- Establishment of state level regulatory authorities- Real Estate Regulatory Authority (RERA)- the Act provides for State governments to establish more than one regulatory authority
Functions:
- Register and maintain a database of real estate projects; publish it on its website for public viewing,
- Protection of interest of promoters, buyers and real estate agents
- development of sustainable and affordable housing,
- Render advice to the government and ensuring compliance with its Regulations and the Act
- Establishment of Real Estate Appellate Tribunal- Decisions of RERAs can be appealed in these tribunals.
- Mandatory Registration: All projects with plot size of minimum 500 sq.mt or eight apartments need to be registered with Regulatory Authorities.
- Deposits: Developers needs to keep 70% of the money collected from a buyer in escrow account to meet the construction cost of the project.
- Liability: A developer’s liability to repair structural defects- 5 years
- Penal interest in case of default: Both promoter and buyer are liable to pay equal rate of interest in case of any default from either side
- Cap on Advance Payments: A promoter cannot accept more than 10% of the cost of the plot, apartment or building as an advance payment or an application fee from a person without first entering into an agreement for sale
- Clearly defines Carpet Area as net usable floor area of flat. Buyers will be charged for the carpet area and not super built-up area.
9. Punishment: Imprisonment of up to three years for developers and up to one year in case of agents and buyers for violation of orders of Appellate Tribunals and Regulatory Authorities.
BPCS Notes brings Prelims and Mains programs for BPCS Prelims and BPCS Mains Exam preparation. Various Programs initiated by BPCS Notes are as follows:-