Building a competent industry takes change and the will to implement that change. After decades, the Indian real estate industry saw a new light, with the introduction of the Real Estate (Regulation and Development) Act, 2016 and the setup of a Real Estate Regulatory Authority (RERA) in every state/union territory. The idea was to bridge the communication gap between the real estate developers and buyers by setting up a formidable framework. This framework sought transparency and accountability in the Indian realty sector.
In spite of its significance, many still fail to understand the intricacies of RERA and what it entails. Understanding RERA is essential for every home buyer and investor in India. Under RERA, the real estate projects are monitored by the governing authorities in every state and union territory of India. This step provides a common ground for both developers and homebuyers and builds trusts by bringing in complete transparency in the real estate processes.
Today, we will take a look at RERA in detail and the purpose that it serves in the Indian real estate sector.
What is RERA?
RERA stands for Real Estate Regulatory Authority. It safeguards the interest of homebuyers and infuses transparency and credibility into the Indian real estate sector. As of August 2020, 22 states and 6 union territories have implemented RERA, out of which 19 states have active online portals so far.
What is a RERA Number?
The RERA number is an identification number assigned to the phase of a project at the time of its registration. Once the registration is complete and a RERA number is assigned to the project, a homebuyer can view the project details on the RERA portal . The RERA number can also be used to continue viewing the progress of the project.
This serves the purpose of maintaining complete clarity and building trust between a developer and home-buyer.
The Key Provisions
The main provisions of RERA, as notified by the Government of India, are mentioned below:
- An area of the land proposed to be developed for residential and commercial real estate projects exceeding 500 sq. m or number of apartments proposed to be developed exceeds eight apartments, needs mandatory registration with the Real Estate Regulatory Authority in the State in which the project is situated before any unit is marketed or sold to any person.
- No developer shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under RERA.
- In the event that a developer markets or sells a unit without registration, the Real Estate Regulatory Authority can levy a penalty which may extend to 10 percent of the estimated cost of the real estate project or imprisonment for a term which may extend up to three years or both.
- Real estate agents (as defined under RERA) facilitating the sale or purchase of any unit in a real estate project are required to register themselves under RERA.
Benefits of RERA for homebuyers
- Detailed information about the project
- Complete clarity about the construction progress
- Fair compensation for project delays
- Grievance redressal
The Indian real estate industry is on the path to recovery and has witnessed stable growth in the past few years. RERA being a forward looking legislation is proving to be beneficial for both homebuyers and developers.
As a responsible and trusted real estate brand, we, at Mahindra Lifespaces’ have ensured that all our projects are registered under RERA with due diligence. You can find the RERA numbers for our projects on their respective web pages and verify for yourself. We believe that the trust of our customers is of utmost importance.
If you are desirous of purchasing your dream home in any of our projects, you can view all the details on the RERA website/portal or explore our RERA-approved
residential projects in India and make an informed choice.
Also Read:
Your Guide to RERA-Approved Real Estate Projects - Benefits & Insights
