Understanding RERA Details: Key Benefits and Features of the Real Estate Regulation Act

RERA is an ever-present acronym whenever one is dealing with anything pertaining to real estate in India. In essence, it is one of the most critical laws in the country. 

The Real Estate Regulation Act (RERA) is a law passed by the Parliament of India in 2016 to regulate and promote the real estate ecosystem in India. The act is primarily focused on building transparency, accountability and efficiency in the booming Indian real estate industry.

Above all, RERA aims to protect the interests of homebuyers by providing them with a number of safeguards, including:

• Registration of real estate projects: Every real estate project, including both under-construction and ready-to-move projects, must be registered with the RERA authority in the state where the project is located.
• Providing information to homebuyers: Developers are required to provide homebuyers with a lot of info on the project, including the land title documents, comprehensive plan, the builder's financial information, and the project's completion schedule.
• Settlement of disputes: RERA provides a mechanism for homebuyers to settle disputes with developers. Homebuyers can file complaints with the RERA authority, which will then investigate the complaint and take appropriate action. 

So, what are the key features of RERA, and what RERA details must property investors know about? Let us take a look. 

Key Benefits and Features of RERA

RERA has several key benefits and features for both home-buyers and developers, such as:

• RERA establishes a Real Estate Regulatory Authority (RERA) in each state and union territory, which is responsible for registering and regulating real estate projects and agents, and for resolving disputes between parties.
• RERA makes it mandatory to register every real estate project with a plot area greater than 500 sq. m. or greater than 8 apartments with the respective RERA before launching or advertising. The developers must disclose all relevant information about the project, such as layout plan, approvals, completion date, amenities, etc., on the RERA website.
• RERA prohibits developers from accepting more than 10% of the cost of the property as an advance payment or application fee from buyers without entering into a written agreement. The agreement must specify the terms and conditions of the sale, including the possession date, penalty for delay, etc.
• RERA ensures that developers deposit 70% of the funds collected from buyers in a separate bank account, which can only be used for construction and land cost of the project. This prevents diversion of funds and ensures timely completion of projects.
• RERA empowers buyers to claim compensation or refund from developers in case of any defect in the property, delay in delivery, false advertisement, etc. RERA also provides a fast-track mechanism for redressal of complaints through an adjudicating officer and an appellate tribunal.
• RERA imposes strict penalties on developers and agents for non-compliance with its provisions, such as cancellation of registration, imprisonment up to three years, or a fine up to 10% of the project cost.

5 Important RERA Details to Check Before Purchasing a Property

If you are planning to buy a property in India, it is important to check the following RERA details before you make a purchase:

1. Project registration: The project must be registered with the RERA authority in the state where it is located. You can check the project registration status on the RERA website.
2. Project details: The RERA website will provide you with details of the project, such as the developer's name, the project location, the number of units, and the estimated completion date.
3. Payment plan: The RERA website will also provide you with the developer's payment plan. This will tell you how much you need to pay upfront and how much you will need to pay in instalments.
4. Builder's track record: You should check the builder's track record before you make a purchase. You can do this by looking at the builder's previous projects and reading reviews from previous buyers.
5. Legal documents: You should carefully review all the legal documents before you sign any contracts. This includes the sale deed, the agreement to sell, and the builder's disclosure statement.

By checking these RERA details, you can protect yourself from unscrupulous developers and ensure that you get a good deal on your property.

Conclusion

All in all, RERA is a landmark legislation that aims to bring more trust and confidence in the real estate sector in India. By ensuring fair and transparent transactions, RERA benefits both home-buyers and developers, and contributes to the growth and development of the real estate industry.