WORK OF REAL ESTATE REGULATORY AUTHORITY

Work of RERA

RERA, which stands for the Real Estate (Regulation and Development) Act, is an Indian legislation aimed at regulating the real estate sector and protecting the interests of homebuyers. RERA has several key provisions and functions, and it works to provide transparency and accountability in the real estate industry. Here is a list of some of the significant functions and provisions of RERA:

1.     Mandatory Registration: Under RERA, all real estate projects with an area exceeding 500 square meters or more than eight apartments must be registered with the respective state's RERA authority.

 

2.     Disclosure of Project Details: Developers are required to provide comprehensive project information, including project plans, approvals, layout plans, and expected delivery dates, on the RERA website for public access.

 

 

3.     Advance Payment Cap: Homebuyers cannot be asked to make advance payments of more than 10% of the property's cost before a sale agreement is signed.

 

4.     Escrow Account: Developers are required to deposit 70% of the funds collected for a project in a separate escrow account, which can only be used for that project's construction.

 

 

5.     Timely Project Delivery: Developers are legally bound to complete the project within the agreed-upon timeline. If there are any delays, the developer is liable to pay compensation to the homebuyers.

 

6.     Defects Liability: Developers must address any structural defects or poor work quality in the project for a period of five years after the possession date.

 

 

7.     Right to Information: Homebuyers have the right to access project-related information and updates throughout the construction process.

 

8.     Regulation of Agents: Real estate agents and brokers must also register under RERA to facilitate transparency and accountability in the sector.

 

 

9.     Dispute Resolution: RERA provides a mechanism for resolving disputes between developers and homebuyers through the establishment of an adjudicating authority and the Real Estate Appellate Tribunal.

 

10. Penalties for Non-Compliance: Developers who do not comply with RERA provisions can face penalties, including imprisonment, fines, and loss of their registration.

 

 

11. Promotion of Affordable Housing: RERA encourages the development of affordable housing projects to cater to the housing needs of a broader population.

 

12. Consumer Protection: RERA serves as a vital tool for consumer protection, allowing homebuyers to seek remedies if they face issues with developers or their projects.

 

 

13. Transparency and Accountability: RERA promotes transparency and accountability in the real estate sector by mandating the disclosure of project-related information and ensuring that funds are appropriately utilized.

 

These are some of the key provisions and functions of RERA. The specifics may vary from state to state in India, as each state has its own RERA authority and regulations, while adhering to the overarching principles of the RERA Act.