What is RERA act ?

The Real Estate (Regulation and Development) Act, commonly known as RERA, is an act of the Parliament of India that was enacted to regulate and promote the real estate sector. It was passed in May 2016 and came into effect on May 1, 2017. The primary objective of the act is to protect the interests of home buyers and enhance transparency in the real estate sector.

Key features of the RERA Act include:

Establishment of a Real Estate Regulatory Authority in each state and union territory to regulate the real estate sector and to act as a watchdog for the industry.
Mandatory registration of all new and ongoing real estate projects, where developers are required to provide details about the project, including project plan, layout, government approvals, land title status, and other relevant information.
Compulsory disclosure of project details on the RERA website, enabling buyers to access information about the project, including details of the developer, land status, approvals, schedule, and completion status.
Deposit of a minimum of 70% of the funds received from home buyers in a separate bank account, to ensure that funds are used only for construction of that project.
Promoter’s liability to rectify structural defects in the property for a period of five years after the possession of the property is handed over to the buyer.
Establishment of fast-track dispute resolution mechanisms to ensure the timely resolution of disputes between buyers and developers.
The RERA Act has significantly contributed to enhancing transparency, accountability, and efficiency in the real estate sector in India, thereby protecting the interests of home buyers and promoting investments in the real estate industry.