On 26th March 2016 Indian government enacted Real Estate Regulation Development acts. The functioning of law came into effect from May 1, 2017.
The government has extended the time until July 2017 end to make their project registered under RERA. Similarly, the real estate agents who are associated with dealing properties and land are required to register themselves.
Many states are yet to notify the rules and regulation of the act. Moreover, it is mandatory for the buyers and developers to register their project under the act. Buyers will now not be fooled by promoters while buying the property.
On March 10, 2016, Rajya Sabha passed the RERA bill. In lok soba, it was passed on 15th March, five days after the bill was passed in Rajya Sabha. It has been for a long time since the home buyers are against the developers.
They believe that the real estate transactions was uneven and completely in favor of the promoters. RERA aims to create more fair transitions in between the seller and buyer of properties.
RERA comes with better accountability and transparency which will make the transaction simpler.
The most important thing about the act is that it gives a unified legal system for purchasing flats and apartments. Mentioned below are the salient highlights of the act.
In the real estate board, there was no such regulatory board. It has been long felt by many people that the real estate group must have a proper regulatory board like SEBI.
The enactment of the law established RERA in each and every states and union territories. The job of RERA is to protect the interest of the shareholders and gather data and information.
In order to prevent time lag, all the authorities have been specified time within which they have to dispose of the applications, that is 60 days. It can only be extended if any relevant reason found for the delay.
Registration under RERA is mandatory
It is mandatory to enroll in your project under RERA if your real estate project area is more than 500 sq meters, rather if it has more than 8 apartments. The real estate project must be registered within its respective state. So the comings day are quite bright for the buyers isn’t it?
While opting for registration the promoter is required to give detailed information about the project. Information such as land status, promoter details, date of completion is mandatory to include in the details of the project.
Before the law, there were certain problems associated with the delay of the project. The main reason why the project was not completed within the due date was that the fund that was collected for the particular project was transferred to fund another project.
The act has lead to the generation of a new rule, where 70% of the fund collected for the project must be kept in separated in a reserve account.
Monitor their project
The implementation of the act will enable the home buyers to track the progress of their project through the RERA website. The promoters are required to submit periodic submission of the progress of their project.
The confirmation of sale agreement: The acts help to bring a standard model of the sale agreement between the promoter and the buyers.
Previously it was found that home buyers were penalized for any default and the similar default does not demand any penalty from the promoter.
The home buyer can be relieved from such thoughts as they can now look forward to a more balanced agreement in future.
It has been reported that states and union territories have established their permanent and temporary authorities. RERA prescribes that under that act each and every state must have their own regulator.
They will be banned from marketing their project until they register here. The registration on the last date was 31st July 2017 for ongoing projects.
As per the latest reports, only four states have developed permanent RERA. Maharastra, Gujrat, Madhya Pradesh and Punjab are among the four states to develop permanent authorities while the rest 19 have developed temporary authorities.
23 states have been notified about the rules of the act and the rest 6 are yet to be notified. The introduction of RERA will keep the promoters stay away from illegal practices.
One year after the enactment of the law, the market situation of real estate has changed. The project counts are fewer and the main focus lies in execution.
The developers adhere to the rules set by the act to avoid unnecessary harassment from the government.
However, there have been given relaxed delivery time which gave the developers an escape window. However, the Real estate market is yet to evidence any landmark judgment.Previous