To help the Indian real estate industry become more accountable and transparent, the Real Estate (Regulation and Development) Act, 2016 (RERA Act) was introduced. In order to solve the problems and inconsistencies in the home-buying process, the Indian Parliament passed the Act, which went into force in May 2017. Its main objective is to safeguard homebuyers' interests while policing builders, brokers, and other industry participants. Many improvements have been brought about by the RERA Act since it was put into effect, and more are anticipated in the future. Effective real estate market navigation requires knowledge of RERA regulations and norms, whether you are a builder or a homebuyer. For local RERA Act enforcement, each state has also created its own set of regulations.
Principal advantages of RERA
Every aspect of the real estate industry has improved as a result of RERA. Here's how: RERA seeks to lessen property fraud and project delays. In order to accomplish this, authorities have mandated that all developers and builders complete RERA registration before to beginning a project. Each of the smaller regulatory organizations that make up RERA is responsible for overseeing the real estate development in a specific Indian state or union territory. Both residential and commercial properties are subject to RERA regulations. RERA's standardization is intended to safeguard the interests of both developers and purchasers. The real estate sector is now more transparent and accountable according to the RERA Act.
Activities covered by RERA
All real estate projects will fall under RERA's jurisdiction once all states and union territories have complied with it. In the meanwhile, consider the criteria that impose or exempt a project from RERA. RERA includes projects completed prior to the RERA Act's introduction but lacking a completion certificate. RERA will not apply to projects that have undergone construction for the purpose of maintenance, repair, or redevelopment when no flats, plots, or buildings are being re-allocated, marketed, advertised, sold, or otherwise distributed. Every stage of a construction project must be reported as a separate development using a new RERA registration.
