Real Estate (Regulation and Development) Act, 2016 (RERA)
Overview
The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act of the Parliament of India aimed at protecting home-buyers and boosting investments in the real estate industry. The Act came into force on 1 May 2017.
Key Features
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Real Estate Regulatory Authority: RERA establishes the Real Estate Regulatory Authority to regulate transactions between buyers and promoters of real estate projects.
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Mandatory Registration: Projects with land over 500 square meters or eight apartments must be registered with RERA.
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Disclosure Requirements: Promoters must disclose all project details on the RERA website, including plans, specifications, schedule for completion, and carpet area.
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Separate Accounts: Promoters are required to set up separate accounts for each project and deposit 70% of the amounts collected from buyers into the account.
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Rights and Responsibilities: The Act outlines the rights and responsibilities of both buyers and promoters.
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Dispute Resolution: Provides for the setting up of a dispute resolution mechanism.
State-Level Implementation
Each state in India has its own version of the Real Estate Regulatory Authority to enhance transparency in real estate transactions.