Since, 2013 real estate bill has been moving through rounds of committee and cabinet approvals. Now in 2016, it will be finally tabled today in parliament to become an Act.
Last day, Venkaiah Naidu already has shown green flag, and expecting on behalf of the government that it will be easily passed. Moreover, Congress and Rahul Gandhi have shown keen interest to pass it without any disputes, as there is agreement on almost all amendments.
Today, real estate developers, builders, whole industry, and consumers are hoping that real estate bill to become law, which will bring major shift in the industry and bring transparency and professionalism.
Furthermore, there was social media campaign using hashtags people are sharing their videos on social networks #fightforrera and both hashtags were trending on Facebook and Twitter #passrerabill on social platforms, which again emphasized over the urgency of this bill, and pressurized government.
With the increasing delays in projects, abandonment, declining quality and professionalism, and dwindling transparency, there is a worrisome trend in real estate industry, which is scaring away investors and buyers.
Therefore, Real Estate Bill is a ray of hope for all stakeholder, honest realtors, investors and buyers.
Main highlights of real estate bill are listed below:
- Both residential and commercial real estate will under the purview of real estate bill, according to which RERA (real estate regulatory authority) in states and union territories will monitor and manage transactions.
- Under RERA, it will be compulsory to register real estate projects, and agents can get registrations here as well (eventually making real estate brokerage legal).
- 500 sq meter or with 8 flats projects, have to be registered with RERA, earlier it was 1000 sq meter. This will bring large number of projects under RERA.
- Builders will have to deposit 70 percent of the amount collected in to escrow account, to meet both land and construction costs.
- If builders default or delay then they have to pay interest on the amount at the same rate they charge to their customers.
- Now, for five years builders will be liable for structural defects.
- Carpet area will include both kitchen and toilets, with clear definition.
- RWA (resident welfare association) should mandatorily be formed within 3 months of the allotment of the majority of units.
- Now, buyers can approach consumer courts for any disputes instead of real estate regulatory authorities.
- Moreover, regulatory authorities, and state tribunals will have to resolve cases within 60 days.