BUYER SUPREME UNDER REAL ESTATE (REGULATION AND DEVELOPMENT) ACT 2016


All buildings which have not got OC will have to take license from RERA

 

The Real Estate (Regulation and Development) Act 2016,  will regulate all real estate development process and real estate transaction process in the country. The Act came into force from 1st May 2016.

The RER Act wants all state to establish Real Estate Regulatory Authority.

It is MANDATORY for all project and All buildings which have not got OC will have to take license from RERA Under Real Estate (Regulation and Development) Act 2016.

The Highlights of the Act, which is beneficial to the Buyers:

According to Sec 20 (1) after the establishment of the Authority, which will be within one year from date of commencement (1st May 2016) all new and ongoing projects will have to register with the Authority within three months.

The relevant section says :

3. (1) No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act: Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act: Now , the problem is hundreds and thousands of buildings do not Occupation Certificate. Once the Commencement Certificate along with IOD (Intimation of Disapproval) is granted the project is treated as under construction.

Even after ten or fifteen years, even though the property or the building is occupied, even though, many transaction taken place and housing finance availed but the building is not finished in the eye of law unless it gets Occupation Certificate (OC) or Building Completion Certificate (BCC) whichever is applicable.

All estate agents who sell flats in these buildings will also be liable to penalties imposed under the Act because the Act says in Sec 10 no broker should facilitate any sale in projects which do not have license or approval from RERA Authority.

Any building which not got OC is under construction and all under construction buildings must be registered with RERA.

If there is no license to the building or OC then all those who are instrumental will be liable for punishment which could be imprisonment and fine. All builders who have not got the OC for their property need to register it with authority. One cannot run away with this provision as Authority are tracing unscrupulous builders who do not complete projects. Thousands of buildings in Mumbai, Pune, Bangalore, Delhi and elsewhere in the country have not got OC since last 15 to 20 years. 

 

 

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