The Significance of RERA in Curbing Unfair Practices in Real Estate

by Godrej Properties Limited



The real estate sector in India has witnessed numerous unfair practices, leaving homebuyers vulnerable and impacting the industry's credibility. The Real Estate (Regulation and Development) Act 2016 (RERA) was introduced to establish a regulatory framework that promotes fairness, transparency, and accountability in response to these challenges. In this article, we will explore the significance of RERA in curbing unfair practices in the real estate industry and creating a more reliable and trustworthy marketplace.

Addressing Unfair Practices

RERA tackles various unfair practices prevalent in the real estate sector. Let's discuss some key aspects:

Disclosure of Information

RERA mandates developers to disclose comprehensive information about their projects, including layout plans, approvals, timelines, and financial aspects. This ensures homebuyers can access accurate information, empowering them to make informed decisions and eliminating the risks associated with undisclosed or misleading information.

Timely Project Completion

RERA emphasises timely project completion and possession. Developers are required to commit to realistic timelines and adhere to them. This provision prevents unnecessary delays, protects homebuyers from extended waiting periods, and minimises financial burdens.

Transparency in Financial Transactions 

RERA promotes financial transparency by requiring developers to maintain separate escrow accounts for each project. The funds collected from homebuyers are deposited into these accounts, ensuring the money is utilised only for the project's development.

Construction Quality Standards

RERA establishes guidelines for construction quality and standards. Developers must adhere to these guidelines, ensuring the projects meet the prescribed quality benchmarks. In addition, regular inspections by RERA authorities help maintain construction quality, preventing compromises that could compromise the safety and satisfaction of homebuyers.

Grievance Solution Mechanism

RERA establishes a robust grievance solution mechanism to resolve disputes between homebuyers and developers. It provides a fair and efficient platform for addressing complaints and conflicts, ensuring timely resolution and protecting the rights of homebuyers.

Conclusion: Shaping a Fair and Reliable Real Estate Landscape

RERA plays a pivotal role in curbing unfair practices and shaping India's fair and reliable real estate landscape. By addressing issues such as information disclosure, project timelines, financial transparency, construction quality, and grievance redress, RERA creates a level playing field for both homebuyers and developers. It promotes transparency, accountability, and trust, making the real estate sector more secure and attractive for all stakeholders.

Frequently asked questions

1. How does RERA impact the pricing of real estate projects?

Ans. RERA aims to bring transparency to the pricing of real estate projects by requiring developers to disclose all relevant information related to costs and pricing. This helps prevent unfair pricing practices and gives homebuyers a clearer understanding of the project's financial aspects.

2. What steps can homebuyers take if encountering issues with a RERA-registered project?

Ans. Homebuyers facing issues with a RERA-registered project can file a complaint with the respective state's RERA authority. The grievance redress mechanism provided by RERA ensures that their concerns are addressed and necessary actions are taken to resolve the issues.

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