What is the RERA Act? A Basic Guide to Real Estate Regulation

You're not alone if you've been hearing about RERA and wondering what it's all about. RERA, or the Real Estate (Regulation and Development) Act, 2016, is a crucial piece of legislation that aims to bring transparency and accountability to the real estate sector in India. Let us break down the complex world of RERA into simple terms, explain what RERA registration means, and highlight its significance.

What is RERA Act?

RERA stands for Real Estate (Regulation and Development) Act, 2016. It was created to bring order and fairness to the previously unregulated and chaotic real estate sector in India. Before RERA, homebuyers often found themselves in disputes with builders over delays and discrepancies in property projects. RERA was introduced to protect the rights of homebuyers and create a fairer playing field for buyers and developers.

What is RERA Registration?

RERA registration is a vital aspect of the act. It mandates that real estate projects meeting certain criteria must be registered with the respective State Real Estate Regulatory Authority (RERA). These criteria typically include projects with a land area exceeding 500 square meters or those with more than eight apartments. Builders must provide comprehensive project information during registration, such as land status, approvals, expected completion dates, and promoter details. Without RERA registration, builders cannot advertise or market their projects.

Why is RERA Important?

RERA offers several benefits to homebuyers and ensures a more transparent and accountable real estate sector:

• Transparency: RERA requires developers to disclose project details on the official RERA website, keeping buyers informed and building trust.
• Fair Pricing: Homebuyers pay for the carpet area of their property, not the often-inflated super built-up area.
• Funds Security: Developers must deposit around 70% of the project's funds into a separate escrow account, ensuring the money is used exclusively for construction.
• Timely Delivery: Developers face penalties for construction delays, motivating them to complete projects on time.
• Quality Assurance: Developers must provide free construction defect services to homebuyers for up to five years after project delivery.
• Dispute Resolution: RERA mandates that developers address homebuyers' concerns within 120 days.
• Plan Approval: Developers cannot make changes to the approved building plan without the consent of at least one-third of total homebuyers.
• Advance Payment Limit: The Act limits advance payments to 10% of the property's cost.
• Title Deed Protection: Homebuyers have the right to seek compensation from developers in case of discrepancies in the title deed.

Conclusion: RERA Projects in Navi Mumbai

For projects in Navi Mumbai, RERA registration is especially relevant. It assures homebuyers that the project adheres to the rules and regulations set by RERA. Reputable developers like Godrej Properties understand the importance of RERA and offer RERA-registered projects in Navi Mumbai, providing peace of mind to potential homebuyers.