RERA is an abbreviation for the Regulatory Authority for Real Estate. The intention of designing the RERA Act was solely to bring transparency to the real estate sector. The RERA Act was introduced to abolish problems within the real estate sector.
It aims to reduce delays and failures in the project. At the moment, it is mandatory for all builders or developers to make the RERA registration before starting any project. The RERA Act, 2016 is an Indian Parliament Act that seeks to protect home buyers as well as to help boost investment in the real estate industry.
The Act creates the Real Estate Regulatory Authority (RERA) in each State for the regulation of the real estate sector and also serves as an adjudicator for the speedy settlement of disputes.
The RERA Act forbids unrecognized funds from being poured into the sector and, as of now, 70% of the capital to be deposited in bank accounts by means of cheques is now obligatory. The builder or developer can not accept more than 10% of the value of the property as a booking amount or the application fee prior to the execution of the sale agreement.
For instance, a significant advantage for customers included in the Act is that the retailers would have to quote rates based on the carpet area that is not a super built-up area, whereas a carpet area has been specifically specified in the Act to include accessible spaces like kitchens and toilets. Under Rera, it is mandatory for the builders to reveal the area of the carpet.