RERA
The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA 2016, is a landmark legislation passed by the Indian Parliament to bring transparency and accountability to the real estate sector. The primary objective of RERA is to protect the interests of homebuyers and promote fair practices in the real estate industry.
Under RERA, various services are provided to ensure transparency, accountability, and fair practices in the real estate sector. These services aim to safeguard the interests of homebuyers and promote a well-regulated and credible real estate market. Some of the key services provided under RERA Act 2016 include:
Project Registration:
Developers are required to register their real estate projects with the respective State Regulatory Authorities before marketing, advertising, or selling any units. This ensures that projects comply with legal and regulatory requirements and protects buyers from fraudulent or unapproved developments.
Disclosure of Information:
Developers are obligated to disclose comprehensive information about the project on the RERA website, including project details, layout plans, approvals, timeline, and financials. This transparency empowers homebuyers to make informed decisions.
Escrow Account Management:
To protect homebuyers' funds, developers must deposit 70% of the money received from buyers into a separate escrow account. This account can only be utilized for the construction and development of the registered project.
Timely Delivery and Penalty:
RERA ensures that developers adhere to the committed project timelines. Failure to do so results in penalties, providing an added incentive for timely completion and delivery of projects.
Rights and Remedies for Homebuyers:
RERA grants various rights to homebuyers, including the right to obtain information about the project, stage-wise payment protection, and the right to claim compensation for any deficiencies in the project or violation of the agreement by the developer.
Real Estate Agent Regulation:
The Act also regulates real estate agents and brokers, making it mandatory for them to be registered with the respective State Regulatory Authorities. This promotes professionalism and accountability in their dealings.
Fast-track Dispute Resolution:
RERA establishes Adjudicating Officers and Appellate Tribunals to resolve disputes between buyers and developers efficiently and promptly, offering an accessible and swift redressal mechanism.
Standardized Sale Agreement:
RERA prescribes a model sale agreement that ensures uniformity and fairness in the contractual terms between buyers and developers, preventing one-sided clauses. These services provided under the RERA Act 2016 aim to instill confidence in homebuyers, enhance transparency in the real estate sector, and promote a healthy and sustainable market environment. They collectively contribute to the Act's overarching goal of protecting consumer interests and fostering a well-regulated real estate industry in India.
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