Highlights of Real Estate Regulation Act and RERA in India Real Estate Regulation Act (RERA) India in hindi
Since many years many problems were present in this sector like delay in delivery of real estate sector projects, incomplete projects, rising cost of construction, regulatory issues, projections etc. But with the introduction of RERA law, the possibility of solving this problem has increased. has been added. This law is made to control both residential and commercial projects. The Real Estate Regulatory Act is expected to discharge its responsibilities by bringing transparency in the realty sector, and ensuring that no fraud is being passed on to the users by the developers, and the Act also takes care of this. It has been kept so that the consumers do not have to bear the brunt of delayed delivery. 13 states and some union territories have issued notification to implement the RERA Act. Uttar Pradesh is such a state which already not only issues the notification, the rest of the state is also trying to implement the notification under this rule.
- 1 History of Real Estate Regulation Act (RERA) in India (Real Estate Regulation Act (RERA) India history)
- 2 Real Estate Regulation Act (RERA) in India (Real Estate Regulation Act (RERA) India in hindi)
History of Real Estate Regulation Act (RERA) in India (Real Estate Regulation Act (RERA) India history)
The Real Estate Regulatory Authority Bill was introduced in 2013 by the government of the Indian National Congress. This act was presented by Urban Housing Minister Dr. Girija Vyas, and its report was submitted to the Standing Committee. Based on the investigation of the Rajya Sabha committee, the bill was approved by the Union Cabinet of India in December 2015 on its recommendation with 20 major amendments. Then the bill was sent to the selection committee, the report of the bill was submitted by the selection committee in 2015. After that the bill was passed in Rajya Sabha on 10 March 2016 and was approved by Lok Sabha on 15 March 2016. Rajya Sabha election Read here.
Real Estate Regulation Act (RERA) in India (Real Estate Regulation Act (RERA) India in hindi)
The Ministry of Housing and Urban Poverty Alleviation has notified 69 out of 92 sections of the Real Estate Regulatory Act, with effect from 1 May 2017. This act has been enacted after a long effort of 8 years. A proposal for an immovable property law was first mooted in January 2009 at the National Conference of Housing Ministers of States and Union Territories. Under the RERA Act, both the Central and State Governments have to prepare the rules within 6 months. Under this law, buyers and developers will not be given more than 60 days for redressal of complaints, for which the government can designate any regulatory authority as the final authority regulator. The rules will be decided by the Ministry of Urban Development for Delhi and the HUPA Ministry will take over the work of framing the rules for the Union Territories. Benami Property Act in India Read here.
Helpful for RERA Law Buyers (RERA act for buyers)
RERA is beneficial for both developers and buyers. With the introduction of this law, the confidence of the consumers in the market will increase. All pending projects will be delivered on time being transparent, which will benefit the buyers. Buyers who are buying projects that have not yet been registered or are still under construction, will be protected under the RERA Act at the time of project delivery or issues related to it. The determination of value under this law will also be affected when GST and RERA come into force.
Some rules of RERA Act
Following are the rules of RERA Act and the main points related to it –
- Amount of booking of flat or property: Generally, when we make a booking, the developers ask us to pay up to 10% of the amount, whichever is the full amount to buy our flat. At the same time, they also demand advance amount, but with the coming of RERA Act, developers will now have to settle for paying more than 10%.
- Compensation for delay in project delivery : The buyers who are buying the house, if they find any defect in the allotted flat or any kind of construction work in the house, or the allotment of the flat is not done in time, then the developers or builders will be found guilty under RERA Act and For this, they will have to pay a penalty along with the interest of the total amount.
- Project quality Under the RERA Act, for any defect in the building, it will be the responsibility of the builder to rectify it under 5 years warranty.
- Registration of Projects: Under the RERA Act, all projects should be registered by July 2017. This registration will have to be done in its own regulatory authority set up by each of the states, this authority is responsible for controlling all types of projects. If any builder does not register with the authority of RERA then he cannot market the project. Along with this, after getting registered with the regulatory authority, the builder will have to update all the details of the project as well as other information related to it online on the authority’s website. Knowing all these details online will help the buyers to get the stick information, which will enable them to consider before investing in the projects.
- Project duration : Any projects which have not been completed or are currently underway, the builder will have to inform the authority about all these. Also, if there is any change in the original plan later, then all of them will have to be informed. The builder will also have to inform the authority about the deadline for completion of the projects. Also, builders will have to transfer up to 70% of the money received from the customers to the escrow account, from this it will be known whether the builder is spending money on the same project for which he is taking money or not.
RERA Act and Real Estate Bill Beneficial for the Customer (Real Estate Bill 2016 or RERA act Benefits For Customer)
This law has brought a gift of happiness to the customers. Especially for those customers who have paid money for their house, but till now they have not got the house from the builders. According to this law, if there is any structural defect in the building or defect in the quality of the building construction, then it will be the responsibility of the builder to rectify it, he will provide five years warranty to the customers for the building or building. RERA requires builders to give all the information and necessary approvals before selling the projects, due to which it will be successful in preventing any kind of fraud.
- Now after the passing of the Real Estate Bill, if any of its customers have any complaint regarding any of their projects or with their builder, they can approach the customer court or civil court to hear their case. If a customer is not given the specified quality item or his item is not given on time limit, then he can also complain about it.
- After the passing of this real estate bill, it is mandatory to register every project built in an area of 500 square feet or more or a project of 8 flats or more. Its sole purpose is to give transparency to the project and if a builder fails to do this, he will have to pay 10 percent of the project amount as a penalty and he can also be jailed.
- The builder will have to keep 70 percent of the amount collected from the customers in a separate account, which he will use in the construction. By this, the builder will not be able to use the amount of the customers to earn profit in any other project and the customer will get his house on time.
- After the passage of this bill, the price of the houses will be stable. After the passage of this bill, various schemes will be implemented in this area. Due to which many people will come forward for investment in this area and customers will get more choice and the price will also be stable.
- According to this bill, care will be taken that the customer can get his house on time. Its main objective is to make available the property to the customer on time and according to the given instructions.
- Carpet area has been clearly specified in this bill, in which the area of kitchen and bathroom cannot be less than the specified space.
- If any structural defect occurs in the property within 5 years, then it will be the responsibility of the developer to rectify it. Whose time was earlier 2 years.
- The customer can now register any of his problems for 90 days, whereas earlier this time was 60 days.
- Now the application given to the appointed officer will have to be heard in 60 days, whereas earlier there was no time limit for this.
Real Estate Bill 2016 or RERA act benefits for Builders:
Urban Housing Minister Venkaiah Naidu said that this law is also beneficial for builders, builders should not be afraid of this law. At the same time, he also said that due to the transparency in projects with the coming of RERA, builders will get more customers, due to which the market will increase. Under this law, both the builder and the customer will benefit. But at the same time it can cause trouble for those builders who have not completed the projects as promised.
This bill is not only for the customers, some of the benefits of real estate bill are also for the builder. If the builder has any problem in any of his projects, he can also complain to the appointed officer. If a customer does not know to pay the money on time, then he will also have to pay more amount as a penalty.
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