Govt issues Draft of Real Estate rules, seek public comments

The Government on Friday has issued Draft of Real Estate rules, said  a media report.

The Ministry of Housing and Poverty Alleviation has uploaded Draft Real Estate Rules in its website for public comments. The comments by public are sought in two weeks.

Here are the five important points of the real estate rules:

1. Upload updates: The promoter will be required to upload updates on the webpage of the project, within seven days from the expiry of each quarter

2. Fees structure: Fee proposed for registration of projects with the Regulatory Authority is Rs.10 per sq.mt if the plot area is below 1,000 sq.mt.

Rs.20 if the area for development is more than that for residential projects and Rs.50 and  Rs.100 per sq.mt for commercial projects

3. Registration for ongoing projects:  Promoters of all ongoing projects which have not received completion certificates shall apply for registration of projects within three months and disclose all relevant information including the size of the apartment based on carpet area.

4. Functions of real estate agents: Functions prescribed for real estate agents include assisting the allottee and promoter to exercise their respective rights and fulfill their respective obligations at the time of booking and sale of any plot, apartment or building.

5. Draft Real Estate Rules also provide for payment of 10% of the estimated cost of the project for compounding of imprisonment of promoter for non-registration of the project or violation of the order of the Real Estate Appellate Tribunal.

Imprisonment of real estate agent and buyer for violating Tribunal’s Order can be compounded upon payment of 10% of the estimated cost of the plot, apartment or building.

Any delay in payment by the promoter and buyer has been proposed to be the State Bank of India Prime Lending Rate plus 2%.