The Indian real estate sector has long been plagued by delays, fraud, and lack of transparency. To bring order and protect the interests of homebuyers, the Real Estate (Regulation and Development) Act, 2016, popularly known as RERA, was introduced by the Government of India.
What is RERA?
RERA stands for Real Estate Regulatory Authority. It is a law that regulates the real estate sector in India and makes it mandatory for developers and agents to register their projects and follow certain rules.Each state has its own RERA authority and portal (e.g., rera.mp.gov.in for Madhya Pradesh).
Key Features of RERA
1. Mandatory Registration
Builders must register their residential and commercial projects with RERA before advertising or selling.
2. Project Transparency
Developers must provide details like project layout, completion timeline, approvals, land status, etc., on the RERA website.
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If a developer delays the project, they must compensate the buyer with interest or refund.
4. Carpet Area-Based Pricing
Builders must sell propertybased on carpet area only (not super built-up), ensuring clarity on what you're actually buying.
How Helpful is RERA?
For Buyers
Trust & Transparency: Buyers can check if a project is legally approved and track its status online.
Financial Safety
Funds are protected; buyers don’t have to fear diversion of money to other projects.
Legal Protection
RERA gives buyers the power to hold developers accountable.
For Builders:
Credibility Boost
RERA compliance builds trust and attracts more genuine buyers.
Market Discipline
Market Discipline Encourages timely project completion and ethical business practices.
For Brokers
Professional Recognition Agents must register under RERA, bringing professionalism and accountability to brokerage.
RERA has brought a much-needed revolution in Indian real estate. By increasing transparency, accountability, and protecting buyer rights, it has made property transactions safer and more reliable.
