RERA

RERA

The Real Estate (Regulation and Development) Act, 2016 (RERA) charted a significant change in the Indian real estate sector, placing the citizen, the homebuyer, at the centre. The main objective of this legislation is to regulate and promote real estate sector of India in a transparent and efficient manner.

This knowledge centre empowers you to understand your rights and protections under RERA. Explore key provisions, dispute resolution mechanisms, and how RERA promotes transparency and financial discipline. Make informed choices throughout your property purchase journey and invest in your dream home with peace of mind.

What is RERA?

RERA, short for Real Estate (Regulation and Development) Act, is a game-changer for Indian homebuyers. Introduced in 2016, it acts like a watchdog, ensuring transparency in real estate transactions.

Each state has a RERA authority that mandates project registration. Developers must disclose details like carpet area, project plans, and timelines. This information is public on RERA's website, empowering buyers to make informed decisions. RERA also streamlines dispute resolution between buyers and developers. By promoting transparency and protecting buyers, RERA aims to build trust and attract more investment to the real estate sector.

Why You Should Prefer RERA Approved Projects?

Here is why you should prefer RERA-registered Projects:

• Transparency and Trust: RERA forces developers to disclose crucial details like project plans, approvals, and timelines. You'll know exactly what you're getting and can verify if everything is legitimate.

• Protection from Delays: Say goodbye to endless waiting! RERA holds developers accountable for completing projects on time. No more worries about your dream home being stuck in limbo.

• Promotes Fair Play: RERA ensures a standardized way of measuring property size (carpet area) and prevents developers from inflating prices with unclear measurements.

• Dispute Resolution: Facing issues with the developer? RERA provides a faster and more efficient way to resolve disputes, saving you time and frustration.

How to Check Whether the Project is RERA Approved?

Here's how you can check RERA-registered projects:

• Step 1: Visit the official RERA website of the respective state.

• Step 2: Navigate to the “Projects” section and choose “Offline Projects” or “Online Projects” to check RERA-approved projects.

How to Register Complaint Under RERA?

Here's an easy step-by-step guide to register a complaint under RERA in Puducherry:

• Step 1: Visit the official RERA website of the respective state and click on the “Complaints” section.

• Step 2: Fill the complaints registration form with necessary details.

• Step 3: Click on “Submit” to register your complaint.

RERA in India Rules and Regulations

Let's look at a short summary of the rules imposed by RERA.

1. Online registration

Builders should register their projects through a centralized online site, ensuring there is transparency for those looking to buy a house.

2. Establishing an authority for regulation

Every state and union territory in India needs a Real Estate Regulatory Authority to regulate the real estate sector. Thus, enforcing the rules and assuring compliance.

3. Disclosure of property project details

Approvals, layout plans, comprehensive project details, completion date, etc. should be made available on the RERA website.

4. Compulsory project registration

Properties crossing a certain area limit must be registered with the state's Real Estate Regulatory Authority before advertising or selling to buyers.

5. Escrow account 

Builders need to deposit 70% of the funds collected from the buyers in an escrow account ensuring the money is correctly allocated to the assigned project.

6. Sales strictly after registration

Builders can only advertise and sell units only after the project has been registered to prevent unauthorized projects.

7. Real estate agents' regulation

All real estate agents need to be registered with RERA and should comply with its rules.

8. Structural defects liability

Builders are responsible for any structural defects for five years after possession is given to the buyers.

9. Carpet area pricing

Residence unit prices need to be calculated based on the carpet area, ensuring transparency in prices.

10. Grievances redressal

Only real estate appellate tribunals will handle the disputes between buyers and developers.

RERA Impact on Real Estate in India

Since the RERA was implemented, the Act has changed the way the real estate sector operates. Here’s how:

• Cracking Down on Unethical Practices: The Act have stricter regulations, removing unethical developers. This has resulted in a transparent and trustworthy market for homebuyers and investors.

• Increased Investor Confidence: The implementation of a regulatory body has boosted investor confidence through RERA’s project registration and disclosure requirements. This has instilled confidence in the real estate sector. Investors can make an informed choice with easy access to project information.

• Ensuring Quality Construction and Timely Deliveries: The RERA incentivizes developers to ensure the quality of the construction is not compromised and deliveries delivery timelines are met. This ensures the developer maintains a good reputation among homebuyers and investors.

• Promoting Structured Growth: The Act has paved the way for a structured growth of the real estate sector, benefiting homebuyers and developers alike by ensuring a reliable market.

People Also Ask

Here are some of the frequently asked questions about RERA:

1. Which real estate projects are covered under RERA?

Real estate projects exceeding 500 sq. Mts., and with eight floors are more need to be registered and are covered under RERA.

2. What are the key obligations of real estate developers under RERA?

Transparency and fairness are the key obligations of real estate developers under RERA.

3. How does RERA protect homebuyers' interests?

RERA ensures the builder has the project registered and the ensures the details of the project remain transparent for the benefit of the homebuyers.

4. What is the role of RERA in each state?

RERA supervises the regulations in each state and ensures quick settlement of disputes.

5. What remedies are available to homebuyers if a developer violates RERA provisions?

The buyer, the developer, or the agent may submit a complaint with RERA if they have any grievances regarding the project. They can also file a complaint with the Appellate Tribunal if they disagree with RERA's ruling.