RERA Policies that secures interest of investors, investing in under construction commercial projects
The Real Estate (Regulation and Development) Act (RERA) is a policy in India that aims to protect the interests of real estate investors, including those investing in under-construction commercial projects. Here are some key features of RERA that secure the interest of investors:
- Registration of projects: RERA requires that all under-construction commercial projects be registered with the Real Estate Regulatory Authority (RERA) before they can be marketed or sold to investors. This helps to ensure that only legitimate projects are being offered to investors.
- Disclosure of project details: RERA requires developers to disclose detailed information about the project, including the layout plan, land status, and details of approvals and clearances, to potential investors. This helps investors to make informed decisions about the projects they are considering.
- Escrow account: RERA requires developers to deposit a percentage of the project cost into an escrow account, which can only be used for the specific purpose of developing the project. This helps to ensure that funds are used for the intended purpose and not misused by the developer.
- Timely completion: RERA sets time limits for the completion of under-construction commercial projects and requires developers to adhere to these timelines. This helps to ensure that projects are completed on time, and investors do not have to wait for longer periods for possession.
- Possession: RERA guarantees possession of the property to the investor within the timeline and also provides a penalty in case of delay in possession.
- Grievance redressal: RERA provides for a dispute resolution mechanism for investors and developers. This helps to resolve any disputes that may arise during the development of the project.
- Transparency and accountability: RERA helps to bring in transparency and accountability in the real estate sector by making developers and real estate agents more accountable to their customers and regulators.