Finally, a nine-year long wait has come to an end with the Real Estate (Regulation and Development) Act, 2016 (RERA), coming in to force from May 1. The Act is a thrust towards the right of realty buyers and consumers in India. The Act also aims for transparency, accountability and efficiency in the real estate sector.
Here are things you should know about the RERA Act
· RERA Act was passed by Parliament in March 2016. With 92 Sections of the Act, and over 76,000 companies involved, the Act comes into force from 1 May 2017.
· As of now, 13 states and UTs have notified the rules.
· Developers shall get all the ongoing projects that have not received completion certificate, and the new projects registered with Regulatory Authorities within three months i.e by July end
· All the residential and commercial projects are applicable to be covered under this Act.
· Registration of the all residential real estate projects and real estate agents dealing in such projects under RERA Act is mandatory.
· The Act mentioned that 70 per cent of the amount collected by the developers from buyers must be maintained in a separate bank account and exclusively be used for construction of assigned projects.
· RERA Act is applicable to projects with minimum plot size of 500 sq metres or eight apartments.
· Both developers and buyers to face penal interest of SBI’s Marginal Cost of Lending Rate plus two per cent in case of delays.
· Defaulters to face imprisonment of up to three years (developers) and one year (agents and buyers) for violation of orders of Appellate Tribunals and Regulatory Authorities.