OBJECTIVE AND REASON FOR WHICH RERA FARMED

OBJECTIVE AND REASON

FOR WHICH RERA FARMED

The Real Estate (Regulation and Development) Act, commonly known as RERA, was framed with the primary objective of regulating and promoting transparency in the real estate sector in India. The Act was enacted to address various issues and challenges that both homebuyers and the real estate industry were facing. The key objects and reasons for which RERA was framed include:

 

1.  Consumer Protection: One of the primary goals of RERA is to protect the interests of homebuyers. The Act aims to ensure that buyers are not cheated or subjected to fraudulent practices by builders and developers.

 

2.  Transparency: RERA emphasizes transparency in the real estate sector. It requires developers to provide detailed project information, including project plans, approvals, and financial information, on a public platform, allowing potential buyers to make informed decisions.

 

3.  Accountability: The Act holds builders and developers accountable for project delays, structural defects, or any other violations. It mandates builders to complete projects within specified timelines and maintain quality standards.

 

4.  Prevent Unauthorized Project Launches: RERA prevents developers from advertising or selling real estate projects without registering them with the appropriate state RERA authority. This ensures that only approved projects can be marketed to the public.

 

5.  Efficient Dispute Resolution: RERA establishes a mechanism for resolving disputes between builders and homebuyers through the creation of an adjudicating authority and a Real Estate Appellate Tribunal. This allows for the swift resolution of conflicts without resorting to lengthy and expensive legal proceedings.

 

6.  Promotion of Affordable Housing: The Act encourages the development of affordable housing projects, aiming to address the housing needs of a wider section of the population, particularly the economically weaker sections and lower-income groups.

 

7.  Regulation of Real Estate Agents: RERA also regulates the activities of real estate agents and brokers by mandating their registration. This ensures that intermediaries in the real estate market are also accountable and act in the best interests of homebuyers.

 

8.  Fund Protection: RERA mandates that builders maintain a separate escrow account for each project, ensuring that the funds collected from buyers are used exclusively for the development of that specific project. This helps prevent the diversion of funds to other projects or purposes.

 

9.  Reducing Project Delays: By specifying timelines for project completion and imposing penalties on developers for delays, RERA aims to reduce the chronic issue of project delays that often led to buyer dissatisfaction.

 

 

10.Standardization of Practices: RERA seeks to standardize business practices in the real estate industry, making them more professional and organized, and bringing greater accountability to the sector.

 

11.  Promotion of Investments: The Act also aims to instill confidence in investors by creating a more transparent and accountable real estate sector, which can, in turn, attract more investment into the industry.

Overall, RERA was framed to bring about a significant transformation in the real estate sector by protecting the interests of homebuyers, enhancing transparency, and promoting ethical practices in the industry, ultimately leading to the growth and development of the Indian real estate market.