Understanding RERA (Real Estate Regulatory Authority) Registration in India
Planning to buy a property in Bangalore? A quick overview of how RERA safeguards homebuyer’s rights and investments in India’s real estate market.
The real estate industry is booming in India. It witnessed a transformation with the Real Estate (Regulation and Development) Act of 2016. This legislation aims to promote transparency, accountability, efficiency, and dispute resolution in the real estate industry.
In this guide, we’ll touch base on the key aspects of RERA and its potential impact on homebuyers. This act was a monumental benchmark aiming to protect the interest of home buyers.
What does RERA mean?
RERA stands for Real Estate Regulatory Authority aiming to protect homebuyers’ interest and boost real estate investment. This Authority is established under the Act at the state level to oversee and regulate the real estate sector within the respective jurisdiction.
RERA became the game changer for the real estate industry by addressing the long-standing issues faced by home buyers related to delays in project delivery, offbeat pricing, lack of accountability from developers, etc.
What is the purpose of RERA Act?
- Registration
Under RERA, all real estate projects above 500 sq. ft must be registered before launching, marketing or advertising in the market. Failing to register the projects involves severe penalties including fines and imprisonment. This severely limits the projects’ viability in the market.
- Escrow Account
Every real estate developer is required to maintain a separate account for each project to ensure the home buyers’ fund is solely used for the intended project.
- Disclosures
RERA mandates the disclosure of relevant real estate project documents including promoter details, layout plans, approvals, and handover timelines, among others to homebuyers. This helps home buyers to make informed investments.
- Timeline
A RERA completion timeline is given to the developer for each real estate project. Failing to adhere incurs penalties, even revoking registration.
- Grievances
A systematic redressal mechanism is set up for homebuyers to file complaints against developers for any violation or non-compliance with specified plans.
- Standardized Agreements
RERA introduced standardized agreements across all developments to prevent the inclusion of unfair or ambiguous clauses. This helps homebuyers to be aware of their rights and obligations.
Benefits of the RERA for Buyers
- Legitimacy
A RERA-registered real estate project indicates it has undergone regulatory authority scrutiny and meets every legal and financial criteria.
- Transparency
The comprehensive details of the registered project on the developer, land owners, land title, project layout, timeline, and financial disclosures, among others are disclosed on the RERA website for the homebuyer to go in-depth.
- Consumer Confidence
When you know what the real estate product is, its credibility and its stability, it instils a greater confidence to invest in the project. RERA gives homebuyers the convenience of assessing a project’s suitability, comparing it with other options and making informed investments.
- Grievance Redressal
Transparency helps homebuyers hold real estate developers accountable for the information they provide. Any misinterpretation or discrepancies found in only registered properties can be challenged by buyers with RERA authorities. You are mostly on your own to seek redressal for any dispute arising in non-registered properties.
- Project Delays
No more handover headaches. The stringent measures undertaken by RERA make real estate developers more accountable and motivated to deliver the project on time. This has significantly reduced the number of delayed projects.
RERA implementation has transformed transparency, accountability and consumer interest protection in the real estate sector significantly reducing the prevalence of fraudulent projects.. As a homebuyer, you can make informed decisions, safeguard your investment, and seek grievance redressal from dedicated channels.
Though the positivity is immense, the difference in RERA for different states creates sleek loopholes in the real estate sector. You can always get credible homebuying experience with skilled analytics, scientific curation and unwavering commitment at TheCeyone.
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