The real estate (regulation and development) Act 2016 was enacted on 1 May 2016. The main purpose of the Act was to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plots, apartments or buildings in an efficient and transparent manner.
The Act was enacted to protect the interest of real estate buyers and to establish a mechanism for speedy redressal to disputes.
It covers both residential and commercial real estate segments and requires mandatory registration of all projects above 500 sq. mt in size or having eight apartments with the real estate regulatory authority.
Besides developers, real estate agents who intend to sell any plot, apartment or building also need to get registered with the authority. The Act tries to cover things starting from launch of the projects and even makes developers accountable for post-sales issues. All state governments are required to establish a real estate regulator and a website for the benefit of all stakeholders.