Licit value of property with optimum validation, gear up buyers
In India there are dozens of different real estate portals and agents offering eye-popping online and offline property dealings fitting your budget. For purchasing or selling property we always have a common inclination towards electing those portals/agencies which are apparently predominant real estate portals acclaimed by any A-1 search engine. Have you ever had a moment to think of the authenticity of the constructors or do you really notice whether your real estate agent has a valid trade license or not? Is the company registered one? Is your real estate company abiding by all the current market ethics and set of laws inaugurated by RERA (Real Estate Regulation and Development Act)? Not really! We merely have any idea about this.
What is RERA: This act received assent of the president of India on 26th march, 2016. This is act is an essential addition to our legislature for authorizing and regulating real estate companies to ensure the exact selling value of plot, apartment, building etc. This act came in the frame to protect the buyers as well as advance the investment procedure in the real estate industry. RERA was introduced by UPA alliance in 2013. The bill got final approval by Rajya Sabha on 10th and by Lok Sabha on 15th march, 2016. This law extends entire India except from J&K. Previously there was no governing body to scrutinize real estate transaction, e.g.- We have RBI to have an authorized control over subordinate banks and other financial organizations, similarly RERA is a legalized body to regulate entire real estate sector.
The origin of RERA: The sap of RERA has been boiled down from CEA (Council for Estate Agencies), Singapore, where it was clearly stated no real estate agent without license can perform any property related transactions. Any agency beyond this rule would be charged huge penalty amount and further imprisonment. Submitting fake documents during registration or renewal of the license can cost for an indefinite period. RERA has the supreme power to abandon the registration of any real estate agency if found red handed.
India as a union democracy: According to the Indian Constitution act 1(1) India is the union of the states. Therefore there is a clear conscience of the power division between state and central govt. Though central govt. possess a vast territory of command than state govt. The Property Law Act, 1974 separated central sovereignty from personal right to property. The entire RERA extension faces the real challenge when it comes to the tax and excise distribution between the central and state govt. Hence, RERA has three vital areas of provisions-
– Registration: This act makes it essential to register any project before launching for making it more distinct while marketing and further promotional implementation. For ongoing projects the registration period is maximum three months. RERA has the right to approve to deny the application of registration in terms of validity. Thus agents will have a single time registration for building a specific property.
– Protection of buyers: This act is s strict prohibition from illegal money transaction, now approx 70% money has to be deposited via cheques in existing bank accounts. Customers get benefited through this act as builders will have to quote the price according to the carpet-area and the carpet area includes the entire unable area under the roof.
– Real Estate Regulatory Authority and Appellate Tribunal: State related RERA regulated residential and commercial issues will be operated by this authority.