The Real Estate (Regulation and Development) Act, 2016, aims to establish regulatory authorities at the state level for registering residential real estate projects and regulating contracts between buyers and sellers in the real estate sector. This act seeks to ensure the sale of plots, apartments, buildings, etc., in an efficient and transparent manner. It also proposes to ensure greater accountability towards consumers, and significantly reduce frauds and delays as well as the current high transaction costs. By imposing certain responsibilities on consumers and promoters, it attempts to balance the interest of both parties. It seeks to establish ease of information between the promoter and purchaser, high levels of transparency in contractual conditions, set minimum standards of accountability, and a fast track dispute resolution mechanism.

The real estate sector plays a vital role in fulfilling the need and demand for housing and infrastructure development in India. Although this sector has experienced rapid growth in recent years, it has been largely unregulated, despite the existence of state apartment acts, with a lack of professionalism and standardization. The absence of an adequate consumer protection mechanism led to exploitation and profiteering by unscrupulous builders. Consequently, the Real Estate Act serves to protect buyers’ interests and propel the sector forward. To ensure compliance and navigate the Real Estate Act’s requirements, businesses can seek assistance from professional utilities or services like Taxvilla.