New Real Estate Rules

November 2, 2016 Hot from the Oven Valli Sarvani No comments

With new real estate rules, people can acquire property without any hassles from developers. The builders now cannot make use of your funds for other projects at the expense of delaying yours. This is made possible with the new Real Estate (Regulation and Development) Act, 2016.

In order to regulate real state rules, the Ministry of Housing and Urban Poverty Alleviation notified new Real Estate Regulations on Monday. As pet the new rules of Central government, developers should deposit 70 per cent of unused funds that are collected in a separate bank account to make sure the completion of project is done within a stipulated time.

Furthermore, developers have to provide additional details about the ongoing projects. These details include type of plots or apartments and their number, garages booked, status of the project with photographs of the floor in the apartment and common area. They also should mention the status internal infrastructure construction. All this information should be uploaded with photos.

If new rules come in force, the developers need to refund or pay compensation to the allottees with an interest rate of SBI’s marginal cost of lending rate in addition to two per cent. This amount should be paid within 45 days from the payment due date.

The violation of new rules will attract a compounding of punishment with imprisonment. The new rules facilitate the disposal of complaints in 60 days at the Appellate Tribunals and Real Estate Authorities.

Initially, the new rules are applicable to the five Union Territories: Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu and Lakshadweep. The rules are applicable to all other states and union territories from May 1, 2017 on which day the Act will come into force. In the meantime, the rules will be notified to everyone and be put in place by April 30, 2017.

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