RERA, or Real Estate Regulatory Authority, has emerged as a game changer in the Indian real estate market. It is a regulatory body focused on ensuring transparency and accountability in real estate transactions and added security to property buyers. Keep reading to know exactly what RERA and RERA-approved properties are.
What is RERA?
The Real Estate Regulatory Authority (RERA) Act was enacted by the Government of India in 2016. This act was designed to regulate the real estate industry by protecting the rights of home buyers and setting guidelines for buyers, developers, and agents to ensure fair transactional practices.
Under the RERA Act, real estate developers are required to ensure timely delivery of the projects, efficient dispute resolution, and establish trust in the process. The RERA Act differs from state to state, addressing the specific construction needs in diverse locations. Project developers should adhere to its policies and register themselves under RERA.
What is RERA approved?
Before you know what RERA is approved for, you must understand that RERA is a regulatory body established to protect the interests of homebuyers. RERA approved simply means RERA registered. Approvals, land titles, insurance, and more are the guidelines that all builders must follow to register their projects. The prime features that RERA focuses on are security, transparency, fairness, quality, and authorization. There are many advantageous aspects of RERA approval, including:
Clarity on carpet area and pricing:
RERA has set standards for property measurements and requires developers to sell properties based on their carpet area. This factor has made the property purchase process more comparable and convenient, as the buyers only pay for the usable space. It allows the buyers to steer clear of additional costs and buy the most profitable property.
Structural defect liability:
RERA has the right to hold property developers accountable for any kind of structural defects that may harm property buyers physically or financially. RERA may observe projects after their completion for a particular period and mandate developers to fix any damages from their pocket. This shall help protect buyers from incurring further expenses.
Protection against false advertisements:
RERA requires property developers to provide accurate and verifiable information while promoting a property to buyers. Developers can be held accountable for any exaggerated and outright false claims about the project. Legal action can also be taken in case of failure to rectify misinformation. This helps make the property purchase process more transparent for the buyers.
Broadly speaking, being RERA-approved is extremely important for modern developers, as it acts as a symbol of trust and authenticity.