Unveiling the Real Estate Regulation Act 2016: Evaluating its Pros and Cons

Abstract

The real estate sector is vital for the Indian economy due to significant investments and transactions. However, until 2016, the sector lacked regulations, leading to unethical acts by agents and brokers. The Government of India enacted the Real Estate (Regulation and Development) Act, 2016, to address these issues. These laws protect home buyers and investors' rights but do not address legal issues. The Real Estate (Regulation and Development) Act, 2016 (RERA) aims to regulate India's real estate industry, protect homebuyers, and increase construction transparency, accountability, and quality. It also establishes advance payment limits, escrow accounts, and dispute resolution mechanisms. Developers may incur increased expenses due to strict guidelines and quality standards, potentially affecting property prices. Bonds include transparency, accountability, project delays, quality of construction, advance payment limits, escrow accounts, and dispute resolution mechanisms. Prohibitions include regulatory burden, cost implications, and industry consolidation. Small developers may struggle with financial and administrative requirements, leading to consolidation and fewer buyer options. Implementation of RERA has been slow and varied by State, with delays in establishing regulatory authorities and ineffective enforcement limiting its benefits. Ultimately, the effectiveness of RERA depends on its efficacy and the unique characteristics of the Indian real estate market. Property is a common English word, not a specialised term. It must be interpreted normally, and a debt owed to oneself cannot be considered a gift. Property and existence are interconnected, just as property and law are closely related. Life and property co-exist, encompassing all of a person's legal rights. Petrucci defines property as the result of an instinctive tendency originating from man's constitution, behaviour, and social interactions. Instinctively, property is a natural fact and a necessary condition for all legal organisations.