The new Real Estate Regulation & Development bill has few major clauses:

1. Objective of the bill is to give security to buyers.
2. As per lawyers fraternity the language of the law is not retrospective but prospective and the attempt is to only bring transparency and order into this unorganized sector.
3. Builders have to deposit 70% of the money paid by the buyers into a separate account towards the cost of construction including that of land. This will protect the rights of consumers and restrain / curb practice of diversion of funds by the builder / developer.
4. Advantage of depositing the funds separately into another account is that the builder / developer can withdraw amount spent on buying of land proportionately. Balance left out money shall be utilized against payments for construction activity or same can be released to Construction Company.
5. The bill will push builder / developer to pay by cheque when buying land, reducing the flow of black money in the sector. But we are apprehensive about it.
6. Builder / Developer has to submit details of under construction under construction projects as in the case of new projects to the authority and upload them on their websites.
7. Single window approval system is being developed for ensuring timely completion of housing projects.
8. Builders / Developers cannot sell property under pre-launch scheme and cannot advertise till all approvals are in place and the project is registered with the regulatory authority.
9. Ongoing projects will have to register with the authority. At the time of registration, the developer will have to disclose all project information including details of promoter, project plans, including implementation schedule, land status, layout plan, status of approvals, agreements, details of real estate agents etc. empowering buyers.
10. The legislation will make it mandatory for developers to reveal actual size of apartment which is their carpet area rather than selling them on the basis of Super Built up area.
11. As per the proposed act both consumers and developers will have to pay the same interest rate for any delay on either part.
12. The implementation of this bill will take about two more years as setting up of regulating authority be all states will take at least 18 months.