1st of May 2017 marked as a revolutionary date in the history of Real Estate sector as on this date “The Real Estate (Regulation & Development) Act” had come in force. Where on one side this Act strikes out all unambiguous deeds of doing business in real estate sector, another side there has been a mixed response from state in adhering to the stipulated timeline, the urban development ministry’s thrust on the matter clearly indicates the central government’s push towards increasing transparency and making the sector structured and organised.
Before RERA there were lots of complaints about property buyers and the major concern was the deception from developers in delivering oneself promises. There was no regulatory authority or provision regarding protecting the interest of Buyers in real estate sector. Now after RERA Implementation, the developers must submit authenticated documents related to the project to the authority.
But here also in comparison with central REDA Act, many states have diluted a few crucial aspects of the Act, or have given insufficient emphasis to its provision in their rules. Now, if the RERA is not verifying the documents then how it will approve the project registration?
Major points of disconnect are the definition of on-going projects, penalties for non-compliance with the Act, payment schedule, and liability in case of structural defects.
Despite all the regulations and administration, Centrik received lots of mail from builders regarding the cost of administration and from where all these costs are to be charged?
Note – Please note that the above article is part of our continuous research on the related matters. It is based on our interpretation of related regulations which may differ person to person. Readers are expected to take expert opinion before relying on above.