Prestige Park Grove

Key Differences Between RERA and Other Real Estate Regulatory Bodies

Real estate transactions are often complicated, involving multiple parties and significant investments. To ensure fair play and transparency in such transactions, governments around the world have set up regulatory bodies. In India, the Real Estate (Regulation and Development) Act (RERA) was introduced in 2016, aimed at protecting the interests of homebuyers and promoting fair and transparent practices in the real estate sector. In this article, we will discuss the key differences between RERA and other real estate regulatory bodies in India.

Introduction to RERA and other Regulatory Bodies

RERA is a central law that aims to protect the interests of homebuyers and promote transparency in the real estate sector. It was enacted by the Indian Parliament in 2016 and came into force on May 1, 2017. The act mandates the registration of all real estate projects and agents with the regulatory body and provides a mechanism for dispute resolution.

Apart from RERA, there are other regulatory bodies in India that oversee the real estate sector. These include the National Housing Bank (NHB), the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI). Each of these bodies has its own set of regulations and functions, which we will discuss in detail in the following sections.

The Key Differences Between RERA and Other Real Estate Regulatory Bodies

1. Scope of Regulation

One of the significant differences between RERA and other regulatory bodies is the scope of regulation. RERA is a central law that applies to all states and union territories in India and covers all real estate projects, including commercial and residential. The act mandates that all developers register their projects with the regulatory body before launching them, and also provides for the registration of real estate agents.

On the other hand, the NHB regulates housing finance companies and provides refinancing facilities to such companies. The RBI regulates the banking sector, which includes housing finance companies, while SEBI regulates listed real estate companies.

2. Dispute Resolution Mechanism

Another key difference between RERA and other regulatory bodies is the dispute resolution mechanism. RERA provides for a dedicated dispute resolution mechanism through the formation of state-level regulatory authorities. These authorities have the power to hear and resolve disputes between developers and buyers, and also have the authority to impose penalties on errant developers.

In contrast, the NHB, RBI, and SEBI do not have a dedicated dispute resolution mechanism for the real estate sector. Any disputes arising between parties are dealt with under the general dispute resolution mechanism, such as through the courts.

3. Accountability and Transparency

RERA places a strong emphasis on accountability and transparency in the real estate sector. Developers are required to disclose all relevant information related to their projects, such as project details, land title, approvals, and completion status. This information is made available on the RERA website, which can be accessed by the general public.

In contrast, the other regulatory bodies do not have a mandate to promote transparency in the real estate sector. However, the RBI and SEBI do have regulations that require real estate companies to disclose certain information, such as financial results and shareholding patterns.

4. Penalties and Enforcement

RERA provides for stringent penalties and enforcement measures to ensure compliance with its regulations. The regulatory authorities have the power to impose penalties on developers for non-compliance, which can include a monetary fine or imprisonment. RERA also provides for the establishment of an appellate tribunal to hear appeals against the orders of the regulatory authorities.

In contrast, the other regulatory bodies have limited powers to impose penalties and enforce their regulations.

5. Consumer Protection

One of the primary objectives of RERA is to protect the interests of homebuyers in the real estate sector. The act provides for the formation of a Real Estate Regulatory Authority in each state, which is responsible for protecting the interests of homebuyers and ensuring fair play in the sector.

In contrast, the other regulatory bodies do not have a specific mandate for consumer protection in the real estate sector. However, they do have regulations that aim to protect the interests of investors and customers in the banking and securities sectors.

6. Transparency in Transactions

RERA mandates that developers disclose all relevant information related to their projects, including the details of the land, approvals, and completion status. This information is made available on the RERA website, which can be accessed by the general public. This promotes transparency in transactions and enables homebuyers to make informed decisions.

In contrast, the other regulatory bodies do not have the mandate to promote transparency in transactions in the real estate sector. However, they do have regulations that require listed real estate companies to disclose certain information related to their financial performance and shareholding patterns.

7. Regulation of Real Estate Agents

RERA mandates the registration of all real estate agents with the regulatory authority. This ensures that only registered agents can deal in real estate transactions and that they comply with the regulations set by the regulatory body.

In contrast, the other regulatory bodies do not have a specific mandate for the regulation of real estate agents. However, the RBI and SEBI have regulations that require brokers and intermediaries in the securities and banking sectors to register with them.

Conclusion

In conclusion, RERA is a significant step towards ensuring fair play and transparency in the real estate sector in India. It has set new standards for accountability and transparency in the sector and has provided a mechanism for dispute resolution. The other regulatory bodies in India have their own set of regulations and functions, but they do not have a specific mandate for the regulation of the real estate sector.

If you are a homebuyer in India, it is important to understand the differences between RERA and other regulatory bodies to make informed decisions. By choosing to work with developers and agents registered under RERA, you can protect your interests and ensure a fair and transparent real estate transaction.

Prestige Park Grove is an upcoming township launched by the Prestige Group.

Key Differences Between RERA and Other Real Estate Regulatory Bodies
Akil Yadav

Akil Yadav

Akil Yadav is a seasoned real estate professional with extensive experience in managing and executing successful real estate projects. With a background in architecture and design, He has a keen eye for detail and a deep understanding of the real estate market.

Prestige Park Grove Contact

Get Floor plans, amenities, pricing and lot more.

PRESTIGE PARK GROVE
error: Content is protected
PRESTIGE PARK GROVE
Don't Miss Out! Get the best offers
Detailed Price - Floor plans - Unit Types - Brochure

Limited Pre-launch Sale!