“RERA” stands for the Real Estate (Regulation and Development) Act. It is an Indian legislation passed in 2016 to regulate the real estate sector in India and ensure transparency, accountability, and efficiency in real estate transactions.
Key aspects of RERA include:
- Regulation of Developers and Agents: RERA mandates that all developers and real estate agents be registered with the regulatory authority to ensure they adhere to the prescribed standards.
- Transparency: Developers must provide clear details about the project, including project completion timelines, approvals, and changes. They are also required to upload project plans and progress reports on the RERA website.
- Timely Delivery: Builders are obligated to complete projects on time. If there is any delay, they must pay compensation to the buyers.
- Defects Liability: If there are structural defects within five years, the builder must fix the issue at no extra cost to the buyer.
- Advance Payment: Builders are not allowed to take more than 10% of the property cost as an advance before signing a sale agreement.
- Homebuyer Protection: RERA offers better protection to homebuyers by requiring a clear, legally binding agreement between the buyer and seller.
Overall, RERA aims to create a more organized real estate sector by making transactions fairer and more transparent for consumers while holding developers accountable.