Real Estate Bill

11th March, 2016

Real Estate Bill, 2015

1.To deposit 70% of the collections form buyers in a separate accounts towards the cost of construction including that of land.

2. Norms for registration of projects has been brought down to plot area of 500 sq.mts or 8 apartments as against 4,000 sq.mt proposed in the draft Bill in 2013 and 1,000 sq.mts or 12 apartments suggested by the Standing Committee;

3. Commercial real estate also brought under the ambit of the Bill and projects under construction are also required to be registered with the Regulatory Authority. 

4. Carpet area has been clearly defined which forms the basis for purchase of houses, eliminating any scope for any malpractices in transactions

5.Ending the earlier asymmetry which was in favour of developers, both consumers and developers will now have to pay same interest rate for any delays on their part;

6.Liability of developers for structural defects have been increased from 2 to 5 years and they can’t change plans without the consent of two thirds of allottees;

7.The Bill provides for arranging Insurance of Land title, 

8.Specific and reduced time frames have been prescribed for disposal of complaints by the Appellate Tribunals and Regulatory Authorities; and

9.A provision is now made for imprisonment of up to 3 years for developers and up to one year in case of real estate agents and consumers for any violation of Tribunals and Regulatory Authorities.

Carpet area 

It is the area within the walls of an apartment that is for the exclusive use of the buyer. While computing the carpet area, the terrace and balconies are usually considered as half the actualarea. Built-up area includes the carpet area and thickness of external walls, internal walls and columns.