5 things home buyers should know about real estate act

Over 76,000 companies operating in the real estate sector

GN Bureau | May 1, 2017


#Real Estate Act   #Real Estate Bill   #Housing   #Real Estate   #Home Buyers  


The Real Estate (Regulation and Development) Act, 2016 came into force on Monday, promising to provide relief to thousands of home buyers who have put their life savings in projects that are far from complete.

Till March last year, there were 76,044 companies operating in the real estate sector.

As per industry information, between 2011 and 2015, real estate projects in the range of 2,349 to 4,488 projects were launched every year. There were as many as 17,526 projects with a total investment of Rs.13.70 lakh crore in 27 cities. About ten lakh buyers invest every year with the dream of owning a house.

Here are 5 elements of the act that home buyers need to know.

1. 70% of the funds collected from buyers have to be deposited in a separate bank account in case of new projects and 70% of unused funds in case of ongoing projects;


2. Projects with plot size of minimum 500 sq.mt or 8 apartments shall be registered with Regulatory Authorities;


3.Both developers and buyers to pay the same penal interest of SBI’s Marginal Cost of Lending Rate plus 2% in case of delays;


4. Liability of developers for structural defects for five years; and


5. Imprisonment of up to three years for developers and up to one year in case of agents for violation of orders of Appellate Tribunals and Regulatory Authorities.
 

Comments

 

Other News

Beyond toilets: Why open defecation persists in rural India

Despite the awareness campaigns on sanitation across India, open defecation (OD) is practised openly and widely in both rural and urban areas. Research shows that rural respondents are well aware of the negative impacts of OD, yet this awareness does not lead to toilet construction or use. In rural North I

What unpaid nation builders want from policymakers

The Supreme Court recently described homemakers as “nation builders” and fixed a notional monthly income of Rs 30,000 for them in motor accident compensation cases. The judgment was not about wages. It was about compensation. Yet it inadvertently raised a larger economic question: If a homemake

What the US–Iran peace deal means for India

After months of rising tensions, the United States and Iran have reached a memorandum of understanding called the "Islamabad Agreement." This agreement allows for the immediate reopening of the Strait of Hormuz without tolls and provides Iran with relief from sanctions, depending on its complianc

V. M. Tarkunde: A legal luminary par excellence

14 Lawyers: Portraits from The Bar By Raju Ramachandran  Juggernaut, 248 pages, Rs. 799  

The Cost of Obesity

The latest episode of Checks and Balances focuses on the ticking time bomb of obesity in India, and Geetanjali Minhas of Governance Now spoke with a panel of experts. You can watch the episode here: https://youtu.be/mH

US-Iran deal: Path to peace or prelude to deeper regional quagmire?

In the midst of deep mistrust, the US and Iran are reported to have reached a framework deal for ending the West Asian conflict. But whether it will result in any meaningful breakthrough or pave the way for any lasting peace in the region, is in the realm of speculation.   During





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter