The Indian real estate market has experienced a major shift with the introduction of the Real Estate (Regulation and Development) Act, 2016, or RERA. This landmark legislation has brought about a new era of transparency, accountability, and efficiency, addressing key challenges such as project delays, lack of transparency, and unethical practices by developers. In this blog, we explore the importance of RERA, its key provisions, and how it benefits homebuyers, with a focus on how Rising Spaces is helping clients navigate the real estate landscape.

What is RERA?

RERA was implemented to resolve several long-standing issues in the real estate sector. Its main goal is to protect the interests of homebuyers and create a fair, transparent, and accountable real estate market. The Act establishes a regulatory framework that promotes professionalism among developers and safeguards buyer interests.

Key Provisions of RERA

1.     Mandatory Registration: All residential and commercial real estate projects spanning more than 500 square meters or consisting of eight or more apartments must be registered with the Real Estate Regulatory Authority (RERA) before they are marketed. This ensures that only projects with necessary approvals and clearances are available to the public.

2.     Project Transparency: Developers are required to provide detailed project information, including the layout plan, location, carpet area, number of garages, and approval status. They must update this information quarterly, so buyers can track the progress of the project.

3.     Escrow Account: Developers must deposit 70% of the project funds into a separate escrow account. This guarantees that buyers’ money is used exclusively for the construction and development of the project, protecting them from financial mismanagement.

4.     Timely Project Completion: Developers are bound by strict timelines and are required to deliver possession to the buyer according to the agreed-upon schedule. If delays occur, developers are required to compensate buyers with interest for the delayed period.

5.     Defect Liability: Developers are responsible for any structural defects or poor workmanship for up to five years from the date of possession. If any defects are found, developers must address them at no additional cost to the buyer.

6.     Grievance Redressal: RERA establishes an effective dispute resolution mechanism, allowing buyers to file complaints against developers for violations. The authority is mandated to resolve these complaints within a fixed timeframe, offering swift justice to homebuyers.

How RERA Benefits Homebuyers

1.     Enhanced Transparency: One of the most significant advantages of RERA is the transparency it brings. Buyers now have access to comprehensive details about the project, empowering them to make informed decisions and avoid misleading promises.

2.     Financial Security: The escrow account requirement ensures that the funds paid by buyers are used only for the project, which reduces the risk of delays and mismanagement, safeguarding buyers’ investments.

3.     Timely Delivery: RERA enforces strict deadlines for developers, offering buyers greater certainty about possession dates and minimizing the financial strain of extended construction timelines.

4.     Quality Assurance: The defect liability clause holds developers accountable for the quality of the construction. Homebuyers are assured that any issues related to structural defects or poor workmanship will be corrected at no additional cost to them.

5.     Legal Protection: RERA provides a robust platform for buyers to resolve grievances quickly. This offers legal protection, ensuring that buyers’ rights are upheld in case of any violations by developers.

RisingSpaces: Your Trusted Real Estate Partner

At RisingSpaces, we are dedicated to providing top-notch real estate services while maintaining the highest levels of transparency and compliance with RERA regulations. As one of the leading real estate service providers, we ensure that all our projects are RERA-compliant, giving you the confidence and peace of mind you deserve with your investment. Our team of experts will guide you through every step of your real estate journey, from choosing the perfect property to ensuring a seamless transaction.

Our services include:

• Property Consultation: Personalized advice to help you find the property that fits your budget and needs.
• Project Updates: Stay informed with regular updates on your project’s progress, ensuring transparency throughout the process.
• Legal Assistance: Our legal experts assist with all necessary documentation and compliance requirements.
• Customer Support: Dedicated support to address any queries or concerns during the buying process.

For more information or to get started on your real estate journey, visit us at our office:

Address: Survey No. 261, Near Laxmi Chowk, Marunji Road, Hinjewadi, Pune 57.
Phone: +91 – 8805390707
Email: info@risingspaces.in