The establishment of the Regulatory authority
The most important aspect of this law is the creation of an appropriate regulatory authority which was waited for a quite long time. The law establishes the RERA Act in each state and union territory. Its capacities include the assurance of the interests of the partners, the collection of information in an assigned storehouse and the making a strong grievance redressal framework. In order to avoid time delays, the Authority has mandated to disburse the applications within a maximum period of 60 days, which can only be extended if a reason for the delay is given. In addition, the Real Estate Appellate Authority which is under Section 2 subclause (f) of the Real Estate Act shall be the appropriate forum for appeal.
Mandatory registration clause under section 3 and 4 of the RERA Act
As stated in the aforementioned sections of the act, each land venture (where the aggregate region to be produced surpasses 500 sq meters or more than 8 apartments, to be created in any stage) must be registered with the RERA Act of its respective state. Existing undertakings where the Certificate of Completion (CC) or Occupancy Certificate (OC) has not been issued are also required to consent to the enlistment necessities under the Act. While applying for enlistment, project promoters must provide the point-by-point information on the undertaking, e.g. arrive status, subtle elements of the promoter, endorsements, schedule of fulfillment and so on. Just when the enrollment is completed, and various endorsements are established, the undertaking will be advertised.
To ensure that a violation of the law is not taken lightly, a heavy fine (up to 10% of the project costs) and a prison sentence were imposed on violators.
Which projects are covered by the Real Estate Law (RERA Act)?
Below is a list of the different types of projects covered by the above-mentioned act. They are:
- Commercial and residential projects, including plotted development.
- Projects covering more than 500 sq meters or 8 units.
- Projects without Completion Certificate, before the commencement of the law.
- The project is only for the purpose of renovation/repair/re-development, which does not involve re-allotment and promotion, advertisement, sale or reallocation of housing, land or buildings in the estate project, will not come under RERA Act.
- Each stage is to be treated as a separate real estate project requiring a fresh registration.