RERA-approved projects you have listened to this term many times but do you know what RERA is and why it is so important in real estate?
If No, then in this article you are going to know everything like why RERA, what is its significance, the features of RERA, and much more. So let’s start with what is RERA?
What Is RERA?
The Real Estate Regulatory Authority (RERA) is a law for regulating and promoting the real estate sector. It outlines efficient and transparent methods of selling real estate projects, as well as protecting consumer interests.
Its main aim is to protect consumers from loopholes and fraud. The introduction of this authority in each state and union territory is for the regulation of the real estate sector.
How RERA – Act Came Into Force?
The Real Estate Regulatory Authority bill came in 2013 and in Dec 2015, the Union Cabinet of India did 20 major amendments.
The bill was legislated by Rajya Sabha on 10 March 2016 and Lok Sabha passed the bill on 15 March 2016 but the act came into existence on 1 May 2016.
Significantly, RERA has10 chapters and 92 Sections. From 59 to 72 of chapter VIII of the Act tell us about the law regarding an offense, penalties, and adjunctions.
Why RERA Is Used And Where It Is Useful?
If any builder who wishes to construct residential or commercial properties on a plot exceeding 500 square meters or the number of apartments exceeding eight must register with RERA before beginning construction.
Under the Real Estate Regulatory Authority, the builder should provide all the necessary details like construction update, hand over the key to the date as mentioned, and also holds responsibility.
The authority also helps in guiding consumers to protect themselves from hoaxes and it promotes transparency among the seller and buyer.
Importance Of RERA
Let’s know the importance of this authority:
- Transparency: The builder subsequently has to keep a record and submit all the legal documents regarding the project he is working on. Also, the builder can’t change the plan of the project without the consent of the buyer. They must stick to the plan of the project
- Security: 70% of buyers’ or investors’ money should be in a separate account. Therefore builders or developers can use this money only for construction and land costs. Also, builders and developers cannot ask for more than a 10% advance before signing any agreement.
- Authorization: It is illegal for a regulator to advertise, sell, build, invest, or book a plot without registering with the regulator. In addition to the registration number, all investment advertisements must include a unique project-specific registration number.
- Quality: If the buyer experiences any issue within 5 years of their purchase, straightaway the builder is responsible for correcting it and it should be set within 30 days of the complaint.
Benefits Of RERA
RERA has made surely a positive impact in the real estate sector. After the Act, more people were likely to attract real estate because it offers many benefits like:
1. The registration of the project should be under the Act to protect people from fraud and delays in the project.
2. RERA introduced the method of calculating carpet area before there was no way to calculate it.
3. The act protects the interest of both seller and buyer also RERA is for both residential and commercial projects.
4. If there is any mismatch in the promises then the buyer has the power to get the full reimbursement of the amount with the interest under the Act.
5. Buyers can file a claim straightaway against the promoter if they discover that there is a defect in the title of the property upon taking occupancy. There is no limitation on the amount of compensation.
6. The buyer has the right to have all the information regarding the project like layout, rendered plan, legal documents, etc.
7. If an agent, promoter, the consumer has any complaint regarding the project they can register their complaint with RERA, and if they are not happy with the decision then they can file their complaint in Appellate Tribunal.
NOTE– Appellate Tribunal is the ministry of the finance department of revenue set to examine judgments, directions, and charges by the Real Estate Regulatory Authority and the adjudicating authority, and to answer any questions relating thereto.
Ewen Realtors And RERA Approved Projects
Ewen Realtors a real estate company in Uttarakhand is working on a project (elite class township) in Ranikhet.
Our township has three phases The Ewen Park- Royal Villas, The Ewen Park- Royal Avenue, and The Ewen Park- Village Paradise. They are for both residential as well as commercial purposes.
All three phases have a breathtaking view of the Himalayas, a view of Almora glittering at night, extravagant amenities, a serene environment, a delightful climate throughout the year except during snowfall, and much more.
The project “The Ewen Park” by Ewen Realtors is under construction in Ranikhet and has RERA approval. It has villas, cottages, and studio villas for sale at very amazing prices.
FAQs
Conclusion
RERA- Real Estate Regulatory Authority came in the year 2016 to protect the interest of buyers and sellers from hoaxes in the real estate sector.
The Act has 92 sections and they are classified into 10 chapters.
Under the Real Estate Regulatory Authority, the builder should deliver all the essential details like structure update, hand over the key to the date as said, and also holds commitment.
The township in Uttarakhand is under construction by Ewen Realtors which has the approval of RERA.