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  • What is Real estate?
  • Which Laws Govern Real-estate?
  • Where to File a case in case of Developer not following the Real Estate laws?

Real Estate Regulatory Authority (RERA) Bill was presented by the Indian National Congress government in 2013.In December 2015, the Union Cabinet of India had affirmed 20 noteworthy amendments to the bill in view of the proposals of a Rajya Sabha committee that analyzed the bill. The Bill had been alluded to a select committee, which had given its report in July 2015. However, Congress, Left and AIADMK had communicated their reservations on the report through difference notes. The bill got endorsement of the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016.

What is Real Estate?


Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this also an item of real property, more generally buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings, or housing.

Laws Governing Real-estate


  • The Real Estate Act,2016.
  • Consumer Protection Act,1986.

What Does Real Estate Act,2016 states?


  • As per Section 3 of the act, prior registration of a real estate project with the Real Estate Regulation Authority (hereinafter referred to as the RERA) is mandatory.
  • Section 3(2) provides for certain types of real estate projects to not be compulsorily registered.
  • The promoter needs to present an application for registration of real estate venture along-with recommended charge. Some of the documents to be encased with the Application include brief specifics of Promoter’s enterprise, declaration by a promoter with his affidavit, brief specifics of the project, and so on
  • The promoter has to necessarily make certain declarations in his application itself
  • RERA has the power of taking suo moto decision of revoking a registration under certain grounds
  • Section 9 of the Real Estate Act makes registration of a real estate agent a mandatory activity.
  • The alottee/homebuyer has the right to access information regarding stage-wise time schedule of completion of project, being informed about sanctioned plans, claim allotment’s possession, etc.
  • The Act entails punishment on inability to register real estate venture. It states that if promoter fails to register the undertaking as gave under Section 3 of the Real Estate Act then he shall be subject to a punishment which may stretch out to 10% of the estimated cost of real estate venture.
  • The Act provides punishment for furnishing of false data i.e. details furnished by promoter while registering a real estate venture.

What does Consumer Protection Act,1986 govern in Real Estate?


Consumers in the real estate industry are prone to a higher degree of risk than they are in the other sectors of the economy. Though progressive, the real estate industry is immensely unregulated. It lacks regulations, it lacks the required ethics. Consumers are exploited by taking advantage of these limitations that plague the real estate industry. The housing sector is immensely opaque, due to which consumers are unable to procure complete information or enforce accountability against builders and developers. There exists no binding regulatory body to the industry, which affects it by delaying completion of projects, diversion of funds collected from buyers; one-sided contracts in the absence of adequate supply; reneging on contractual commitments by both the developers and the buyers; and constraints in financing and investment options available to the sector, thereby affecting its long-term growth.

Therefore, the consumer Protection Act,1986 protects consumers from such risks as huge money is involved in real estate matters. Where a purchaser can file a suit if the purchaser finds that the Developer is trying to cheat or take to fraudulent means to gain extra from the pockets of intended purchaser or deviating from the Agreement as made.

In the last couple of years, there has been an enormous upsurge in the real estate sector and buildings are mushrooming everywhere of metropolitan cities in India. Inferable from this extensive development of the sector and consumers' willingness to invest in real estate, the builders have possessed a position of predominance and the arrangement of standard shape contracts or uneven agreements has additionally worsened the situation.

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