The Real Estate Regulation (Development) Act 2016 came into effect on May 1, 2017. Under this act, the main aim was to increase investments in the real estate sector and create transparency between buyers and builders.
Why has RERA become important?
For many years, buyers complained about the transactions of the real estate being favourable towards the developers.
Seeing this, RERA and the Government of India aimed to have equitable and fair deals between seller and buyer, especially in the primary market.
What projects come under RERA?
• Commercial and residential projects, which include plot developments.
• The project is measuring more than 500sq. Meter or eight units.
• Projects which do not have a completion certificate.
• Projects for renovation, repair not involving re-allotment, marketing, advertising, or selling.
Impact of RERA on:
According to RERA, builders have to register properties above 500sq. Meter or 8units. Under the act, they also have to do away with terms like built-up area. The property will be sold based on carpet area and any structural defect within five years of handling the building to the buyer; the developer will be liable. It is compulsory to register any new project before the commencement.
Due to the unorganized planning of real estate in India, RERA came into effect and made it compulsory for every broker to be registered before engaging in any project. Only licensed brokers can carry out the business of real estate. They are also required to provide complete and confirmed information to the buyers. Any false intention will be penalized by RERA.
They are the real king under RERA. Any wrongdoing against them by developers or brokers will cost the laters a high penalty. Delayed possession to the buyer also can cost them.
Uttar Pradesh and RERA:
RERA ordered every state to have regulatory bodies, especially to solve disputes between buyers and builders within 60 days. Following the guideline, Uttar Pradesh RERA was established on March 10th, 2016, having two centres, one in Lucknow and the other in NCR. It includes real estate micro-market like Noida, Ghaziabad, Greater Noida, and many more.
The core value of UP RERA are:
• Accountability and transparency
UP RERA is deliberate to achieve the following objectives as soon as possible. These are:
- Allottees are responsible for building and protecting investors’ trust in real estate.
- Being fair and transparent by reducing fraud and project submission delays.
- Take care of the standardization of PAN.
- Building a proper communication bridge between the buyers and the sellers.
- Entrusting the investors and developers with the responsibility to ensure everything is carried out significantly.
- Regulatory agencies are established with an oversight to manage the enforcement of the contracts.
- The reliable governors of the sectors are advanced to bring the confidence of the investors.
RERA has led to an increase in investments in real estate and encourages foreign investments too.