The Salient Features of this Act
Understanding Key Milestones in Real Estate Regulation
Salient Features
- Establishment of RERA: Setting up a state-level Real Estate Regulatory Authority to monitor the real estate sector.
- Mandatory Registration: Projects with a plot area of more than 500 sq.mts or 8 apartments must be registered with RERA.
- Separate Escrow Account: 70% of the funds collected from buyers must be deposited in a separate bank account to cover the cost of construction and land.
- Standardized Carpet Area: The definition of carpet area is standardized to eliminate ambiguity in what the buyer is paying for.
- Right to Info: Buyers have absolute right to information regarding project plans, execution, and layout approvals.
- Defect Liability: Developers are liable to fix structural defects for up to 5 years after handing over possession.
- Penalties: Heavy penalties and possible imprisonment for violation of orders.