Real Estate Regulation Act: Govt makes it easier to own homes

Government on Monday notified that under the Real Estate Regulation Act (RERA) builders will be required to deposit 70% of the unused amount collected for ongoing projects in a separate bank account. 

Venkaiah Naidu, Union Minister for Urban Development, has said that buyers will get an interest of 10.9% for any delay in the delivery of the property. "Developers will be required to refund or pay compensation to the allottees with an Interest Rate of SBI’s highest Marginal Cost of Lending Rate plus 2%", the Ministry said.

According to RERA rules, such payment to the buyers to be made within 45 days of it becoming due. 

For registration of projects, the fee has been reduced to Rs 5 per sq.mt for up to 1,000 sq.mt area and Rs 10 per sq.mt beyond this limit subject to a maximum of Rs 5.00 lakh per project.

For commercial and mixed development projects, it will be Rs 10 and Rs 15 per sq.mt subject to a maximum of Rs 7 lakh. For commercial projects, it will be Rs 20 and Rs 25 subject to a cap of Rs 10 lakh per project. For plotted development, it is Rs 5 per sq.mt with a ceiling of Rs.2.00 lakhs, said the Ministry.

The government in the notification said that a cap has been placed on the total amount of registration fee based on the suggestion by the Real Estate bodies. Moreover, to renew registration of projects with the regulatory bodies, the amount will be half of the registration fees.

"For registration of Real Estate Agents, fee now prescribed is Rs 10,000 for individuals and Rs 50,000 for other entities as against Rs 25,000 and Rs 2,50,000 proposed in the Draft Rules. Similarly, fee for renewal of registration of projects and agents has also been reduced to Rs 5,000 and Rs 25,000 respectively".