What is RERA?
The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to bring transparency, accountability, and efficiency to the real estate sector. It safeguards homebuyers from fraudulent practices and ensures timely project delivery. Each state has its own RERA authority that regulates real estate transactions.
Key Features of RERA : –
- Mandatory Registration: Developers must register projects before advertising or selling.
- Escrow Account: 70% of project funds must be kept in an escrow account to avoid fund misuse.
- Carpet Area Clarity: Buyers pay based on the actual carpet area, not the super built-up area.
- Project Delay Compensation: Developers must compensate buyers for project delays.
- Defect Liability: Builders are responsible for fixing defects for 5 years after possession.
- Transparent Marketing: Advertisements must reflect the actual project specifications.
- Fast Dispute Resolution: State RERA authorities provide quick grievance redressal.
Latest Updates on RERA :-
- Digitalization of Services: Many states have introduced online RERA portals for project registration and complaint filing.
- Stronger Action Against Non-Registered Projects: Developers failing to register projects face strict penalties.
- Increased Buyer Compensation: Some states have enhanced penalties for delayed possession.
- Rental Housing Regulations: Discussions are underway to bring rental agreements under RERA regulations.
- Affordable Housing Focus: New incentives encourage faster completion of affordable housing projects.
NOTE :- Always check the project’s registration on the official RERA website before investing.
