Key Objectives of the Act
Protecting Buyers and Regulating the Industry
Why Was RERA Introduced?
Prior to RERA, the real estate sector was notorious for unregulated practices, misleading advertisements, and perpetual project delays. The Act was enacted with a very clear, multi-faceted objective: to restore consumer confidence, weed out unprofessional operators, and establish a highly transparent ecosystem.
Protect Consumer Interests
Ensure accountability towards allottees and protect their financial interest throughout the real estate transaction process.
Infuse Transparency
Ensure fair-play and drastically reduce frauds and project delays by demanding absolute transparency from developers regarding approvals, layouts, and completion timelines.
Standardized Legal Regime
Introduce a unified legal framework for the purchase of flats, apartments, and plots, standardizing the business practices across the entire Indian real estate sector.
Symmetry of Information
Establish a direct symmetry of information between the promoter and the allottee, preventing developers from hiding crucial project details from the buyers.
Additional Regulatory Goals
Impose Mutual Responsibilities
To impose certain responsibilities on both the promoter and allottees, ensuring that buyers make timely payments and developers deliver on time.
Fast-Track Dispute Resolution
To establish a fast-track dispute resolution mechanism (through the Appellate Tribunal) to prevent civil courts from being overwhelmed with real estate complaints.
Promote Good Governance
To promote good governance in the sector which in turn would create investor confidence and stimulate Foreign Direct Investment (FDI).