The Real Estate (Regulation and Development) Act, 2016 (RERA) was established to bring transparency, accountability, and efficiency to the real estate sector in India. The Act mandates the formation of a Real Estate Regulatory Authority (RERA) in each state to regulate and promote the real estate sector. Here are the key functions of RERA in regulating real estate projects: 1. Registration of Real Estate Projects and Agents Mandatory Registration: RERA requires all commercial and residential real estate projects to be registered with the authority before any advertisement or sale. This includes projects with a land area of more than 500 square meters or more than eight apartments. Agent Registration: Real estate agents who facilitate the sale or purchase of properties must also register with RERA. 2. Ensuring Transparency Project Details Disclosure: Developers must provide comprehensive details about the project, including land status, layout plans, approvals, timelines, and ongoing status. This information must be updated regularly and made accessible to the public on the RERA website. Advertisement Standards: Developers must advertise only the registered projects and provide accurate information about the project specifications and approvals. 3. Protecting Homebuyers’ Interests Escrow Account Management: Developers are required to deposit 70% of the project funds received from buyers into a separate escrow account. This ensures that the funds are used solely for the project’s construction and related costs. Timely Possession: RERA mandates strict timelines for project completion and possession. Developers are liable to compensate buyers for delays unless the delay is due to unavoidable circumstances. Clear Title and Defect Liability: Developers must ensure the clear title of the property and are liable for any structural defects in the construction for five years from the date of possession. 4. Grievance Redressal Mechanism Complaint Handling: RERA provides a platform for homebuyers to file complaints against developers and agents. The authority ensures timely resolution of grievances and disputes. Real Estate Appellate Tribunal: In case of dissatisfaction with RERA’s decision, parties can approach the Real Estate Appellate Tribunal for further resolution. 5. Monitoring and Compliance Regular Inspections: RERA has the authority to conduct regular inspections of registered projects to ensure compliance with the Act’s provisions. Penalties for Non-Compliance: The authority can impose penalties on developers and agents for non-compliance, including fines and imprisonment for serious violations. 6. Standardizing Practices Model Sale Agreement: RERA has introduced a standard model sale agreement to ensure fair and transparent transactions between buyers and developers. Guidelines for Project Marketing: The authority sets guidelines for project marketing, ensuring that all promotional material is truthful and not misleading. 7. Promoting Professionalism Code of Conduct: RERA establishes a code of conduct for developers and agents to promote ethical practices and professionalism in the real estate sector. Training and Certification: The authority may conduct training and certification programs for developers and agents to enhance their skills and knowledge. 8. Data Collection and Research Market Data Analysis: RERA collects and analyzes data related to real estate transactions and market trends. This information helps in policy formulation and improving sector governance. Research and Development: The authority conducts research to understand the challenges in the real estate sector and develop solutions to address them. 9. Advisory and Policy Recommendations Advisory Role: RERA advises the state government on matters related to the real estate sector, including policy changes and new regulations. Policy Formulation: The authority plays a role in formulating policies and regulations to promote the growth and development of the real estate sector. 10. Consumer Awareness Public Awareness Campaigns: RERA undertakes initiatives to educate consumers about their rights and responsibilities, the importance of project registration, and the benefits of transparent real estate transactions. Guidance for Homebuyers: The authority provides guidance and support to homebuyers to help them make informed decisions. Conclusion RERA’s key functions revolve around ensuring transparency, protecting homebuyers, enforcing compliance, and promoting professionalism in the real estate sector. By regulating real estate projects and agents, providing a robust grievance redressal mechanism, and fostering ethical practices, RERA aims to create a more transparent, accountable, and efficient real estate market in India.

The Real Estate (Regulation and Development) Act, commonly known as RERA, was established to regulate and promote the real estate sector in India. It aims to protect the interests of homebuyers and ensure transparency in the real estate market. Key Functions of RERARegistration of Real Estate Projects: RERA requires all real estate projects (residential and commercial) to be registered with the authority before they can be marketed or sold. This ensures that only legal and approved projects are offered to buyers. Ensuring Transparency:Builders and developers must provide detailed information about the project, including the layout, approved plans, land title, construction timeline, and any approvals obtained from the government. This information is made available on the RERA website, so buyers can make informed decisions. Protection of Homebuyers’ Interests:RERA protects buyers by ensuring that developers adhere to the promised timeline and quality standards. If there are delays or deviations from the agreed terms, buyers can seek compensation or refunds through RERA. Monitoring Project Progress:Developers are required to update RERA regularly about the progress of the project. This helps in preventing delays and ensures that the project is completed on time. Handling Complaints and Disputes:RERA has a mechanism to handle complaints from buyers, developers, and other stakeholders. If a buyer faces issues related to delayed possession, false promises, or poor construction quality, they can file a complaint with RERA for resolution. Ensuring Financial Discipline:Developers must deposit 70% of the money collected from buyers in a separate bank account. This money can only be used for the construction of that particular project. This prevents the misuse of funds and ensures that the project is completed without financial issues. Standardization of Sales Agreements:RERA ensures that developers use standard sales agreements, which include all important details and are fair to both parties. This reduces the chances of disputes and ensures transparency in the transaction. Penalties for Non-Compliance:If developers fail to register their projects with RERA or do not comply with the rules, they can face heavy penalties, including fines and imprisonment. This encourages developers to follow the law strictly. In Simple Terms:RERA acts like a watchdog for the real estate sector. It makes sure that developers follow the rules, register their projects, keep buyers informed, and complete projects on time. If developers don’t follow the rules, RERA can penalize them. This way, homebuyers are protected from fraud and delays, and they get what they were promised.