RERA was enacted to protect home buyers and ensure transparency in the real estate sector. It regulates builders, agents, and housing projects so that people don't get cheated while buying property.
Key Highlights:
- Registration Mandatory: Builders must register their residential and commercial projects with RERA before advertising or selling.
- Timely Completion: Promoters must complete and deliver projects on time or face penalties.
- Advance Limit: Builders can't take more than a 10% advance from the buyer without a written agreement.
- Use of Funds: 70% of the buyer's money must be kept in a separate bank account, to be used only for that project.
- Carpet Area Clarity: Only the carpet area (actual usable space) is considered, with no misleading terms.
- RERA Website: Buyers can check project details, approvals, timelines, and complaints online on the official RERA site.
- Fast Dispute Resolution: Special RERA Authorities and Appellate Tribunals resolve buyer complaints quickly.
- Penalties: Builders and agents face heavy penalties or even jail for violations.
RERA Act – Frequently Asked Questions (FAQs)
- What is RERA?
RERA is a law to regulate the real estate sector and protect home buyers from fraud. - Is RERA registration mandatory for all projects?
Yes, all residential and commercial projects above a certain size must be registered with RERA. - How can I check if a project is RERA-registered?
Visit your state’s official RERA website and search using the project or promoter's name. - What happens if a builder doesn’t register under RERA?
They can face heavy penalties, including fines and imprisonment. - Can I file a complaint if the builder delays possession?
Yes, you can file a complaint with the RERA Authority or Appellate Tribunal. - What is the maximum advance a builder can take before the agreement?
Only 10% of the total cost. - What is meant by “carpet area” under RERA?
It is the actual usable floor area inside the walls of the flat, excluding common spaces. - Does RERA apply to ongoing or only new projects?
It applies to both, but especially ongoing projects not yet completed or sold. - Can I get a refund if the builder cheats or delays?
Yes, RERA allows buyers to seek a refund with interest or compensation. - Does RERA apply to land deals?
Only if it’s part of a real estate project involving the construction or sale of plots/flats. - What if a builder changes the layout plan after selling units?
They cannot change plans without the consent of at least two-thirds of the buyers. - Are real estate agents also covered under RERA?
Yes, even agents must register under RERA to legally operate. - How long does RERA take to resolve disputes?
Usually within 60 days of filing a complaint. - Can buyers form an association or society under RERA?
Yes, builders must facilitate the formation of such associations once the majority of flats are sold. - Is RERA applicable to all states?
Yes, but each state has its own RERA authority and website. - What is the penalty for delayed possession by the builder?
Builders may have to pay monthly interest or a full refund, as per the buyer’s choice. - Can NRIs file complaints under RERA?
Yes, RERA protects both Indian and NRI buyers. - Does RERA cover plot-only developments?
Yes, if plots are being sold as part of a larger development or layout. - Can I withdraw from the project if the builder violates terms?
Yes, and you are eligible for a refund with interest. - Where can I file a RERA complaint?
On the official website of your state's RERA authority or in person at their office.
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