{"id":114155,"date":"2023-05-18T09:46:38","date_gmt":"2023-05-18T04:16:38","guid":{"rendered":"https:\/\/legalwindow.in\/?p=114155"},"modified":"2023-05-18T09:47:19","modified_gmt":"2023-05-18T04:17:19","slug":"what-is-rera","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/what-is-rera\/","title":{"rendered":"Everything you need to know regarding the RERA"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-114158 size-full\" title=\"What is RERA\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Everything-you-need-to-know-regarding-the-RERA.png\" alt=\"What is RERA\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Everything-you-need-to-know-regarding-the-RERA.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Everything-you-need-to-know-regarding-the-RERA-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Everything-you-need-to-know-regarding-the-RERA-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Everything-you-need-to-know-regarding-the-RERA-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Everything-you-need-to-know-regarding-the-RERA-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Real Estate (Regulation and Development) Act, 2016<\/span><span style=\"font-weight: 400;\"> (RERA) is a landmark legislation enacted by the <\/span><span style=\"font-weight: 400;\">Indian Parliament<\/span><span style=\"font-weight: 400;\"> to regulate and promote the real estate sector in India. The main objective of RERA is to bring transparency, accountability and fair play in the real estate sector and to protect the interests of homebuyers. The act has a significant impact on real estate developers, homebuyers, and real estate agents. In this article, we will discuss about what is RERA?<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><b>Table of Content<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#look\"><span style=\"font-weight: 400;\">Quick Look<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#is\"><span style=\"font-weight: 400;\">What is RERA?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#of\"><span style=\"font-weight: 400;\">Objectives of RERA<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#salient\"><span style=\"font-weight: 400;\">Salient Features of RERA<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#rera\"><span style=\"font-weight: 400;\">Advantages of RERA<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#the\"><span style=\"font-weight: 400;\">Process of Registration under the RERA<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#points\"><span style=\"font-weight: 400;\">Important points of consideration regarding RERA<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#endnote\"><span style=\"font-weight: 400;\">Endnote<\/span><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"look\"><b>Quick Look<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Real Estate (Regulation and Development) Act, 2016 came into force on May 1, 2016, and replaced the earlier laws governing the real estate sector. The act aims to establish a regulatory framework that promotes the growth and development of the real estate sector in India, while ensuring that the interests of homebuyers are protected. The act establishes a Real Estate Regulatory Authority (RERA) in each state and union territory to regulate the real estate sector and protect the interests of homebuyers.<\/span><\/p>\n<h2 id=\"is\"><b>What is RERA?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Real Estate (Regulation and Development) Act, 2016, was passed by the Indian Parliament on 10 March 2016 and came into force on 1 May 2016. The act seeks to establish a regulatory framework for the real estate sector and provide a platform for resolving disputes between buyers and developers. It aims to protect the interests of buyers, promote transparency and accountability, and establish a regulatory mechanism for real estate transactions.<\/span><\/p>\n<h2 id=\"of\"><b>Objectives of RERA<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The objectives of RERA are as follows:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Protecting the Interests of Homebuyers: <\/b>One of the primary objectives of RERA is to protect the interests of homebuyers. The Act aims to ensure that developers deliver projects on time, as per the specifications mentioned in the agreement, and that buyers get possession of their homes as per the promised timelines. RERA mandates that developers register their projects with the regulatory authority before launching them, and they need to provide all details related to the project, such as land title, approvals, layout plan, and construction status. This makes it easier for buyers to make informed decisions and reduces the risk of fraudulent practices.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Promoting Transparency and Accountability: <\/b>RERA aims to promote transparency and accountability in the real estate industry. Under the Act, developers need to maintain a separate escrow account for each project, where they need to deposit 70% of the funds received from buyers. This ensures that developers use the funds only for the construction of the project and reduces the risk of diversion of funds. Developers also need to provide regular updates on the progress of the project and submit documents related to the project to the regulatory authority. This promotes transparency and accountability and reduces the risk of delays and cost overruns.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Regulating the Real Estate Industry: <\/b>RERA aims to regulate the real estate industry and bring it under the purview of a regulatory authority. The Act mandates the establishment of Real Estate Regulatory Authorities (RERAs) in each state and union territory, which are responsible for implementing the provisions of the Act and ensuring compliance by developers. RERAs have the power to impose penalties and even cancel the registration of developers who violate the provisions of the Act. This has led to increased accountability and professionalism in the real estate industry.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Encouraging Investments in the Real Estate Sector: <\/b>RERA aims to encourage investments in the real estate sector by increasing transparency and reducing the risk of fraudulent practices. The Act has helped in creating a level playing field for developers and has led to increased confidence among buyers. This has resulted in increased investments in the real estate sector, which is crucial for the growth of the economy.<\/li>\n<\/ul>\n<h2 id=\"salient\"><b>Salient Features of RERA<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The law aims to protect the interests of homebuyers, promote fair practices in the real estate industry, and establish a regulatory framework for the timely completion of real estate projects. RERA has several salient features that make it a game-changer in the real estate sector. The following are some features of RERA:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Registration of Projects and Real Estate Agents: <\/b>One of the essential features of RERA is the mandatory registration of all new and ongoing real estate projects with the RERA authorities. Developers cannot market, advertise, sell or book apartments in any project without obtaining the registration certificate from RERA. Additionally, the act requires all real estate agents to register with the RERA authorities. The registration of both projects and agents ensures transparency and accountability in the real estate sector.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Standardized Carpet Area: <\/b>RERA mandates developers to disclose the exact carpet area of the apartment instead of selling it based on ambiguous terms such as super built-up area, built-up area, or any other marketing terms. The law also requires developers to sell apartments based on carpet area and not on any other unit of measurement.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Escrow Account: <\/b>RERA mandates developers to open a separate escrow account for every project. The funds collected from the buyers can only be withdrawn for construction purposes after obtaining the necessary approvals from the concerned authorities. This ensures that developers cannot use the money collected from buyers for other purposes and helps to prevent project delays.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Timely Completion of Projects: <\/b>Developers are required to provide an estimated timeline for the completion of the project. In case of delays, developers are required to pay compensation to the buyers. The act also mandates that 70% of the funds collected from the buyers should be kept in a separate account and can only be used for the specific project&#8217;s construction purposes.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Transparency and Disclosure: <\/b>Developers are required to disclose all relevant information related to the project, such as land title, project layout, and approvals from various authorities. The act mandates that developers must upload all project-related information on the RERA website, which can be accessed by the general public. This promotes transparency and helps buyers to make informed decisions.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Grievance Redressal Mechanism: <\/b>One of the key features of RERA is the establishment of a grievance redressal mechanism for homebuyers. The law requires developers to address complaints within a specific timeline and sets up RERA authorities in every state to resolve disputes between developers and buyers.<\/li>\n<\/ul>\n<h2 id=\"rera\"><b>Advantages of RERA<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">\u00a0The RERA has brought in a lot of benefits for both home buyers and builders, some of them are:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Ensures Timely Delivery: <\/b>One of the main advantages of RERA is that it ensures timely delivery of projects. RERA mandates builders to register their projects with the regulatory authority and submit a timeline for completion. The regulatory authority can impose penalties on builders who do not meet the deadline. This has helped in reducing the delay in projects and has given confidence to home buyers.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Transparency: <\/b>RERA mandates that all information related to the project should be disclosed on the RERA website, including project details, approvals, land status, and builder details. This brings transparency to the entire process, and buyers can make an informed decision. Also, builders need to provide all relevant information about the project to the buyers, and any deviations or changes made have to be approved by the regulatory authority.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Promotes Accountability: <\/b>Another advantage of RERA is that it promotes accountability. Builders are required to deposit 70% of the funds collected from home buyers in a separate account and can only withdraw it in proportion to the completion of the project. This ensures that the funds are utilized for the intended purpose and prevents builders from diverting funds to other projects.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Reduces Fraud: <\/b>RERA has brought in stringent measures to reduce fraud in the real estate sector. Builders need to submit all approvals and clearances before launching a project, and any changes made have to be approved by the regulatory authority. This reduces the chances of builders taking money from buyers without obtaining necessary approvals and not delivering the project.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Quality of Construction: <\/b>RERA mandates that builders need to use standard materials and adhere to the approved plan. Any changes made to the plan have to be approved by the regulatory authority. This ensures that the quality of construction is maintained, and buyers get what they have paid for.<\/li>\n<\/ul>\n<h2 id=\"the\"><b>Process of Registration under the RERA<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The RERA aims to protect the interests of home buyers and ensure timely completion of projects by builders. One of the key provisions of the RERA is the mandatory registration of real estate projects and real estate agents.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Applicability of RERA: <\/b>The RERA applies to all new and ongoing real estate projects, including commercial and residential projects. The Act also applies to real estate agents who facilitate the sale or purchase of properties.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Documents Required for Registration<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The following documents are required for the registration of a real estate project under the RERA:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">PAN Card of the Promoter<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Aadhar Card of the Promoter<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Details of the Promoter such as Name, Address, and Contact Information<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Registration Certificate of the Firm\/Company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Details of the Project such as Name, Location, and Type of Project<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Site Plan and Layout Plan of the Project<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Approval of the Competent Authority for the Project<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detailed Project Report including Financial Viability of the Project<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Affidavit by the Promoter stating that the Project will be completed within the Timeframe and Specifications as mentioned in the Application<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The registration process is simple and straightforward, now let us move on to discuss about the registration process under RERA.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>How to register under RERA?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The registration process under the RERA is as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Promoter of the Project has to apply for registration of the Project with the State Real Estate Regulatory Authority (RERA) along with the required documents.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RERA will scrutinize the application and documents submitted by the Promoter and if found satisfactory, will grant the registration certificate within 30 days of submission.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the RERA finds any discrepancies or missing documents in the application, it will issue a notice to the Promoter asking for the rectification of the same within 30 days.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Promoter has to rectify the discrepancies and submit the required documents within the given timeframe. If the Promoter fails to rectify the discrepancies, the application for registration will be rejected.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Once the registration certificate is granted, the Promoter has to upload the details of the Project on the RERA website and update the same regularly.<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/legalwindow.in\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Legal Window<\/span><\/a><span style=\"font-weight: 400;\"> will offer you with all of the services and legal assistance you require in order to register under the RERA Act. For the greatest help and speedy <\/span><a href=\"https:\/\/legalwindow.in\/rera-registration\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">RERA Registration<\/span><\/a><span style=\"font-weight: 400;\">, please contact our staff <\/span><b>at 072407-51000 or by email at <\/b><a href=\"mailto:admin@legalwindow.in\" target=\"_blank\" rel=\"noopener\"><b>admin@legalwindow.in<\/b><\/a><b>.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h2 id=\"points\"><b>Important points of consideration regarding RERA<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The RERA provides a platform for homebuyers to voice their concerns and seek timely redressal of grievances. However, there are several important points to consider regarding RERA, which must be taken into account by both homebuyers and real estate developers. The following are the points of consideration regarding RERA:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Registration and Compliance: <\/b>One of the primary objectives of RERA is to ensure that all real estate projects are registered with the regulatory authority. Real estate developers must comply with the provisions of the act and submit all necessary documents to the authority to obtain registration. Failure to register a project can result in heavy penalties and legal action.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Transparency and Disclosure: <\/b>RERA mandates real estate developers to provide complete transparency and disclosure regarding their projects. This includes providing information about the project layout, carpet area, amenities, and completion timelines. Any changes made to the project plan must be communicated to the homebuyers and the regulatory authority.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Accountability: <\/b>RERA places accountability on the real estate developers for delivering the project on time and as per the specifications mentioned in the agreement. The developer must provide possession of the unit within the agreed timeframe, failing which they may be liable to pay compensation to the homebuyer.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Grievance Redressal: <\/b>RERA provides a grievance redressal mechanism for homebuyers to seek timely resolution of their complaints. The regulatory authority has the power to impose penalties on the developer for any violation of the provisions of the act.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Impact on Real Estate Industry: <\/b>RERA has had a significant impact on the real estate industry in India. Developers who have a history of delayed projects and non-compliance with regulations are finding it difficult to obtain funding from financial institutions. On the other hand, RERA has boosted consumer confidence and increased transparency in the real estate sector.<\/li>\n<\/ul>\n<h2><\/h2>\n<p><a href=\"https:\/\/legalwindow.in\/rera-registration\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-104988 size-full\" title=\"Registration of Project under RERA\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/rera-2.jpg\" alt=\"Registration of Project under RERA\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/rera-2.jpg 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/rera-2-600x120.jpg 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/rera-2-300x60.jpg 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/rera-2-768x154.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\n<h2 id=\"endnote\"><b>Endnote<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">RERA is a significant step forward in the regulation and development of the real estate sector in India. The <a href=\"https:\/\/en.wikipedia.org\/wiki\/Real_Estate_(Regulation_and_Development)_Act,_2016\" target=\"_blank\" rel=\"noopener\">RERA Act<\/a> has helped to promote transparency and accountability in the sector, which has led to greater confidence among homebuyers. The implementation of RERA has also encouraged developers to complete projects on time and promote fair practices in the sector. The Act has the potential to transform the real estate sector in India by making it more transparent, efficient, and consumer-friendly.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark legislation enacted by the Indian Parliament to regulate and promote the real estate sector in India. The&hellip;<\/p>\n","protected":false},"author":5,"featured_media":114157,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-114155","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-miscellaneous"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is RERA &#187; Legal Window<\/title>\n<meta name=\"description\" content=\"This article briefly describes the What is RERA, Process of Registration, Objectives, &amp; Important points of consideration regarding RERA.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalwindow.in\/blog\/what-is-rera\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is RERA &#187; 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