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The Real Estate Regulatory Authority is a special body set up under the parliament act (Real Estate Regulatory And Authority Act) and deals with the real estate sector.

ABOUT RERA (REAL ESTATE REGULATORY ACT)

The Real Estate Regulatory Act was passed by Indian Parliament in 2016 which made it compulsory for all commercial as well as residential real estate projects with land over 500 square meters or eight apartments to get them registered with the real estate regulatory authority.The states which have these regulatory authorities cannot appeal before civil court or hight court for matters related to real estate project issues. In case of any wrong doing by buyer/ developer the homebuyer can directly contact to regulatory authority.

Under this act the regulatory authority has to either accept or reject the appeal in 30 days.

BENEFITS OF RERA

1. TRANSPARENCY - This act has brought transparency among buyers and developers.
2. STANDARDISED CARPET AREA- According to RERA, carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’ this brought more clarity to home buyers.
3. ADVANCE PAYMENT- Now the builder cannot take more then 10% of cost of property from buyer before entering into sale agreement.
4. AUTHORITY- Development of regulatory authority for any kind of redressal .
5. Safety of money and transparency on utilisation.

CONCLUSION

The act has its advantages no doubt however, the success of any act depends on its proper implementation. This act helps to protect the home buyers as well as the developers and imposes duties on promotors. In addition to this, it also consists of preventive and penal provisions.

Author: Mohit Arora & Associate - Meenakshi Yadav