What is RERA in Real Estate? If you are new to real estate you must be curious to know about RERA! The Real Estate Regulatory Authority (RERA) in India plays a vital in regulating and promoting the real estate sector. Let us have a glance at some of the functions of RERA.
What are the Functions of RERA
- Regulation and Registration: Real estate transactions requires a lot of background checks. Not everyone dealing in the real estate market rely on fair business practices. To safeguard the interests of Real estate customers, RERA Act was passed. It ensures registration of agents and builders involved in real estate transactions.
- Transparency and Accountability: Making investment in Real estate comes up with a lot of challenges and fear factors. What if you end up investing in a dead asset or a property with negligible ROI. RERA ensures that the project builders and consultants disclose all important factors related to the project: Launch date, pricing, completion date and other crucial elements.
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- Consumer Protection: In any case you end up facing legal or financial disputes with the project builder or consultant, RERA comes to the rescue. It has rights to come up with tribunals to resolve the issue between customer and builder.
- Project Timelines and Delivery: RERA enforces timelines for project completion and possession to the customers who purchased units in the property. There are strict project deadlines and guidelines to be followed by the project builder.
- Standardization RERA sets standards(set of rules and guidelines) for various aspects of real estate transactions, such as project quality, agreements, and financial transactions. It ensures fair policies are followed by both the ends.
- Financial Accountability: RERA guides the project builders to maintain an escrow account for their projects so that the money coming from property customers are managed properly only for the specific project and avoids the chances of mismanagement of the money.
- Quality Assurance: RERA requires developers to provide a warranty for construction defects. This means that developers must fix any structural defects or poor workmanship issues reported by buyers within a specified period.
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- Regulation of Agents: It ensures that the real estate agents dealing in the real estate sector are registered with RERA.
So, this was all about RERA. Hope you now you have understood, What is RERA in Real Estate. Stay tuned to 3rdRockRealty for more such realty news, tips and updates.
