Real Estate (Regulation and Development) Act, 2016: Difference between revisions
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===Registration=== |
===Registration=== |
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The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, to register with the |
The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution. For on-going projects which have not received completion certificate on the date of commencement of the Act, will have to seek registration within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years' imprisonment may be imposed.<ref name=et3/> Real estate agents who facilitate selling or purchase of properties must take prior registration from RERA. Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by the agent in every sale facilitated by him.{{cn|date=June 2016}} |
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===Protection of buyers=== |
===Protection of buyers=== |
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Revision as of 04:51, 23 September 2016
| Real Estate (Regulation and Development) Act, 2016 | |
|---|---|
 | |
| Parliament of India | |
| |
| Citation | No. 16 of 2016 |
| Passed by | Lok Sabha |
| Passed | 15 March 2016 |
| Passed by | Rajya Sabha |
| Passed | 10 March 2016 |
| Assented to | 25 March 2016 |
| Signed | 25 March 2016 |
| Commenced | 01 May 2016 (69 of 92 sections notified) |
| Legislative history | |
| First chamber: Lok Sabha | |
| Bill title | Real Estate (Regulation and Development) Bill, 2016 |
| Bill citation | XLVI-C of 2013 |
| Introduced by | Dr. Girija Vyas, Minister of Housing and Urban Poverty Alleviation |
| Introduced | 14 August 2013 |
| Committee report | Standing Committee Report Select Committee Report |
| Status: In force | |
The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The Act came into force from 1 May 2016 with 69 of 92 sections notified.[1] The Central and state governments are liable to notify the Rules under the Act within a statutory period of six months.[2]
History
Real Estate Regulatory Authority (RERA) Bill was introduced by the Indian National Congress government in 2013.[3] In December 2015, the Union Cabinet of India had approved 20 major amendments to the bill based on the recommendations of a Rajya Sabha committee that examined the bill.[4] The Bill had been referred to a select committee, which had given its report in July 2015.[5] However, Congress, Left and AIADMK had expressed their reservations on the report through dissent notes.[5] The bill got approval of the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016.[6][7]
Provisions
Registration
The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution. For on-going projects which have not received completion certificate on the date of commencement of the Act, will have to seek registration within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years' imprisonment may be imposed.[6] Real estate agents who facilitate selling or purchase of properties must take prior registration from RERA. Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by the agent in every sale facilitated by him.[citation needed]
Protection of buyers
The Act prohibits unaccounted money from being pumped into the sector and as now 70 per cent of the money has to be deposited in bank accounts through cheques.[8] A major benefit for consumers included in the Act is that builders will have to quote prices based on carpet area and not super built-up area, while carpet area has been clearly defined in the Act to include usable spaces like kitchen and toilets.[6]
Real Estate Regulatory Authority and Appellate Tribunal
It will help establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover.[8] Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities to dispose of complaints in 60 days while no time frame was indicated in earlier Bill.[8]
References
- ^ Commencement Notification
- ^ "Real Estate Bill is an act now, may protect home buyers". Economic Times. Retrieved 2 May 2016.
- ^ "Rahul Gandhi assures home buyers of a strong Real Estate bill", The Economic Times, 3 March 2016
- ^ "Will press for Real Estate Bill in Rajya Sabha, says Rahul Gandhi", The Economic Times, 5 March 2016
- ^ a b "Modi government puts real estate bill on priority list to pass it in Budget session", The Economic Times, 27 February 2016
- ^ a b c "Lok Sabha takes up real estate bill, Congress assures support", The Economic Times, 15 March 2016
- ^ Sharma, Ravi Teja (15 March 2016). "Cheer for home buyers! After Rajya Sabha, real estate regulatory bill cleared by Lok Sabha as well". Economic Tilmes. Retrieved 20 March 2016.
- ^ a b c "Big cheer for homebuyers! Rajya Sabha passes Real Estate Bill", The Economic Times, 10 March 2016