Good news for home buyers as Real Estate Bill comes into effect from today

There was much celebrations going on, when last month the legislative passed the Real Estate Bill. But there was doubt over the date it would be implemented. The government has addressed the issue finally. The Real Estate (Regulation and Development) Act comes into force from Sunday , setting in motion the process of making necessary operational rules and creation of institutional infrastructure to protect consumers, timely completion of projects and bringing transparency in the real estate sector.

A proposal for a law for the sector was first mooted in January 2009 at the National Conference of Housing Ministers of States and Union Territories. Seven years down the line, the home buyers will finally celebrate the completion of their dream law.

The Ministry of Housing & Urban Poverty Alleviation has notified 69 of the total 92 sections of the Act on Wednesday this week, the statement added.

Rules under the Act have to be formulated by the Centre and State Governments by October 31, 2016 under Section 84 of the Act.

Real Estate Regulatory Authorities (RERA), with which all real estate projects have to be registered, and Appellate Tribunals for adjudication of disputes have to be set up within one year under Section 20 of the Act, the statement added.

The Regulatory Authorities, upon their constitution, will get three months to formulate regulations concerning their day to day functioning. Similarly, Real Estate Appellate Tribunals shall be formed within a maximum period of one year i.e. by April 30, 2017.

OUR TAKE

The need for regulation in this sector was much needed. The proposal was mooted way back in 2009, soon after the sub-prime crisis in the US. The condition there was critical because of the failure of the housing sector. This speaks volumes about the importance of the housing sector in an economy. Therefore, regulation has finally arrived and it is a welcome news for everyone who wishes to buy homes in the coming years.