RERA || The Real Estate Regulatory Authority — Know or Ignore !!

Have you read your newspaper today? Have you seen similar headlines covering the front page
of your paper?

Do you crib over chai time with your family members about how most builders and property
dealers are thugs who exploit retailers?
Yesterday, my younger brother was talking to me about his wish to buy his own house but is too
afraid to initiate it because with the real estate developers delaying projects, overcharging and
engaging in other fraudulent practices, home buyers are usually left at the mercy of powerful
builders.
-Over 80% of the 25 lakh odd residential projects launched over 10 years have been delayed.
-Demand for residential real estate revived in Q4 FY21 as homebuyers took advantage of low mortgage rates and incentives rendered by developers.
-Residential sales in FY21 recovered to >90% volumes recorded in 2020 across the top seven cities.
- Home sales volume reached 62,800 units from 29.520 units in Q3FY21 as per IBEF
Still, sometime back, homebuyers did not have any point of contact to track the progress of a project, builders advertise and sell ambiguous super built-up areas.
States with most delayed projects ( In Descending order from top):
-The National Capital Region-Delhi
-The Mumbai Metropolitan Region
-Ahmedabad
-Kolkata
-Pune
-Bengaluru

To resolve the helplessness of homebuyers, the government has introduced RERA as except for the Consumer Protection Act, 1986, no recourse under the law was available to the real estate buyers

What is the need for RERA?
Real Estate Sector is the 2nd highest employment generator growing at a rate of 18–20%
annually and account for 6–8% of India’s GDP
As per Annual Report, the sector comprises:

• Residential segment holds 80% of the complete sector with rapid urbanization, population growth, rise in nuclear families compounding its effects
  Let us understand RERA and the laws associated with it:
  What is RERA?
  - The acronym RERA stands for Real Estate Regulatory Authority which was established under the Real Estate (Regulation & Development) Act, 2016.
  - It was established to regularize the problems existing in the real estate sector
  - It is applicable for both residential and commercial properties

What is the RERA Act and its History?
- The Real Estate (Regulation and Development) Bill was introduced in the Rajya Sabha in 2013.
-The aforesaid bill was passed in the Rajya Sabha on March 10, 2016 and in the Lok Sabha on March 15, 2016. The Real Estate (Regulation and Development) Act, 2016 (“RERA” or “Act”) fully came into force on May 01, 2017
-The act establishes a RERA in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution
-It has been divided into 10 Chapters, which are further categorized into 92 Sections.
-Earlier it extended to the whole of India except the State of Jammu and Kashmir but dated on 30th October, 2019, this was made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh

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What are the Objectives Of RERA Registration?
-More transparency and accountability towards consumers in order to protect their interests.
-To resolve grievances by establishing the dispute resolution mechanism.
-To reduce fraud by increased compliance.
-To reduce delays through fair play.
-To ensure smooth operations by bringing professionalism and standards in place.

Applicability of RERA Registration
-Parties to the transaction — It applies to builders, developers, contractors, development body or any other public body who/which constructs/develops land/building/apartment for the purpose of sale.
Area — The registration applies for real estate projects exceeding 500 sq. meters or having
more than eight apartments.

As per the FY21 annual report, below is the current RERA data:

You should only buy RERA registered projects from RERA registered agents
You can check information about Registered Real Estate Agents

You can check information about Registered Real Estate Projects

What do you think, RERA should stay? Is it really beneficial for buyers? Does real estate really need so much attention?

Do share your comments. Writing is my way of interacting with different brains