Real Estate Act timelines
- The buyers are entitled to seek relief under the Real Estate (Regulation & Development) Act,2016 with effect from the first of May this year
- So far only four States and six Union Territories have notified the final Real Estate Rules and complaints of violation of some of the provisions of the Act
- The government has cautioned the Chief Ministers stating “Appropriate Governments are required to establish the Real Estate Regulatory Authorities and the Appellate Tribunals, maximum by 30th April, 2017.
- The timelines are important as the Act would commence its full operation from 1st May, 2017and in the absence of Rules and Regulatory Authority and Appellate Tribunal, the implementation of the Act would be affected in your State, leading to a vacuum in the sector
- States that have notified final Rules are: Gujarat, Madhya Pradesh, Kerala and Uttar Pradesh
The salient features of the Bill are as under:
- Applicable both for commercial and residential real estate projects.
- Establishment of ‘Real Estate Regulatory Authority’ in States/UTs to regulate real estate transactions.
- Registration of real estate projects and real estate agents with the Authority.
- Mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer etc.
- Deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project. (70% of the collected amount)
- Establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.
- Civil courts jurisdiction prohibited from taking up matters defined in Bill, however, consumer court allowed to hear real estate matters.
- Promoters barred from changing plans and design without consent of consumers.
- Provision of Appropriate Government to make rules for the matters specified in the Bill, and the Regulatory Authority to make necessary regulations.