Real Estate (Regulation and Development) Act 2016 is popularly known as RERA. This act is a landmark legislation that would regulate and promote the Indian real estate sector. With effect from May 1, 2017, RERA was enacted in order to bring about transparency, accountability, and fairness into the industry, help the homebuyers save their interests, and healthy competition among various developers.
Key Objectives of RERA:
1. Regulation of the real estate sector so that growth may be smooth, transparent, efficient, and organized.
2. To protect the rights and interest of consumers (homebuyers).
3. Promote fair play and competition among developers
Major Provisions of RERA:
1. Registration: Projects and developers are required to get themselves registered with appropriate Regulatory Authorities.
2. Disclosure: The developers are required to disclose more project information including layout, amenities, and timeline.
3. Consumer Rights: The homebuyers have a right to receive information, get compensation and file complaint.
4. Escrow Account: Developer has to place 70% of project fund in the escrow account.
5. Deadline: Developer needs to complete the projects within the timelines of which he has been intimated.
6. Defect Liability: Developer liable for structural defects up to 5 years
7. Grievance Redressal: Re-establishment of Real Estate Regulatory Authority and Appellate Tribunal
Benefits of RERA:
1. Higher Transparency: Brings More Information of Project in Public
2. Accountability: Developers would be accountable in case of delays and defects.
3. Consumer Protection: Rights of home buyers would be safeguarded.
4. Better Quality: Construction of better quality
5. Less Litigation: Speedy dispute resolutions
RERA Impact:
1. Streamlined Market: RERA has streamlined the Indian Real Estate market.
2. Confidence: Homebuyers have more faith in Developers
3. Better Governance: RERA brought accountability and transparency in the picture
Challenges and Future Courses of Action:
1. Implementation: Uniform implementation across states
2. Awareness: Educating homebuyers and developers on RERA
3. Amendments: Coming up with amendments on some emerging issues confronting the industry
Conclusion:
RERA is game changer in the Indian real estate sector. It promotes a culture of transparency, accountability, and consumer-centricity. As the industry continues to evolve, RERA’s impact will be pivotal in shaping the future of Indian real estate.
Resources:
1. Ministry of Housing and Urban Affairs
2. Real Estate Regulatory Authority
3. National Real Estate Development Council
Disclaimer:
This article provides a general overview of RERA and Its its benefits and is not intended to be comprehensive or exhaustive.