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Real Estate (Regulation and Development) Act, 2016 (“RERA”) has been enacted to ensure transparency in a transaction during the sale of plots, apartments, and building and in real estate projects which seek to protect home buyers as well as help to boost investments in the real estate industry. In this article we shall look at the scope of the RERA Act and also have a detailed understanding on participants under it.
Thus, it is pertinent to note that the Act is wide enough to cover within its scope development of land for buildings, apartments as well as plots. Further, the Act covers not only residential projects but also commercial projects.
As per the Act, the promoter is:
It may be noted that where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sell apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made thereunder.
The term has been defined as –
As per the Act, Real Estate Agent means any person:
Who negotiates or acts on behalf of one person in a transaction or transfer of his plot, apartment or building, as the case may be, in a real estate project by way of sale, with another person or transfer of plot, apartment or building, as the case may be, of any other person to him and receives remuneration or fees or any other charges for his services whether as a commission or otherwise.
It includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be, and property dealers, brokers, middlemen by whatever name called.
The Real Estate Agents play a significant role in Real Estate transactions by being the link or acting as middlemen between the promoter and the allottee. They not only bring both the parties together but also induce the prospective buyer to buy the plot, apartment or building by informing about or making representations of the promoter and his project.
The Act prohibits real estate agents from facilitating any sale or purchase of plots/apartments in projects without obtaining RERA Registration. Moreover, the agents are, inter-alia, required to facilitate access to project information to consumers at the time of booking and refrain from making false statements, misleading representations and indulging in unfair trade practices.
The RERA Act was introduced to protect the home buyers against malafide intentions of builders, agents etc. It also sought to enhance investments in the Real Estate Industry. Therefore, the participants are required to act as per the prescribed regulations.
Read our article:
Statutory Provisions of RERA: Registration Process, Documents, Offences, etc.
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
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