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Real Estate regulation Act implemented from today
Posted on: 01/May/2017 5:11:35 PM
The Real Estate Regulation and Development Act, drafted and passed by the central government is effective from today (Monday, 1st May).
The central government passed the Real Estate Regulation and Development Act in the parliament during the year 2016 in order to regulate and systematize the real estate industry.
The Act was drafted with the regulatory clauses and procedures for more systematic operation. Some of the regulations were made effective from the last year.
The central government had announced that the remaining regulations will come into effect from 1st May 2017, It had also asked the states to follow this up and implement the regulations and procedures as per this. The state government of Tamil Nadu has finalised the regulations to be implemented and announced the same in January.
As per this act, it is widely expected that illegal constructions and various types of malpractices in vogue in the real estate industry will come down to a great extent.
Clauses have been added in this act to penalize the builder in case of any delay in completing the construction and handing over to the buyer as per the agreement.
This penalty will have to be paid within 15 days to the customers. Also, advertisements showing the parts of completed portions will not be allowed.
A tribunal is being set up to regulate the real estate industry where the customers can register their complaints according to the revised clauses in the Real Estate and Development Act.
It is also expected that the prices of apartments/houses will go up as a result of the implementation of this Act.
The construction officials of CREDAI, the apex body of Private Real Estate Developers Associations. which provides housing and habitats, from Tamil Nadu, explained that this act, known as RERA (Real Estate Regulation Act) will help to bring the real estate industry under check and more systematic operation. There will also be more transparency in the proceedings. Thus, the trust of the people on real estate agencies will grow. As deadlines are set for completing the various construction activities, the approval from the government departments can be obtained faster.
This new regulation will not affect the real estate agencies which have been functioning systematically and legally. This will affect only the disorganized real estate agencies. All construction agencies must procure all requisite permissions, approvals, and licences. This would entail different payments to the government. This may lead to some increase in the prices of houses/flats. However, this implementation would bring more trust and transparency.
