THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 IS AN ACT OF
THE PARLIAMENT OF INDIA WHICH AIMS TO SAFEGUARD HOME-BUYERS ALONG WITH HELP TO
GROW REAL ESTATE INDUSTRY IN INDIA.
The Rajya Sabha has already passed the Real Estate Regulator Bill. This bill
will regulate the real estate sector and bring transparency for both real
estate developers and home buyers. Below points are mentioned to highlight important
points of the bill.
1) This bill will establish the State Real Estate Regulatory Authority for that particular state as the government body to be approached for any complaints against any real estate builder once every state approves this Act which will establish a state authority on the lines set up in the law.
2) This law vests authority on the real estate regulator to govern both residential and commercial real estate transactions.
3) As per this Act, Developer will have to park 70% of the funds raised from particular project in a dedicated bank account for that project. This step will ensure that developers are no longer be able to invest in other projects from the funds raised through particular project and utilizes that funds for the completion of that project only. It will safeguard the interest of the investors or home-buyers.
4) Developers will be compelled to be transparent with the buyers as they will have to provide all information regarding layout plans, site plan, approvals by government, land title, completion date with the State Real Estate Regulatory Authority (RERA) and then same information will be provided to consumers.
5) In today’s period real estate developers sell the area on the Super-built but as per this Act, this method is amended and developers will only be able to charge on Carpet Area.
6) Many buyers are suffering from the delay of the project as many have taken loans or are staying in rented properties. This Law will bring huge relief to such customers as developers will have to pay same interest as customers are paying for EMI for their loan to the bank. This will prompt developers to complete the project on time.
7) If any developer violates the order of the appellate tribunal of the RERA, he will be sentenced to jail for maximum period of three years with or without a fine.
8) The buyer will be given the right to demand after sales service from the developer within one year after taking the possession in writing if buyer finds any deficiency in the project.
9) The developer will not be allowed to make any changes in the building plan or in any plan which developer showed during sale without the consent of the buyer. This move will stop the unethical practice by developers to increase the project cost.
10) Any project which is measured more than 500 Sq.mt or more having eight or more apartments will have to be registered with RERA.
1) This bill will establish the State Real Estate Regulatory Authority for that particular state as the government body to be approached for any complaints against any real estate builder once every state approves this Act which will establish a state authority on the lines set up in the law.
2) This law vests authority on the real estate regulator to govern both residential and commercial real estate transactions.
3) As per this Act, Developer will have to park 70% of the funds raised from particular project in a dedicated bank account for that project. This step will ensure that developers are no longer be able to invest in other projects from the funds raised through particular project and utilizes that funds for the completion of that project only. It will safeguard the interest of the investors or home-buyers.
4) Developers will be compelled to be transparent with the buyers as they will have to provide all information regarding layout plans, site plan, approvals by government, land title, completion date with the State Real Estate Regulatory Authority (RERA) and then same information will be provided to consumers.
5) In today’s period real estate developers sell the area on the Super-built but as per this Act, this method is amended and developers will only be able to charge on Carpet Area.
6) Many buyers are suffering from the delay of the project as many have taken loans or are staying in rented properties. This Law will bring huge relief to such customers as developers will have to pay same interest as customers are paying for EMI for their loan to the bank. This will prompt developers to complete the project on time.
7) If any developer violates the order of the appellate tribunal of the RERA, he will be sentenced to jail for maximum period of three years with or without a fine.
8) The buyer will be given the right to demand after sales service from the developer within one year after taking the possession in writing if buyer finds any deficiency in the project.
9) The developer will not be allowed to make any changes in the building plan or in any plan which developer showed during sale without the consent of the buyer. This move will stop the unethical practice by developers to increase the project cost.
10) Any project which is measured more than 500 Sq.mt or more having eight or more apartments will have to be registered with RERA.
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