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