The Real Estate (Regulation and Development) Act, commonly known as RERA, was enacted in 2016 to regulate the real estate sector in India. Some of the key provisions of the RERA Act are as follows:
- Mandatory Registration: All real estate projects with more than eight units or more than 500 square meters of land area must be registered with the regulatory authority.
- Project Disclosure: Developers are required to provide detailed information about their projects, such as the project timeline, approvals, and the status of the construction.
- Escrow Account: Developers are required to deposit 70% of the funds collected from homebuyers in a separate escrow account to ensure that the funds are used only for construction and development purposes.
- Carpet Area Definition: The carpet area of the flat must be clearly defined in the agreement between the developer and the homebuyer.
- Project Completion Timeline: Developers are required to adhere to strict timelines for completion of projects, and they must also provide an extended timeline in case of any delay.
- Sale of Units: Developers are not allowed to advertise or sell any unit in a project without first registering the project with the regulatory authority.
- Grievance Redressal: RERA provides for the establishment of a regulatory authority and an appellate tribunal to hear complaints and grievances from homebuyers.
- Quality of Construction: Developers are required to provide a warranty for the quality of construction and must rectify any defects in construction within a specific time frame.
These are some of the key provisions of the RERA Act, which aim to promote transparency, accountability, and protect the interests of homebuyers in the real estate sector in India.
