RERA stands for the Real Estate (Regulation and Development) Act, which is a significant piece of legislation in India that was enacted to regulate the real estate sector and protect the interests of homebuyers. RERA came into effect on May 1, 2017, and it has been implemented at both the central and state levels.
Key objectives and features of RERA include:
- Transparency: RERA aims to promote transparency in the real estate sector by mandating that developers register their projects with the regulatory authority. Developers are required to provide detailed project information, including project plans, timelines, and financial details.
- Consumer Protection: RERA seeks to protect the interests of homebuyers by requiring developers to adhere to project timelines and deliver what has been promised. It also establishes mechanisms for addressing grievances and disputes between buyers and developers.
- Financial Discipline: Developers are required to deposit a certain percentage of the project cost in a separate bank account. This ensures that funds allocated for a specific project are not diverted to other purposes.
- Project Delays: RERA imposes penalties on developers for delays in project completion, and it also provides compensation to homebuyers for any losses incurred due to such delays.
- Defects in Construction: If there are any structural defects or poor-quality construction work, the developer is responsible for rectifying these issues within a specified period.
- Real Estate Agents: RERA also regulates the activities of real estate agents and mandates their registration with the regulatory authority. This aims to bring professionalism and accountability to the real estate brokerage industry.
- Appellate Tribunals: RERA establishes Real Estate Appellate Tribunals to adjudicate disputes and appeals arising from the decisions of the regulatory authority.
It's important to note that while RERA is a central law, it is implemented by individual states and union territories in India. Each state has its own RERA authority responsible for implementing and enforcing the provisions of the Act within its jurisdiction.
RERA has significantly impacted the real estate sector in India, making it more transparent and consumer-friendly. Homebuyers now have greater confidence and legal recourse when dealing with real estate transactions, and developers are incentivized to complete projects on time and maintain higher construction standards.
