Real Estate Regulatory Bill 2013 came on 4th June 2013, it is passed by cabinet and now the next step is to table it in parliament this monsoon session and if it will pass in parliament, it will become a law.
Major highlights of the regulations:
1. Mandatory for builder to acquire all clearances before the launch.
2. Use of Photograph of actual site for advertisements
Sale of property as per prices linked with Carpet Area
4. State Level Regulators and central appellate tribunal to be set up.
The Real Estate Regulatory Bill 2013 says that a central appellate tribunal should be set up as a central body and each individual state should also have state regulators. This means that there would be some central guidelines for real estate sector and builder and each state will focus on regulating their states real estate builders.
5. Real Agents/Dealers needs to register themselves
Real agents/ Dealers will have to register themselves and will have clear responsibilities and functions. Consumers will be able to demand their rights from agents and dealers for the amount of commissions paid to them.
6. Separate bank accounts for every project
A builder will have to maintain separate bank account for each and every project and up to 70% of the funds for that project has to be there in that same bank account. It does not serve the protection for buyers because builders will still be able to divert 30% of the funds from one project to others.
7. Builders can’t take more than 10% advance without a written Agreement.
8. Full refund with interest, if property not handed over time
(NB: The Real Estate Regulatory Bill 2013 rules applies to project over 4,000 sq meters in size)
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