The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act of the Parliament of India which seeks to protect home–buyers as well as help boost investments in the real estate industry. The Act came into force from 1 May 2017.
The act sets up the Real Estate Regulatory Authority (RERA) to regulate transactions between buyers and promoters of real estate projects. It requires all projects where the land is over 500 square metres, or eight apartments, to be registered with the RERA.
The Act also requires promoters to disclose all details of their projects on the website of RERA, such as plans, specifications, schedule for completion, and carpet area. It also requires promoters to set up separate accounts for each project and deposit 70% of the amounts collected from buyers into the account.
The Act sets out the rights and responsibilities of both buyers and promoters, and provides for the setting up of a dispute resolution mechanism.
Each state within India has its own version of the Real Estate Regulatory Authority (RERA) to add transparency into Real Estate transactions.
For more details refer https://housing.com/news/rera-will-impact-real-estate-industry