Model Real Estate (Regulation of Development) Act – an Analysis

The Union Ministry of Housing and Urban Poverty Alleviation (“Ministry”) has published the draft Model Real Estate (Regulation of Development) Act (“Model Act”). The Model Act, as the name suggests, proposes to lay down what is expected to be a regulation for adoption by all states within India. The Model Act proposes to establish a regulatory authority to control and promote construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties.

Key provisions of the model act
The key provisions of the Model Act have been summarized below:

1. Establishment of a Real Estate Regulatory Authority – The Model Act provides for establishment of a Real Estate Regulatory Authority (“Regulatory Authority”), to comprise of a Chairperson and two members to be appointed from amongst persons having special knowledge and professional experience in the field of public administration.

2. Registration with the Regulatory Authority – The Model Act provides for compulsory registration of all real estate projects where:

(i) the area of land proposed to be developed exceeds one thousand square meters; or

(ii) the number of apartments proposed to be constructed exceeds four.





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2 thoughts on “Model Real Estate (Regulation of Development) Act – an Analysis

  1. 1.THERE IS APPALLING RISE IN THE NUMBER OF FLAT BUYERS. 2. THROUGH MULTI-PRONGED PROFIT MAKING STRATEGIES WITH BLURRNESS AT SEVERAL LEVELS ,BUILDERS ,AS ON TODAY ARE ‘CHEATING /EXPLOITING THE BUYERS.,SIDELINING THE AUTHORITIES. 3 TRANSPARENCIES AT EACH AND EVERY LEVEL IN TRANSACTIONS/DEALS BETWEEN BUYER AND SELLER BUILDER IS THE NEED OF HOUR AND IT IS THE AVOWED DUTY OF STATE TO INTRODUCE REGULATIONS FOR THIS. 4. PEOPLE OF INDIA AND IN PRESENT RAJASTHAN WILL BE HAPPY ,IF AUTHORITIES DONOT SUCCUMB TO THE PRESSURES OF BUILDERS LOBBY,AND TAKE FIRM DECISION. 5 FAITH OF PEOPLE OF RAJASTHAN DWINDLED IN GOVT. WHEN EARLIER APARTMENT ACT,A BOON FOR FLAT -LIVERS,WAS KEPT IN COLD STORAGE DESPITE ALL PRE-FINAL STAGE EXERCISES DONE. 6. THIS TIME PEOPLE EXPECT THAT MR. SHANTI DHARIWAL, MR. SANDHU,UNDER STEWERDSHIP OF ASHOK GEHLOT WILL NOT SUCCUMB TO BUILDERS PRESSURES AND SEE THAT BOTH REALESTATE REGULATION BILL AND APARTMENT ACT ARE PASSED AND INTRODUCED FORTHWITH

  2. In a particular case it is menioned in the construction agreement that “No request for cancellation shall be made by the Allottees before the expiry of at least 12 months from the date of this agreement “Construction agreement” and upon such request for cancellation being acdepted by the Developer, the developer shall be entitiled to forfeit of the amount paid under the agreement and shall refund gthe balance witout any interest ony after entering into an agreement with a fresh customer on equivalent or better terms in respect of the said residential unit and receipt of moneies there under. Schedule of payments under both agreement are as under :-

    Description Land
    (Amount in Rs.) Building
    (Amount in Rs.)
    Ob Booking 5,00,000/- Nil
    15 days of booking 7,46,664/- Nil
    30 days of booking 8,96,536/- 3,50,127
    On or before Registration of UDS 1,12,800/-
    Total 22,56,000. In this company company disputes . please advice

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