RERA | REAL ESTATE REGULATION ACT 2016

RERA | REAL ESTATE REGULATION ACT 2016 |  REAL ESTATE REGULATOR

Proper Regulator in Real Estate Sector was much needed since long. Just Like SEBI in capital market thus RERA for Real Estate.

1. APPLICABILITY:

EVERY REAL ESTATE PROJECT WHERE AREA TO BE DEVELOPED EXCEEDS 500 SQ MTRS OR MORE THAN 8 APPARTMENTS

2. NEED OF RERA

BUILDERS AFTER COLLECTING FUNDS DIVERT THOSE FUNDS TO SOME OTHER PROJECTS. THUS MISMANAGEMENT OF BUYERS FUNDS

THUS AFTER RERA 70% OF THE PROCEEDS TO BE DEPOSITED INTO SEPARATE RESERVE ACCOUNT. 

FUNDS DEPOSITED IN SEPARATE RESERVE ACCOUNT SHALL BE SHOULD FOR LAND AND CONSTRUCTION.

3. PERIODICAL DISCLOSURES 

BUILDERS NOW HAVE TO MAKE PERIODICAL DISCLOSURES ON RERA WEBSITE SO THAT BUYER CAN TRACK THE PROGRESS OF THE PROJECT.