Date : 11-08-2018 11:12
INTRODUCTION: Real estate industry saw a boost in the past few years and along with that growth, a new problem arose where many cases were registered for the loss being suffered by the aggrieved buyers.
Seeing this government came up with a solution and enacted the real estate (development & regulation act) 2016. RERA has been enacted specifically to deal with the real estate sector. The main objectives of RERA is regulation and promotion of real estate sector ensuring transparency of transactions along with protecting interests of both the parties by striking a balance.
This legislation organized the real estate sector by ensuring various legal compliances by imposing stringent penalties for non-complying with its regulations.
It seeks to protect the interests of innocent home buyers who had to put in all their hard earned money to buy for themselves a home but were aggrieved due to frauds, delayed possession etc. on the part of realtors and agents. RERA imposes some key requirements to be followed by promoters and brokers of a certain project/property so as prevent oppression to homebuyers. Special courts are being setup for speedy adjudication of disputes arising out of related problems.
RERA defines an agent to be the person whose work is to negotiate, facilitate and represent for transfer of real estate property from one person to another in the form of sale in return of a fixed commission. The term broker under RERA expands to include any middleman, property dealer who introduces sellers from prospective buyers.
NOTE: The registration certificate granted to a person who has applied for being an agent is valid for a term of 5 years from date of receipt of that certificate.
PENALTY: A broker or agent for non-complying with the prescribed requirements may be exposed to a penalty of rupees ten thousand for every day that default continues which may extend up to 5% of the total cost of the transaction made by him.