4. Real Estate (Regulation And Development ) Act (RERA)

The Real Estate (Regulation and Development) Act, which is an Indian law enacted to regulate the real estate sector in the country. The Act was passed by the Indian Parliament in 2016 and came into effect on May 1, 2017. Its primary objective is to protect the interests of homebuyers and promote transparency and accountability in the real estate industry.

Key features of the Real Estate (Regulation and Development) Act (RERA) include:

1. Establishment of Regulatory Authority: RERA mandates the establishment of a state-level regulatory authority to oversee the real estate sector and enforce the provisions of the Act.

2. Registration of Real Estate Projects: Developers are required to register their projects with the regulatory authority before advertising, selling, or promoting them. The registration process involves providing details of the project, including the timeline for completion, layout plans, and other relevant information.

3. Disclosure and Transparency: RERA aims to bring transparency to the real estate sector by mandating developers to disclose essential information about the project, such as the land title, layout plans, project timeline, government approvals, and details of the promoter.

4. Sale of Units: Developers can only sell units in a project once they have obtained the necessary approvals and have registered the project with the regulatory authority. They are also required to provide accurate information about the project at the time of sale.

5. Escrow Account: RERA mandates that developers must deposit a specified percentage of the project's funds into a separate escrow account. This provision ensures that the funds raised for a specific project are utilized for that project's construction and not diverted elsewhere.

6. Carpet Area Definition: RERA introduced a standardized definition of the carpet area, which is the actual usable area within a property. This definition prevents developers from manipulating the calculations and ensures that homebuyers know the exact size of the property they are purchasing.

7. Grievance Redressal: RERA establishes a mechanism for addressing complaints and grievances from homebuyers. It provides for the establishment of an Appellate Tribunal to adjudicate disputes and resolve issues between homebuyers and developers

RERA aims to protect the rights of homebuyers, regulate the real estate sector, and promote fair practices and transparency. It has brought significant changes to the Indian real estate industry by introducing greater accountability and addressing long-standing issues faced by homebuyers.

The Real Estate Act is intended to achieve the following objectives:

1. Ensure accountability towards allottees and protect their interest;

2. Infuse transparency, ensure fair-play and reduce frauds & delays;

3. Introduce professionalism and pan India standardization;

4. Establish symmetry of information between the promoter and Allottee;

5. Imposing certain responsibilities on both promoter and allottees;

6. Establish regulatory oversight mechanism to enforce contracts;

7. Establish fast- track dispute resolution mechanism;

8. Promote good governance in the sector which in turn would create investor confidence.

Every real estate project which has land area more than 500 Sq.Mtrs. or has more than 8 Apartments needs to be registered their Project under RERA is Mandatory / Compulsory. And binding.

4. Real Estate (Regulation And Development ) Act (RERA)