RERA (Real Estate Regulatory Act) becoming a law on 1 May, after a nine year wait. It marks the start of a new era making homebuyer the king. However Builders benefit from the confidence of the homebuyers in the regulated environment. These Act helpers desired transparency, accountability and efficiency in the sector with the Act defining the rights and responsibilities of both the buyers and developers.
RERA (Real Estate Regulatory Act) becoming a law on 1 May, after a nine year wait. It marks the start of a new era making homebuyer the king. However Builders benefit from the confidence of the homebuyers in the regulated environment. These Act helpers desired transparency, accountability and efficiency in the sector with the Act defining the rights and responsibilities of both the buyers and developers. This is coming into effect from 1 May 2017; it aims to impart transparency and accountability in the sector.
Developers or Builders are now essential to display approved plans and layout plans of at least 3 feet X 2 feet size at all marketing offices, other offices where properties are sold, all branch offices and head office of the promoters in addition to the site of project. Developers will now have to get all the ongoing projects that have not received completion certificate and the new projects registered with regulatory authorities by July end. Real estate agents also have three months to register themselves with their respective regulatory authorities. Both developers and buyers will now have to pay the same penal interest of SBI’s marginal cost of lending rate plus 2% in case of delays.
The government on May 1 last year notified 59 sections of the Act, while the remaining 32 sections will come into full force from May 1 this year. RERA is definitely good news for realty sector.
