Real Estate Regulation and Development Act

2020 MAY 16

Preliminary   > Industry and Infrastructure   >   Infrastructure & Investment models   >   Legislations

IN NEWS:

  • A webinar on the ‘3rd anniversary of RERA’ was recently hosted.

REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016:

  • RERA is an act passed by the Parliament to protect home-buyers as well as help boost investments in the real estate sector by bringing efficiency and transparency.
  • It was passed by the Parliament in 2016 and came into full effect from 1st May, 2017.

KEY FEATURES:

  • Establishment of state level Real Estate Regulatory Authority (RERA)
  • Establishment of Real Estate Appellate Tribunal for appealing against the decisions of the Authority.
  • Mandatory Registration of all projects with plot size above 500 sq.mt or eight apartments with Regulatory Authorities.
  • Mandatory depositing of 70% of the funds collected from buyers for construction of the project in a separate escrow bank account.
  • Cap on Advance Payments
  • Liability upon the developer to repair structural defects for five years.
  • Punishments for violation, which includes imprisonment and fines.

PRELIMS QUESTION:

Q. Consider the following statements regarding the Real Estate (Regulation and Development) Act, 2016:

  1. It establishes the Real Estate Regulatory Authority (RERA) at the national level
  2. It mandates registration of all constructions in the country with the authority  

Choose the correct statements from the codes given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer to Prelims question

Source: PIB