Jayasuriyan NRERA ( Real Estate Regulatory Authority ) is the Controlling authority for all properties in the Real estate and Residential sectors. The Indian Government initiated this to safeguard property buyers from fraudulency and provide transparency to avoid legal issues.
Why RERA is mandatory in the Real estate sector.
The implementation of RERA has transformed the real estate sector in India by promoting transparency, and accountability, and safeguarding consumers’ interests. It shows that property investments are safe and monitored. Here’s why RERA is crucial:
Building Consumer Trust: RERA mandates developers to disclose all project details, ensuring transparency for buyers.
Timely Project Completion: Developers are required to meet specified timelines, with penalties for delays.
Financial Assurance: 70% of the project funds are placed in an escrow account, ensuring that the money is used solely for the project’s construction.
Standardization: RERA prevents developers from making misleading claims through standardized advertising practices.
Grievance Redressal: Buyers can approach RERA tribunals for faster resolution of disputes.
Eliminating Malpractices: The law ensures that all projects comply with required legal approvals and quality standards.
What Are RERA-Registered Projects?
A RERA-registered project refers to real estate developments officially registered under the Real Estate (Regulation and Development) Act with the concerned state authority. These projects ensure that the developer has fulfilled all the legal and procedural requirements, which enhances transparency and accountability.
For RERA registration, developers need to provide:
- Approved building plans and layouts.
- Proof of land title and ownership.
- Financial disclosures, including project funding sources.
- Timelines and delivery schedules.
- Certification ensuring no ongoing legal disputes related to the property.
Key Features of RERA-Registered Projects
RERA-registered projects ensure a reliable and transparent property-buying experience. Key characteristics include:
Regulatory Compliance: RERA registration guarantees that the project adheres to all legal and procedural norms.
Unique Registration Number: Each project gets a unique number, allowing buyers to track its progress and verify details on the state RERA portal.
Developer Accountability: RERA holds developers responsible for meeting quality standards, deadlines, and financial transparency.
By opting for RERA-registered projects, buyers secure their investments in a transparent and regulated environment.
What Are RERA-Approved Projects?
RERA-approved projects are those that have undergone thorough scrutiny by state regulatory authorities. These projects meet essential criteria, such as clear land titles, proper building permissions, and adherence to legal and safety standards.
While all RERA-registered projects follow the compliance requirements, RERA-approved projects are further vetted and provide additional assurance of credibility and reliability to homebuyers. For buyers, this approval represents a guarantee of the project’s trustworthiness and adherence to legal standards.
Key Differences Between RERA-Registered and RERA-Approved Properties
Understanding the distinction between RERA-registered and RERA-approved projects is crucial for making informed real estate investments.
- RERA-Registered Projects: These projects are legally recognized under the Real Estate (Regulation and Development) Act, 2016. Registration ensures that the project complies with all RERA guidelines, including transparency, timely updates, and buyer protection.
- RERA-Approved Projects: This term is often used informally for marketing purposes but doesn’t hold any additional legal weight beyond registration. There is no separate legal status called “RERA-approved”; however, it’s commonly used to imply that a project has undergone a thorough review process by the state authority.
Conclusion
The term “RERA-registered” holds legal significance, while “RERA-approved” is mainly a marketing term. Buyers should prioritize RERA-registered projects for legal protection and transparency while being cautious of informal labels. Always verify the project’s status on the official state RERA portal to ensure compliance and safeguard your investment.
