The Real Estate (Regulation and Development) Act, abbreviated as RERA, was introduced in 2016. It is a landmark legislation enacted by the Indian Government to regulate the real estate sector and protect the interests of homebuyers. It aims to bring transparency, accountability, and efficiency to the real estate market, which was previously affected by unauthorised practices and lack of regulation.
After understanding what is RERA Act, you should know that it applies to all residential and commercial real estate projects. All states and union territories in India are mandated to implement the RERA provisions. Moreover, respective regulatory authorities are formed to oversee its enforcement.
Introduction
RERA was introduced to address the rampant issues prevailing in the real estate sector, such as project delays, unfair practices by developers, and a lack of transparency. It was enacted to promote fair play in the market and ensure the timely delivery of projects to home buyers. You can now invest in an under-construction project and get your property ready by the estimated timeline.
Benefits
Every person in the real estate sector must understand RERA meaning and adhere to its regulations. Developers should register their projects with their respective state regulatory authorities before advertising or selling them. It ensures that only credible developers with a proven track record can operate in the market. Its benefits include:
- Homebuyer protection
The primary benefit of RERA is the protection it offers homebuyers. With mandatory registration and stringent regulations, buyers are assured of investing in projects adhering to high-quality standards and transparency.
- Timely delivery of projects
RERA’s provisions for depositing project funds in escrow accounts and imposing penalties for delays incentivise developers to complete their projects on time. It ensures homebuyers receive possession of their properties at the agreed-upon timeline.
- Increased transparency
RERA mandates developers disclose all relevant project information, including approvals, timeline, and carpet area. This transparency fosters trust between buyers and developers and reduces the incidence of fraud and misleading practices.
- Accountability
By establishing RERA and imposing penalties for non-compliance, the act enhances accountability in the real estate sector. Developers are held accountable for their actions, and buyers have recourse in case of disputes or grievances. The act positively impacts homebuyers at the micro level and the entire real estate sector at the macro level.
- Promotion of credible developers
RERA’s requirement for mandatory registration and adherence to regulations filters out unscrupulous developers from the market, promoting credible players who prioritise quality and customer satisfaction. It is among the main objectives to achieve after learning more about what is RERA Act.
Conclusion
RERA is a game-changer in the Indian real estate landscape, bringing about a paradigm shift in the industry’s operations. Instilling transparency, accountability, and consumer-centric practices ensures a more robust and reliable real estate market. Homebuyers, developers, and investors benefit from RERA’s positive impact, making it a cornerstone of the country’s real estate regulatory framework.
