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The Times of India
The Real Estate Regulation and Development Act 2016 that came in force on May 1 has come as light at the end of the tunnel. It will not only bring some discipline in the otherwise not so well regulated sector but will also protect the interests of buyers and genuine developers. Check out our full coverage on RERA
The Real Estate Regulation and Development Act 2016 that came in force on May 1 has come as light at the end of the tunnel. It will not only bring some discipline in the otherwise not so well regulated sector but will also protect the interests of buyers and genuine developers. Check out our full coverage on RERA
As the Act has kick-started the process of making rules for real estate sector, there is a lot of buzz in the real estate market. Both consumers and developers want to know how Real Estate Regulation and Development Act is going to change the way they have been buying and selling property.
Magicbricks is organising a Hangout tomorrow with renowned developer, Sumit Dabriwala, managing director, Hiland Group on ‘Impact of the Real Estate Regulation Act on the industry’ on June 29 from 12-12.30 PM. Ask your query on the topic by posting it here or on the event page.
Watch the Hangout session live here -
More on Real Estate Regulation and Development Act
1. Once every state ratifies this Act, State Real Estate Regulatory Authority will be established in each state as a government body. Consumers can approach it for redressal of grievances against any builder
2. Real estate regulator to get the authority to govern both residential and commercial real estate transactions
3. Developer needs to park 70 per cent of the total project funds in a dedicated bank account. This provision will restrict developers from investing the takings of the booking money for one project into others
4. It becomes mandatory for developers to post all information on issues, such as land title status, project plan, layout, approvals, timelines for completion etc with the State Real Estate Regulatory Authority. This information, thus, will be easily accessible to the consumers
5. Developers will not be able to sell their projects on the basis of uncertain super built-up area as the law makes it illegal. The law has defined carpet area clearly
6. In case of project delay, the developer will also have to pay the same interest as the EMI being paid by the consumer who has invested in his project to the bank. The amount will be refunded to the consumer
7. As a punishment for violation of law, the maximum jail term for a developer is three years with or without a fine
8. If the buyer is not satisfied and notices discrepancies, the buyer can write to the developer about it within one year of taking possession asking for after sales services
9. Developer is not authorised to make changes to the decided plan on the basis of which he has sold the project, without the written consent of the buyer
10. It becomes mandatory for every project that is more than 500 square metres in area or more than eight apartments to register with RERA
Keywords: RERA on real estate