The real estate sector plays a vital role in fulfilling the need and demand for housing and infrastructure development in the India. While this sector has grown rapidly in recent years, it has been largely unregulated, though in India there is state apartment act, with the absence of professionalism and standardization. The lack of adequate consumer protection mechanism is resulted in exploitation and profiteering by unscrupulous builders. Thus, the Real Estate Act will protect the interest of buyers and also give much-needed impetus to the sector.

Main Objective of RERA Act:-

• Establishing a fast-track dispute resolution mechanism.
• Ensuring accountability towards buyers and protect their interest
• Infusing transparency, ensure fair-play and reduce frauds & delays
• Ensuring the sale of real estate project, in an efficient and transparent manner.
• Introducing professionalism and pan India standardization.
• Establishing symmetry of information between the developer and buyer.
• Imposing certain responsibilities on both developer and buyers
• Promoting good governance in the sector and create investor confidence

Advantages from RERA Registration:

All clearances: Builders often attract buyers with huge discounts and pre-launch offers. And, the buyer, enticed by the offers, does not bother about the clearance. But, due to delays in getting clearance, the buyer does not get the flat on time. This bill ensures that developers get all the clearances before selling flats.

Proper Structure: Proper after sales service if the buyer finds any structural deficiency in the development of the building, then it is the developer’s responsibility to repair structural defects up to 5 years.

Timely delivery of possession:-It is seen that Developers often make false promises about the completion date of the project, but hardly ever deliver on time. As per the bill, strict regulations will be enforced on developers to ensure that construction runs on time and flats are delivered on decided time. In case if the builder is not able to deliver the flats on time, he/she will have to refund the purchaser with interest.

Accurate project details on site:In the construction stage, builders promote their projects, defining the various amenities and features related to projects. As per this bill, there can’t be any changes to a plan. And if a builder is found guilty of this, he/she will be penalized 10% of the project’s costs or face jail time of up to three years.

First RERA Registration, Then Advertisement: Promoters are not permitted to advertise any project without registering under the real estate project with the Real Estate Regulatory Authority established under this Act. Additionally, each advertisement has to carry the RERA registration number.

Booking Amount:The amount to be paid by the buyer has been forfeited from 10% to 15% which are should be paid only after registering the agreement for sale or allotment of buyer agreement or builder buyer agreement with the builders. Termination of the agreement is permitted only if the buyer defaults on payment thrice. The Buyer is entitled to a 15-day notice.