Key Features of RERA
Escrow Account Requirement: Under RERA, developers are mandated to deposit 70% of the total project funds into a designated escrow account. They can recover no more than 10% of the cost as an advance payment before the official registration of the sale agreement.
Mandatory Project Registration: Developers must register both commercial and residential projects with an area exceeding 500 square meters under RERA before they can proceed with booking, selling, or offering them for sale.
Quarterly Compliance Check: Stringent quarterly compliance checks are enforced, necessitating certification of project costs and progress by certified professionals such as Chartered Accountants, Engineers, and Architects.
Objectives of RERA
RERA is designed to safeguard the interests of homebuyers by establishing stringent guidelines for project execution, thereby reducing the risk of project delays and financial mismanagement.
RERA establishes an effective dispute resolution mechanism that helps address grievances and conflicts for all parties involved in real estate transactions.
RERA protects all stakeholders in real estate dealings, including promoters, developers, brokers, and agents. This inclusivity ensures that everyone adheres to the established rules and regulations.
One of RERA's primary objectives is to enhance transparency and accountability among developers and builders. This ensures that all financial transactions and project details are made accessible to concerned parties and regulatory authorities.