All real estate projects need to register themselves with Real Estate Regulatory Authority in each state compulsorily. It will be possible to do this online. This means there is an organization to check the ongoings of real estate projects. Failing to register with 'Real Estate Regulatory Authority' can lead to penalty and if procedure and papers are not in order, the project can get cancelled.
Real estate agents who are dealing in buying and selling of flats, houses or plots should also register themselves. This will help in increased accountability and transparency and better regulation of real estate deals. Failure to cooperate can attract a penalty.
Registered projects need to disclose all information about the project like promoters' information, detailed project plans, schedule, status of approvals, details about the land, details of contractors and architects etc. Consumers will have all relevant information in their hands and this increases transparency of the projects.
50% of the amount collected from buyers will have to be deposited in a separate bank account within 15 days of collection for meeting the project costs. This will be used in construction of the project.
This bill aims to bring better governance and more transparency in the real estate business. But there is still time for it to be a reality. It is only a Bill now. It has to be tabled in the Parliament and once approved will become an Act.
It is a positive step for property buyers as this can promote standardization and professionalism and let us hope that it becomes a reality soon.
Vidya can be reached at firstname.lastname@example.org'