Ques 1: What is the status of the Act?

Ans: The Real Estate Bill was passed by the Rajya Sabha on 10th March, 2016 and the Lok Sabha on 15th March, 2016. The Bill as passed by the Parliament was assented to by the Hon’ble President on 25th March, 2016. The Act as assented to by the Hon’ble President was published in the Official Gazette on 26th March, 2016 for public information.

Ques 2: What was the need for a regulatory law for the real estate sector?

Ans: The real estate sector has grown in the recent years but has largely been unregulated from the perspective of consumer protection. Though, consumer protection laws are available, the recourse available therein are only curative, but not preventive. This has affected the overall potential growth of the sector due to absence of professionalism and standardization.

Ques 3: Why have some sections of the Act not been notified yet?

Ans: Some sections of the Act have not been notified yet, as the institutional structures, namely the establishment of the Regulatory Authority and the Appellate Tribunal are necessary prior to their enforcement. For e.g. projects can only be sold after they are registered with the Authority, thus, in the absence of the same there would be a vacuum.

Ques 4: What are the objects and reasons for which the Act has been framed?

Ans: The Real Estate Act is intended to achieve the following objectives: a) ensure accountability towards allottees and protect their interest; b) infuse transparency, ensure fair-play and reduce frauds & delays; c) introduce professionalism and pan India standardization; d) establish symmetry of information between the promoter and allottee; e) imposing certain responsibilities on both promoter and allottees; f) establish regulatory oversight mechanism to enforce contracts; g) establish fast- track dispute resolution mechanism; h) promote good governance in the sector which in turn would create investor confidence