Working of RERA after its enactment-The Real Estate (Regulation and Development) Act, commonly known as RERA, was enacted in 2016 to streamline the real estate industry and protect the interests of homebuyers. Since its implementation, RERA has significantly transformed how real estate transactions are conducted, fostering transparency and accountability in the sector. In this blog, we’ll delve into the working of RERA after its enactment and how it affects homebuyers and developers. LegalEye Firm, with its expertise in RERA law and civil matters, is here to guide you through the intricacies of this transformative legislation.
Project Registration and Disclosure
One of the primary requirements under RERA is the registration of real estate projects. Developers must register their projects with the respective state RERA authority before commencing sales or marketing. This registration involves disclosing critical details about the project, such as:
- Project and developer details
- Sanctioned plans and approvals
- Financial statements and cost estimates
- Project completion timelines
By mandating project registration, RERA ensures buyers have access to vital information, helping them make informed decisions.
Promoter’s Responsibilities
RERA outlines specific responsibilities for developers (referred to as promoters), including:
- Adherence to timelines: Developers must complete projects within the agreed-upon timelines. If a project is delayed, buyers are entitled to compensation.
- Defect liability period: Promoters must rectify structural defects and quality issues reported by buyers within five years of possession.
- Maintenance of escrow accounts: Developers must allocate 70% of funds collected for a project into an escrow account, ensuring funds are used solely for the project.
Rights of Homebuyers
RERA grants several rights to homebuyers, empowering them and providing remedies for potential grievances:
- Right to information: Buyers are entitled to project-related information, including plans, approvals, and progress reports.
- Right to compensation: In case of delays or deviations from the agreement, buyers can claim compensation or interest.
- Right to withdrawal: Buyers can withdraw from the project if they find discrepancies or unreasonable delays, receiving a refund and compensation.
Grievance Redressal Mechanism
RERA establishes a comprehensive grievance redressal mechanism for resolving disputes between buyers and developers. Buyers can approach the state RERA authority for quick resolution, or escalate matters to the Real Estate Appellate Tribunal if necessary.
Impact on Developers and the Industry
RERA has brought significant changes to the real estate industry, including:
- Increased accountability: Developers are held to higher standards, ensuring transparency and adherence to regulations.
- Streamlined processes: RERA introduces standardized processes for registration, sales, and dispute resolution.
- Improved consumer confidence: With greater transparency and accountability, buyers can trust the industry more, leading to increased investment.
Conclusion
Working of RERA after its enactment-RERA has revolutionized the real estate industry since its enactment, providing essential protections for homebuyers and fostering transparency within the sector. LegalEye Firm, with its expertise in RERA law and civil matters, is here to assist you with any questions or issues related to real estate transactions. Contact us today for professional legal advice and guidance.
