Real Estate (Regulation and Development) Act 2016: How it will help home-buyers
The much awaited Real Estate Bill has been passed by both the Houses of Parliament and has received the President’s nod and has become an Act, effective March 2016. The Real Estate Act (RE Act) is a legislation to establish an authority for regulation and promotion of the Real Estate sector and to protect the interest of consumers. Now the State Government(s) have to notify the effective date of implementation and also establish statewise Real Estate Regulatory Authority (RERA). It would act as the nodal agency to co-ordinate efforts regarding development of the Real Estate sector and render necessary advice to the State Governments to ensure the growth and promotion of a transparent, efficient and competitive Real Estate Sector.
The Act is applicable to all residential and commercial projects with certain exceptions.
The main objectives of the Act to:
- Bring transparency into Real Estate transactions
- Protect consumer interests
- Ensure timely execution of projects
- Provide a dispute resolution mechanism between developers and buyers