Introduction
The Real Estate (Regulation and Development) Act, 2016—commonly known as RERA—has transformed India’s real estate market. But what does it really mean for homebuyers, sellers, and developers? Let’s break it down!
What is RERA?
RERA was enacted in 2016 to bring more transparency, accountability, and fairness to the real estate sector. It sets clear guidelines for developers, brokers, and buyers to protect everyone’s interests.
Key Features of RERA
Mandatory Registration:
Builders must share complete project information, including:
- Layout plans
- Approvals
- Completion timelines
- Ongoing status updates
Escrow Account Requirement:
Developers must keep 70% of project funds in a separate escrow account. This ensures that buyers’ money is used only for project construction, not for other ventures.
Timely Delivery of Projects:
If a builder delays the project, they’re liable to pay interest to the buyer for the delay—just like banks do with EMIs!
Clear Titles and No False Promises:
Developers are responsible for clear property titles and cannot make misleading claims about the project.
Dispute Resolution:
RERA offers a speedy resolution mechanism through its adjudicating officer, helping avoid lengthy court battles.
How RERA Protects Homebuyers
Peace of Mind:
Buyers get reliable information about project progress and delivery timelines.
Fair Compensation:
If developers miss deadlines or deliver substandard work, buyers can claim compensation or a full refund.
Transparency:
No more hidden charges or sudden surprises—everything is documented!
What it Means for Sellers and Developers
Trust and Credibility:
RERA registration gives projects more credibility, helping attract serious buyers.
Faster Sales:
With buyers having more confidence in RERA-registered projects, properties sell faster.
Professionalism:
The act encourages better business practices and professionalism among developers.
Impact on the Real Estate Market
Since RERA’s introduction:
- Trust has improved between buyers and sellers.
- Fraudulent projects have decreased significantly.
- Buyers are more confident in investing in real estate.
Final Thoughts
Whether you’re a buyer, seller, or developer, understanding RERA is crucial for navigating the real estate landscape in India.
At EJAHOMES, we ensure every property we deal with complies with RERA’s guidelines—giving you peace of mind and a smooth experience.
Got questions about RERA? Reach out to our team today and let’s simplify it together!