What is RERA Act?

As India nourishes its position as a key player in the global market, industries, and businesses have observed remarkable development, which further has provided in the excessive rise in the real estate prices. In order to control the increasing real estate price and to safeguard the interest of the home buyers, the government has set up RERA or Real Estate Regulation and Development Act in 2016 that controls and observe the real estate sector across the states.

What is RERA Act?

RERA is Real Estate Regulatory Authority and was launched in 2016. The Real Estate Regulation and Development Act, 2016 focuses to safeguard home-buyers and increase investment in the real estate sector. PNS RERA Act is imposed in every state to control the real estate sector and assist in speedy and systematic argument correction.

According to PNS RERA Act, it becomes mandatory for all residential and commercial real estate projects wherein the land is almost 500 square meters to register with the Real Estate Regulatory Authority (RERA) for the beginning of any project. This registration assist in producing better lucidity in the implementation of started projects.

Under Section 84 of the RERA Act, it explains that within six months of the RERA Act being implemented, State Governments shall make regulations for carrying out the provisions of the Act.

Advantages of RERA for home buyers

·         Common Carpet Area

·         Levant Rate of Interest

·         Decreased Risk of Bankruptcy

·         Advance remission

·         Right to Information

·         Possession Delay which is the Buyer’s right

·         Defect in title also the Buyer’s right

·         Fake promises the Buyer’s right

Key Features of RERA ACT are

1.       Betterment of Oversight of Projects: Ensuing to the ratification of this act by an individual state, a State Real Estate Regulatory Authority will be set up. This state-level authority would be authorized to oversee all commercial and residential realty transactions in the state and also give redress to the wronged parties on a case to case basis. The State Real Estate Regulatory Authority will also have the power to enforce punishment and fines on those who do not follow the new rules and regulations.

2.      Increased Transparency: As per the RERA Act, real estate developers are mandatorily required to deposit 70% of the funds allocated for project development into a designated bank account. Each project will have a separate dedicated account so that the funding for one project is not diverted to another by the developer. Additionally, it is now mandatory for the developer to provide all pertinent project information including plans, layout, approvals, subcontractors’ list, timelines etc. such that it can be easily accessed by customers as per their requirement.

3.      Clear Legal Definitions: Prior to implementation of the RERA Act, it was common practice to advertise the size of property on the basis of a super-built area. The super-built area did not have a legal definition and it generally misled home-buyers. Now, project data will be given based on the carpet area, which has been legally explained in the law making it feasible for homebuyers to assess properties.