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Rajya Sabha Passed the Real Estate Bill

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 The Real Estate Regulation and Development Bill was passed in the Rajya Sabha. This bill is in the favour of protection of Home buyers and to bring in more transparency into the real estate business and avoid the flow of Black money.

Features of the Bill

Certainty: The Bill provides that 70 per cent of sale proceeds will have to be kept aside by the developer in an escrow account Rajaya sabha passes Real estate bill

Tribunal for Resolution: The Bill will help establish state-level real estate regulatory authorities and appellate tribunals to regulate transactions

Deadline: 60 days, thereby setting a timeline for resolution of disputes

Punishment: Imprisonment up to three years for promoters and up to one year for real estate agents and buyers in case of any violation of orders of the appellate tribunals or monetary penalties or both

Registration: Promoters will be required to register projects with the regulatory authorities disclosing project information

Norms: The legislation also brought down norms for registration of projects to a plot area of 500 sq m or 8 apartments as against 4,000 sq m proposed in the draft Bill in 2013 and 1,000 sq m or 12 apartments suggested by the Standing Committee.

Points to know:

Escrow account: An escrow is a financial instrument held by a third party on behalf of the other two parties in a transaction and it can be utilized for land cost and construction of the related project