Rules governing Real Estate Sector

Important Points Of The Real Estate Development & Regulation Act 

In this post, you will understand the important points of the Real Estate Development & Regulation Act, 2016. The main aim of the act was to ensure the safety & security of those who want to buy houses & encourage investments in the Real Estate industry. This law helped to minimize the conflicts among the home buyer & builders. 

1. Formation Of A  Real-Estate Regulatory Authority (RERA) – A regulatory authority has been set up in every state according to this act. The regulatory authority regulates & manages the real-estate sector. It deals with the registration of real-estate projects, functions, duties of real estate agents.
2. Registration Of Project – As per this act, every promoter must have to register their project under the Real Estate Regulatory Authority. Only after the registration, they will be able to sell apartments or plots.

Note – It is not mandatory to register those projects in which the area of land is lesser than 500 square meters & the number of apartments is less than 8.

3. Dispute Between Buyer & Builder – Sometimes dispute arises among the buyer & builder. It is the responsibility of the Real Estate Development Authority (RERA) to solve any kind of dispute between the buyer & builder in 120 days. 
4. Rules For Carpet Area – The carpet area is the area of the apartment excluding the area of walls. We can say that, the area of the apartment on which someone can spread the carpet. 
5. Clear Clauses – A significant advantage for customers involved in the Act is that developers will have to request estimates based on the carpeting area and not the super built-up area. The matting area has been explicitly specified in the Act to incorporate available reservations like the kitchen and toilets.
6. Procurement for damages for non-fulfillment – Preparing for a jail term of three years with or without penalty, for a developer who violates the order of the Appellate Tribunal of RERA. But, even the customer courts are taking strict action against the builders, where interest rates between 10.9% to 18% are claimed against the builder for his delay and other deficiencies.
7. Application For Registration – Whenever a promoter applies for the registration of their project, It completely depends on RERA to either accept or reject the application within 30 days.
8. Violation Of RERA – Whenever a promoter violates the terms & conditions of the Registration of a project, the regulatory authority has the power to terminate the registration anytime. 

I hope you have understood the important points that are mentioned in the act.