The Punjab government notified the rules for real estate industry on June 8, 2017 and established the RERA act on August 10, 2017 which seeks to protect the interests of property buyers and also increase investments in the real estate industry.
For long, property buyers have complained that real estate transactions were loopsided and heavily in favour of the real estate developers. RERA and the model code of government is aim to create a fair transaction between the property seller and the property buyer. RERA hopefully will make real estate purchase a lot more simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act. The RERA will give the Indian real estate industry its first regulator ever. The RERA Act makes it compulsory for each and every state and union territory, to form its own regulator and frame the rules and regulations that will govern the functioning of the regulator.
All the residential and commercial projects measuring more than 500 sq mts are required to be registered under RERA.