RERA

The country's residential real estate market has largely been driven by increasing disposable income, a quickening rise in the middle class, low-interest rates, tax breaks for making loan principal and interest payments, customer expectations, increased urbanization, and an increase in nuclear families. In spite of laws like the Transfer of Property Act, the Land Revenue Acts, and the Indian Contract Act of 1872, it was claimed that the aforementioned industry was largely unregulated and that there was insufficient protection for consumers. The residential real estate industry revolves around necessities of life like food, clothing, and shelter. Investors in residential projects who invest their hard-earned money are taken advantage of by developers, promoters, and real estate brokers. Builders and promoters employed their techniques to deceive home buyers while having an ambiguous policy on the property that was to be offered to the average person, or home buyers. The lack of a clear image of the project, possession, sanctions, legality, and rates resulted in consumer fraud and uncertainty. Because there was no clear regulation to oversee this real estate market, they took unfair advantage of the situation. The Indian Contract Act of 1872 and the Consumer Protection Act of 1986 were insufficient to safeguard homebuyers.

The Real Estate Regulation Development Act, 2016, was approved by the legislature. RERA's primary goal is to protect customers from the wrongdoings of builders, promoters, and real estate brokers. RERA and the government's model code aim to improve the equality and fairness of property transactions for both buyers and sellers, especially in the primary market. RERA would also make real estate purchases simpler by enhancing accountability and transparency, provided that states do not weaken the provisions and spirit of the central act. The Act would have a lot of advantages for the Indian government. In order to alleviate the load on the courts, this act now creates a framework for swift conflict resolution as well as an appellate tribunal to hear appeals from the Real Estate Regulatory Authority's judgments, instructions, or orders.

RERA's primary benefit in protecting consumers or investors is: Standardized Carpet Area, Rate of Interest on Default Reduces Builders' Risk in the Event of Insolvency/Bankruptcy, Buyer's Right in the Event of False Representation, Advance Payment Rights of the buyer in cases of delay in taking possession, defects after taking possession, and title defects. Additional rights include the right to information, registration of real estate brokers, and establishment of a grievance authority. Although the legislation is relatively new, it has already had an influence on the real estate market since it places a number of requirements on the builder that he must meet before selling the property to customers. The RERA Act has performed as intended, effectively shielding consumers from the power of developers and real estate brokers and placing a great deal of responsibility on them. As a result, the RERA legislation of 2016 is the first law to regulate and specify the rights of real estate brokers in this industry. The Act has encountered and is currently facing various difficult challenges, including demonetization, GST, and the current COVID-19. The act's implementation is extremely difficult since so many additional states must declare their regulations and set up their regulatory tribunals. The country's real estate laws have undergone some significant adjustments as a result of RERA.