The Real Estate (Regulation and Development) Act, commonly referred to as RERA, is a significant piece of legislation in India introduced to address challenges in the real estate sector. This act was regulated by the Indian government in 2016, and its primary objective is to safeguard the interests of homebuyers and establish transparency and accountability in the real estate market. All sections of the Act came into effect on May 1, 2017, marking a pivotal moment for the Indian real estate market. RERA sets strict guidelines for project completion, preventing unreasonable delays and imposing penalties on developers for non-compliance.
Purpose of RERA
- RERA ensures that builders are responsible for their promises and timetables, ensuring transparency in the real estate market. It protects the interests of homebuyers by promoting accountability and fair practices.
- RERA brings transparency, fairness, and a decrease in scams and project delays to the real estate market, making it more secure for homebuyers.
- RERA creates a level playing field by ensuring both developers and buyers have access to the same information, promoting fairness and clarity in real estate transactions.
- RERA mandates that builders advertise and sell properties based on the carpet area (the actual usable area of the property) rather than the super-built-up area.
Rules and Regulations of RERA
Here are some common aspects of RERA rules:
- Project Registration: Before advertising, marketing, or selling any properties, developers must register their real estate projects with the Uttarakhand Real Estate Regulatory Authority (URERA).
- Financial Transparency: Developers are required to provide complete project financial information, including the expected project cost, the cost of construction, and the funding source.
- Advance Payment Limit: The amount that can be requested in advance of a sale agreement from homebuyers is normally limited by RERA.
- Carpet Area vs. Super Built-Up Area: Developers must offer apartments based on carpet area, which is the real usable space within a unit, rather than super built-up area. This makes sure that customers only pay for the actual living area.
- Project Information: The RERA website shall provide the general public with complete project information, such as project plans, layout, approvals, and schedule.
- Defects and Maintenance: After taking possession of the property, the developer is in charge of fixing any structural issues and providing maintenance services for a specific period of time.
- Grievance Redressal: RERA establishes mechanisms for dispute resolution between buyers and developers through state-level appellate tribunals.
- Penalties: There are provisions for imposing penalties and sanctions on developers for non-compliance with RERA regulations, which can include fines, imprisonment, or both.
Useful Links of RERA Uttarakhand
Real Estate Act 2016 : Read Here
RERA Uttarakhand Rules 2017 : Read Here