What is RERA Act 

The Real Estate (Regulation and Development) Act, commonly known as RERA, is a landmark legislation in India that aims to regulate the real estate sector. It was enacted to promote transparency, accountability, and efficiency in the real estate market. 

Regulation of Real Estate Sector:

RERA was introduced to regulate and promote transparency, accountability, and efficiency in the real estate sector, which was previously largely unregulated and prone to malpractices. Developers are required to register their real estate projects with the regulatory authority before advertising or selling them.

Mandatory Registration of Projects:

Developers are required to register their real estate projects with the respective state Real Estate Regulatory Authority (RERA) before commencing any advertisement, marketing, or sale of the project.

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Project Details and Disclosures:

Developers must provide extensive details about the project, including land status, approvals, layout plans, schedule for completion, etc., to the regulatory authority and prospective buyers. This ensures transparency and helps buyers make informed decisions.

Financial Discipline:

To prevent fund diversion, developers are mandated to deposit a certain percentage of the project cost in a separate escrow account, which can only be utilized for the specific project's development. Developers are mandated to deposit a certain percentage of the project cost in a separate escrow account to cover construction costs. This ensures that funds are not diverted to other projects.

Timely Completion:

RERA emphasizes timely completion of projects to protect buyers from prolonged delays. Developers are required to adhere to the project completion timelines provided during registration.

Quality Assurance:

Developers are accountable for the quality of construction and must rectify any structural defects within a specified period, usually five years from the date of possession.

Penalties for Non-Compliance:

Heavy penalties are imposed on developers for any violations of RERA provisions, including delays in project completion, misrepresentation of information, or failure to adhere to quality standards. Heavy penalties are imposed on developers for delays in project completion or violations of RERA norms. 

Buyer Protection:

RERA provides various protections to buyers, including the right to obtain accurate information, timely possession of the property, and compensation for any defects or delays in project completion. RERA provides various protections to buyers, such as timely delivery of the property, quality assurance, and the right to compensation for any defects or delays.

Clear Title:

Developers must provide clear title deeds to buyers, ensuring legal ownership of the property and protecting buyers from disputes over property ownership.

Adjudicating Mechanism:

RERA establishes adjudicating officers and appellate tribunals to adjudicate disputes between developers and buyers in a timely and efficient manner.

State-Level Regulatory Authorities:

Each state and union territory has its own Real Estate Regulatory Authority (RERA) responsible for implementing and enforcing the provisions of the Act within its jurisdiction.

Transparency and Accountability:

RERA promotes transparency by mandating developers to regularly update project-related information on the regulatory authority's website, allowing prospective buyers to access information about ongoing projects. RERA promotes transparency by mandating developers to regularly update project information on the regulatory authority's website.

Promotion of Confidence:

RERA aims to promote confidence in the real estate market by establishing fair practices, protecting the interests of buyers, and encouraging investment in the sector.