RERA: What and Why?

The Real Estate (Regulation and Development) Act was passed in 2016 for safeguarding the rights of home-buyers and also to help boost the investment pertaining to the real estate sector.
Under this act, we saw a provision for the nationwide establishment of RERA which stands for Real Estate Regulatory Authority. This body found in every state overlooks the matters related to real estate deals in that state and also acts as an intervening authority for speedy resolution of disputes.
Let’s take a detailed look at RERA, its encompassing structures, the provisions and the extent of its authority.

WHAT?

The official long title of this 2016 Act goes as follows-
“An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment of building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute Redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.”
Quite a long one, isn’t it? But it completely explains what the act stands for the responsibilities and authority of RERA. This Act was in talks as early as 2013, with significant discussion in 2015 before it finally came into effect in 2016.
It has two provisions- registration and protection of buyers. The first one means that this Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square meters, or 8 apartments, to register with the Real Estate Regulatory Authority (RERA), which this act helps establish on a state level, for launching a project.
The other provision of the act prohibits unaccounted money from being put into the sector and now most of it has to be deposited in bank accounts through cheques.

WHY?

There are a number of benefits that the establishment of state-level RERAs has for us. It not only adds transparency to the entire process but makes it more secure for the consumers too. Also, in an event where a dispute does arise, the Regulatory Authorities are required to dispose of the complaint in 60 days. This time limit makes sure of speedy absolution, further conveniencing the consumers and grievance-bearers.
Under RERA’s orders, the builders are also required to submit the original documents for all projects they undertake and are not supposed to make any changes without the consumer’s consent. So what you see is what you get and the builder is also responsible for rectifying any issues faced by the buyer within 5 years of purchase, with a time frame of 30 days since the complaint.

So the establishment of RERAs ensures the security and transparency of a real estate purchase while making sure the buyers get quality products in exchange for their hard-earned money. It helps to curb any corruption in the entire process of building and buying as any offender, whether agents, promoters or buyers will have to face penalties in the face of using dishonest means.