Real Estate Regulations in India

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After considerable debates and deliberations and being conceived for almost 9 years the real estate act was passed in March 2016. The Act under Section 3 article number 2 established “Real Estate Regulation Authority (RERA)”.

Although there was a steady rise in the real estate sector in India leading to people believing that it could be part of one of the major breakthrough due to the lack of real estate regulations in India, the government, as well as the consumers, faced significant problems.

Before this act, India was going through a heavy imbalance in the real estate sector which was mainly regulated by the builder who exploited the dominant position conditions and almost all contracts and agreement that occurred were mostly in the benefits of the builders.

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What is RERA

According to the act under section 3(2) the article demands complete transparency from both the parties and is mainly established to protect the interests of the consumers in the real estate sector. It also provides a regulated environment for the regulations and promotions of plots, lands, apartments, real estates, etc. in a legalized manner.

It states that any project that exceeds the limit of 500 sq. meters will apply for registration in Real estate regulation authority.

Any further development on the previously registered property like addition or introduction of the new feature(s) to the properties requires re-registration.

And If not followed accordingly there are many penalties such as serving imprisonment for as long as three years along with paying fine.

There are many other sub-rules to this act for example if a builder is not able to complete the project by the mentioned time in the contract than the builder will either have to give a full refund or pay interest to the consumers.

It also states that if by any means the builder/contractor and consumer are in any kind of legalized dispute than they don’t have to wait around for the judicial system as the new system is established for real estate regulation in India.

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The act was cleared by the parliament in March 2016 and was ordered the states to notify the rules and set up the new real estate regulatory authority of India. It was said that the law could not be operational without the notifying of rules.

Surprisingly by the 31st of July 2017, 15 out of total states and union territories including Uttar Pradesh, Madhya Pradesh, Maharashtra, Gujarat, Odisha, Andhra Pradesh, and Delhi have notified the rules.

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Out of all the 35 states and union territories excluding Jammu and Kashmir, 23 states and all the union territories have already notified their respective RERA rules. The states which still have to notify of the rules are mainly the northeastern region of the country. Out of which states like Punjab, Rajasthan, Gujarat, Maharashtra, and Madhya Pradesh have fully functional online RERA portals while the rest of the states have interims which are on their way to become official and fully functional.

The RERA Website

The legislation requires every registered real estate agent to upload original or copy of every document in the official websites including details of the projects, the promoter’s name, address and experience, proposed date for completion of project and any revised date as well, the stages of development such as water, electricity, roads, etc. number of apartments and any other new introduction to the projects also requires re-registration.

This is done to provide complete transparency policy introduced by the government to the buyers so that they can go thorough background checks before investing in anything.

Preceding Problem

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Before the real estate regulation of India, people, in general, faced a major problem in terms of dealing with the real estate sector as it was always a one-sided agreement in favor of the builder and contractors suppressed by the terms and conditions. Another problem was that builder used to take money from the consumers and instead of finishing the ongoing projects, they used to establish new projects leading to a lot of incomplete projects and scarcity of money and resources to finish the older ones.

The lack of judicial system in the real estate leads to major holes in the pockets of the general public as well as the government.


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After the establishment of the new judicial system for the real estate regulations in India, there’s a major shift in the economy in a good way off course. Due to the new rule that no promotion or sale of a plot, land or apartment can be allowed unless it is registered in the RERA because of which there are fewer fraud cases and more of completed or to be completed projects. It also gives both the parties equal opportunities and rights on the contracts.

Although home buying was always an agonizing process, it is expected that after the implementation of the new Acts this process will be smoothed out in a lot more ways. The new real estate regulation provides a margin to all the unregulated actions that were taking place earlier.

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 Real estate agent, as well as builder and anyone who is directly or indirectly connected to the process, become more diligent towards to the law. It is advised for the people who are now investing in the real estate to do thorough research and be sure of the registration of their property on RERA as well as continuously stay updated on the matters surrounding it.

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