What is RERA Approval? Key Criteria & Benefits Explained

When diving into the real estate market, especially in vibrant cities like Chennai, one term that frequently comes up is “RERA approved projects.” RERA approved projects in Chennai adhere to the Real Estate (Regulation and Development) Act, 2016. A legislative measure introduced by the Government of India to protect homebuyers and promote transparency in the real estate sector. In this blog, we’ll explore why RERA approval is crucial, the benefits it offers, and the criteria for approval.

What is RERA?

RERA stands for Real Estate Regulatory Authority, established under the Real Estate (Regulation and Development) Act, 2016. Its primary purpose is to regulate the real estate sector, ensuring transparency, accountability, and protection for homebuyers. Before RERA, the real estate industry faced challenges such as project delays, fraudulent practices, and a lack of clarity in property transactions.

The introduction of RERA addressed these issues by mandating project registration, timely delivery, and financial accountability. RERA-approved projects mean properties that comply with these regulations, offering buyers greater trust and legal safeguards.

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What is RERA Approved Projects?

RERA approved projects are developments that have been registered with the Real Estate Regulatory Authority (RERA). This registration ensures that the project complies with the standards set forth by the RERA Act, which includes transparency, accountability, and financial discipline. Sameera Estates Private Ltd offers RERA approved plots in some of the most sought-after locations. This includes compliance with transparency, quality standards, and legal requirements, providing a secure and reliable investment opportunity.

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Importance of RERA Approved Projects

The significance of RERA approval cannot be overstated. It represents a commitment to transparency and legal compliance, which are vital in the real estate sector. Here are some reasons why RERA approval is crucial.

• ⮚ Transparency: RERA mandates that developers disclose essential project details such as timelines, project layout, and financials. This transparency helps buyers make informed decisions and ensures that developers adhere to promised deadlines.
• ⮚ Accountability: Under RERA, developers are held accountable for any delays in project completion or deviations from the promised specifications. Buyers have legal recourse if the project fails to meet the agreed-upon standards.
• ⮚ Quality Assurance: RERA approved plots in Chennai meet specific quality standards, which reduces the risk of substandard construction.
• ⮚ Financial Security: Developers must maintain a separate escrow account for each project under RERA. This ensures that funds collected from buyers are used exclusively for that project, reducing the risk of misallocation.

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Benefits of Investing in RERA Approved Projects in Chennai

Chennai, one of India's major metropolitan cities, offers a vibrant real estate market with numerous RERA approved projects. Here’s why investing in these projects is beneficial:

1. Legal Protection and Transparency

Investing in approved RERA projects provides legal protection to buyers. The RERA Act requires developers to adhere to strict guidelines, ensuring transparency in all transactions. Buyers can access detailed project information and are assured of a legal framework to address grievances.

2. Timely Project Completion

RERA approval helps in minimizing delays. Developers are obligated to complete the project within the stipulated time frame, and any delays must be compensated with penalties. This reduces uncertainty and helps buyers plan their investments better.

3. Enhanced Quality and Compliance

DTCP RERA approval mandates that approved projects meet specific quality standards. This compliance ensures that the construction meets the required safety and quality benchmarks, providing buyers with a reliable investment.

4. Secure Financial Transactions

Under RERA, developers are required to maintain a dedicated escrow account for project funds. This ensures that the money collected from buyers is utilized for the project’s development, safeguarding buyers from financial mismanagement.

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RERA Approved Builders in Chennai

Choosing the right builder is crucial for a successful real estate investment. In Chennai, several renowned builders have RERA approved projects, ensuring that buyers receive top-quality developments. Known for their commitment to quality and transparency, Sameera Estates offers a range of RERA approved projects in prime locations across Chennai.

RERA Approved Plots in Chennai

For those interested in purchasing land, RERA approved plots in Chennai offer a secure investment option. These plots are certified to meet all legal and regulatory standards, ensuring that buyers receive clear titles and a transparent buying process.

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What Projects Are Eligible for RERA Approval?

Not all real estate projects require RERA registration. Here are the exemptions:

• ⮚ Projects with less than 500 sq. meters of development area or fewer than 8 units.
• ⮚ Renovation or redevelopment projects that do not involve new sales.
• ⮚ Government-led projects or those outside planning area boundaries.

For eligible projects, RERA registration ensures compliance with legal and operational standards.

If you’re wondering how to check if a project is RERA approved, visit your state’s official RERA website (e.g., TN RERA for Tamil Nadu).

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Carpet Area Set Out Under RERA Approval

Under RERA, the carpet area refers to the net usable floor area within an apartment.

It excludes external walls, balconies, service shafts, and open terraces but includes internal partition walls. This standardized definition eliminates discrepancies in property measurements.

Impact of RERA on Carpet Area Calculation

Before RERA, builders often used terms like "super built-up area," leading to confusion about actual usable space. With RERA’s clear guidelines on carpet area, buyers now pay only for the space they can use.

This transparency ensures fair pricing and helps buyers make informed decisions when investing in RERA-approved projects.

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Criteria for RERA Approval

For a project to be RERA approved, it must meet certain criteria. Understanding these requirements can help investors and buyers make informed decisions. Here’s an overview of the approval criteria:

• ⮚ Registration with RERA: Developers must register their projects with the Real Estate Regulatory Authority. This registration includes submitting project details, plans, and financial statements.
• ⮚ Project Specifications: The project must adhere to the specifications outlined in the registration application, including project layout, design, and amenities. Financial Transparency: Developers are required to maintain a separate escrow account for each project. This ensures that funds are used solely for the project's development.
• ⮚ Timely Completion: Developers must provide a timeline for project completion and adhere to it. Any delays must be compensated according to RERA guidelines.
• ⮚ Legal Compliance: The project must comply with all local building regulations and zoning laws. This ensures that the development is legally sound and meets all safety and quality standards.

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Why One Should Not Buy or Sell Land Without RERA Approval

Investing in a property without RERA approval can lead to several risks:

• ⮚ Legal Consequences:

  Non-RERA projects may face penalties or legal disputes due to non-compliance with regulations.

• ⮚ Financial Risks for Buyers:

  Without RERA protection, buyers risk losing money in case of project delays or cancellations.

• ⮚ No Access to RERA Benefits:

  Buyers of non-RERA properties cannot approach the authority for grievance redressal or refunds.

• ⮚ Challenges in Selling & Resale Value Impact:

  Non-RERA properties often have lower resale value as they lack buyer confidence.

• ⮚ Bank Loan & Financing Issues:

  Financial institutions are hesitant to approve loans for non-RERA projects.

• ⮚ Developer Accountability:

  In non-RERA projects, developers are not legally bound to disclose project details or adhere to timelines.

If you’re unsure about a property’s status, here’s how to check if a project is RERA approved: Visit your state’s official RERA portal and search using the project name or developer details.

Conclusion

Investing in RERA approved projects in Chennai provides numerous advantages, including legal protection, transparency, and quality assurance. Whether you’re looking for residential properties or plots, opting for RERA approved options ensures a secure and reliable investment. As the real estate market continues to evolve, staying informed about RERA regulations and approved projects can help you make the best investment choices.