The government of India has implemented the Real Estate (Regulation and Development) Act 2016, RERA. All the sections of the Act came into force on May 1, 2017.
The Indian real estate sector has witnessed a rapid growth in the graph of Indian economy. People from rural areas are shifting to urban areas to find better living opportunities, resulting in the increase of disposable incomes and demand for all forms of real estate in the country.
While the real estate sector was showing a continuous growth, people were facing various problems in buying homes due to the unethical practices and immoral activities of a few across the country. Due to delays in the project approvals and dispute resolution, the long-standing demand of the industry and consumers was not getting fulfilled. This called for an amendment and the need for reforms and a regulated sector in the real estate market.
Counting for the world-class facilities to its citizen by providing home for all, developing smart cities and advancement in infrastructure development, the Indian government came up with the Real Estate Act.
This act empowers all stakeholders in real estate sector, such as consumers, developers, brokers/intermediaries and more by bringing much-needed transparency and accountability to place greater emphasis on planning and implementing unambiguous deeds of doing business in the sector.
Starting from the launch of a project to post-sales issues of plots, apartments, shops, offices and other such properties, the Act covers a vast range of regularities of the real estate market.
The main features of Real Estate (Regulation and Development) Act, 2016 are as follows:
According to the Act appropriate state government shall establish Real Estate Regulatory Authority to regulate and promote the state’s/UTs real estate sector. The Authority shall facilitate efficient, transparent and healthy modes of business deeds in the real estate sector while protecting the interest of allottees, promoters and real estate agents. As per the Act, the authority shall also establish an adjudicating mechanism for speedy dispute redressal of registered real estate projects.
The key errands of the RERA Authority shall be as follows:
The state/UTs shall also establish Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority. Any person not satisfied with any direction or decision or order made by the Authority or by an adjudicating officer may file an appeal before the Appellate Tribunal and the appeal shall dispose within a period of sixty days.
All commercial and residential real estate projects will have to register with RERA having;
The RERA rules also prohibits promoters to advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot or apartment or building in any real estate project or part of it, in any planning area within the state, without registering the real estate project with the state’s Real Estate Regulatory Authority(RERA). The Act mandates the promoters to provide quarterly updates on the status of the project to the authority.
The RERA Act mandates all real estate agents to register under this Act. It prohibits any real estate agent to facilitate any real estate business such as the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot or apartment or building in a real estate project or part of it, without obtaining registration under this section.
If any real estate agent fails to register with the authority, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent of the cost of plot, apartment or buildings of the real estate project, for which the sale or purchase has been facilitated.
Any aggrieved person either he/she is a buyer, promoter or agent, may file a complaint with state’s RERA or the adjudicating officer with respect to any registered real estate project, for any violation or breaching of the rules and regulations of this Act. Further, any person aggrieved by any direction or decision or order made by RERA or by an adjudicating officer has rights to file an appeal before the Appellate Tribunal
Any person aggrieved by any decision or order of the Appellate Tribunal may file an appeal to the High Court.
The Act ensures greater financial discipline in the real estate sector with provisions mentioned below:
The Act shall promote transparency in the real estate sector by providing;
Real Estate (Regulation and Development) Act 2016 is a step towards developing the real estate sector in India, infusing greater transparency, citizen centricity, accountability and financial discipline.
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