RERA
Overview
The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to regulate the real estate sector, ensure transparency in project execution, and protect the interests of homebuyers.
RERA establishes a framework for registration of real estate projects and agents, mandates financial and compliance discipline for developers, and provides a mechanism for speedy dispute resolution.
This section of the Resource Center provides structured guidance on registration, compliance, homebuyer rights, and litigation under RERA, along with practical insights for developers, professionals, and buyers.
Registration
Understanding the applicability and procedural aspects of registration under RERA is essential for both promoters and real estate agents.
- When is RERA registration mandatory for real estate projects
- Projects exempt from RERA registration under the Act
- Step-by-step process for RERA project registration
- Documents required for RERA project registration
- Registration requirements for real estate agents under RERA
Promoter Obligations
RERA imposes strict obligations on promoters to ensure transparency, financial discipline, and timely completion of projects.
- Key obligations of promoters under RERA
- Maintenance of 70% escrow account under RERA
- Restrictions on advertisement before RERA registration
- Disclosure requirements of promoters under RERA
- Transfer of project rights to another developer under RERA
Homebuyer Rights
The Act provides significant protection to homebuyers by ensuring access to information and remedies against delays and defaults.
- Rights of homebuyers under RERA
- Remedies available in case of delay in possession
- Refund rights of homebuyers under RERA
- Compensation for structural defects under RERA
- Requirement of buyer consent for changes in project plans
Compliance and Reporting
RERA mandates continuous compliance through reporting, certifications, and audit requirements.
- Quarterly progress reporting requirements under RERA
- Certification requirements by CA, Engineer, and Architect
- Annual audit of project accounts under RERA
- Updating project information on the RERA portal
Complaints and Litigation
The Act provides a structured mechanism for dispute resolution through the RERA Authority and Appellate Tribunal.
- Procedure for filing complaint before RERA Authority
- Appeal process before the RERA Appellate Tribunal
- Penalties for non-compliance with RERA
- Time limits for disposal of complaints under RERA
Agreements and Documentation
Standardization of documentation ensures clarity and reduces disputes between promoters and buyers.
- Agreement for Sale under RERA – key clauses and implications
- Definition of carpet area under RERA and its significance
- Changes in sanctioned plans and buyer consent requirements
RERA and Other Laws
RERA operates alongside other regulatory frameworks and must be understood in conjunction with them.
- Relationship between RERA and GST in real estate transactions
- Interaction between RERA and the Consumer Protection Act
Conclusion
RERA has significantly transformed the real estate sector by introducing transparency, accountability, and regulatory oversight. For developers, it imposes structured compliance requirements, while for homebuyers, it ensures protection and legal remedies.
This section aims to provide a comprehensive understanding of RERA provisions and practical compliance aspects, enabling stakeholders to navigate the regulatory framework effectively.