The acronym RERA stands for Real Estate Regulatory Authority (“RERA”) which is established under the Real Estate (Regulation & Development) Act (“Act”). This Act was introduced in the year 2016 to regularise the problems existing in the real estate sector. The Act will be implemented at the State level, and the governing authorities are responsible for the following:
- Registration and other related approvals for the registration under RERA of commercial properties and residential flats.
- Regulating the sale and purchase transactions of real estate properties.
- RERA registration brings about transparency in these contracts and benefits all the parties to the transaction. It also brings about accountability by reducing the chances of delay in real estate contracts. The main aim of the registration is to protect buyers of real estate and simultaneously uplift the investment in the real estate sector.
Objectives Of RERA Registration
- More transparency and accountability towards consumers in order to protect their interests.
- To resolve grievances by establishing the dispute resolution mechanism.
- To reduce frauds by increased compliances.
- To reduce delays through fair play.
- To ensure smooth operations by bringing professionalism and standards in place.
- To create awareness by promoting good governance practices.
- To bring ease in transactions due to imposed responsibilities on the promoter as well as the buyer.
- To set up the Appellate Tribunal to listen to appeals arising from the orders, decisions or directions of RERA.
Applicability of RERA Registration
Parties to the transaction – It applies to promoters and real estate agents which includes builder, developer, contractor, development body or any other public body who/which constructs/develops land/building/apartment for the purpose of sale.
Type of properties – It applies to commercial buildings, residential apartments, and plot developed for sale.
Area – The registration applies for real estate projects exceeding 500 sq. meters or having more than eight apartments.
