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:
- It establishes the Real Estate Regulatory Authority (RERA) at the national level
- It mandates registration of all constructions in the country with the authority
Choose the correct statements from the codes given below:
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer to Prelims question
Source: PIB