The RERA (real estate regulatory authority) act was started in the year 2016 to protect home buyers’ interests. The major aim of the RERA act was to provide relief to you as a buyer from various unfair malpractices of the builders. RERA specifies specific norms in relation to the building as well as the development of the estate, which increases transparency in real estate sector transactions.
You can interpret RERA in the listed 2 ways –
∙ Real estate regulation & development act, 2016
∙ Real estate regulatory authority
Note that the RERA act applies to all lenders including SBI home loan and all home loan deals like SBI maxgain home loan, Axis bank Asha, Bank of India star pravashi, BOI star smart, etc.
Real estate regulatory authority or RERA works in the listed way –
∙ Protects the interests of both promoters and home buyers.
∙ Promotion and regulation of the real estate sector.
∙ Ensure that the sale of plots, buildings, apartments, or sale of real estate projects proceeds effectively and efficiently.
∙ Form an adjusting mechanism to address disputes quickly of complaints raised by any home buyer.
What is the requirement of the RERA act?
With RERA, the Indian government has made a repository of best practices in the real estate domain. The interest of the consumers is taken care of well covering all residential and commercial real estate. For a long, there was a great need for uniform guidelines and regulations in a scenario where consumer grievance was linked with real estate.
A few of the broad goals that were covered by this act are listed below –
∙ To bring efficiency and transparency to purchasing and selling process of real estate.
∙ To offer legal cover and to efficiently protect the interest of the consumer and rights in the real estate sector.
∙ To ensure there is a good and defined process and even the disputes are handled efficiently.
∙ To define and standardise terms as well as measures to bring all the concerned parties on the same understanding level, thus even lending specific standardization throughout projects and builders. This will assist you as a consumer to compare various projects as well as developers with ease.
∙ Defining liabilities, duties and penalties for developers/builders and intermediaries/brokers.
∙ Setting a timeline for dispute resolution and registration processes.
∙ RERA mandates all builders/developers to upload all the considerable info linked with the project i.e., details of approvals, land titles, names of brokers, construction progress, etc., on the site. This info shall next simply be available in a single place.
What are the important features of the RERA act?
Real estate regulatory authority has brought to you some of the orders in this sector with distinct provisions –
∙ Establishment of real estate regulatory authority & real estate appellate tribunal for quick dispute redressal between promotor/builder and home buyer.
∙ Making digital registration of projects of builders and real estate mandatory to make all details transparent.
∙ Digitisation of all records from 2016 onwards as well as access to all without the Right to Information (RTI).
∙ Cheap and quick online dispute redressal process. For registering a complaint, you must file an online complaint with zero help from any lawyer.
∙ Sale on basis of carpet area.
∙ Sanctioned plan can just be changed with the previous consent of either the home buyer or two third of the resident welfare association.
∙ Penalty for the false ad.
What are the key terms defined under the RERA act 2016?
Certain crucial key terms defined in RERA act are –
Agreement for sale, advertisement, allottee, architect, apartment, sanctioned plan, real estate project, real estate agent, prospectus, promotor, project, planning area, person, occupancy certificate, local authority, internal development works, interest, immovable property, garage, family, external development works, estimated cost of real estate project, engineer, development works, development, completion certificate, common areas, commencement certificate, carpet area, building.
Also Check: SBI Maxgain Home Loan
Is RERA act successful?
As per the Ministry of Housing & Urban Affairs (MoHUA) site since its introduction, various projects have been registered by Maharashtra RERA, which is one of the highest. The number of projects in Maharashtra is 34,280 accounting for 43 per cent of all the projects registered in India, followed by Gujarat with a project size of 9,822 equaling 12.49 per cent and Karnataka with a project size of 4,783 i.e., 6.08 per cent. However, the fastest rising project registrations are seen in Telangana and Andhra Pradesh with an approximate increase of 1200 per cent.
Impact of RERA act 2016
Is RERA beneficial for a home buyer? Do all the builders follow regulations set up by RERA? In case you are wondering about what impact RERA may have on you, read on –
The visual representation and big promises in the real estate sector go a long way. When it is to advertising building projects it is very much required.
Before the RERA act, 2016
Builders made big promises as well as enumerated dream promises. Past few years, they made changes to the layout plans and fooled the home buyers. Approval for change in sanctioned plan needed the acceptance of local municipal authority, which usually could be obtained easily.
After the RERA act, 2016
Builders make essential promises which they had an idea of that they could meet. They are aware that changes in sanctioned property plans required approval from home buyers or the resident welfare associations.
Speedy dispute redressal process
Where must you go in case of builders perform any fraud? In such a case, it is a must to regulate the segment as the buyers used to witness a great lot of issues in the case builders did not hold their end of the deal.
Before the RERA act, 2016
You as a homebuyer had to go through the high courts or civil courts as and when required to report your complaint against the promoter and builder. Additionally, civil court processes are highly confusing for any common person. Owing to such specific reasons there comes a requirement for a good lawyer to win the case against the builder. Note that, there are several instances where a home buyer even went to consumer court to fight the case for nearly 10-15 years.
After the RERA act, 2016
Every state comes with their own appellate tribunal and RERA court. Hence, the home buyer just requires visiting the RERA court for all the real estate cases. Additionally, in practical instances, it just takes nearly 2-3 months to get a judgement from Appellate Tribunal or RERA court.