RERA Act, 2016
The enactment of the Real Estate (Regulation and Development) Act in 2016, popularly referred to as RERA, aimed at bringing transparency, accountability and efficiency into the real estate sector in India. RERA is expected to safeguard the interests of homebuyers and improve the credibility of this sector. It requires the registration of real estate projects and agents with regulatory authorities, and it established guidelines to protect consumer rights. But some types of real estate projects do not come under the ambit of RERA.
- Residential Projects: RERA concentrates mainly on residential developments, comprising apartments, villas, and housing complexes. Builders or developers of such projects will have to register them with RERA before carrying out any marketing and sales. The registration provides an undertaking that the development is free from all legal evils and sets a timeline to complete it.
- Commercial Projects: Although RERA is primarily linked to residential developments, it also applies to commercial real estate projects, including office buildings, shopping malls, and retail spaces. Developers involved in these projects are required to maintain transparency in the processes of sale, purchase, or leasing, and they must adhere to the regulations set forth by RERA regarding construction timelines and quality standards.
- Mixed-Use Developments: Mixed-use developments, which integrate residential, commercial, and recreational areas, fall under the purview of RERA. These projects must be registered with RERA to guarantee that both residential buyers and commercial tenants are safeguarded by the same regulations.