The Real Estate (Regulation and Development) Act, passed in May 2016 is an Act of the Parliament of India which seeks to protect buyers as well as help promote investments in Real Estate market in India. By implementing transparency and speedy dispute redressal the act seeks to protect home-buyers from related frauds of builders. The act is implemented by several states with Maharashtra leading the league owing to its robust real estate.
Here’s how the act brings in more transparency for the real-estate industry.
1) Agents of the real estate
According to the act all real estate agents would have to register with them. They would have to follow the guidelines in their real estate dealings as set by RERA. In addition to maintaining a highly responsible and professional attitude towards their customers/ home-buyers as defined by the act.
2) Timely possession of properties
An imperative complaint of home-buyers is that the builder has delayed construction of the property. This leads to delayed or sometimes no possession of the property. RERA makes sure builders are liable for every project they undertake. Failure to do so will result in imprisonment up to three years and fine.
3) Detailed property disclosure
RERA ensures builders disclose complete details such as title report of the land on which property is built, floor usage plan or FSI (floor space index), design standards, construction standards like material used and so on.
The act is quite strict on builders and promoters. RERA has created a State-level body to redress complaints from real estate customers. For instance, under Section 12 RERA provides relief to home-buyers. It deals with claims by buyers due to loss sustained as per wrong advertising or prospectus of the property. Another Section 13 states that if there is no agreement for sale then there is no way the buyer has to pay an advance or deposit to the builder. Next Section 14 states the promoter must adhere to sanctioned property plan and must not make any changes without the consent of the buyer.