Buying a Home Now Made Much “Easier”

 Buying a Home Now Made Much “Easier” - Real Estate Bill Passed in Rajya Sabha

New Developments in Real Estate Regulation

Delhi: The Real Estate Bill, passed in the Rajya Sabha, brings various benefits for prospective homebuyers.

The bill for establishing the Real Estate Development and Regulation Authority was initially introduced during the United Progressive Alliance (UPA) regime. After the National Democratic Alliance (NDA) led by Modi took charge, some amendments were decided upon.

Key Amendments

Two significant amendments are noteworthy. Previously, homebuyers were required to pay 70% of the amount as an advance. This has now been reduced to 50%. Additionally, the bill was originally designed to regulate only residential construction companies. Now, the central government intends to include commercial construction companies under this regulation as well.

Transparency and Financial Regulation

Companies will now need to open a separate bank account for construction-related transactions, including the purchase of construction materials. This measure aims to curb the flow of black money in the sector and ensure transparency in operations.

Penalties for Violations

The bill also provides for stringent penalties, including up to three years of imprisonment for promoters involved in violations and up to one year for agents and homebuyers, along with fines.