Hope for home buyers |
India`s Rajya Sabha passed the much-awaited real estate bill on March 10. This is a "great news for homebuyers". The bill, which seeks to regulate the property sector, bring in transparency and help protect consumer interests, is slated to be taken up by Lok Sabha on March 14. According to the bill, moved by housing and urban development minister Venkaiah Naidu, builders will have to deposit a minimum of 70% collections from buyers in a separate escrow account to cover cost of construction and land. State-level Real Estate Regulatory Authorities will be established to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover. The bill covers any project that is more than 500 sq m or has more than eight apartments (states can lower this requirement further). It provides for imprisonment of up to three years for promoters and up to one year for real estate agents and buyers and/or monetary penalties if they violate orders of appellate tribunals.
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