RERA stands for the Real Estate (Regulation and Development) Act, which is a significant piece of legislation in India related to the real estate sector. Here’s a brief overview:
Real Estate (Regulation and Development) Act (RERA):
RERA was enacted to bring transparency, accountability, and efficiency in the real estate sector in India.
The Act came into force on May 1, 2017, and each state and union territory in India is required to establish its own regulatory body known as the Real Estate Regulatory Authority (RERA).
Ensure transparency in project marketing and execution.
Protect the interests of homebuyers.
Establish a standardized process for real estate transactions.
Encourage fair play and professionalism in the real estate sector.
Registration of Projects and Agents: Developers are mandated to register their real estate projects with RERA before advertising or selling. Real estate agents also need to register with RERA.
Disclosure of Project Details: Developers are required to provide detailed information about their projects, including project plans, approvals, and timelines.
Accountability and Transparency: RERA aims to curb malpractices by promoting accountability and transparency in transactions between developers and buyers.
Advance Deposits: Developers are required to deposit a percentage of the project cost in a separate bank account to ensure that funds are used only for that specific project.
Timely Possession: RERA stipulates that developers must hand over possession of properties to buyers on time, and any delays may result in compensation to the buyers.
Benefits for Homebuyers:
Homebuyers gain increased confidence and protection as they can access comprehensive project information before making a purchase.
Dispute resolution mechanisms are established, providing a platform for quick resolution of issues between buyers and developers.
Developers are incentivized to adhere to timelines and deliver projects on schedule.
RERA has significantly contributed to the restructuring of the real estate sector in India, aiming to create a more trustworthy and regulated environment for both developers and homebuyers.