Highlights of the 20 major amendments to Real Estate Bill cleared by the Cabinet

  • Projects on 500 sq metres of area or with eight flats to also be registered with the regulatory authority.
  • Builders have to deposit at least 70% of the sale proceeds, including land cost, in a separate escrow account to meet construction cost.
  • Builders have to pay interest to home buyers for any default or delays at the same rate they charge them (the buyers).
  • Liability of builders for structural defects has been increased from the earlier two to five years.
  • Carpet area has now been clearly defined to include usable spaces like kitchen and toilets to make it clear.
  • Garage is now to be kept out of the purview of definition of apartment and is separately defined.
  • Formation of allottees associations is now mandatory within three months of allotment.
  • The bill now allows aggrieved buyers to approach 644 consumer courts which are available at the district level.
  • Consent of two-thirds of the buyers (with)in a project required for changing project plans.