REAL ESTATE REGULATORY ACT
INTELLIGENCE HUB & GOVERNANCE (RERA)
WHY DO WE NEED RERA?
RERA was established to bring transparency, accountability, and efficiency to the real estate sector. It acts as a shield for homebuyers against unfair practices and ensures that the developer-buyer relationship is balanced and legally governed.
SITUATIONS FACED BY BUYERS BEFORE RERA
- Property builders advertised and sold based on ambiguous "super built-up area."
- Buyers paid booking charges and full consideration without knowing how funds were utilized.
- Buyers lacked a point of contact to check project progress.
- No mechanism to verify project credibility, relying solely on developer's brand or promises.
- No redressal mechanism for delays in occupancy certificates/possession or sub-standard development.
CORE OBJECTIVES
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FINANCIAL DISCIPLINE: 70% of project funds must stay in a dedicated escrow account.
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TRANSPARENCY: Builders must quote prices based on clearly defined carpet area.
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ACCOUNTABILITY: Mandatory project registration for projects over 500 sq. meters or 8 apartments.
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JUDICIAL REDRESSAL: Establishment of state-level Regulatory Authorities and Appellate Tribunals.
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AGENT GOVERNANCE: Mandatory registration and unique ID for all real estate agents.
THE LEGISLATIVE JOURNEY
- Introduced by the Indian National Congress government in 2013.
- Union Cabinet approved 20 major amendments in December 2015.
- Bill referred to a select committee in July 2015.
- Received historic approval from Rajya Sabha on March 10, 2016, and Lok Sabha on March 15, 2016.
LEGAL VERIFIER
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