The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act came into force from 1 May 2016.
Real estate agents are the heart of real estate industry . They are the mediators facilitating transactions between builder and buyer and owners & buyers. Therefore to safe guard the interest of the home buyers form the Developers and real estate agents the Indian Parliament passed the central version of the Real Estate (Regulation and Development) Act 2016, states started introducing their own version of the real estate law, keeping the basics laid in the Union version.
- To establish the Real Estate Regulatory Authority for regulation and promotion of the Real Estate sector.
- To ensure transparency in projects.
- To protect the interest of consumers in the Real Estate Sector and to establish an adjudicating mechanism for speedy dispute redressal.
- To provide proper information about the Builder.
- Provide recommendations to appropriate Government on in matters relating to the development & promotion of real estate sector.
Salient Feature Of this Act
- It establishes the State Real Estate Regulatory Authority as the government body to be approached for redressal of grievances against any builder.
- This law vests authority on the real estate regulator to govern both residential and commercial real estate transactions.
- This law makes it mandatory for developers to post all information on issues such as project plan, layout, government approvals, land title status, sub-contractors to the project, schedule for completion with the State Real Estate Regulatory Authority (RERA) and then in effect pass this information on to the consumers
- The maximum jail term for a developer who violates the order of the appellate tribunal of the RERA is three years with or without a fine
- Currently, if a project is delayed, then the developer does not suffer in any way. Now, the law ensures that any delay in project completion will make the developer liable to pay the same interest as the EMI being paid by the consumer to the bank back to the consumer
- The developer cannot make any changes to the plan that had been sold without the written consent of the buyer.
- Every project measuring more than 500 square meters or more than eight apartments will have to be registered with the RERA.
Further About RERA
With the introduction of RERA all Brokers, Builders & Projects are mandatorily required to be register with the concerned state-level regulatory authorities and RERA Registration No is to be Quoted in every transation and project and advt by the
Different states passed the state regaulation w.r.t to RERA and accordingly:
The Haryana Real Estate (Regulation and Development) Rules, 2017, came into force on July 28, 2017, while the Haryana RERA portal was launched on October 4, 2018. Here’s what you need to know about the Haryana RERA.
RERA Act passed in Delhi on 26 March 2016.
Uttar Pradesh also introduced UPRERA in line with the RERA Act passed by the parliament and other states in INDIA.
We help our clients with resolution of their grievances throgh the various RERA Forums. RERA Can not only address the griecances related to Delays and non completion of projects related to compensation but can also deal with vrious other grienvances related to the project , developer. RERA has a very wide scope when dealing with grievances of the home buyers.