After the Real Estate Regulation Act has been introduced and passed by the Parliament, its functionalities need to be widely spread for its fruitful application. According to this act, every state along with the Union Territories will have its own operator and specified rules to control the functionality of the regulator. Here are the points, which we need to know about the act:
- It is compulsory for all the builders, who are working with an area more than 500 sq. ft., to register themselves with RERA even before publishing an advertisement of their project.
- Ignoring the amendment will fetch a maximum imprisonment of 3 years or fine up to 10% of the total valuation of the project.
- The regulator will witness the agreement between the investors and builders regarding the final layout, delivery, sale agreement, and the investment.
- The contractors, who will execute the entire acknowledgment clause, will only be allowed to publish their project in the market.
- A completely dedicated grievance cell will be formed to address the issues faced by the investors regarding the project. Previously, this was not possible without wasting time and effort due to the haphazard laws of real estate.
- Every state will set up a Real Estate Appellate Tribunals.
- For the completion of the project in time, the developers will have to deposit 50% of the fund in an exclusive account that is dedicated to that project. This will ensure the investment of the capital in that project only, which will quicken the construction procedure.
- The implementations of various steps under the Act will sustain a fixed price of the properties, which will promote the business in the real estate sector.
- This will make the investors feel more secure about their investment, as the stricter rules will eradicate the fake and treacherous builders.
- The builders will also be benefited with the clause, under which the investors will be fined if the timely payment is not done.
The Real Estate Regulatory Act is a platform, where both the builders and investors can work in coordination, without the risk of being cheated and awareness of the act before its implementation is mandatory for the success.
Author: Supriti Ganguly
Supriti Ganguly is a Content Contributor at a3solutions.in. She is having more than three years of experience in working closely with B2B and B2C businesses providing blog writing, article writing, news writing, and copywriting services. Supriti is a professional writer with extensive knowledge on content marketing and adept in content strategizing for business collaterals. She is experienced in writing technical, promotional articles, and blogs that leave a lasting impression on readers.