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 the regulatory law for the real estate sector?

Ans: The real estate 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 is only curative, but not preventive. This has affected the overall potential growth of the sector due to absence of professionalism and standardization.

Ques 3: What are the objectives of the Act ?

Ans: The Real Estate is intended to achieve the following objectives 1. ensure accountability towards allottees and protect their interest. 2. infuse transparency, ensure fair-play and reduce frauds & delays. 3. introduce professionalism and pan India standardization. 4. establish symmetry of information between the promoter and allottee. 5. imposing certain responsibilities on both promoter and allottees. 6. establish regulatory oversight mechanism to enforce contracts. 7. establish fast-track dispute resolution mechanism. 8. Promote good governance in the sector which in turn would create investor confidence.

Ques 4: Does the definition of 'promoter includes all promoters in case of joint development?

Ans: Yes, as per the Explanation to section 2(zK)"where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sells 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 there under".