Top 5 RERA Regulations Every Developer Should Know

The Real Estate (Regulation and Development) Act, 2016 (RERA) has introduced important rules for developers in India. Let's break down the top 5 RERA regulations every developer should know:

Mandatory Registration:

If you're planning a real estate project bigger than 500 square metres or with more than eight apartments, RERA says the Project registration is a must. This applies to the whole project, from start to finish including all phases. Remember, no advertising or selling before registration!

Disclosure Requirements:

Be transparent! RERA wants you to share all the details about your project on their website. This includes plans, layouts, amenities, and legal titles. By being open, you build trust with buyers and prevent disputes.

Section 13 Under RERA: No Advance Without Agreement

Section 13 of the law states that it is not allowed for a promoter to receive more than 10 percent of the total cost of an apartment, plot, or building from any individual without first entering into a written agreement for sale with that person. This agreement must be registered in accordance with the existing laws. The agreement should contain detailed information about the development of the project, including specific details about the construction, payment schedules, dates for handing over possession, interest rates in case of default, and any other relevant information.?

Escrow Account Management:

Keep finances in check! RERA says you must put 70% of the money from buyers into a separate account. This money can only be used for project expenses, ensuring timely completion.

Defect Liability Period(DLP):

The Defect Liability Period (DLP) in construction contracts ensures that developers address any defects or issues arising within a specified timeframe after project completion. During this period, contractors must rectify structural or operational flaws without additional charges. It provides homebuyers with quality assurance and peace of mind regarding their investment.

Understanding and following these RERA regulations is crucial for developers. They promote fairness, transparency, and trust in the real estate sector. By complying with RERA, you not only avoid legal trouble but also contribute to a healthier real estate market in India.

For more information, visit to the guide https://reraeasy.com/blogs/top-5-rera-regulations/

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