more than 10 per cent of the cost without entering into a written agreement with the buyer is prevented