Understanding RERA Real Estate: How it Impacts the Real Estate Industry in Chennai
- The Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark legislation that was introduced to regulate the real estate sector in India. RERA aims to protect the interests of homebuyers and promote transparency and accountability in the real estate industry. The Act has had a significant impact on the real estate industry in Chennai, as it has brought about several changes in the way real estate transactions are conducted.
- One of the key provisions of RERA is the requirement for real estate developers to register their projects with the regulatory authority. This has led to greater accountability and transparency in the real estate industry, as developers are required to provide all relevant information about their projects to the regulatory authority and to the public.
- RERA has also introduced several measures to protect the interests of homebuyers. For example, developers are required to deposit a certain percentage of the funds received from homebuyers into an escrow account, which can only be used for the specific project for which it was collected. This ensures that developers do not divert funds from one project to another, which was a common practice in the past.
- Another important provision of RERA is the requirement for developers to complete their projects on time. If a developer fails to complete a project within the stipulated timeframe, homebuyers are entitled to receive compensation. This has led to greater accountability among developers and has helped to reduce delays in project completion.
- Overall, RERA has had a significant impact on the real estate industry in Chennai by promoting transparency, accountability, and consumer protection. While the initial implementation of the Act was challenging for developers, it has led to a more organized and regulated real estate sector, which is beneficial for both developers and homebuyers in the long run.
