The Real Estate Act is intended to achieve the following objectives:
- a) Ensure responsibility towards allottees and protect their interest.
- b) Infuse transparency, ensure fair-play, reduce frauds and delays.
- c) Introduce professionalism and pan India standardization.
- d) Establish symmetry of information between the developers and buyers.
- e) Imposing certain responsibilities on both builders and investors
- f) Establish a regulatory oversight mechanism to enforce contracts.
- g) Promote reliable governor in the sector which in turn would create investor confidence.
What was the need for a regulatory law for the real estate sector?
Due to the lack of professionalism and standardization, the real estate sector has been largely unregulated. From the perspective of consumer protection, the recourse available therein is only curative, but not preventive. This has affected the overall potential growth of the sector. Hence the need for a regulatory law for the real estate sector.
When will the framing of Rules and Regulations be done?
The date when the real estate (regulations and development) Act become effective in the entire country. Each state and UT will have its own Regulatory Authority which will frame regulation and rules according to the act.
How will RERA impact Timely completion of the project?
Since a long time, Real estate builders have been accused of an on time deal. This is due to diversion of deposits from buyers to other projects. Under RERA it is mandatory to hold at least 70% of the collection from investors and use it only for the construction of the associated projects this will reduce the delays. Plus, developers will be penalized in case of delayed possession.
How will RERA assure the quality project?
Until now builders could get away with using low-grade building materials. Which in results transform the burden of repairing cost to homeowners in case of damages. Under the new regulations of RERA, the promoters of a project would be held responsible for any kind of structural, quality or workmanship defect for five years after the completion of the project. The promoter is liable to rectify the defects at his own expense.
How will RERA bring Transparency for the buyers?
Developers are mandated to update all the details of the project online. It covers all details like the cost of land, development agreement, cost of construction, sanctioned plans, covered parking lots, and open spaces, among others. Buyers can monitor these details online. The developer will also have to make a disclosure about the time frame in which the project will get completed, and submit phase-wise plans of development.
Does advertisement include solicitation by emails and sms?
‘Advertisement’ through any medium adopted in soliciting for sale would be covered under the said definition, including sms and emails.
Are real estate agents covered under the Act?
Yes, Every Real estate agent must get registered with the MahaRera website. Selling plots or apartments are also covered under the Act. Every Real estate agent is required to comply with the duties and responsibilities as per the act including the Rules and regulations made thereunder.