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Total Views: 74Word Count: 341See All articles From Author What Is RERA (Real Estate Regulatory Authority)
The Real Estate (Regulation and Development) Act, 2016 is an act of the Indian Parliament that promotes capital investment in real estate as well as protecting domestic buyers. This act was passed in the Rajya Sabha on March 10, 2016, and in the Lok Sabha on March 15, 2016. Applying 69 streams out of its 92, this Act was implemented from 1 May 2016.
The Real Estate Regulation (and Development) Act or RERA have started getting notified by states from May 1 Cheap Jerseys Free Shipping , 2017. As a buyer friendly measure that the Government of India has launched, RERA has been on the news for the impact that it is expected to have on the real estate sector.
What it means to home buyers:
There are several other provisions under RERA, which are going to benefit new buyers. In a bid to ensure transparency in the realty sector, builders have to deposit 70 per cent of the collected amount in an escrow account to ensure that money is not diverted from one project to another. Also, developers will be able to sell projects only after all necessary clearances. In addition, regulatory bodies and appellate tribunals will have to be set up in each state to solve builder-buyer disputes within 120 days.
Impact on Developer
Developers cannot advertise them under construction projects without RERA registration from May 1 Cheap Jerseys China , 2017, once the Real Estate (Regulation & development) Act (RERA) will come into force across the country from May 1, 2017. However, if they have projects that have already obtained completion and occupancy certificates, those can continue to be advertised and sold.
The good news is that many states have already created an interim authority and are ready to receive applications from Builders and agents. This includes Kerala, Maharashtra Cheap Jerseys , Punjab, Rajasthan, Mizoram, Haryana, Delhi, Andaman & the Nicobar Islands and Chandigarh. Many others are in advanced stages of being closed. This includes Orissa, Bihar, Jharkhand, Assam, Tamil Nadu, Andhra Pradesh, Telangana#7# Tripura, Dadra & Nagar Haveli and Daman & Diu. Once completed the final authority of Andaman & the Nicobar Islands will align with that of Tamil Nadu.
Which projects come under RERA
1. Commercial and residential projects including plotted development. Projects measuring more than 500 sq meters or 8 units. 2. Projects without Completion Certificate, before the commencement of the Act. 3. The project is only for the purpose of renovationrepair re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartments, plot or building in the real estate project#8# will not come under RERA. 4. Phase is to be treated as a standalone real estate project requiring fresh registration.
Some key provisions of the act are listed below-
1) Under RERA, each state will have to set up regulatory bodies as appellate tribunals to solve the disputes between buyer and developer within 120 days. 2) The developer will have to put 70% of the money collected from a buyer in a separate account to meet the construction cost of the project. 3) RERA also seeks to impose strict regulations on the promoter and ensure that construction is completed on time. 4) The buyer will pay only for the carpet area (area within walls). The developer can鈥檛 charge for the super built-up area, as is the practice at present. 5) Developers will be able to sell projects only after the necessary clearances. Under RERA, developers, and agents will have to register themselves with the regulator and get all projects with more than eight apartments registered before launch.