Draft Real Estate Regulation bill to deter irregularities in property deals

NEW DELHI:
To deter irregularities and unfair trade practices in property transactions government is taking robust action by drafting new Real Estate Regulation bill. According to the proposed bill realtors have to register their projects before launching any new projects, stick to the approved plans and refund money to homebuyers in case they default.
According to the sources bill is expected to be tabled in the forthcoming Parliament winter session, it will also covering the procedure for setting up of the Real Estate Regulatory Authority, an industry watchdog that will keep a lease on land sharks and fly-by-night operators.
On Friday, Kumari Selja Union minister for housing and urban poverty alleviation has proposed the new draft bill for public consultation.
The draft also suggests that it is obligatory for builders to deposit 70percent of the funds which has been received from buyers and to ensure that these funds are used for that real estate project only. In the recent times it wasn’t compulsory to in the draft for builders to submit bank securities.
It also mentioned in the proposed draft that if any builder is planning to sell his fixed property then he has to register with the Real Estate Regulatory Authority for approval, apart from for when the area of the land being developed does not exceed 4,000 sq mt. Also builders have to disclose all the details regarding the project to Authorities.