Esha Chib
The Real Estate (Regulation and Development) Act, commonly known as RERA, stands as a transformative piece of legislation in India’s real estate landscape. Enacted in 2016, RERA was a response to the longstanding issues plaguing the sector, aiming to bring about transparency, accountability, and fairness.
At its core, RERA seeks to protect the rights and interests of homebuyers, a group often vulnerable to unscrupulous practices in the real estate market. One of the key provisions of RERA is the mandatory registration of real estate projects with the respective state’s regulatory authority. This ensures that developers provide accurate and timely information about their projects, including project details, layout plans, and financial aspects.
Furthermore, RERA mandates the registration of real estate agents, thereby creating a more structured and regulated environment for property transactions. Real estate agents are now accountable for providing accurate information to buyers and adhering to the prescribed code of conduct. This move is instrumental in curbing malpractices within the industry and enhancing consumer confidence.
In addition to registration requirements, RERA introduces a range of mechanisms to address disputes and grievances. The establishment of Real Estate Regulatory Authorities (RERAs) in each state serves as a forum for dispute resolution, promoting a fair and efficient process. Homebuyers now have a dedicated platform to voice their concerns, ensuring a quicker and more transparent resolution of disputes.
The Act also defines the rights and responsibilities of both developers and buyers, establishing a more equitable relationship. Developers are obligated to adhere to the project specifications as outlined during registration, ensuring that buyers receive what was promised. On the other hand, buyers are expected to fulfill their payment obligations promptly, contributing to a more balanced and accountable real estate ecosystem.
The Act further mandates that all the real estate ventures where the area of the land proposed to be developed exceeds five hundred square metres or the number of apartments proposed to be developed exceeds eight requires registration with RERA. The act appplies to all residential as well as commercial projects.
For starting any real estate project, the real estate agents mandatorily have to get approval of the layouts, building plans etc. from local authority before registering in the RERA. Real estate ventures must also conform to the zoning regulation and master plan of the area where the venture is to be developed.
RERA’s emphasis on transparency extends to financial aspects as well. Developers are required to deposit a percentage of the project cost in a separate escrow account. This measure ensures that funds allocated for a specific project are utilized for that project alone, preventing diversion and mismanagement of funds. This financial discipline contributes to the timely completion of projects, benefitting both developers and buyers.
Non-compliance with RERA provisions carries significant penalties, creating a strong deterrent against fraudulent practices. Developers who fail to register their projects or violate any prescribed norms face severe consequences, including fines and imprisonment. This stringent approach underscores the seriousness with which the legislation addresses malpractices in the real estate sector.
Since its enactment, RERA has made a considerable impact on the real estate landscape in India. The increased transparency and accountability have instilled greater confidence among homebuyers, leading to a more vibrant and sustainable real estate market. Developers, too, have had to adapt to the new regulatory environment, fostering a healthier and more responsible industry.
Jammu and Kashmir Union Territory has also established RERA to regulate the real estate sector in Jammu and Kashmir, similar to other states and union territories in India. Sh. Satish Chandra, IAS(Retd.) is the Chairperson of the Jammu and Kashmir Real Estate Regulatory Authority (JKRERA).is functional in Jammu and Kashmir and in case of any query or assistance, one can mail at email-id jkrerachairperson@gmail.com.
In conclusion, the Real Estate (Regulation and Development) Act represents a significant milestone in the evolution of India’s real estate sector. By addressing longstanding issues, promoting transparency, and establishing mechanisms for dispute resolution, RERA has ushered in a new era of accountability and fairness. As the real estate market continues to evolve, RERA stands as a beacon for responsible and ethical practices, benefiting both developers and homebuyers alike.
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