The Real Estate (Regulation and Development) Act, 2016 paves way for empowering all the stakeholders engaged in the business and consumption of Real Estate in India, be it consumers, Real Estate Developers, and Real Estate agents amongst others. All commercial and residential real estate including plots, apartments, shops, offices and other such properties are covered under the Act. While consumer interest seems to have been finally addressed by the adoption of the Act, it can’t be ignored that the Government has codified best practices for the first time in this sector and these will go a long way in defining growth from here on.
A few of the overarching themes in the Act are as follows –
- Regulatory oversight on real estate developers and real estate agents
- Purchaser’s rights and duties
- Real estate developers’ function, duties and obligations
- Real estate agent’s duties and functions
The Real Estate (Regulations and Development) Act, 2016 and the rules formulated by the State Governments have set up a much-needed framework that will not only empower the consumer but also make the industry more competitive and organized.
Below is a list of FAQs pertaining to the Act.
Definitions often used terms in the following FAQs –
- Consumer/Buyer: A person who has booked/agreed to purchase for a consideration plot(s), apartment(s), or building(s) from a Real Estate Developer.
- Real Estate Developer/Promoter: A person who develops and/or constructs building(s) or a township consisting of residential apartments and/or commercial complexes on an independently or a jointly-owned land, which are partially or completely sold to the consumers. However, a consumer does not include a consumer who has bought goods or who has availed services for commercial purposes.
- Project: A Real Estate project undertaken by a real estate developer comprising of apartment(s), unit(s), building(s), wing(s), plot(s) for residential or commercial purposes or both with certain amenities and facilities for the use of the purchaser as specified in their agreement for sale.
- Real Estate Agent: A Real Estate agent commonly referred to as brokers or channel partners or property dealers, is a person who is registered with the RERA authorities and the real estate developer. Such Real Estate Agent facilitates the sale or purchase or acts on behalf of any person to facilitate the sale or purchase of any plot, apartment, unit or building, as the case may be, in a registered real estate project and receives remuneration/fees/ any other charges as commission/brokerage from the real estate developer.
- Unit: A single apartment, shop or an office which is a part of a building or township being developed.
- Carpet Area: Means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under service shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.