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All you need to know about proposed Real Estate Bill 2015

Here are some of the key features of the amended Real Estate Bill 2015 that you need to know about

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The Union Cabinet on Wednesday approved the Real Estate (Regulation and Development) Bill, 2015, which will be taken for consideration before it is passed by the Parliament. The real estate bill, which is a step closer to being passed, is expected to protect the interest of consumers and builders alike, promote fair play in real estate transactions and to ensure timely execution of projects.

Here are some of the key features of the amended Real Estate Bill 2015 that you need to know about.

-- The Real Estate Bill is now applicable for both commercial and residential real estate projects. It also calls for the establishment of a 'Real Estate Regulatory Authority' in States or Union Territories (UTs) to regulate real estate transactions.

-- The Bill ensures mandatory disclosure of all registered projects, which includes details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer by the promoters to the customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority.

-- The approved Real Estate Bill has also made it compulsory for builders to deposit 70% of the amount raised from buyers into an escrow account in a scheduled bank within a period of 15 days to cover the construction cost of the project for timely completion of the project.

ALSO READ: Union Cabinet approves Real Estate Bill, 2015

-- Another major provision in the Bill is the inclusion of equal rate of interest to be paid by the promoters and buyers in case of default or delays. Currently, the mandate tilts in the favour of builders.

-- The cabinet-approved Bill has also proposed a jail term of up to three years or penalty, or both in case of builders. Further, it also includes one year for real estate agents and buyers if they violate the orders of the appellate tribunals.

ALSO READ: New real estate bill proposes jail term for builders violating law

-- It envisages establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and the appellate tribunal.

ALSO READ: Realtors want govt authorities to be part of regulatory bill

- The Bill also specifies that promoters are barred from changing plans and design without the consent of consumers.

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