The importance of Rera Certification

RERA is important because it protects homebuyers by ensuring transparency and accountability in the real estate sector through mandatory project registration, disclosure of project details, and a creates a zero error standardized process. It also creates a faster dispute resolution mechanism, promotes timely project delivery, and safeguards buyer funds by making developers to use a portion of money for the construction work.

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RERA in a nutshell

• Transparency:

RERA requires developers to disclose all project details, including approvals, timelines, and costs, helping buyers make informed decisions.

• Protection:

It provides legal protection for buyers and ensures developers are accountable for the promises they make, preventing fraud and ensuring quality.

• Financial security:

Developers must deposit a portion of funds from buyers into a separate escrow account, which can only be used for construction, safeguarding your investment.

• Faster dispute resolution:

RERA provides a legal framework and a dedicated authority for resolving disputes quickly, addressing issues like project delays, pricing, and quality.

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For the real estate sector

• Accountability:

RERA makes developers more accountable by imposing penalties for delays and mandating strict adherence to regulations.

• Standardization:

It brings standardization and a more organized structure to the real estate market, which was previously considered unorganized.

• Increased trust:

By ensuring compliance with quality standards and regulations, RERA approval builds confidence and trust in the market, making it more reliable for investors.

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What is the RERA Act?

RERA stands for Real Estate Regulatory Authority that came into existence as per the Real Estate (Regulation and Development) Act, 2016, with the purpose of protecting the home purchasers and also boosting the real estate investments. This bill of the Parliament of India Act was passed on Mar 10, 2016 by the Upper House (Rajya Sabha). The RERA Act was effective on and from May 1, 2016. At that time, out of 92 sections, only 52 were notified. All the other provisions were effective on and from May 1, 2017.