What is RERA in Real Estate?

RERA stands for Real Estate (Regulation and Development) Act, which was enacted by the Indian Parliament in 2016 to protect homebuyers and boost investments in the real estate sector. The key objective of RERA is to bring transparency, accountability, and efficiency to the real estate industry. Key Features of RERA: - Registration of Projects: Real estate developers must register their projects under RERA before advertising or selling. Projects over a specific size (typically more than 500 square meters or 8 units) are required to be registered. - RERA Number: Every project registered under RERA gets a unique RERA number, which signifies compliance with the law. - Project Transparency: Developers are required to provide detailed disclosures on their projects, including plans, timelines, and financials. Buyers can track the progress of the project via the RERA website. - Timely Delivery: RERA mandates that developers stick to promised timelines, and delays can lead to penalties. Buyers are entitled to compensation for delayed possession. - Escrow Accounts: To prevent fund diversion, 70% of the money collected from buyers must be deposited in an escrow account. This ensures that the funds are used only for the construction and completion of the specific project. - Dispute Resolution: RERA provides a framework for resolving disputes between buyers and developers through the establishment of Real Estate Regulatory Authorities and Appellate Tribunals in each state. - Penalties: Non-compliance with RERA can result in significant penalties, including fines or imprisonment for developers.