Passed by the Parliament in 2016, the Real Estate (Regulation and Development) Act (RERA) came into the force on the 1st of May, with the rest of the provisions coming into force on the 1st of May 2017. This act was aimed towards protecting the interests of home-buyers along with increasing real estate investments.
Whether one wishes to invest in 1BHK or 2BHK flats or luxury homes with major builders, this act is sure to be beneficial for buyers and investors.
Key inclusions of the Act
Use of funds: With the passing of the act, it is now a mandate for developers to deposit a minimum of 70% of the funds received from buyers and investors for their project which can only be used toward the cost of the project or the land it is being constructed on.
Delays in project completion: One area that the act seeks to rectify is the delay in projects undertaken by developers. The major reason for delays includes land acquisition, alterations in regulations, digression of the accumulation of the resources to fund other projects.
Mandate registration: Developers will be required to register their project with the required authority before advertising or selling it after which a unique registration number would be given for the project by RERA. This would certify authenticity, further ensuring that buyers and investors are not conned in any way.
The clarity to buyers: The act specifies that investors and buyers will need to be informed regarding the progress of the project by the developers, endorsing transparency and clarity with buyers being in the loop.
Improvement of quality: The number of complaints regarding the quality of construction has been on the rise with many developers disregarding safety for personal gain. This act offers five-year protection to buyers that would force developers to attend to any complaint regarding quality that is made within this time-span. Additionally, the complaint will need to be rectified within 30 days as specified within the act.
With these major inclusions, the Real Estate Regulation Act is sure to be a boon for home-buyers and investors.