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HomeContract ManagementUnderstanding RERA, Its Features and Benefits to the Property Buyers

Understanding RERA, Its Features and Benefits to the Property Buyers

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RERA stands for the Real Estate (Regulation and Development) Act. It is a regulatory framework established by the Government of India to bring transparency, accountability, and efficiency to the real estate sector. The Real Estate (Regulation and Development) Act was enacted in 2016 and came into effect on May 1, 2017. The primary objectives of RERA are to protect the interests of homebuyers and promote fair practices in the real estate industry.

Key features and provisions of RERA include:

Mandatory Registration: Real estate developers are required to register their projects with the regulatory authority before advertising or selling. This includes residential and commercial projects that meet certain criteria.

Project Delays and Defects: RERA mandates that developers provide accurate project timelines and adhere to them. If there are any delays, the developer is required to compensate the buyers. The act also addresses issues related to structural defects and workmanship for a specific period after possession.

Transparency: Developers are required to disclose all relevant project details on the regulatory authority’s website, including project plans, approvals, carpet area, completion timeline, and any other relevant information.

Advance Payments: RERA limits the advance that a developer can charge from buyers before signing a sale agreement. This prevents developers from demanding a significant portion of the total payment before the formal agreement is in place.

Changes in Project Plans: Any changes to project plans or specifications must be approved by two-thirds of the buyers. Developers are required to obtain consent before making alterations to the project.

Real Estate Regulatory Authority (RERA): Each state and union territory in India has its own RERA authority responsible for implementing and regulating the provisions of the Act. The authority plays a crucial role in resolving disputes, ensuring compliance, and protecting the interests of buyers.

Real Estate Appellate Tribunal: RERA establishes an Appellate Tribunal to hear appeals against decisions of the regulatory authority. This provides a mechanism for dispute resolution at a higher level.

RERA aims to create a more transparent and accountable real estate market in India by promoting fair practices, protecting the interests of homebuyers, and ensuring that developers deliver projects on time with the promised specifications. It has brought about significant changes in the real estate sector and has been instrumental in addressing some of the challenges faced by homebuyers.

The Real Estate (Regulation and Development) Act (RERA) in India offers several benefits to property buyers. Some of the key advantages include:

Transparency

RERA mandates that developers must register their projects and provide comprehensive details on the regulatory authority’s website. This includes project plans, approvals, carpet area, completion timelines, and any changes made during the project.

Accurate Project Information

Buyers have access to accurate and updated information about the project, enabling them to make informed decisions. This transparency reduces the chances of misinformation and fraudulent practices.

Project Delays Compensation

Developers are accountable for delivering projects on time as per the timeline specified in the agreement. If there are any delays, RERA provides for compensation to buyers for the period of the delay.

Defects and Quality Assurance

RERA addresses issues related to structural defects and poor workmanship. Developers are required to rectify any such issues for a specific period after the possession of the property.

Advance Payment Regulation

The act regulates the amount of advance payment that developers can demand from buyers before the sale agreement is signed. This prevents developers from unfairly collecting a significant portion of the total payment upfront.

Protection Against Fraudulent Practices

RERA establishes a regulatory authority to monitor and regulate the real estate sector, helping to curb fraudulent practices. Developers are required to comply with the rules and regulations set by the authority, and any violations can result in penalties.

Dispute Resolution

RERA provides a platform for the resolution of disputes between buyers and developers. The regulatory authority and the Real Estate Appellate Tribunal play crucial roles in addressing grievances and ensuring fair practices.

Reduction in Project Alterations

Developers need to obtain consent from at least two-thirds of the buyers before making any changes to the project plans. This ensures that significant alterations are made with the approval of the majority of the buyers.

Financial Security

RERA requires developers to deposit a certain percentage of the project cost in a separate escrow account. This money is intended for the specific project and can only be used for its development, providing financial security to buyers.

Professionalism and Accountability

The regulatory framework established by RERA promotes professionalism and accountability among developers. It sets clear guidelines and standards for the real estate sector, enhancing the overall credibility of the industry.

Overall, RERA has been instrumental in protecting the interests of property buyers, promoting transparency, and creating a more accountable and reliable real estate market in India. The act aims to address common challenges faced by buyers and establish a fair and balanced relationship between developers and consumers.

Registering a complaint with the Real Estate Regulatory Authority (RERA) in India involves following a specific process outlined by the regulatory body. The process may vary slightly from state to state, as each state has its own RERA authority. Here is a general guide on how to register a complaint with RERA:

Visit the Official RERA Website

Go to the official website of the RERA authority in the state where the property is located. Each state has its own dedicated website for RERA.

Navigate to the Complaint Section

Look for the “Complaint” or “Consumer Grievance” section on the RERA website. This section typically provides information on the complaint filing process.

Create an Account

Many RERA websites require users to create an account before filing a complaint. Provide the necessary details to create your account.

Fill the Complaint Form

Once registered, fill out the online complaint form. Include details such as your name, contact information, details of the project, and a clear description of the issue or grievance.

Attach Relevant Documents

Attach any supporting documents that can strengthen your case. This may include the sale agreement, payment receipts, correspondence with the developer, or any other relevant paperwork.

Payment of Fees (if applicable)

Some states may charge a nominal fee for filing a complaint with RERA. Check the specific requirements on the website and make the necessary payment if applicable.

Submit the Complaint

After completing the form and attaching the required documents, submit the complaint through the online portal.

Receive Complaint Acknowledgment

Upon successful submission, you should receive an acknowledgment of your complaint. This acknowledgment typically includes a reference number that you can use for tracking the status of your complaint.

Follow Up on the Complaint

Keep track of your complaint’s status by logging into your account on the RERA website. The website will provide updates on the progress of your complaint.

Participate in Hearings (if required)

Depending on the nature of the complaint, RERA may schedule hearings where both parties (you and the developer) can present their cases. Participate in these hearings as necessary.

Resolution and Order

RERA will investigate the complaint and, if necessary, issue orders or directives to address the grievance. The resolution process may involve compensation, project alterations, or other corrective measures.

It’s important to note that the specific procedures and requirements for filing a complaint with RERA can vary, so it’s advisable to check the official RERA website of the concerned state for detailed and accurate information. If you face challenges or have questions during the process, you may also consider seeking guidance from legal professionals or consumer advocacy groups.

the Real Estate (Regulation and Development) Act (RERA) in India has brought about significant positive changes in the real estate sector. With its emphasis on transparency, accountability, and protection of the interests of property buyers, RERA has become a crucial regulatory framework in the country. The benefits for property buyers are substantial, including access to accurate project information, compensation for project delays, protection against fraudulent practices, and a streamlined dispute resolution process.

By establishing clear guidelines and standards for developers, RERA has promoted professionalism and accountability in the real estate industry. The act’s provisions related to project registration, advance payments, and escrow accounts contribute to financial security for buyers. Additionally, the creation of the Real Estate Regulatory Authority and the Real Estate Appellate Tribunal provides platforms for the resolution of disputes and appeals, ensuring a fair and just process for both developers and consumers.

Property buyers can leverage RERA to make informed decisions, seek redress for grievances, and navigate the real estate market with greater confidence. The act has not only addressed common challenges faced by buyers but has also played a pivotal role in shaping a more credible and trustworthy real estate market in India. As RERA continues to evolve and be implemented across different states, it remains a key instrument in fostering a balanced and mutually beneficial relationship between developers and consumers.

Also read: Salient Features of the Foreign Exchange Management Act (FEMA) in India

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Rajesh Pant
Rajesh Panthttps://managemententhusiast.com
My name is Rajesh Pant. I am M. Tech. (Civil Engineering) and M. B. A. (Infrastructure Management). I have gained knowledge of contract management, procurement & project management while I handled various infrastructure projects as Executive Engineer/ Procurement & Contract Management Expert in Govt. Sector. I also have exposure of handling projects financed by multi-lateral organizations like the World Bank Projects. During my MBA studies I developed interest in management concepts.
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