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What is RERA?
RERA stands for Real Estate Regulatory Authority, which has been brought under the Real Estate (Regulation and Development) Act, 2016, in order to bring transparency, accountability, and safety to the real estate sector in India. Every state has its own RERA authority, for instance, MahaRERA in Maharashtra.
RERA applies to:
- Residential & commercial projects
- Land development layouts
How RERA Protects Land & Plot Buyers
1. Ensures Only Legal, Approved Projects Are Sold
All projects have to be registered with RERA before developers can sell any land or plots.
This makes sure that:
- The land title is checked
- The layout plan is approved.
- Permissions are checked
2. Mandatory Disclosure of Project Details
RERA compels the developer to disclose :
- Details of land ownership
- Layout and plot sizes
- Approvals & Sanctions
- Development Timeline
- Amenities promised
- No hidden information or false promises.
- Restrict Misleading Advertisements
A builder cannot advertise or sell plots or unapproved schemes unless the project is registered at RERA and has a valid RERA number.\
3. Prevention of Money Misuse
Developers must maintain 70% of buyers' money in a separate bank account for:
Land development and infrastructure
They are prohibited from making transfers to other projects.
Protection: It keeps projects from being delayed or abandoned.
Severe Penalties on Developers for delays in development, illegally changed outlays or failure to deliver what was promised.
RERA can fine it, freeze accounts, or cancel the project registration.
4. Grievance Redressal Made Easy
Buyers can submit grievances directly to RERA online for delays , fraud, non-delivery or wrong information.
RERA resolves cases faster compared to civil courts.
Protection: Consumers receive fast, inexpensive justice.
5. Open Sales Arrangements
RERA mandates a standard sale agreement, preventing developers from including unfair clauses.
6. Assurance of Timely Delivery
If the developer delays work beyond the committed timeline, the buyers are entitled to compensation.
Interest Refund in case of exit (if they wish to)
Safety: The buyer's investment remains secure.
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