Odisha Cabinet approves Real Estate Act, 2016

The State Cabinet on Thursday approved the Real Estate (Regulation and Development) Act, 2016, of the Central Government.

Speaking to media persons the Housing and Urban Development Minister Pushpendra Singh Deo said that the Act will bring transparency in the sale and purchase of properties and will protect customers from being victim of any real estate fraud.

As per the new rule, the registration for sale and purchase of properties has been made mandatory.  A real estate developer cannot charge more than 10% of the project cost from the customer before providing the sale agreement.

If anyone violates the law will have to pay amount of 10 % of the total purchase price of the property and will be sentenced with 3 years jail term. Meantime, 5% fine will be taken from the mediator with a jail term, Deo stated.