The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, was introduced by the Indian government to bring some much-needed transparency, accountability, and order to the real estate sector. It also set out specific rules that real estate agents, brokers, and consultants need to follow.
Penalties for Breaking the Rules (Section 62)
What This Means: If an agent doesn’t follow RERA’s rules, they could face penalties, including fines and even imprisonment, depending on how serious the violation is.
Why This Matters: These penalties act as a strong deterrent, making agents think twice before cutting corners. It encourages them to stick to the rules, knowing that breaking them could lead to serious consequences.
How do RERA norms make life easier for home seekers and sellers? Well, RERA isn’t just about rules for agents; it’s about making the whole process of buying or selling a home more transparent, trustworthy, and secure for everyone involved.
More transparency
With RERA, you get access to accurate and reliable information. Agents are required to disclose all the important details about properties, like legal status, approvals, and timelines; so you’re less likely to be misled by false promises.
Building trust
Since agents must be registered and meet certain standards, you can feel more confident that you’re dealing with professionals who are accountable to a regulatory authority.
Protection from fraud
RERA’s focus on documentation and ethical conduct reduces the risk of fraud significantly. You can trust that the property you’re investing in is legally sound and the agent is acting in your best interest.
Fair dispute resolution
If something does go wrong, RERA provides a clear legal framework for resolving disputes. Agents must maintain records, which can be used as evidence, ensuring that you have a fair shot at getting justice.
Restoring confidence
By regulating agents, RERA has helped restore confidence in the real estate market. This benefits both home seekers, who can now invest with greater confidence, and sellers, who can expect fair and transparent dealings.
Wrapping up
RERA has been a game-changer for India’s real estate sector, bringing in much-needed transparency, accountability, and professionalism. By regulating real estate agents, the act helps protect home seekers and sellers from fraudulent practices, making the whole process of buying or selling a home much more secure.
However, keep in mind that RERA only applies to the primary market and excludes smaller projects with fewer than 8 units or those on plots smaller than 500 square meters. If such under construction projects are not registered under RERA, they may be still legal if they have the required sanctions.
The author is President - NAR India
