The Act setups the Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute redressal. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016.
Here are few things to know about RERA:
- All projects should be registered with RERA, even people who are within the construction phase and before they begin promoting the project.
- If a developer makes changes to the project, you wish to learn about it before. If there are major changes to the project overall, prefer to the general public areas, two-thirds of the allottees must provide prior written consent before they will do these changes.
- Developers and promoters can use content to speak about their projects, and you'll now trust that each one the features they advertise are a part of the project. Their advertising campaigns are presupposed to contain clear and comprehensive information about their projects.
- More projects delivered on time! Developers need to follow their committed timelines for project completion and delivery.
- Promoters are required to supply RERA with regular progress updates, and residential buyers can follow these updates on the RERA portal.
- Standardized agreements are going to be signed between all parties, about to balance out responsibilities for both parties within the transaction.
- Buying decisions would be faster. Processes would be more transparent, and it'll become lots easier for the emptor post RERA. Home Loans are going to be more accessible.
- Lenders would be more confident in approving projects. APFs will come faster and therefore the income of the developers are going to be smoother.
- By appointing a regulatory body to oversee both Homebuyers and Developers both will have more accountability and Real Estate as an industry will become more organized.
- RERA also will help in handling any disputes with relation to the project. Homebuyers and developers will now have some organization to seem up to.
- RERA Act applicable to both commercial and residential projects.
- Real estate agents should be registered with the Regulatory Authority; the govt. expects that having such agents will have the lowest score of the fraud. These agents will only be able to sell the identical project which is able to be registered.
- According to the Real Estate Law, the sale of the project won't be done on the super built-up area but within the carpet area.