Explain the salient features and objective of Real Estate (Regulation and

Development) Act. 2016?

Introduction

Real Estate Regulatory and Development Act is the full form of RERA.

It has been implemented on 1st May 2017, with an aim to regulate the real estate sector
of India with a strict hand. RERA Act 2017 has not only empowered the buyers but also
shaped the total regulation of the activities of the builders regarding the real estate
property.

Salient Features Of RERA:

There are certain features of the RERA Act which makes the RERA rules totally consumer
friendly and appropriate for managing any transaction relevant to the real estate:

 More security to the investment made by the first-time home buyers

 Better assurance of timely possession
 More strict actions against any fraud or false promise
 digitization of all records, to reduce loss of data.
 Quick remedies for any dispute

objectives of RERA?

The RERA Real Estate Bill is intended to achieve the following objectives:

 ensure accountability towards allottees and protect their interest

 infuse transparency, ensure fair-play and reduce frauds & delays
 introduce professionalism and pan India standardization
 establish symmetry of information between the promoter and allottee
 imposing certain responsibilities on both promoter and allottees
 establish regulatory oversight mechanism to enforce contracts
 establish fast- track dispute resolution mechanism
 promote good governance in the sector which in turn would create investor
confidence.

Current status of the RERA Real Estate Bill?

The RERA Real Estate Bill was passed by the Rajya Sabha on 10th March, 2016 and the
Lok Sabha on 15th March, 2016. The Bill as passed by the Parliament was assented to by
the Hon’ble President on 25th March, 2016. The Act as assented to by the Hon’ble
President was published in the Official Gazette on 26th March, 2016 for public
information.

The draft Tamil Nadu Real Estate (Regulation and Development) Rules, 2016, was
released in January this year in 2017. Though the act has been rolled out in many states
across the country, it is yet to come into force in Tamil Nadu as the state government
has not notified the draft rules for the act. We will update this section as soon as we
have information.

Key provisions of RERA Act are:

 Every state has to set up a regulatory body in form of appellate tribunals to

resolve if any conflict between buyer and builder to be resolved within 120
days.
 Builders or developers need to deposit 70% of amount deposited by buyers in
separate accounts.
 RERA will make it mandatory for all commercial and residential real estate
projects where the land is over 500 sq. mt. or eight apartments will have to
register with the regulator before launching a project.
 RERA also seeks to impose strict regulations on the promoter and ensure that
construction is completed on time.
 Carpet area has been clearly defined in the bill to include usable spaces like
kitchen and toilets imparting clarity which was not the case earlier.
 A developer’s liability to repair structural defects has been increased to 5 years
from the earlier 2 years.
 The buyer will pay only for the carpet area (area within walls). The builder can’t
charge for the super built-up area, as is the practice at present.

Conclusion

The Real Estate Act, 2016 is one robust step towards regulating the highly unregulated real estate sector
and bringing more transparency to real estate transactions. It was a long due measure which has now
finally been implemented. It has brought a drastic change not only in regulating the real estate
laws, but also brought the buyer and the seller under tight observation.