In a first, the Haryana Real Estate Regulatory Authority (HRERA) has approved a maximum one per cent brokerage on sale or purchase of property in the state.
Daily Current Affairs Quiz 2020
Key-Points
Real Estate (Regulation and Development) Act took effect in May 2016 to regulate and promote the real estate sector.
It aims to bring about transparency and efficiency in an opaque industry and has a mandate to protect consumer interest, including establishing a speedy redressal system.
The idea behind Rera was to create a legal framework for the fair and transparent functioning of the industry. Earlier, the realty sector functioned in a legal vacuum.
Before Rera, most builders took buyers for granted, swindled funds in different projects thus leading to delayed delivery across several cities.
In the two years, the number of new launches has come down because there is greater pressure on developers to be transparent about the use of money.
Salient Provisions:
The Act is applicable all over India, except J&K. It applies to all under-construction projects with a plot size above 500 sq. m or projects with 8 apartments or more;
Each state has to set up its own regulator, keeping the central law as the framework;
Real estate agents must be registered with the authority before executing any transaction;
Developers cannot advertise, market, book, sell or invite persons to purchase a plot, apartment or building without registering the project with the regulator;
The project can be cancelled if rules are not regularly followed;
Developers are accountable for after-sale services; The developer is liable to rectify structural damages for five years.