Realtors to repay buyers in 45 days

Realtors to repay buyers in 45 days

Realtors to repay buyers in 45 days

Real estate developers have to refund money to home buyers within 45 days along with applicable interest compensation in the case of delays in implementing the project.

As per the draft rules for the Real Estate (Regulation and Development) Act, 2016, buyers and builders have to pay compensation in case of delays or default of payment.
The Ministry of Housing and Poverty Alleviation published the draft rules seeking comments from stakeholders in two weeks and is applicable only for Union territories. However, states can adopt the features or make changes in accordance with the Real Estate Act passed by Parliament.

The draft says “any refund of money along with the applicable interest and compensation, if any, payable by the promoter to the allottee, should done in within 45 days.”

he rate of interest payable by the promoter to the allottee or by the allottee to the promoter for default, as the case may be, shall be the State Bank of India Prime Lending Rate plus 2%, the rules stated.

The draft also says, promoters of all ongoing projects, which have not received completion certificates, should apply for registration of projects with the Real Estate Regulatory Authority within three months and disclose all relevant information, including the size of the apartment based on carpet area.

The rules also says that by paying 10% of estimated cost of the project, builders can avoid going to jail. Similarly, property dealers can also escape imprisonment by paying 10% of the plots or apartments cost. Similar provisions have been kept for buyers.

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