The Real Estate (Regulation and Development) Act seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act establishes a Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution. It is a significant piece of legislation aimed at regulating the real estate sector to protect the interests of homebuyers and promote transparency and accountability in the industry.
Key points about RERA in India include:
1. State-specific Implementation: Each state and Union Territory in India has its own Real Estate Regulatory Authority (RERA) responsible for implementing the provisions of the act.
2. Mandatory Registration: Developers of both residential and commercial projects are required to register their real estate projects with the respective state's RERA before advertising or selling. This includes both residential and commercial projects.
3. Agent Registration: Real estate agents and brokers are also required to register with the RERA in their respective states.
4. Project Details Disclosure: Developers are obligated to provide comprehensive details about their projects, including project layout, approvals, timeline, and other relevant information.
5. Escrow Account: Developers are required to deposit a certain percentage of the project cost in a separate escrow account so as to ensure that funds are utilized for the specific project and to avoid diversion of funds.
6. Quarterly Updates: Developers must regularly update the status of their projects, therefore, providing transparency to potential buyers.
7. Penalties for Non-Compliance: Strict penalties are imposed on developers and agents for any violations of RERA regulations.
8. Buyer Protection: RERA provides various
protections for homebuyers, including the right to timely possession,
information about the project, and mechanisms for dispute resolution.
