The main object of Real Estate (Regulation and Development) Act, 2016 (RERA) is to enhance transparency in the real estate related transactions by creating a organised and a uniform regulatory environment.
It's objective is protecting the interest of customers or buyers and making real estate developers liable for timely completion of projects along with committed specifications, facilities and amenities.
The RERA Act makes it mandatory for the promoters to deposit 70 percent of the customer advances or project funds into a separate dedicated project account so the funds are utilized only for the related project.
The promoter is also required to disclose names and addresses of real estate agents, contractors, architects, and structural engineers to bring greater transparency to all reality projects and protect buyers’ interests.
The Act has made the promoter equally liable for the delay in handing over the project, thereby safeguarding the interest of the buyers and if there are any delays in the project, then the promoter will be liable to pay.
The Act has made it mandatory to sell the apartments only on the carpet-area basis and in case of more than 5 percent decrease in the carpet area, the promoter has to refund prorated amount to the buyer.