What is the full form of RERA

RERA: Real Estate Regulatory Authority

RERA stands for Real Estate Regulatory Authority. It aims to protect the interests of home buyers and promote real estate investments.

The Real Estate Act, 2016, which was passed on 10 March 2016 by the Rajya Sabha and on 15 March 2016 by the Lok Sabha, became effective on 1 May 2016. It was introduced to ensure the sale of flats, plots, etc., in an efficient and transparent manner. The Act establishes the Real Estate Regulatory Authority (RERA) in each state of India.

Now, developers are required to get all approvals from various government agencies before launching a project and provide all the information on the website set up by the RERA regulatory authority of their state.

Furthermore, the real estate agents are provided with a registration number by the regulator, which they are required to mention in every property sale. The authority has the power to impose penalties and imprisonment of agents in case of violation of the law.

Thus, the implementation of RERA brought relief to the homebuyers as it made builders accountable for the timely delivery of the projects and to protect buyers from fraud sellers and poor quality housing complexes.

Benefits of RERA for Homebuyers:

• The builders provide details of the project on the website of the authority of their state and update it on a regular basis.
• The buyers will pay on the basis of carpet area (area within walls).
• The 70 % of the money collected from the homebuyers has to be transferred in a separate bank account, and it should be used only for completing the project
• In case of delay in the completion of the project, the builder is required to pay an interest rate of 2% above SBI's Marginal cost of lending rate to the buyers for the delayed period.
• The builder will be responsible for any defect in the building for five years.
• The disputes between builders and buyers need to be resolved within 120 days.