Importance of RERA in Protecting Homebuyers

RERA or Real Estate Regulation and Protection Act, 2016 has changed the real estate industry in India for good. The real estate industry was unregulated and exploited by some developers and agents before this regulation came into effect. Homebuyers and investors faced many hindrances while purchasing property, creating fear and uncertainty. Several issues plagued the real estate sector, like project delays, irregular deliveries, lack of transparency, deviations from the plans, and unfair business practices. There was no recourse available to homebuyers to keep developers in check. RERA was introduced to solve this issue and regulate the industry, holding developers accountable.

This blog delves into how RERA protects homebuyers with its provisions.

Key Provisions

RERA mandates that all real estate projects be registered with the regulatory authority as the basic measure of compliance. The key provisions include –

1. Project Registration

The developer must register their project with the regulator, with detailed information about the project. The layout, amenities, and project timelines should be declared.

2. Project Details

The developer must disclose project details like the carpet area, the built-up area, the super built-up area, and common areas on the RERA website to ensure transparency

3. Separate Project Account

The money collected from the buyers and investors must be maintained in a separate account so that it is used solely for the project. The funds cannot be used for any other purpose.

4. Completion On Time

Developers must complete and deliver the project on time with all the legalities in place, failing which they are liable to penalties and fines.

Benefits to the homebuyer

1. Transparency and Accountability

RERA ensures that the developers are held responsible for their actions. They must be transparent about all the developments in the project and held accountable for discrepancies if any.

2. Protection mechanism

RERA protects the rights of the buyers and provides a redressal mechanism for their grievances. It ensures swift justice to property buyers.

3. Timely Completion

Builders and developers are expected to complete the projects on time. The property buyers do not have to face delays.

4. Fair Business practices

RERA promotes fair business practices ensuring that the buyer’s rights are protected. Unfair and deceptive practices are forbidden and have a legal recourse.

RERA has changed the real estate industry by instilling confidence amongst real estate investors and buyers. Homebuyers must understand their rights well to be empowered and protected during the home buying process. Homebuyers can breathe a sigh of relief by avoiding stress created by scrupulous developers. This has benefitted the industry’s progress in the country.