There have been many gossips all around that regulations in the real estate sector are essential. If they are not enacted upon, the promoters are adopting many tricks that are indirectly putting pressure on the buyers and sellers. The government is blamed the most for all these, although they are not directly involved in it. Keeping all these things in view, Real Estate Regulation Act is all set to come up in the coming year, with a new set of rules. However, the following details will help you to understand your position.
Real Estate Regulation Act
There are different rules as per the RERA. The rules hold the ground for both buying and selling. Here are the summarized rules to support you –
The first rule states that all the real estate projects are to be registered with the Tribunal. Unless that is registered, the property cannot be bought or sold by any promoters.
The regulator’s portal must show the complete project details. This must include a layout plan and even the schedule of completion. This is the indication that the property is registered and is updated on the portal itself.
The Act also states that the promoter can collect only 70% of the project cost that has to be kept in a separate bank account. All the expenses needed in the project must be made from that account. On the other hand, the amount that is deposited in that account cannot be spent on any other things or mediums. If the government finds any mismatch in the account, they have the sole right to alter the amount at any point of time.
A tribunal will be established, which will be responsible for the settlement of all disputes related to the property. An additional advisory body will also be present, which will deal with the disputes along with the Development Authority of Government.
The act states that all the brokers will remain under the ambit. It also states that all their activities will be monitored and uploaded in the portal to provide perfect details of the property to the buyers and sellers.
Salient Features To Support Buyers and Sellers
(RERA) is meant both for buyers and sellers. One will have to register the property with the Tribunal and in case that is not done, there can be a high amount of fine and one may have to face Real Estate Regulation Act imprisonment, too.
For buyers, they will have to pay the amount at the right time, in order to get rid of the overdue. This will be a binding effect that will be an aftermath of the registration.
The sellers will have to allot the houses at the right time. They will have to issue the essential certificates to the buyers such as the CC (Commencement Certificate). If they fail to complete the project within the estimated time, they might have to face some serious penalties.
The RERA will disclose some of the aspects in the real estate industry. The first thing is that people will get the properties that are built by licensed promoters only. On the other hand, the price of the real estate properties will be regularized. Hence, the buyers will be much safer after the act is going to be in use.
The demand is definitely there in the market, however, it is clustered in few locations only. This system will open the property owning in different parts and this will disperse the clusters. Hence, the demand will be met and finally reduce the property value.
Safety and Security
It is tentative that the act would be in action from May 2017. Now, there is a natural dilemma in real estate business among the buyers – whether they will wait for the act or go for their decision to purchase now. For them, there are a few details which might provide help. The act will enact bind the promoters more. They will have to be clear in property valuation, legal proceedings and all other things, including time binding. On the other hand, the enactment of this regulation might increase the price rate of the properties in some of the cities.
Thus, if you are willing to invest in the major cities, you can go for them now. However, once the law is entitled to regulate the Real Estate business, it will be safer to buy and sell properties.