What is RERA?

What is RERA?

An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.

(1) This Act may be called the Real Estate (Regulation and Development) Act, 2016.

(2) It extends to the whole of India except the State of Jammu and Kashmir

What was the need for a regulatory law for the real estate sector?

The real estate sector has grown in the recent years but has largely been unregulated from the perspective of consumer protection. Though, consumer protection laws are available, the recourse available therein are only curative, but not preventive. This has affected the overall potential growth of the sector due to absence of professionalism and standardization.

What are the objects and reasons for which the Act has been framed?

The Real Estate Act is intended to achieve the following objectives:

a)      ensure accountability towards allottees and protect their interest;

b)      infuse transparency, ensure fair-play and reduce frauds & delays;

c)       introduce professionalism and pan India standardization;

d)      establish symmetry of information between the promoter and allottee;

e)      imposing certain responsibilities on both promoter and allottees;

f)       establish regulatory oversight mechanism to enforce contracts;

g)      establish fast- track dispute resolution mechanism;

h)      promote good governance in the sector which in turn would create investor confidence.

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