Government Says No to Ads for the Projects without Registration
Jun 28, 2017 Real Estate News
There has been some confusion over RERA rules since it came into full force from 1st may 2017. The government cleared the air by clarifying that the developers will not be able to advertise any project until it has been registered with the government under the new norms. The rule applies to the ongoing and future projects. This is supposed to further dampen the already slow real estate market which hasn’t seen any considerable appreciation in past couple of years.
The Real Estate (Regulation and Development), Act was passed last year keeping the best interest of the buyers in the mind. There have been endless complaints about the developers exploiting the buyer's interest by not completing the project on time or giving the promised construction.
NAREDCO, the realtor’s body, has submitted a detailed document to the Ministry of Housing and Urban Development seeking clarity on the advertisement of the ongoing projects due to the conflicting reports and interpretation of the issue.
Responding to the letter, the ministry cleared that, “the Section (3) 1, f the Act prohibits advertisements for all projects (ongoing/future) without registration with the real estate regulator. This provision has come into effect from May 1, 2017."
Praveen Jain, president of NAREDCO said that the ban on advertisements on the ongoing and future launch projects will hit the sales of the properties in the industry.
According to the Section (3) 1 of the Act, “no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act."
For the ongoing projects, the section provides that the developer should complete the registration of the project within three months from the date of the launch of Act i.e., 1st May 2017.
A nine year long wait for the real estate’s most awaited act came to end last month. This act will hopefully put an end to all the unscrupulous practices of the developers. This will enable the buyers to get their grievances addressed which was difficult in past.
All the 92 sections of the act have come full force. The developers are required to get the completion certificate from the authority and get the newly launched projects registered by 1st July.
The Real Estate (Regulation and Development), Act was passed last year keeping the best interest of the buyers in the mind. There have been endless complaints about the developers exploiting the buyer's interest by not completing the project on time or giving the promised construction.
NAREDCO, the realtor’s body, has submitted a detailed document to the Ministry of Housing and Urban Development seeking clarity on the advertisement of the ongoing projects due to the conflicting reports and interpretation of the issue.
Responding to the letter, the ministry cleared that, “the Section (3) 1, f the Act prohibits advertisements for all projects (ongoing/future) without registration with the real estate regulator. This provision has come into effect from May 1, 2017."
Praveen Jain, president of NAREDCO said that the ban on advertisements on the ongoing and future launch projects will hit the sales of the properties in the industry.
According to the Section (3) 1 of the Act, “no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act."
For the ongoing projects, the section provides that the developer should complete the registration of the project within three months from the date of the launch of Act i.e., 1st May 2017.
A nine year long wait for the real estate’s most awaited act came to end last month. This act will hopefully put an end to all the unscrupulous practices of the developers. This will enable the buyers to get their grievances addressed which was difficult in past.
All the 92 sections of the act have come full force. The developers are required to get the completion certificate from the authority and get the newly launched projects registered by 1st July.
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