What is RERA and how it will affect Builders and Buyers - Complete details

Real Estate (Regulation and Development) Regulatory Act

Nowadays each and every individual in India is either amazed or shocked because of this buzz word “RERA”.Everybody regardless of being in real estate buying/selling or not wants to know that how Indian government is going to tackle that critical and unorganized sector of real estate where builders and developers have a monopoly over buyers and maximum of builders charge enormously.So, therefore, there’s arise a need in the Indian market - that is of organizing Indian real estate industry for the betterment of buyers, developers as well as all stakeholders.For this need Government of India has devised a solution and passed an act called Real Estate Regulatory Act - in short - RERA.Come let’s explore what this term means and how it will affect all.

What is Real Estate Regulatory Act in India (RERA)?

RERA (Regulation and Development) Act is an act passed by Indian Government Parliament mainly targeted for the interests of home buyers and developers.The main factor which has caused this act to be in existence is due to the mismanaged and unorganized Indian real estate industry.Prior to RERA,potential apartments buyers used to suffer a lot as there was almost no transparency in buying and selling a property.There were a lot of complaints from the buyers regarding possessions and transactions.Further, a black market was also established because of cash dealing apart from the assigned rates by the Indian government for a particular locality.

Why RERA came into existence?

To deal and counterattack on the above-mentioned problems of dealing and make fairer transactions between buyers and sellers,Indian government passed this act on March 10 , 2016 and enforced this publically on May 1,2016.Now with act,Government has ensured about a fairer and equitable transaction without just favoring the builders and making the purchase process simpler as each stakeholder will be better accountable.With this act,it is compulsory for states and union territories to form a regulator and make rules that will govern the regulator.Further,RERA is a state specific act.

Which real estate projects come under RERA ?

• Commercial Projects
• Residential Projects
• Plots
• Projects of more than 500 sq mt / 8 Units
• Project  involving refurbishing but re allotment

What real estate developers must do in order to be RERA compliant ?

• Registration and advertisement of the project
• Updated website
• 70% of funds should be deposited in Project Account and the same has to be audited
• Number, type and carpet area clearly defined

What is there for the real estate brokers in RERA ?

• Proper registration for transaction
• More clearer responsibility
• No misrepresentation and misleading information regarding amenities
• RERA registered brokers can only sell/book/advertise
• Maintenance of books and records
• Avoid unfair trade practices

There are various types of penalties by not complying RERA rules and regulations.

Bonus for the readers:

Further I would like to add one thing that buyers must be extra smart as they invest a huge amount of money by buying a property hence it is advisable for them to buy from a reputed builder which has some sort of credibility and trust.To name a few,scan the following:-

1. Prestige Group is one of the best in South India that is coming up with yet another project i.e. Prestige Elysian at Bannerghatta Road Bangalore

2. Godrej Group is also second to none when it comes to real estate.They are launching Godrej Mamurdi Pune in Pune

Hope that these valuable details must have empowered you with a lot of information regarding this regulation act.If you have other thoughts besides the mentioned ones,please feel free to give valuable inputs.