RERA and the government’s model code, aim to create a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market. The most positive aspect of this Act is that it provides a unified legal regime for the purchase of flats; apartments, etc., and seeks to standardize the practice across the country.
What is RERA?
The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector. The Rajya Sabha passed the RERA bill on March 10, 2016, followed by the Lok Sabha on March 15, 2016 and it came into force from May 1, 2016.
What are the economic characteristics of real estate?
Any piece of real estate has some distinct economic characteristics that differentiates its value among all possible avenues of investment. - Scarcity: While there are different purposes attached to it, the total supply of land present on the planet is fixed.
- Enhancements: It refers to any additions or changes to the land or a building that affects the property's value.
- Perpetuity of investment: Once a sizable fixed investment has gone into developing a piece of land or a property, it is very less likely to lose its entire value over the course of time.
- Location: Even though a provisional but the single most important determinant of the value of any property. Factors like land use, convenience, reputation, and history can single handedly drive the value of an investment.
What is real estate?
Real estate is the land along with any permanent enhancements attached to the land, whether natural or man-made - including water, trees, minerals, buildings, homes, fences, and bridges.