• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Advertisement
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Law & Policy

Provisions of RERA

October 6, 2020
in Law & Policy
Reading Time: 3 mins read
0
Provisions of RERA
145
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF

In News

The Real Estate (Regulation and Development) Act, 2016, was formulated to safeguard the interest of homebuyers and to infuse transparency and credibility into the otherwise unregulated real estate sector. Under the Act, the state governments are required to notify their own rules under the Act, on the basis of the model rules framed under the central Act.

Key Provisions of the Act

  • The Act mandates that all the commercial and residential real estate projects larger than 500 sq m, or eight apartments should be registered with their  State’s Real Estate Regulatory Authority (RERA) before being launched.
  • Ongoing projects without Completion Certificates (CC), as on the date of commencement of the Act, will have to file for registration within three months. Post acceptance of the registration request, the promoters will be required to present all the relevant details about the project on RERA’s official website.
  • Real estate agents, facilitating the sale or purchase of realty projects, too, will have to register themselves with the authority.
  • RERA mandates all builders to submit original, approved plans of their ongoing projects, furnish details of revenue collected from allottees and utilisation of funds, along with construction, completion and delivery timelines certified by an authorised engineer, architect or a practicing chartered accountant.
  • The promoter/developer of a real estate development firm will have to maintain a separate escrow account for each project. A minimum of 70% of the total funds collected for a specific project will have to be deposited in that account and used only for the construction or land cost pertaining to the same project.    
  • Promoters of real estate projects will have to charge buyers only on the basis of carpet area, unlike the earlier practice of charging on the built-up or super built-up area.
  • The Act bars a promoter from taking higher than 10% of the total cost of apartment, plot or building, as an advance payment without entering into a written agreement of sale.
  • The Act restricts the developer from making any alterations or additions to the sanctioned plan of the apartment, building or common areas without the written consent of at least two-thirds of the allottees of the residential projects.
  • The Act enforces the establishment of appellate tribunals under the respective State regulators. The tribunals will be required to settle grievances and complaints within 60 days from the date of filing.
  • The Act also outlines penalty clauses for developers in case of structural defects or delay in project delivery, and for buyers in case of irregular payments.

Impact of RERA Act

  • While prices had been in a steady decline between 2013 and 2016, the cycle turned negative in the period immediately following the implementation of RERA. Evidently, sales dipped, and projects began to struggle to cope with the rigorous requirements of a now regulated industry.
  • Reduction in supply slowdown in new launches was a short-term negative impact of RERA. Developers stopped indiscriminate launches. They are now extremely cautious about new projects and make sure that all approvals are in place before any launch.
  • While the flurry of reforms and various policy measures sent successive shock-waves in the real estate industry, the eventual acceptance of the new reality is sinking in. The supply side has clearly begun learning the dynamics of this changed environment, and has been redrawing its business models.
  • The greatest protection for the demand side comes in the form of much higher transparency and an assurance on proper deployment of funds by builders.
  • Home buyers can also see the number of ongoing projects by the same builder and see whether the builder is over stretching himself.
  • While harsh on weak and bad builders, RERA has opened up the opportunity for small and good builders. Good and small builders can get credit from financial institutions. So, RERA is actually helping expand the market and not consolidate it.
image_pdfMake PDF
Tags: Prelims

Related Posts

FSSAI formulates regulations for ‘Ayurveda Aahara’ products

FSSAI formulates regulations for ‘Ayurveda Aahara’ products

May 13, 2022
National Family Health Survey (NFHS) – 5

National Family Health Survey (NFHS) – 5

May 10, 2022
Assam Cattle Preservation (Amendment) Act, 2021

Assam Cattle Preservation (Amendment) Act, 2021

May 9, 2022
Integrated Child Development Services (ICDS)

Integrated Child Development Services (ICDS)

May 9, 2022
Unique Disability ID (UDID) scheme

Unique Disability ID (UDID) scheme

May 7, 2022
Global Report on Food Crises, 2022

Global Report on Food Crises, 2022

May 7, 2022
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

May 7, 2022
India’s Civil Registration System report for 2020

India’s Civil Registration System report for 2020

May 6, 2022
World Press Freedom index, 2022

World Press Freedom index, 2022

May 5, 2022
Section 124A, India’s sedition law

Section 124A, India’s sedition law

May 5, 2022
Please login to join discussion

Our Offline Classroom Student

PRELIMS 2021 POLITY QUESTIONS ANALYSED

https://youtu.be/5q8hBcRGhAs

PRELIMS 2021 HISTORY QUESTIONS ANALYSED

https://youtu.be/v0SIZ7SUybg

CONGRATULATIONS TO 2020 TOPPERS !!!

Rank 25 Vaibhav Rawat 

Rank 218 Kankanala Rahul Reddy
Rank 385 Sagar A Wadi
Rank 504 Malashree MV
Rank 573 Shridevi B V
Rank 707 Mamatha G

COURSES OFFERED

PRELIMS SURESHOTS

May 2022
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
3031 
« Apr    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tags

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News News Paper Newspaper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News News Paper Newspaper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In