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

Politicians trade charges as Covid breaks previous records in Maharashtra

A political war erupted between the centre and Maharashtra over supply of essentials including medicines and oxygen as the state struggles to control the raging Covid-19 amidst scarce health infrastructure. Maharashtra has seen a consistent rise in Covid infections and recorded 67,123 new c

Remdesivir procured at high prices to save lives: BMC

Countering the opposition BJP’s allegations of corruption in the procurement of Remdesivir, a critical anti-viral injection often prescribed for Covid-19 patients, the BrihanMumbai municipal corporation (BMC) has clarified that its decision to procure the drug was aimed at saving  lives even if

“Not appropriate to postpone Class XII CBSE exams”

Criticizing the postponement of the CBSE Class XII exams in the wake of the second Covid -19 wave across the country, Nupur Sharma, BJP national spokesperson, has said the decision will jeopardize the future of students. Despite the pandemic she said no college or university will be ready to give them prov

Govt announces strategic collaboration to empower Atal Tinkering Lab schools

Atal Innovation Mission, NITI Aayog and All India Council for Technical Education (AICTE), and Ministry of Education’s Innovation Cell has announced their strategic collaboration which aims to empower Atal Tinkering Lab school (ATLs) students for world-class future-ready

Agriculture Min signs MoU with Microsoft to develop smart interface for farmers

Union Ministry of Agriculture and Microsoft India has inked a Memorandum of Understanding (MoU) for a pilot project in 100 villages of six states to develop farmer interface for smart and well-organized agriculture, including post-harvest management and distribution. The pilot

NIXI inaugurates new initiatives to improve IPV6 adoption

Ajay Prakash Sawhney, Secretary Ministry of Electronics & Information Technology (MeitY) & Chairman NIXI has inaugurated three initiatives of the National Internet Exchange of India (NIXI). With this launch, NIXI has announced to play a supporting role for the IPv6 aw

Visionary talk series with Nupur Sharma, National Spokesperson, BJP



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter