Real estate to get a facelift under new law

Real estate companies, both residential and commercial, expect the sector to grow significantly after the Real Estate (Regulation and Development) Act (RERA) takes effect. Under the Act, the sector is expected to become more organised, making it attractive for foreign investors to come in.

For one, the Act makes it mandatory for all projects to register with the Real Estate Regulatory Authority before their launch. This could provide greater transparency in project making as well as execution. The law will also prohibit unaccounted money to be pumped into the sector and 70 per cent of the money will have to be deposited in bank accounts through cheques. While builders will have to quote prices based on the carpet area, every transaction will be regulated to ensure a timely completion and handover. There will be no room for fly-by-night players once the Act kicks in, say experts.

Read more: The New Indian Express