RERA stands for the Real Estate (Regulation and Development) Act, which is an Indian legislation passed by the Parliament in 2016. The act establishes a regulatory framework and sets guidelines for the development and sale of real estate properties.
Some key features of RERA are:
Registration of Real Estate Projects: RERA mandates that developers must register their real estate projects with the respective state's Real Estate Regulatory Authority before advertising, marketing, or selling any units in the project. This ensures that the project meets the necessary legal and financial requirements.
Disclosure of Project Information: Developers are required to provide comprehensive details about the project, including project plans, layout, approvals, timeline, and details of the promoter, to the regulatory authority. This information is made available to buyers and helps in making informed decisions.
Escrow Account: RERA mandates that developers must maintain a separate bank account for each project and deposit a specified percentage of the funds received from buyers into that account. This measure ensures that the funds are utilized for the specific project's development and reduces the diversion of funds to other projects.
Carpet Area Definition: RERA defines the carpet area of a property, which is the usable floor area within the walls of a unit. This provides clarity and consistency in determining the actual area of the property being sold, ensuring transparency and preventing misleading advertising.
Rights and Protection for Buyers: RERA provides several rights and protections for buyers. It includes the right to information, timely delivery of possession, assurance of quality and specifications as promised, and a mechanism for redressal of grievances through the establishment of Real Estate Appellate Tribunals.
Real Estate Regulatory Authority: Each state in India has its own Real Estate Regulatory Authority established under RERA. The authority is responsible for implementing and enforcing the provisions of the act, resolving disputes, and ensuring compliance by developers and buyers.
RERA aims to bring transparency, accountability, and consumer protection to the real estate sector, which was previously plagued by issues such as project delays, misrepresentation of information, and unfair practices. By providing a regulatory framework, RERA aims to create a more organized and fair real estate market for both developers and buyers.
