The real estate sector plays a pivotal role in fulfilling the demands of housing and infrastructure in the country. Before 2016, there were no statutory regulations in place to protect and safeguard the rights and interest of the consumers. A huge and significant rise was seen in the litigation between builders and allottees as there was no standardize practices and transactions in the real estate sector.

The central government (legislature) sought it expedient to enact legislation with objective to regulate the law regarding real estate projects.

The Real Estate Regulation Act is an enabling act as the real estate sector falls within state list in schedule VII of the Constitution of India. The Act seeks to protect the interest of the allottees/purchasers and builders/promoters by promoting transparency, accountability and efficiency in the construction and execution of real estate projects by promoters. In order to regulate the entire real estate transactions, the Act also brings real estate brokers who facilitate the sale and purchase of units in a project within its ambit. The Act explicitly and categorically prescribes the rights and duties of the promoters, allottees and real estate agents.