Are you planning to invest in a real estate project? If yes, then you must know about RERA compliance. RERA stands for Real Estate (Regulation and Development) Act, which was enacted by the Indian Government in 2016 to regulate the real estate sector. RERA compliance is crucial for any real estate project, and in this article, we will discuss the importance of RERA compliance.
What is RERA Compliance?
RERA compliance is the process of following the guidelines and rules set by the Real Estate (Regulation and Development) Act, 2016. This act was enacted to protect the interests of homebuyers and promote transparency and accountability in the real estate sector. RERA compliance ensures that the real estate developer adheres to the rules and regulations and provides timely delivery of the project with necessary approvals and documents.
The Importance of RERA Compliance
1. Protection of Homebuyers’ Interests
RERA compliance is essential to protect the interests of homebuyers. RERA mandates that the real estate developer should register the project with the regulatory authority before launching it. The developer needs to provide all the necessary details of the project, such as the land title, layout plan, building plan, and approvals. This ensures that homebuyers invest in a project that is legal and has all the necessary approvals.
2. Timely Delivery of Projects
RERA compliance ensures timely delivery of projects. The act mandates that the developer should complete the project within the timeline mentioned in the agreement. If the developer fails to do so, then the homebuyer is entitled to compensation. This ensures that the developer completes the project within the specified time and delivers it to the homebuyer on time.
3. Transparency and Accountability
RERA compliance promotes transparency and accountability in the real estate sector. The developer needs to provide all the necessary details of the project, such as the land title, layout plan, building plan, and approvals. This ensures that the homebuyer invests in a project that is legal and has all the necessary approvals. RERA also mandates that the developer should disclose the carpet area of the apartment, which ensures transparency in the sale process.
4. Reduction in Fraudulent Activities
RERA compliance reduces fraudulent activities in the real estate sector. RERA mandates that the developer should not advertise or sell the project without registering it with the regulatory authority. This ensures that only legal projects are advertised and sold to the homebuyers. RERA also mandates that the developer should maintain a separate bank account for every project and use the funds only for that project. This ensures that the developer does not divert the funds to other projects.
5. Increase in Investor Confidence
RERA compliance increases investor confidence in the real estate sector. The act promotes transparency and accountability, which ensures that the homebuyer invests in a project that is legal and has all the necessary approvals. This increases the trust of investors in the real estate sector and attracts more investments.
Conclusion
In conclusion, RERA compliance is crucial for any real estate project. It ensures the protection of homebuyers’ interests, timely delivery of projects, transparency and accountability, reduction in fraudulent activities, and an increase in investor confidence. RERA compliance promotes a healthy real estate sector and protects the interests of all stakeholders.
Prestige Park Grove is an upcoming township launched by the Prestige Group.
