The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India, which seeks to protect house-buyers and boost investments in the real estate industry in India. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016.

What are the primary objectives of the Real Estate (Regulation and Development) Act, 2016?

• To protect the interest of consumers in the real estate sector
• To establish a process for speedy dispute settlement
• To ensure the sale of land, building or apartment or project, in an efficient and transparent manner
• Establish a court to hear appeals from decisions, instructions or orders of Real Estate Regulatory Authority and adjudicating officer

What’s in it for property buyers?

The property investors whether in India or NRIs are in sheer grief because of the difficulties presented by the promoters and the brokers. There are numerous complaints against the property developers. There are many cases registered where we can find that a buyer is looking for a house for his family has to spend his time complaining against the builders. These complaints are related to late possession of apartments by the promoters, unreasonable fees, change of plans, etc.

Due to the countless complaints, the Real Estate Regulatory Authority Agency has taken matters into its own hands and formulated an agency. RERA has brought some landmark changes regarding the laws in the real estate sector of India. The wholehearted commitment of the government to maintaining a fair play in property business has come as a great relief for buyers. Aside from the buyers, the promoters and the real estate brokers who go by the government standards, but have to suffer from the spread of bad word against them because of some ill practices by some builders and real agents, will also feel happy and relieved.

It is very necessary that these three bodies work in tandem and help each other since the real estate sector of any country has its right arm in its economy. Apart from notifying the promoters about the new guidelines, they must follow and their functions to maintain a just way of buying and selling a home.

RERA has built up some basic functions for property buyers which are laid upon as their rights.

• A buyer is entitled to know all plans of a real estate project in detail. He has the right to know the stage-wise completion of the project, which also includes the amenities.
• A buyer is entitled to demand a written possession of his apartment and the common areas which he is entitled to as a part of the project. He has the right to receive all documents about the project.
• A purchaser has to pay the amount he has signed the agreement in the court, and he must pay the interest if he delays the payment. Furthermore, a promoter has to pay the same interest to the buyer if he delayed his project or if he was not able to give what was said in the agreement.
• The buyer should participate in the formation of an association after taking the physical possession of his house. He should also be active on the RERA India website so that the flow of information can be maintained. His participation towards the deed of the home can be advantageous to other buyers.

Also, the establishment of RERA with those of the Central Advisory Council and the Real Estate Appellate Tribunal will work to improve the real estate market of India, bringing back buyer confidence and punishing the promoters and real estate agents who work unethically.