The real estate sector has grown in
the recent years but has largely been unregulated from the perspective
of consumer protection. Though, consumer protection laws are available,
the recourse available therein is only curative, but not preventive.
Government of India has enacted the Real Estate (Regulation and
Development) Act 2016 and all the sections of the Act have come into
force with effect from May 1, 2017.
The key components of Real Estate (Regulation and Development) Act, 2016 are as follows:
Real Estate Regulatory Authority and Appellate Tribunal
Under this Act, appropriate
government shall establish Real Estate Regulatory Authority for
regulation and promotion of the real estate sector in the State / UTs.
The Authority shall strive to facilitate the growth and promotion of a
healthy, transparent, efficient and competitive real estate sector while
protecting the interest of allottees, promoters and real estate agents.
The authority shall also establish an adjudicating mechanism for speedy
dispute redressal regarding registered real estate projects. The key
responsibilities of the Authority shall be as follows:
-
Ensuring Disclosures of Real Estate Projects by Promoters
-
Real Estate Projects Registration
-
Real Estate Agents Registration
-
Complaints Redressal
-
Provide recommendations to
appropriate Government on in matters relating to the development &
promotion of real estate sector;
The appropriate Government shall
also establish Appellate Tribunal to hear appeals from the decisions,
directions or orders of the Real Estate Regulatory Authority. Any person
aggrieved by any direction or decision or order made by the Authority
or by an adjudicating officer may file an appeal before the Appellate
Tribunal and the appeal shall be dealt with by it as expeditiously as
possible and endeavour shall be made by it to dispose of the appeal
within a period of sixty days.
Real Estate Projects Registration
All commercial and residential
real estate projects will have to register except in projects where
- area of land proposed to be developed does not exceed five hundred square meters
- number of apartments proposed to be developed does not exceed eight inclusive of all phases
- promoter has received occupancy certificate for a real estate project prior to commencement of this Act
-
for the purpose of
renovation or repair or re-development which does not involve marketing,
advertising selling or new allotment of any apartment, plot or
building, as the case may be, under the real estate project
No promoter shall advertise,
market, book, sell or offer for sale, or invite persons to purchase in
any manner any plot, apartment or building, as the case may be, in any
real estate project or part of it, in any planning area within
Maharashtra, without registering the real estate project with the
Maharashtra Real Estate Regulatory Authority(MahaRERA). Promoter of
ongoing real estate projects, in which all buildings as per sanctioned
plan have not received occupancy Certificate, shall also be required to
be registered for such phase of the project which consists of buildings
not having occupation or completion certificate.
Real Estate Agents Registration
All Real Estate Agents should
register under this Act. No real estate agent shall facilitate the sale
or purchase of or act on behalf of any person to facilitate the sale or
purchase of any plot, apartment or building, as the case may be, in a
real estate project or part of it, without obtaining registration under
this section.
If any real estate agent fails to
register, he shall be liable to a penalty of ten thousand rupees for
every day during which such default continues, which may cumulatively
extend up to five per cent of the cost of plot, apartment or buildings,
as the case may be, of the real estate project, for which the sale or
purchase has been facilitated.
& Maintained by JHARERA.