Car­pet area will be stan­dard­ised, agents have to quote reg­is­tra­tion num­bers for each sale

HT Estates - - FRONT PAGE - Mu­niesh­wer A Sa­gar

The home­buyer fi­nally has rea­son to cheer as the Lok Sabha has passed the Real Es­tate (Reg­u­la­tion and De­vel­op­ment) Bill, 2016. Here’s ev­ery­thing that you need to know about the bill, which is likely to be­come an act soon.

The hous­ing sec­tor is one of the most un­reg­u­lated sec­tors of the econ­omy. Though de­vel­op­ers need to fol­low var­i­ous laws, rules and reg­u­la­tions ac­quire li­censes and ap­provals, yet the sec­tor suf­fers from lack of ac­count­abil­ity and trans­parency.

The Real Es­tate (Reg­u­la­tion and De­vel­op­ment) Bill, 2016, passed by Par­lia­ment and await­ing the Pres­i­dent’s con­sent, is ex­pected to trans­form the real es­tate sec­tor in the com­ing years, the buyer stand­ing to gain the most from it.

How the buyer gains from this law

Stan­dard­i­s­a­tion in the sec­tor through in­tro­duc­tion of def­i­ni­tions such as ‘ apart­ment’, ‘com­mon ar­eas’, ‘car­pet area’, ‘ ad­ver­tise­ment’, ‘ real es­tate pro­ject’, ‘prospec­tus’, ‘real es­tate agents’, etc.

Reg­is­tra­tion of real es­tate agents. Agents have to quote reg­is­tra­tion num­ber in ev­ery sale fa­cil­i­tated by them. They must pro­vide all in­for­ma­tion and doc­u­ments to the al­lot­tee at the time of book­ing of a prop­erty

Reg­is­tra­tion of all projects, prior to sale, by de­vel­op­ers.

Es­tab­lish­ment of a reg­u­la­tory over­sight mech­a­nism, through Real Es­tate Author­ity( s) and Ap­pel­late Tri­bunal in the States, to en­force ac­count­abil­ity norms for de­vel­op­ers, buy­ers and real es­tate agents.

Seventy per­cent of t he amount re­alised for the real es­tate pro­ject from al­lot­tees, from time to time, shall be de­posited in a sep­a­rate ac­count to be main­tained in a sched­uled bank to cover con­struc­tion and land costs. It shall be used only for that pur­pose

De­vel­op­ers can­not put out mis­lead­ing ad­ver­tise­ments which make prom­ises which are not backed by real de­vel­op­ment on ground. They also need to clearly men­tion the sanc­tions and ap­provals they have ob­tained and can­not mar­ket the pro­ject un­less the nec­es­sary ap­provals are in place.

A pro­moter can­not t ake more than 10% of the prop­erty cost as book­ing amount with­out first en­ter­ing into a reg­is­tered agree­ment with the al­lot­tee

Pro­moter has to take per­mis­sion of two-third al­lot­tees if wants to trans­fer his ma­jor- ity rights and li­a­bil­i­ties to a third party

RERA in ac­tion

The stip­u­lated func­tions of the Real Es­tate Reg­u­la­tory Author­ity (RERA), to be formed at the state level, would bring in greater trans­parency and ac­count­abil­ity in the sec­tor:

T r a n s p a r e n cy. R E R A i s ex­pected to bring in trans­parency by: pub­lish­ing and main­tain­ing a web­site of records of all real es­tate projects for which reg­is­tra­tion has been given, with such de­tails as may be pre­scribed, in­clud­ing in­forma- tion pro­vided in the ap­pli­ca­tion for which reg­is­tra­tion has been granted; main­tain­ing a data­base on the RERA web­site, en­ter­ing the names of pro­mot­ers as de­fault­ers, in­clud­ing pro­ject de­tails, re­voked reg­is­tra­tion or penal­ties if any under the act with rea­sons for ac­cess to the gen­eral pub­lic;

main­tain­ing a data­base on its web­site, en­ter­ing en­ter the names of real es­tate agents who have ap­plied and reg­is­tered under this Act, with such de­tails as may be pre­scribed, in­clud­ing those whose reg­is­tra­tion has been re­jected or re­voked; fix­ing through reg­u­la­tions for each area under its ju­ris­dic­tion the stan­dard fees, to be levied on al­lot­tees by the pro­moter or the as­so­ci­a­tion of al­lot­tees, as the case may be;

The pro­moter shall upon re­ceiv­ing his lo­gin id and pass­word from RERA cre­ate his web page on the web­site of the Author­ity and en­ter all de­tails of the pro­posed pro­ject for pub­lic view­ing

Ac­count­abil­ity. RERA i s ex­pected to bring in greater ac­count­abil­ity by: en­sur­ing com­pli­ance of the obli­ga­tions cast upon de­vel­op­ers, the al­lot­tees and the real es­tate agents under this Act and the rules and reg­u­la­tions made there­un­der; en­sur­ing com­pli­ance of its reg­u­la­tions or or­ders or di­rec­tions made in ex­er­cise of its pow­ers under the Act; it may call upon any developer or al­lot­tee or real es­tate agent, as the case may be, at any time to fur­nish in writ­ing such in­for­ma­tion or ex­pla­na­tion re­lat­ing to its af­fairs as the Author­ity may re­quire.

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