RERA stands for the Real Estate Regulatory Authority. This was formed to bring about transparency in the real estate sector. The RERA Act was brought in to eradicate problems within the sector. It aims to reduce project delays and mis-selling. At present, it is compulsory for all builders or developers to carry out RERA registration before they start a project

The Real Estate Act is intended to achieve the following objectives:

• ensure accountability towards allottees and protect their interest
• infuse transparency, ensure fair-play and reduce frauds & delays
• introduce professionalism and pan India standardization
• establish symmetry of information between the promoter and allottee
• imposing certain responsibilities on both promoter and allottees
• establish regulatory oversight mechanism to enforce contracts2
• establish fast- track dispute resolution mechanism
• promote good governance in the sector which in turn would create investor confidence

The following type of cases can be filed, and reliefs can be sorted with the help of the court

• DELAYED POSSESSION and NO DELAY PENALTY
• LESS DELAY PENALTY at RS. 5 per sq. ft (1%) instead of MCLR+1%? (8-10%)
• DELAY IN REGISTRY
• UNNECESSARY / INCORRECT CHARGES BY BUILDER
• INCOMPLETE CONSTRUCTION
• BUILDER DEVIATED FROM SANCTIONED PLAN
• BUILDER INCREASED PROPERTY AREA WITHOUT CONSENT
• NO REFUND FROM THE BUILDER / AMOUNT FOREFIETED
• UNIT CANCELLED MULTIPLE TIMES
• FIT - OUT NOT AS PER AGREEMENT
• POOR CONSTRUCTION QUALITY & STRUCTURAL DEFECTS
• LACK OF PROMISED AMENETIES

A buyer may file a complaint with the RERA Authority for any violation or contravention of the provisions of the RERA Act by a builder, developer, promoter or real estate agent.

• Security: Under the RERA Act, a minimum of 70% of the buyer’s money will be kept in a separate escrow account. A separate escrow account will ensure that the money collected for a particular real estate project is not diverted to other activities/ projects undertaken by the builder/ developer. The builders cannot ask for more than 10% of the property’s value as an advance payment before the sale agreement is signed.
• Transparency: Builders are supposed to submit the original documents for all projects they undertake. Builders are not supposed to make any changes to the plan/ layout of the project without the consent of the buyers.
• Fairness: RERA has now instructed developers to sell properties based on carpet area and not super built-up area. In the event that the project has been delayed, buyers are entitled to get back the entire money that they have invested, or they can also choose to invest and receive monthly investment on their money.
• Quality: For 5 years from the date of purchase, a home buyer can raise any issue before the builder which must be resolved by the builder in 30 days from the date of notification of the issue to the builder.
• Authorization: A builder cannot advertise, sell, build, invest, or book a plot without registering with the regulator. After registration, all the advertisements for investments should bear a unique project-wise registration number provided by RERA

• RERA is a dedicated authority established to address the disputes for Real Estate
• RERA has defined timelines for faster and time-bound resolution of disputes arising between builders and homebuyers
• RERA cases costs are cheaper as compared to the cases in other Forums such as Consumer Court and National Company Law Tribunal

There is NO specified time to file a case. The case can be filed at any stage of the House Construction, however TIMELY filing of a case always helps as it gives the Consumer First Mover Advantage or Increases the PROBABILITY of WINING. For Example, during Case hearing the Court will look at the Stage of Construction and if the Construction is Delayed or Incomplete then the Consumer gets a Favorable decision & chances of WINNING increases. So, it is advisable that a Case should be filed before taking the Keys of the Flat from the Builder or Signing any document

• Transparency: Transparency in area measurements, payment structure, project completion timelines, penalties for delay or legal issues will be covered under the provisions of the Act.
• Clarity in Area Measurements: The builder is required to quote the price of the carpet area and not other units like built-up, super built-up or PFS, etc. This ensures uniformity in price terms laid down by builders.
• Claim Refund: A buyer is eligible for claiming a full refund and interest post the due date. In case the buyer wants to wait it out, the builder has to pay 10% interest every month until handing over the property.
• Speedy Trial: Adjudicating mechanism to be put in place for expeditious hearing and disposal of appeals/complaints.
• Financial Discipline: Builders are asked to keep 70% of the funds in one escrow account for each project. If the builder is caught using the funds of one project for another, he can be penalized and jailed for a maximum of 3 years.

As per the Explanation to section 2(za) the rate of interest payable by either the promoter or the allottee shall be the same. The rate of interest is required to be specified by the appropriate Government in the Rules.