Real estate Bill 2013.

Q: Hi, I have booked a property on pre launch offer and approvals are not yet done. Land registration completed. Will there any problem happens because of Real estate Bill 2013.

Harishankar,

9th April 2015

Legal in Sarjapur Attibele Road, Bangalore

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Replies (10)

I am happy to hear that Housing Ministry has accepted a proposal of a Parliamentary panel's recommendation on the Real Estate Bill to make the provisions stricter and increase the 50% threshold but not lower it. The Housing and Urban Poverty Alleviation ministry has also accepted all 38 recommendations made by the 21-member Rajya Sabha select committee which submitted its report last week.

Niketan Verma, Bangalore

7th August 2015

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But decision is yet to come.....and hoping for the best...
Now, housing projects on more than 500 sq-mt would have to register with the proposed real estate regulator as opposed to the threshold at 1000 sq-mt that was fixed earlier. Also, the interest rate payable by the promoter or allottee in case of any default by either would be the same now.

Vaibhav Bhatnagar, Bangalore

7th August 2015

Right Vaibhav.....
And if failure to do so would lead to a penalty of 10% of the project cost. For subsequent violations, they will be charged another 10% of the project cost or sentenced to a three-year jail term. This decision would really protect buyer interests and encourage investment in the real estate sector.

Niketan Verma, Bangalore

7th August 2015

Hi all,
At last Parliamentary Committee on 31st of August 2015, recommended a slew of measures favoring property buyers and submitted its report in the House, which consist a 3-yrs jail term or a fine for a defaulting builder under a new law which will now cover projects of 500 sq-mt or 8-flats.

Navin Verma, Bangalore

3rd August 2015

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Hey Navin.....good afternoon!!!!
It means that the committee did not agree with earlier proposal that a person holding more than 2 apartments or plots in the same project should be treated as a promoter. Am i right?

Now, it has become a burning topic for the country. Every next day you will get some news on it. Even i heard that the panel recommended that promoters should get their accounts audited within 6 months after the close of every financial year by a practicing chartered accountant.

Pratap, Bangalore

3rd August 2015

It's true Navin,
At the same time a builder or developer will have to enclose details of its existing projects, details of approvals, land title and payment dues while applying for registration of any project with the authority.

The panel define again the carpet area, according to them, the net usable floor area of an apartment, excluding the area covered by the external walls and that under service shafts, exclusive balcony or verandah and open terrace areas, although it would include the area covered by the internal partition walls of the apartment.

Muniraj, Chennai

3rd August 2015

As per the present provision, anyone buying more than 4 flats in a project is treated as a promoter. Yet, to find a solution to this trend of a few buying more flats and having monopoly in management of affairs, the committee is recommending that all such buyers will get "one voting right" like that of other buyers.

Niketan Verma, Bangalore

31st July 2015

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And i am shocked to hear that AIAMDK and Samajwadi Party have told, as per him Center has no right to make laws on real estate as it is a State matter. Ohhhh common........ how successfully you both parties are running your State, country knows it....you just don't need to know what real estate want or what NDA has to prove.

Kushal, Chennai

31st July 2015

Right Pratap,
The Congress members have also demanded that the regulatory law be made applicable to all realty projects without making any exceptions. The panel has recommended inclusion of smaller - sized projects under the ambit of the regulatory authority but it has restricted it to plots larger than 500 sq-mt or with 8 apartments or more.

Vaibhav Bhatnagar, Bangalore

30th July 2015

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If i am not wrong, Congress want to divert the mind of the UPA because their view in the form of dissent note by Congress has surprised many, as even the original bill that UPA government had brought to the Parliament had the provision that all projects could register with the regulator only if these were developed on plots measuring more than 1000 sq-mtr.

Niketan Verma, Bangalore

31st July 2015

@Niketan,
Even i am experiencing the same.....it is also learnt that most of the members are in favour of doing away with provision of treating "bulk buyer" as developers since this may put a brake on the investment flow to the real estate sector.

Vaibhav Bhatnagar, Bangalore

31st July 2015

Cheers for the home buyers and investors........The select committee of Rajya Sabha is expected to table its report on the The Real Estate (Regulation and Development) Bill, 2013 today.

Pratap, Bangalore

30th July 2015

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One of the major consumer protection measures proposed by the 21-member committee, headed by BJP MP Anil Madhav Dave, is the mandatory condition that developers have to deposit 50% or more of the home buyers' money in a bank which shall be released according to the progress of the construction work. How many of us are agree with this proposal?

Niketan Verma, Bangalore

30th July 2015

I think it should be acceptable.......earlier, the NDA government had reduced it to 50% or less and allowed the state governments to lower the amount further.

As per the AIADMK and Samajwadi Party states should be given the liberty to decide if they want to allow lower the percentage. Member from the Congress have given a difference of opinion proposing the said percentage be increased to 70%.

Pratap, Bangalore

30th July 2015

I totally agree with you Komathi......
"All's Well That Ends Well" is a Idioms that suited this market perfectly. It is true that the bill can help farmers but at the same time it will not harm the real estate sector or developers if it is handled in a right manner.

Girish Gupta, Bangalore

23rd July 2015

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And it is also came to hear that to protect small property buyers, a parliamentary panel is recommended to cover housing projects on land below 1000 sq-ft in the proposed Real Estate Regulatory Bill.

Earlier it was provision in the bill that builders could register with the regulator only if the project was on the land exceeding 1000 sq-mt.

Adnan, Bangalore

23rd July 2015

Currently, Real Estate Bill has been referred by Rajya Sabha to a select committee on May 6 for its examination with instruction to submit its report by the last day of the first week of the current monsoon session. And it is expected that the 21-member committee headed by BJP member Anil Madhav Dave is likely to submit the report this week.

Niketan Verma, Bangalore

23rd July 2015

I think even the panel is waiting for this bill as they have not changed the penalty provisions of the Bill and retained the original proposal such as imprisonment of developers for any violation of the proposed law. It indicated that everybody want that the sale of plot, apartment or building in an efficient and transparent manner, to protect the interest of consumers in the real estate sector.

Komathi, Chennai

23rd July 2015

Hi everybody,
What i think is that the proposed Land Acquisition Bill would not impact the real estate sector as well as the developer in the country if handled in the right approach and right manner. Buyers had a difficult time dealing with the builder. Please be aware that builders charge 18-24% interest if there is delay in payment from our side and if there is delay from their side, they charge only 9% interest or no interest. It fully depends the nature of the developers. So, we need an efficient real estate regulator.

Niketan Verma, Bangalore

23rd July 2015

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True Niketan,
It is very difficult to deal with these kind of developers in the current real estate market. But as per the new real estate bill 2015, if wrong declaration of information about the project is found from the builders side then payment of 5% of project cost will be imposed. The Bill provides power to the regulatory authority to cancel their project registration in case of continue violations and decide on further course of action regarding completion of such projects.

Komathi, Chennai

23rd July 2015

Thanks Komathi,
The number of fights have seen between home buyers and realty developers due to delay in project completion and it can come down if the bill is making it mandatory for the builder to maintain 50% of customer advances in an escrow account within 15 days of receiving the money from buyers.

Niketan Verma, Bangalore

23rd July 2015

Yes.......And it is only possible if the govt. has applied that the Builders or Developers should sell only ready to occupy house/apartments. Govt. should ban selling of prelunch / under construction projects. It will be a benefit for both buyers and the developers.

Komathi, Chennai

23rd July 2015

One of the important feature of Real Estate Regulator Bill is the establishment of state level regulatory authorities called Real Estate Regulatory Authorities (RERA). Projects ( residential) need to be registered with RERA. On registration, the promoter need to upload details of the project on RERA website.

Navin Verma, Bangalore

17th July 2015

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The Bill, which was 1st released in Rajya Sabha in August 2013, attempts to make sure legal responsibility and transparency that in turn will allow the realty sector to obtain capital and financial markets essential for its long term growth.

As per this bill, developers are expected to register their projects and reveal all appropriate information including plan of development works, land status, status of legal approvals, agreements, names and addresses of real estate agents, contractors and architects with the Regulatory Authorities to be set up and conform with the same.

Bikram, Mumbai

9th April 2015

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According to Real estate bill 2013, Builders cant promote the projects unless the project gets all approvals. The builders are not allowed to sell any units of project without getting all approvals.

Navin Verma, Bangalore

9th April 2015

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