The Objective of the Act
The Real Estate (Regulatory and Development) Act, 2016 also known as the RERA Act, was enacted on March 26, 2016 and was enforced on May 1, 2016. The RERA Act is a landmark legislation, as it is one of the first legislation’s in India which specifically addresses the concerns of the Real Estate Sector and regulates its activities.
It cannot be denied that the Real estate sector plays a catalytic role in fulfilling the need and demand of housing and infrastructure in the country. While the sector has grown significantly in recent years, it is largely unregulated, with absence of professionalism and standardization and lack of adequate consumer protection. Though the Consumer Protection Act, 1986 is available as a forum to the buyers in the real estate market, the recourse is only curative and is not adequate to address all the concerns of buyers and promoters in that sector. The lack of standardization has been a constraint to the healthy and orderly growth of industry. Therefore, the need for regulating the sector has been emphasized in various forums (Pioneer Urban Land And Vs Union Of India).
Salient Features of the RERA Act, 2016
Broadly speaking, the salient features of the RERA Act in India are as under:
- Establishment of the Real Estate Regulatory Authority i.e. RERA
- Important Definitions such as built up and super built up area. Built up area includes the actual usable area of the plot plus the inner and outer walls. Super Built up area includes the built up area and the additional common area around the plot like lobby, lift space etc.
- Registration of Real Estate Projects and Registration of Real Estate Agents
- Mandatory Public Disclosure of all project details.
- Functions and Duties of Promoter
- Compulsory deposit of 50 percent amount
- Adherence to declared plans
- Functions of Real Estate Agents
- Rights and Duties of Allottees – The allottee is liable to make necessary payments as stipulated under the agreement and shall also pay his share of municipal taxes, electricity charges, rent and other charges.
- Functions of Real Estate Regulatory Authority
- Remedies for aggrieved Home Buyers
- Provisions for delayed possession
- Establishment of Real Estate Appellate Tribunal
- Punitive Provisions
- Bar of Jurisdiction Courts
- Power to make Rules and Regulation
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Read more about the regulations related to Real Estate Sector in India by clicking on the link below: