All of us at some point in our lives have thought about living in the home of our dreams. The home which you can call your own- that cozy living room with all your favorite art pieces on the walls, the furniture of your choice, the lush greenery in your terrace garden, the choice of wall paints and what not! We all have our own imaginations working when it comes to choosing and designing the place, we can call home. There is so much work that goes into planning, investment, allotment, registration and eventually the possession of your home. You as an investor devote a lot of time, knowledge and resources to build yourself the perfect home thus, it is of utmost importance that you know all the factors that may effect your investment or may come in handy when you feel skeptical about it.
So, to attend to all your queries and redressals the government of India established an Act that protects the consumer in the real estate sector.
The Real Estate (Regulation and Development) Act, is an act of the parliament of India that seeks to protect house buyers and boost investment in the real estate industry. This act has been established in all states by the government to regulate the real estate sector and acts as an adjudicating body for faster redressal. The bill was passed by the Rajya Sabha on 10th March 2016 and on 15th March 2016 by the Lok Sabha.
RERA (Real Estate Regulatory Authority) bill was introduced in 2013 by the UPA government. Two years later in December 2013, on the recommendations of a Rajya Sabha committee which examined the bill, 20 major amendments to the bill were approved by the Union Cabinet of India.
According to the act it is mandatory for all commercial and real estate projects to register with RERA for launching a project where the land is over 500 square meters, or eight apartments so that transparency is maintained in project-marketing and execution of the project. The projects which have not received completion certificate on the date of commencement of the Act will have to seek registration within 3 months.
The application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. After successful registration, a registration number will be provided with a login ID and password for the applicants so that they can fill up necessary details on the official website.
Incase one fails to register, a penalty of up to 10 percent of the project cost or three years of imprisonment can be imposed.
PROTECTING CONSUMERS SINCE 2016
The benefit for consumers is that builders will have to quote prices based on carpet area and not the super built-up area, and the carpet area must also include the kitchen and toilet spaces as defined in the act. This Act also prohibits unaccounted money from being injected into the sector. Now it is compulsory to deposit 70 percent of the money in the bank accounts through cheques.
· To maintain transparency in project-marketing and execution of the project.
· To form an Appellate tribunal that hears to appeals of consumers, agents or promoters.
· To ensure faster redressal of disputes.
· To protect the customers interest.
· Complaint registration
· Financial discipline
· Being consumer centric
· Establishing an Appellate tribunal
· Registration of Real estate agents
· Registration of Real estate projects
Today the whole world is running a rat race, it is important to keep track of where your money is being invested, especially when it comes to a large size investment like buying a new house. Many buyers fall in false traps and become victims of fraud in the real estate sector as the market is very huge and people with money and power dominate this sector, this Act has been established in order to protect the consumer from such a situation and maintain transparency through out so that corruption can be dealt at all levels.
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