RERA

RERA stands for the Real Estate (Regulation and Development) Act, 2016. It is a significant piece of legislation in India that was enacted to regulate and promote transparency and accountability in the real estate sector. RERA aims to protect the interests of homebuyers and ensure fair practices in the real estate industry. Here are key points about RERA:

1. Objective: The primary objective of RERA is to establish a regulatory framework for the real estate sector to safeguard the interests of homebuyers, promote transparency, and create a fair and ethical environment for both developers and consumers.
2. Applicability: RERA applies to residential real estate projects, both ongoing and new, including apartments, houses, and plots, where the land area exceeds 500 square meters or the number of apartments exceeds eight.
3. Mandatory Registration: Developers are required to register their projects with the respective state’s Real Estate Regulatory Authority (RERA) before advertising or selling any units in the project. This ensures that the project complies with RERA regulations.
4. Disclosure of Information: Developers are mandated to provide detailed project information, including project plans, financial details, project status, approvals, and timelines, on the RERA website for public access.
5. Accountability: RERA imposes strict penalties and consequences for developers who fail to meet project timelines, deliver substandard quality, or engage in unfair practices. Homebuyers can seek compensation for delays or deficiencies in project delivery.
6. Advance Payment: Developers are not allowed to demand more than 10% of the property’s cost as an advance payment before signing a sale agreement.
7. Carpet Area Basis: RERA mandates that property prices be advertised and sold on a carpet area basis, ensuring clarity in the actual usable area of the property.
8. Project Delays: In the event of project delays, developers must compensate homebuyers with interest on the amount paid for the period of the delay.
9. Quality Assurance: Developers are held accountable for maintaining the quality of construction and providing a structural warranty for a specified period.
10. Dispute Resolution: RERA establishes Real Estate Regulatory Authorities at both the state and union territory levels. These authorities are responsible for addressing disputes and grievances related to the real estate sector.
11. Transparency: The RERA website serves as a centralized platform for accessing project details, registration information, and resolving disputes, making the real estate sector more transparent and accountable.
12. Consumer Protection: RERA provides a legal framework that empowers homebuyers to protect their rights and seek redressal in case of disputes with developers.

RERA has had a significant impact on the Indian real estate sector, bringing about greater transparency and accountability. It has led to increased consumer confidence and investment in the real estate market by providing a structured and regulated environment for both developers and homebuyers. Homebuyers are advised to verify the RERA registration of a project before making any real estate investments to ensure legal compliance and protection of their rights.