Important Things to Know About the RERA Act

How can someone steal your identity? Is it even possible? The answer, unfortunately, is “yes”.

Identity theft is real and robbing the people of their life’s savings every day.

The following are some of the most important things you must know about the RERA Act:

• RERA Act has laid down the foundation of a regulatory framework that will ensure fair practices in real estate, curb corruption and consumer exploitation. It is also designed to speed up the real estate projects in the interest of consumers, by imposing penalties on the slacking builders.
• As per the RERA Act, every state has to set up its own regulatory authority which will register and oversee all the real estate projects. No developer can market a project unless they have registered it with the RERA authority of their state.
• As a measure of discipline, the RERA Act requires the developers to compensate the investors for delays in the projects at an interest rate of about 11% to 12%.
• Every developer has to deposit 70% of the amount collected for their project in a separate bank account within three months of applying for registration under the RERA authority of their state. They can withdraw this amount in installments through different stages of the project.
• If a buyer finds any shortcomings with their property, they can contact RERA. Once their claims are verified, the developer can face serious repercussions, including jail term up to 3 years.

The RERA Act is considered one of the most important reforms for the real estate sector. While it has drawn flak from many developers due to its stern policies, the government is confident it will change the sector for good.

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