Everything About RERA Act: Objective, Rules & Regulations

RERA's full form is the Real Estate Regulatory Authority. The Government of India passed the RERA Act (Real Estate Regulation and Development Act) in 2016 to bring transparency in the real estate sector of the country. The government has set down different rules and regulations to reduce discrepancies in the industry.

Rules and regulations under the RERA Act
Both builders and consumers must know all about RERA Act as the rules apply for both parties.

The rules and regulations are-

• A developer has to pay a penalty charge of 2% over the MCLR in case of any delays in delivering the property to the buyer.

• Developers must keep 70% of the collected amount from the buyer in a separate account. This money can only be utilized for construction purposes.

• Buyers have to pay for the property as per the carpet area, and not for super built-up areas like stairs, lifts, lobbies, balconies, etc.

• Builders and developers have to share all the details of the undertaken project on the official website of RERA.

• A builder is not allowed to make any changes in the construction plans without informing at least 2/3rd the beneficiaries in case of joint ownership.

• A buyer can lodge a complaint regarding the property for up to 5 years, which needs to be resolved by the developer. In this case, RERA registration of the buyer is also required.

A crucial benefit first time home buyers can experience with RERA in action is that builders can only charge as much as 15% of property cost in advance.

Also Read: What Do You Need to Know of RERA Act in India?