In relief for home buyers, Rajya Sabha clears Real Estate Bill

New Delhi,March 11, 2016: The much awaited Real Estate Bill, which aims to protect the interests of buyers and bring more transparency to the sector was on Thursday passed in Rajya Sabha. The Real Estate (Regulation and Development) Bill, 2015, which intends to protect home buyers, bring in transparency and plug the flow of unaccounted money into the sector, was passed by Rajya Sabha Thursday. The Bill provides that 70 per cent of sale proceeds will have to be kept aside by the developer in an 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 utilised for land cost and construction of the related project. It, therefore, provides greater certainty to buyers that the money they pay to the developer will be utilised for development of the project where they have bought houses. Read Also: Real Estate Bill passed: Here’s how it will help home-buyers The Bill will help establish state-level real estate regulatory authorities and appellate tribunals to regulate transactions relating to both residential and commercial projects and ensure their timely completion and handover. It calls for disposal of complaints at both appellate tribunals and regulatory authorities within 60 days, thereby setting a timeline for resolution of disputes. While the Bill has set a deadline for that, it also has provision for 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. By: ENS Economic Bureau