In order to manage the real estate affairs, protect the user’s interest, and to make dealings more transparent and secure, the National Assembly (NA), on Tuesday, October 20th, passed three bills approving the establishment of the Real Estate Regulatory Authority (RERA).
• The authority is delegated to improve the sector’s efficiency by preparing and implementing regulatory reforms.
• According to the bill, the builders and developers will have to seek permission from RERA before starting work on any real estate project.
• The real estate agents will be required to register with the authority for the sale of plots, houses or buildings.
• No promoter will be allowed to sell or purchase any plot or advertise for it without approval.
• Developers will be required to submit the details of any past real estate projects along with a future plan to RERA.
• The authority will be responsible for overlooking the rights of the allotters and real estate agents.
• In case of any violation, RERA will hold the power to revoke the license of the promoter.
• RERA will be responsible for providing speedy redress to stakeholders for all complaints related to property disputes.
• RERA will boost investment in the real estate sector and act as a consultant for the government on all development projects.
• The Real Estate Regulatory Authority will be headed by a chairman appointed by the government.
The establishment of RERA is a positive step towards the transformation of the real estate sector. It will promote investments in the said sector, thereby boosting the economy and making transactions more secure and transparent.