PPT on India Law Protecting Home Buyers. The government is regularly reviewing the situation and buyers' interest will be protected through the Real Estate (Regulation and Development) Act, which was passed last year and came into effect from May 2017

1. INDIAN LAW
PROTECTING HOME
BUYERS

2. DELAYED PROJECTS

3. • IF BUILDER MAKES A DELAY IN DELIVERING POSESSION OF
THE FLAT ON THE PROMISED DATE, THE AGGREIVED BUYER
CAN MOVE THE COURT/CONSUMER FORUM FOR REMEDIES
AND COMPENSATION.
• THE BUILDER WILL HAVE TO EITHER REFUND THE
COLLECTED AMOUNT OR COMPENSATE THE BUYER WITH
INTEREST UNTIL ACTUAL DELIVERY IS GIVEN.
DELAYED PROJECTS

4. RESTRICTION ON AMOUNT
COLLECTED

5. • REGULATORY APPROVALS A PRE-REQUISITE FOR
ADVERTISING HOMES AND PROJECTS BY BUILDERS.
• SLAB OF 10% OF HOME VALUE PUT ON THE AMOUNT
COLLECTED BY BUILDERS AT THE TIME OF BOOKING.
• REGISTERED SALE AGREEMENT REQUIRED IF AMOUNT OVER
10% COLLECTED.
RESTRICTION ON AMOUNT
COLLECTED

6. STRINGENT REGULATORY
SUPERVISION

7. • REGISTRATION OF BUILDERS WITH THE STATE REGULATORY
AUTHORITY NOW MANDATORY.
• REGULAR UPDATES ON STATUS AND PROGRESS NEED TO BE
SUBMITTED FROM TIME TO TIME.
• THE AUTHORITY HAS TO BE KEPT IN THE LOOP
THROUGHOUT.
STRINGENT REGULATORY
SUPERVISION

8. DISCLOSURE REQUIREMENTS

9. • DISCLOSE EXACT FIGURES TO AUTHORITIES, REGARDING
HOW MUCH AMOUNT HAS BEEN COLLECTED FROM BUYERS.
• AN ESCROW ACCOUNT NEEDS TO BE OPENED, WITH 70% OF
THE COLLECTED AMOUNT DEPOSITED IN IT AND IT SHOULD
SOLELY BE USED FOR CONSTRUCTION PURPOSES.
• DISCLOSE THE AMOUNT SO DEPOSITED.
DISCLOSURE REQUIREMENTS

10. UNION AND STATE
LEGISLATIONS

11. • THE CENTRAL LEGISLATION REAL ESTATE (REGULATION
AND DEVELOPMENT) ACT ENACTED IN 2016 IS THE NEW
GOVERNING LAW DEALING WITH REAL ESTATE,
CONSTRUCTION, ETC.
• INDIVIDUAL STATES ARE ALSO REQUIRED TO RATIFY THE
RULES, AND SET UP REGULATORY AUTHORITIES.
UNION AND STATE
LEGISLATIONS

12. THANK YOU
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