RERA is an act to institute the Real Estate Regulatory Authority for regulation and promotion of the real estate sector in order to insure the sale and purchase of plots, apartments and flats of a building, in a transparent manner to protect the interests of the consumers in the real estate sector. It (RERA) is also an adjusting mechanism for dispute redressal and to establish the Appellate Tribunal to hear the petitions from the decisions, directions or orders of the Real Estate Regulatory Authority.
Considered as one of the major landmark legislations passed by the Indian Parliament., RERA has the objective of addressing the grievances of buyers and to bring transparency and accountability in the country’s real estate sector. This is in line with the vast and growing economy of India as in future many people will be investing in real estate sector.
What new changes have been added in the RERA Act since 2016?
The Union Ministry of Housing And Urban Poverty Alleviation issued a notification on Wednesday (April 19, 2017) announcing that sections 3-19, 40, 59-70, 79 and 80 of the Real Estate (Regulation and Development) Act , 2016, shall come into force on May 1, 2017 and that’s how a very important decision has been made in favor of the buyers.
Why is the RERA Act Important?
Retail property buyers have often been the ones to bear the brunt when real estate transactions go awry. If there are delays in construction, the promised property gets locked in legal disputes and the buyers paid the brunt of it. But, with RERA act being implemented developers will be required to deposit 70 per cent of the sums received from buyers, in a separate bank account earmarked for each project. In case the builder would like to change the layout or plans after the sale, he will need the approval of two-thirds of the buyers in that project, to make such tweaks.
According to experts, implementation of RERA is likely to bring in transparency in the sector. RERA will protect the interest of the homebuyer and ensure timely delivery of projects.
The Bottom Line –
RERA will go a long away in stimulating the consumer confidence in the over-supplied and over-priced real estate market and the new changes introduced in the Act will bring a great time for the home buyers while making the builders more responsible.
Know more about the RERA Real Estate Act