Have you checked that your flat is RERA approved or not? Do you know what is the role of RERA in Flats?
Well, buying or selling a flat is one of the most significant decisions in a person’s life, both financially and emotionally. However, the Indian real estate sector has long been plagued by issues like project delays, lack of transparency, and consumer dissatisfaction. To combat these challenges, the Government of India introduced the Real Estate (Regulation and Development) Act, 2016 (RERA). The role of RERA in flat is very important.
This act has been a game-changer in regulating the real estate sector and protecting homebuyers’ costIndia, especially focusing on how it has empowered consumers and brought accountability to builders and developers.
Understanding RERA: What it is?
The Real Estate Regulatory Authority (RERA) was established under the RERA Act of 2016 to bring transparency, accountability, and efficiency to the real estate industry. It mandates developers to register their projects with the authority before advertising or selling. It also sets strict norms regarding project timelines, usage of funds, and information disclosure.
Each state in India has its own RERA authority (e.g., RERA Rajasthan), and it ensures that developers and agents follow fair practices while dealing with customers.
Why Was RERA Needed?
Before RERA came into force, the real estate market was largely unregulated. This led to numerous issues:
- Homebuyers facing long delays in project delivery.
- Misleading advertisements and false commitments.
- Non-transparent payment structures.
- Discrepancies in the carpet area versus the super built-up area.
- Lack of grievance redressal mechanisms.
The Role of RERA in Flat transactions became crucial to address these issues and to restore trust in the real estate sector.
Key Features of RERA That Benefit Homebuyers
Let’s explore the features of RERA that protect the rights of buyers and streamline the process of buying and selling a property:
1. Project Registration
Under RERA, all residential and commercial real estate projects with land area more than 500 sq. meters or more than 8 apartments must register with the authority. Unregistered projects cannot be sold or advertised. This ensures that buyers only deal with verified and lawful projects.
2. Transparent Carpet Area Definition
Builders are now required to sell flats based on carpet area (the net usable floor area), and not super built-up area, which was often manipulated. This ensures buyers pay only for the actual usable space.
3. Project Timeline and Delivery Assurance
One of the core strengths of RERA is enforcing timely project delivery. Developers must commit to a deadline and adhere to it. In case of delays, the developer is liable to compensate the buyer with interest.
4. Escrow Account for Funds
Developers are required to deposit 70% of the project funds collected from buyers into a separate escrow account. This amount must be used only for the construction and land cost of that project. This prevents fund diversion and ensures timely completion.
5. Advance Payment Restriction
A promoter cannot demand more than 10% of the property’s cost as an advance before signing a sale agreement. This protects the buyer from excessive upfront payments. Moreover, buyer must confirm all the hidden cost of a flat.
6. Grievance Redressal Mechanism
If a buyer faces any issue, they can lodge a complaint directly with the state RERA authority. The law provides a structured mechanism for addressing disputes within 60 days.
How RERA Empowers Sellers and Developers
While RERA offers great benefits to homebuyers, it also helps genuine developers by:
- Building customer confidence.
- Creating a level playing field.
- Filtering out fly-by-night operators and unprofessional builders.
- Ensuring smoother project financing due to improved transparency.
Developers like Virat Group, known for quality construction and timely delivery, benefit from the positive image and trust RERA fosters in the market.
The Role of RERA in Flat Transactions in Jaipur
Jaipur is one of the fastest-growing cities in India in terms of real estate. From infrastructural development to smart city projects, the Pink City is attracting homebuyers across all budgets. However, with the rapid urban expansion, buyers need extra assurance when investing in properties like a 2/3/4 BHK flat in Jaipur.
This is where the Role of RERA in Flat transactions becomes vital.
For instance, projects like Virat Krishnav by the reputed Virat Group are RERA-compliant, offering peace of mind to prospective buyers. Whether you are buying a 2, 3, or 4 BHK flat in Jaipur, checking the RERA registration and project details on the RERA Rajasthan portal is a must.
What to Check in a RERA-Approved Project?
When buying a flat, especially a 2/3/4 BHK flat in Jaipur, you should:
- Verify the RERA registration number. This is the important document of legal checklist before buying a flat.
- Check the layout plan, project completion date, and legal title on the RERA portal.
- Look for past records of the developer (if any).
- Assess the promised amenities versus those listed in the RERA filing.
These checks help ensure that you are making a secure investment.
How RERA Has Changed the Real Estate Landscape
The Role of RERA in Flat dealings has had a transformative effect on the Indian real estate ecosystem. Some major changes include:
1. Increase in Buyer Confidence
People who were earlier hesitant to invest in under-construction properties are now showing greater interest, knowing that RERA has their back.
2. Reduction in Litigation
With clear rules and structured grievance redressal, the number of property-related litigations has gone down.
3. Rise in Completions and Deliveries
Projects are now being delivered more on time, as developers are wary of the penalties and interest obligations under RERA.
4. Fair Marketing Practices
Developers now maintain honesty in marketing materials. Misleading advertisements can attract penalties and even deregistration.
Penalties and Liabilities under RERA
RERA enforces strict penalties for both builders and agents for non-compliance:
- Fine up to 10% of the project cost for failure to register.
- Imprisonment up to 3 years for promoters involved in deceptive practices.
- Revocation of project registration for repeat defaulters.
This legal backing discourages malpractice and encourages ethical business operations.
RERA for Real Estate Agents
Under RERA, even real estate agents must register themselves to operate legally. This ensures that buyers and sellers are dealing with certified professionals. Agents must also comply with the same disclosure and transparency norms as developers.
RERA vs. Pre-RERA Era: A Quick Comparison
| Parameter | Pre-RERA | Post-RERA |
| Project Registration | Not Mandatory | Mandatory |
| Timeline Commitment | Rarely Honoured | Legally Binding |
| Usage of Funds | Could be diverted | Restricted via Escrow |
| Legal Recourse | Complicated & Lengthy | Structured & Time-Bound |
| Area Definition | Super Built-Up | Carpet Area Only |
This comparison clearly illustrates how the Role of RERA in Flat purchases and sales has led to a more structured and transparent market.
Conclusion
The Role of RERA in Flat transactions cannot be overstated. Whether you’re a first-time homebuyer looking for a 2 BHK flat in Jaipur or a seasoned investor considering a 4 BHK luxury apartment, understanding RERA and checking project compliance should be your top priority.
Projects like Virat Krishnav, developed by Virat Group, are examples of how responsible builders are aligning with RERA’s mission to deliver quality, commitment, and transparency to homebuyers.
So, the next time you plan to buy or sell a flat, make sure RERA is part of your checklist. It’s not just a regulatory body; it’s a homebuyer’s shield.
