History
Before the implementation of RERA, India's real estate business was mostly unregulated. The lack of effective regulation has resulted in several malpractices, including project delivery delays, budget diversion, and unfinished projects. Homebuyers have no recourse against such methods, leaving numerous people with unfinished constructions. The government realised the need for a regulator to regulate the real estate business, so the RERA was created. The primary goal of RERA is to promote openness, accountability, and timely completion of real estate projects.Structure
RERA is a core piece of law that applies throughout India. Nonetheless, each state and union territory has a separate RERA body enforcing the act's terms in their respective jurisdictions. The state authority selects the chairman of the RERA authority.The RERA authority is responsible for the following:
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Registering real estate projects
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Monitoring project progress
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Dispute resolution
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Protection of homebuyers
Principal Provisions
- Project registration: Developers must register a project with the RERA authorities before promoting or selling a project. The registration procedure is done online, and developers must supply all project facts, such as land status, layout, permissions, and completion date.
- RERA compels developers to publish all project-related information, including the floor space, the number of dwellings, the status of permissions, and the complete timetable. This guarantees that before making a purchasing choice, homeowners get comprehensive information about the project.
- Separate bank account: RERA mandates developers to keep a separate account with the bank for each project. 70% of homebuyer money must be put in this account, and monies can only be accessed for project-related costs.
- Project completion on time: RERA requires developers to complete projects on time. In the event of a delay, the developer must compensate the homebuyer.
- Creation of a residents' association: According to RERA, the developer must organise a residents' association within three months of selling most units.
