New Real Estate (Regulation & Development) Act

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The new Real Estate (Regulation & Development) Act (RERA) will come into action from May 1st, 2017. This new law will give new shape to the real estate. It will give transparency and accountability of the entire real estate sector. It will also benefit the buyer in many huge ways.

What is New Real Estate (Regulation & Development) Act?

  • It is the act of the parliament of India.
  • It seek to protect the home-buys and even to help boats investments in real estate industry
  • The bill has been passed in Rajaya Sabha on 10th March, 2016 and in Lok Sabha on 15th March, 2016
  • The Act will come in force from 1st May, 2016 with 69 of 92 sections notified
  • The notifications of the Rules have to be given by the Central and State governments within the period of six months.
New Real Estate Disturbing

What Are the Salient Features of the Act?

  • It makes it compulsory for the State to establish a State Real Estate Regulatory Authority
  • All the ongoing and under construction project are suppose to come under the regulators ambit
  • The developer shall have to pay 70 % of the money collected from the buyer in a separate account to meet the construction cost of the project
  • It will make it mandatory for all the developers to post all the information regarding the issues about the project plan, layout, government approvals, , land title status, subcontractors 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 practice of selling on the basis of the ambiguous built up area shall be stopped since it will be illegal
  • Any delay in the project completion will make the liable to pay the same interest as the EMI being paid by the consumer to the bank back to the consumer
  • 3yrs jail with or without a fine shall be levied upon the developer who violates the law
  • The buy has a right to contact the developer in writing within one year of taking possession to demand after sales service if any deficiency in the project is noticed.
  • The developer cannot make any changes once it has been sold otherwise in writing with the consent of the buyer
Image Shows List of Implementing States

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