What is the role of the Real Estate Regulatory Authority (RERA) under the Act?

Answer By law4u team

The Real Estate Regulatory Authority (RERA) is established under the Real Estate (Regulation and Development) Act, 2016, to regulate the real estate sector in India and promote transparency, accountability, and efficiency in the industry. RERA plays a crucial role in safeguarding the interests of homebuyers and ensuring the orderly growth of the real estate sector. Here are the key roles and functions of RERA under the Act: 1. Registration of Real Estate Projects Mandatory Registration: RERA mandates that all residential real estate projects must be registered with the authority before advertising or selling. Developers are required to provide detailed information about the project, including land status, layout plans, approvals, and estimated completion dates. Transparency: By ensuring registration, RERA enhances transparency in the real estate market, allowing potential buyers to access information about registered projects. 2. Regulation of Real Estate Developers and Agents Licensing of Developers: RERA issues licenses to developers, ensuring they meet the necessary financial and operational requirements to undertake real estate projects. Registration of Real Estate Agents: The authority also registers real estate agents, ensuring they adhere to ethical practices and regulatory norms while conducting business. 3. Protection of Homebuyers' Interests Financial Safeguards: RERA requires developers to deposit a specified percentage of funds received from buyers into an escrow account, ensuring that the money is used solely for the construction of the project and not diverted for other purposes. Timely Completion: Developers are mandated to adhere to project completion deadlines, and they are liable to compensate buyers for delays in possession unless the delay is due to reasons beyond their control. 4. Grievance Redressal Mechanism Dispute Resolution: RERA establishes Real Estate Regulatory Authorities at the state level to address disputes between buyers and developers. It provides a dedicated mechanism for grievance redressal, allowing buyers to file complaints and seek resolution. Appellate Tribunal: An appellate tribunal is also established to hear appeals against the decisions of RERA, ensuring a fair and transparent process for resolving disputes. 5. Monitoring of Project Progress Regular Updates: Developers are required to provide regular updates on the progress of their projects to RERA. This includes information on construction status, financial details, and any changes to project timelines. Site Inspections: RERA has the authority to conduct inspections of real estate projects to ensure compliance with the approved plans and regulations. 6. Promoting Fair Practices Standardization of Sale Agreements: RERA mandates a standard format for sale agreements, reducing the chances of one-sided contracts and protecting buyers from unfair terms and conditions. Clear Disclosure of Information: Developers must disclose essential details about the project, including carpet area, amenities, and the number of units available, ensuring that buyers have accurate information before making a purchase. 7. Awareness and Education Consumer Awareness Campaigns: RERA undertakes initiatives to promote awareness about the rights and responsibilities of homebuyers and developers, enhancing public knowledge of the real estate market. Guidelines for Developers: The authority provides guidelines and best practices for developers to follow, promoting professionalism and ethical conduct in the industry. 8. Policy Formulation and Recommendations Regulatory Framework: RERA plays a role in formulating policies and regulations to govern the real estate sector, ensuring that the legal framework remains relevant and effective. Recommendations to Government: The authority can make recommendations to the government regarding changes to laws and policies that affect the real estate sector. Conclusion The Real Estate Regulatory Authority (RERA) plays a pivotal role in regulating the real estate sector in India, promoting transparency, protecting homebuyers' interests, and ensuring fair practices among developers and agents. By establishing a robust framework for registration, grievance redressal, and monitoring, RERA contributes to the overall stability and integrity of the real estate market, fostering consumer confidence and encouraging investment in the sector.

Answer By Bhumi Maurya

The Real Estate Regulatory Authority Act, commonly known as RERA, was introduced to protect home buyers and ensure transparency in the real estate sector. Purpose of RERA Protection for Home Buyers: 1) RERA was created to protect the interests of people who are buying homes. It makes sure that builders and developers follow the rules and deliver what they promise. 2)Transparency: The Act ensures that there is clear information available about real estate projects. This includes details like project completion timelines, prices, and the legal status of the land. Builders have to register their projects with RERA and provide all necessary details. 3)Accountability: RERA holds builders accountable for delays, quality issues, and any discrepancies between what was promised and what is delivered. If a builder does not complete a project on time, they may have to pay penalties or even refund the money to buyers. 4)Dispute Resolution: If there is a problem between the buyer and the builder, RERA provides a mechanism to resolve disputes quickly and fairly. Buyers can file complaints with the RERA authority, which will take action to address the issue. Key Provisions Under the 2024 Amendments 1)Stricter Penalties: The 2024 amendments have introduced stricter penalties for builders who do not comply with RERA rules. This includes higher fines and, in some cases, even imprisonment for severe violations. 2)Enhanced Buyer Protection: The amendments provide additional protections for buyers, especially in cases of project delays and false advertising by builders. Buyers now have stronger legal rights if the project does not meet the promised standards. 3)Increased Transparency: Builders are now required to update project details more frequently, and any changes in project plans must be approved by the buyers and the RERA authority. This ensures that buyers are always aware of the latest developments. 4)Focus on Sustainable Development: The amendments also encourage environmentally friendly and sustainable real estate projects. Builders are given incentives to adopt green building practices and use eco-friendly materials. 5)Better Regulation of Agents: Real estate agents also come under RERA’s regulation. The amendments have made it mandatory for agents to register under RERA and follow ethical practices. This helps in reducing fraud and misleading information in the real estate market. In Simple Terms:- RERA is like a watchdog for the real estate sector. It makes sure that when you buy a home, the builder or developer sticks to their promises about the project's quality, cost, and completion date. If they don't, RERA helps you get justice, whether that means getting your money back or ensuring the project is finished as promised. The 2024 changes have made these protections even stronger, ensuring that home buyers are better informed and protected than ever before.