RERA Act 2016
“Real Estate Regulation Act”
Real Estate Regulation Act 2016 has put a revolution in the era of real estate. Entire country blessed with the new step of Government to protect the interest of buyers in the Real Estate field. Here is a look about this regulation and its impact on Real Estate Market. According to the Act, each state and Union territory in India will have its own regulator which governs by a set of rules for its functioning. RERA controls the issues like price & quality of the construction, delays in projects, title of deed and others.
Delays in projects are the major issue faced by buyers.Use the money of buyers in other projects is one of the biggest reasons in delays of project. Many of builders are not completing their project within the declared time limit since they divert the funds into other projects and hence the many projects have seen delays and so the buyers are not getting their possession in the said time.
The other reason Changes in regulations by authorities , the environment ministry, National green tribunal etc and others authorities those are involved in Infrastructure Development. Many of builders have not been approved their projects from the respective authorities so that this leads to delays of project. With the regulation of RERA Act 2016, a new chapter has begun since May 2017 the buyers have choice to take their money if builders are not completing the project within the declared time.
Main provisions of RERA act
- The project developers should get the approval of their ongoing project and any alterations later on and make a submission of that to RERA before presenting any proposal to buyers. The state regulator should register the real estate projects and agents. A unique registration no. has been allotted for each project. After completion of registration the builder will get a login credential page on website where they can upload the information regarding the projects like no. of rooms, flats area, floor details etc. These details will make accessible to public for the detailed information about the project.
- They have to furnish the details regarding the utilization of funds, the revenue collected from buyers and the time-frame for the completion and delivery of project. This time-frame need to be certified by an Engineer, Architect or Practicing Chartered Accountant.
- If any builder is not completing the project in declared time-frame, the buyer has a right to take entire money along with the previously agreed interest rates on the money. The interest rate is mentioned in the contract based on model contract of RERA. The regulator will have the power to put penalty & imprison the defaulters based on case to case. A maximum of 3 years of imprisonment can be imposed on an errant builder for violating the norms formed by regulator.
The unique registration no. is mandatory to use in all promotional activities and advertisement materials for its circulation to buyers. With this regulation many buyers has shown interest to own their home. This is a good sign of development and a remarkable step in the field of Real Estate properties. Some states including Union territories are following RERA act 2016 but soon it will be regulated in all India.