Property Law Videos - What is RERA or Real Estate Regulatory Authority?

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect homebuyers as well as help boost investments in the real estate industry. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016.

How RERA seeks to protect home buyers is by making the real estate industry more organized as well as safer. RERA has introduced a number of important changes with regard to how things will work in the real estate industry. The main idea behind the act is in connection to the level of uncertainty as well as the possibility of the buyer of a property being defrauded.  These changes are important from the point of view of both the people purchasing property as well as the builders.  

Any promoter inviting offers for any new project will have to first register himself as well as the project with the Real Estate Regulatory Authority before such invitation.  

Under the Bill, instead of a regular forum for consumers, the purchasers of real estate units from a developer would have a specialized forum called the Real Estate Regulatory Authority. An interim authority will be in place until this is set up. 
Registration of the promoter and every specific project with the Authority before offering, buying or selling will also become necessary under the Act.

The main problem in the real estate industry was that since there was no consolidated, certain authority which could be approached in order to address problems being faced by the customers in the industry. The Act will provide with a single authority for different areas which can be approached in case any problems are faced by any persons buying any property.    

RERA will make how things work in the real estate industry: 
A lot safer from the point of view of the people buying property. 
A lot more organized as far as the promoter and builder industry is concerned.