After long efforts & deliberations, the Real Estate (Regulation and Development) Act, 2016 finally came into force on May 1st, 2016, bringing in the desired much relief and paved the way for making necessary rules & regulations which aims to protect the interests of consumers and promoting growth of real estate sector in the Country. The Act aims to promote an environment of trust, confidence, credible transactions between the Real Estate sector and the people of this country. Section 84 of the Act stipulates that “The appropriate Government shall, within a period of six months of the commencement of this Act, by notification, make rules for carrying out the provisions of this Act.”
1) The Bill provides for mandatory registration of all projects with the Real Estate Regulatory Authority (RERA) in each State. Real estate agents who intend to sell any plot, apartments or building should also register themselves with this authority.
2) It makes it mandatory the disclosure of all information for registered projects like details of promoters, layout plan, land status, schedule of execution and status of various approvals. Every project measuring more than 500 square meters or more than eight apartments will have to be registered with the RERA..metres or more than eight apartments will have to be registered with the RERA.metres or more than eight apartments will have to be registered with the RERA.
3) It seeks to enforce the contract between the developer and buyer and act as a fast track mechanism to settle disputes.
4) Fifty percent of the buyers’ investment has to be deposited into an escrow account that would be used only for the construction of that project.
5) The Bill prohibits a developer from changing the plan in a project unless two-thirds of the allottees have agreed to change.
6) Builders would be responsible for fixing structural defects for five years after transferring the property to a buyer. The buyer can contact the developer in writing within one year of taking possession to demand after sales service if any deficiency in the project is noticed.
7) In case builders still cause delays in transferring properties to buyers, the appellate tribunals would intervene and levy fines on them within 60 days. The maximum jail term for a developer who violates the order of the appellate tribunal of the RERA, is 3 years with or without a fine
8) The current practice of selling on the basis of the ambiguous super built-up area for a real estate project will cease as this law makes it illegal. Carpet area has been clearly defined in the law.
We at Pragnya Riverbridge Developers Ltd have extensive experience in the Indian Real Estate and infrastructure sector. Over the years, we have built strong relationships with consultants, land brokers and developers across several key markets in India and Sri Lanka. We constantly analyze these markets, study market trends, and identify emerging investment opportunities to generate attractive risk-adjusted returns for our investors, while at the same time placing special focus on providing value to the end-consumers. Bridge County is our first venture in the State of Andhra Pradesh which offers villas and apartments to all income groups at an affordable cost as per their requirements.