What is RERA –
- Rera stands for Real estate regulatory authority, it was brought into effect in the year 2016, and its aim is to bring about transparency and protect interest of the consumers, the RERA Act also enables establishment of tribunal for speedy dispute redressal and an appellate authority to challenge such tribunal’s decision.
- It aims at reducing the hardships faced by consumers by bringing more clarity and better information at the hands of the consumer before finalising such property transaction.
- RERA enables the authorities and government to check the wrongdoings of any developer whose intent is to defraud gullible investors.
- Let’s understand with the help of this article RERA, its features & benefits
Features of RERA –
- Mandatory Registration – The Act provides for mandatory registration of the project by the promoter of such project, mentioning all the relevant details and information about the project, including flat/plot sold in the project, layout plans and title reports etc.
- Advance Payments – As per RERA Act, no promoter can take an advance of more than 10% without entering into a written agreement with the said consumer of the flat/plot.
- Project to be Developed as per sanctioned plans – The Project to be developed by the developer has to strictly be in accordance with the sanctioned plans, changes if any, have to be informed to the allottees of such project.
- Establishment of Authority – An authority is established in every State to perform the functions and implement rules and regulation provided in the Act, this authority acts as the institution, which materialises the law as, laid down in the statute.
- Appellate Authority – An appellate authority is provided for under the Act to make an appeal to, if the party to the suit so wish when they are unhappy with the decision of the lower authority, this enables the parties to appeal to the RERA Appellate Authority.
Benefits of RERA –
- Quicker Redressal of Complaints – RERA enables allottees to file complaints against the developers when the developers delay delivery of the project flat to the allottee, in such case allottees can approach the RERA Authority and the Authority taking into account all facts of the case decides accordingly.
- Immunity against Structural Defects – The RERA Act enables the allottees to bring to the notice of the developers any structural defects in the said allotted flat, and the developers are in turn, bound by law to fix such defects within 30 days of the defect brought to their notice.
- Protection against Defective Title- The Law provides that the promoter will be liable to compensate the allottee if the allottee faces any hardships due to the defective title of the land on which the project is developed.
- Withdrawal from Project on Delay – If the Developer delays delivery of the said allotment, then the law provides for withdrawal from the project by the allottee, it also provides for suitable compensation including interest on the amount paid by the allottee to the developer.
- Registration not required for Repairs, Renovation & Redevelopment – The Act provides that registration is not required for any type of repairs, renovation and redevelopment to be conducted which in turn reduces the compliance on the part of the developer etc.
- Complete Act – RERA Act, 2016
- Also Read – Due Diligence before purchasing a property