Cabinet approves regulator for real estate, flats can't be sold on basis of ambiguous 'super area'

1. Things You Need
to Know About
Real Estate Bill
2013
10

2. 1
Real Estate (Regulation and
Development) Bill 2013, seeks to make it
mandatory for developers to launch
projects only after acquiring all the
statutory clearances from relevant
authorities
1

3. 1
Relevant clearances for real estate projects
would have to be submitted to the
regulator and also displayed in a
website before starting the construction
2

4. 1
Builders have tough provisions from
putting out misleading
advertisements related to projects
carrying photographs of actual site
3

5. 1
Failure at first time would attract a penalty
up-to 10 percent of the project and
repeat offence could land the developer in
jail
3 Cont.

6. 1
Moreover, any false advertising implies that
buyers will get full refund of the money
deposited with interest
3 Cont.

7. 1
Its mandatory for a developer to maintain a
separate bank account for every
project to ensure that the money raised for
a particular project is not delivered
elsewhere
4

8. 1
According to CNBC-TV18 report,
developers have to keep aside 70
percent of the buyers fund in separate
bank account to ensure timely completion
of projects
4 Cont.

9. 1
Should provide clear definition of the
‘carper area’ and would prohibit
private developers from selling houses or
flats on the basis of ambiguous ‘super
area’
5

10. 1
Under the proposed new law, builders will
be able to sell property only after
getting all necessary clearances
6

11. 1
Registrations of projects with the
regulatory authority is a must. Moreover
the authority must approve or reject
projects with 15 days
6 Cont.

12. 1
Developers will also be barred from
collecting any money from buyers
before completing all necessary permits to
start construction on the project
7

13. 1
Builders cannot take more than 10
percent of the advance from buyers
without a written agreement
8

14. 1
For fast tracking settlement of
disputes, an adjudicating officer not below
joint secretary in the state will be
appointed by the authority
9

15. 1
There will also be Real Estate
Appellate Tribunal that will hear
appeals from orders, decisions or
directions of regulator and adjudicating
officer
10

16. 1
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