Real Estate Regulation and Development Act [RERA]
What is the Real Estate Regulation Act?
Real Estate Regulation Act is an act put forward by the Indian parliament which tends to protect home buyers as well as helps to boost investment in real estate industry. This bill was passed by Rajya Sabha on 10 march 2016 and the Lok Sabha on 15 march 2016 . This act would entirely come into account from Monday. But the central and state government is liable to notify the rules under the act with a period of six months.
History of RERA:
Real Estate Regulation Act (RERA) was introduced by Congress in 2013. In December 2015, the Union Cabinet of India had approved twenty major amendments to the Real Estate Regulation Act based on recommendations from the Rajya Sabha committee, that examined the bill.
Real Estate Regulation Bill would bring relief to home-buyers in the following ways :
- Builders wont be able to delay the project.
- Buyers would pay only for carpet area (area within the wall) and not pay for balconies or common spaces.
- The builder will look after any structural defect in the building for five years.
- The builder will have to complete all the promises made to the buyer.
Is India ready for RERA:
Some builders and real estate agents, say that they are still struggling to understand the regulations under the Real Estate Regulation Act (RERA). The act would come into action from Monday. Till date, only thirteen states and union territories have notified the new rules. And, only three states, Maharashtra, Rajasthan and Madhya Pradesh have appointed a housing regulator. Only Maharashtra has designed a website where the developer and the brokers can register or apply for a new project under the Real Estate Regulation Act.
States and union territories that have notified the rules are:
- Madhya Pradesh
- Uttar Pradesh
- Andaman and Nicobar Islands
- Dadra and Nagar Haveli
- Daman And Diu
According to our study and analysis, this is a positive step taken by the government. This Real Estate Regulation Act will significantly reduce the prices of houses and will also force the builders to keep their promises made by them before the actual construction of the project. The builders will have to provide all the documents of the construction to the government. This will eventually make all the constructions legal. This is surely a positive step towards forming a corruption-free India.