Understanding the Real Estate (Regulation and Development) Act, 2016: Key FAQs

        The Real Estate (Regulation and Development) Act, 2016, also known as RERA, was introduced to bring transparency, accountability, and professionalism to India's real estate sector. This landmark legislation aims to protect the interests of homebuyers while ensuring timely delivery of projects and reducing fraud and delays in the real estate industry. In this blog, we address some frequently asked questions (FAQs) to help you understand the core objectives and provisions of the Act.

1. What are the objectives of the Real Estate (Regulation and Development) Act, 2016?

RERA was framed to meet several key objectives:

• Accountability and Protection of Interests: The Act ensures that real estate developers and promoters are accountable to homebuyers (allottees), protecting their interests by enforcing transparency and timely project delivery.
• Transparency and Fair Play: The Act mandates clear disclosures about projects, reducing fraud and improving the trust between promoters and allottees. This includes the timely provision of accurate information, such as project timelines, construction quality, and legal status.
• Standardization Across India: By introducing a set of common standards for the real estate industry, RERA ensures that developers and promoters adhere to uniform guidelines, thereby creating a more professional and ethical industry.
• Symmetry of Information: The Act ensures that both promoters and allottees have equal access to critical project-related information, promoting fairness and reducing disputes.
• Regulatory Oversight and Fast-Track Dispute Resolution: RERA establishes a regulatory body and provides a fast-track mechanism for resolving disputes, improving governance and reducing the time taken to resolve grievances.
• Investor Confidence: With these protections in place, RERA aims to boost investor confidence and attract more investment into the real estate sector.

2. What Areas in Maharashtra Are Included in the Planning Area Under RERA?

The Real Estate (Regulation and Development) Act applies to all areas of Maharashtra, as notified by the Urban Development Department of the Government of Maharashtra. According to the Maharashtra Regional and Town Planning (MR&TP) Act, the Act covers all districts across the state, ensuring that urban and rural areas alike adhere to the same regulatory standards.

3. Does the Definition of ‘Promoter’ Include Public Bodies?

Yes, the definition of 'promoter' under Section 2(zk) of RERA is broad and includes both private and public entities involved in the development of real estate projects. This means that government agencies, development authorities, and housing boards are also required to comply with RERA regulations when they engage in the sale of real estate projects.

4. Does a Real Estate Project with Less Than 500 Sq. Meters Need to Be Registered?

No, projects with land areas less than 500 sq. meters and fewer than 8 apartments are not required to be registered under RERA. However, if the project exceeds these thresholds, it must be registered with the respective Real Estate Regulatory Authority.

5. Can Developers Advertise Projects Without RERA Registration?

Since May 1, 2017, all real estate projects must be registered with RERA before any form of advertisement is issued. This includes advertisements in any medium, whether through emails, SMS, or traditional media. This provision ensures that the projects are legally recognized and compliant with RERA guidelines.

In conclusion, the Real Estate (Regulation and Development) Act, 2016, plays a vital role in protecting the interests of homebuyers and improving the professionalism of the real estate sector. By answering these FAQs, we hope to clarify the critical aspects of RERA for you.

Source: https://maharera.maharashtra.gov.in/