Paving the way for transparency and fixing more accountability in real estate transactions, the centre has finalised rules for real estate act The much awaited Bill for real estate, that the parliament passed in March 2016 to bring transparency in the real estate transactions, is now finalised with the new rules and regulations. Briefing on Bill progress, Union Urban Development Minister M Venkaiah Naidu announced that central government has drafted the final rule book for the real estate (Regulation and Development) Act. Now, the same will be sent to individual state government for implementation.
According to market experts, the Bill has raised hopes and expected to lift home buyers confidence which will help in reviving the sector that is currently facing with existing stock of unsold homes, low demand, delayed delivery and high prices.
When the final act come into force, the real estate developers will have to communicate every small detail of their projects to buyers which will create clearer picture in their minds. Moreover, the success rate of the builder will depend on the number of units sold in their projects not on the number of new projects they launched in a year. This is going to change now. The new parameter will turn into major reform to regulate the real estate which was largely unregulated.
Builders will have to update quarterly the list of project launched, types of apartments or plots booked, the status of ongoing projects and approvals etc. to the local development authority. Registration (Section 20) – The Act chiefly entails that developers will have to register themselves with RERA and projects details like proposed area, number of towers and date of completion are made public.
The entire process will set transparency in the real estate market and hopefully restore the trust of the buyers.
How RERA is going to benefit real estate buyers?
- Buyers can easily address their grievances and complaints to the local body. The local authority cannot hide the issue as it centralised at the national level
- Post RERA implementation, if a builder launches any project with a land parcel size of 500 sq. mt. or 8 apartments will have to register with the RERA before launching. Now buyers can invest in pre-launch projects with no hesitation
- Current mismatch between supply and demand will get addressed. RERA will cut new launches till available inventories with the builder is not sold
- A developer’s liability to repair structural defects has been increased to 5 years from the earlier 2 years
- Regulatory authority will dispose the complaints in 60 days while no such timeline was indicated earlier
“The Act will make realty sector more institutionalised and benefit organised players. The shorter timelines for a given project will ensure speedy and more stringent completion. Government authorities should also be made accountable for time-bound approvals,” says Dr Anil Jindal, chairman, SRS Group.
As updated previously on happykeys that the much awaited Real Estate (Regulation & Development) Act 2016 (RERA) has finally been implemented. The Bill was first proposed eight years ago. Since then it was stuck in the parliamentary proceedings.