About RERA

The Indian real estate sector has witnessed a rapid growth in the graph of Indian economy. People from rural areas are shifting to urban areas to find better living opportunities, resulting in the increase of disposable incomes and demand for all forms of real estate in the country.
While the real estate sector was showing a continuous growth, people were facing various problems in buying homes due to the unethical practices and immoral activities of a few across the country. Due to delays in the project approvals and dispute resolution, the long-standing demand of the industry and consumers was not getting fulfilled. This called for an amendment and the need for reforms and a regulated sector in the real estate market.
Counting for the world-class facilities to its citizen by providing home for all, developing smart cities and advancement in infrastructure development, the Indian government came up with the Real Estate Act.
This act empowers all stakeholders in real estate sector, such as consumers, developers, brokers/intermediaries and more by bringing much-needed transparency and accountability to place greater emphasis on planning and implementing unambiguous deeds of doing business in the sector.
Starting from the launch of a project to post-sales issues of plots, apartments, shops, offices and other such properties, the Act covers a vast range of regularities of the real estate market. The Act doesn’t cover agreements in any form such as rental agreements and others.
The main objectives of the Act include:-

1. Establishing fast-track dispute resolution mechanism
2. Ensuring accountability towards buyers and protect their interest
3. Infusing transparency, ensure fair-play and reduce frauds & delays
4. Ensuring sale of real estate project, in an efficient and transparent manner
5. Introducing professionalism and pan India standardization
6. Establishing symmetry of information between the developer and buyer
7. Imposing certain responsibilities on both developer and buyers
8. Promoting good governance in the sector and create investor confidence

To advise the government in implicating the Act, a Central Advisory Council has been set. This council recommends policies to supervise the growth & development of the real estate sector. Along with this, a dedicated Appellate Tribunal has been formed to hear appeals post judgement of the RERA and the adjudicating officer.
Along with the Real estate (regulatory & development) Act, various government-lead reforms such as GST, Benami ownership of property and demonetization are making the Indian real estate sector more transparent and organized.
Note: Here, consumer is the synonym for buyer and allottee

RERA for Real Estate Buyers/Consumers

The main aim of Indian Real Estate (Regulation and Development) Act, 2016 (RERA) is to enhance transparency in the real estate related transactions by creating a systematic and a uniform regulatory environment, thereby protecting consumers’ interest and making real estate developers liable for timely completion of projects along with committed specifications, facilities and amenities.

Rights of the consumers

1. The consumer is entitled to receive information about the sanctioned plan, approved layout plan, stage wise progress of the project, carpet area and facilitation of basic amenities & services such as drinking water, electricity, sanitation etc.
2. The consumer can claim possession of the unit and the association of consumers can collectively claim possession of the common areas as declared by the real estate developer
3. The consumer can claim refund of amount paid with prescribed interest and compensation for the same if the real estate developer fails to meet the timeline or does not deliver what was promised
4. Consumers can access RERA website and can view the details of developers and projects
5. Consumers can ask the developer to rectify structural defect or any other defect as specified therein till 5 years from the date of getting possession

Responsibilities of consumers

1. The consumers must make the payments on time to the real estate developer as per the agreement. He/she is also liable to pay the share of registration charges, municipal taxes, maintenance charges, ground rent, electricity charges, water supply charges etc.
2. The consumers must take the possession of the unit within two months of issuance of the occupancy certificate
3. The consumer must actively participate in the formation of an association, a consumer federal or any cooperative society

Note

• Here, consumer is the synonym for buyer and allottee
• Here, parties means promoter and allottee

RERA for Real Estate Developers

In order to escalate the responsibility and accountability towards consumers the RERA has mandated real estate developers (also known as real estate promoters) to register the project (measuring more than 500 square meters or more than eight apartments) and obtain a valid registration number before proceeding. He/she is not permitted to market, advertise or sell the units before the registration of the project. If the project is to be developed in phases then the developer have to obtain registration for each phase separately.
The developer is required to submit all the necessary documents related to the project as prescribed by RERA. It is mandatory for a real estate developer to open an escrow account in a bank recognized by the government and must deposit 70% of the total payment received from the consumer. He/she can withdraw the money and should solely use it for the development of the said project after getting it approved from an engineer, architect or chartered accountant.
If the developer fails to comply with the directions or violates the rules prescribed by RERA or the Appellate Tribunal then, he/she may face imprisonment up to three years with a fine of up to 10% of the total estimated cost of the project in question.

Advice to Real Estate Promoters from RERA

• Before buying the plot, promoter/developer/builder must do the background check of the seller and the land
• Do the market study, cost & profit analysis, risk analysis and financial study before planning a project
• Enrol trustworthy investor or investing company and keep yourself updated with the trending stakes to get best finance deals
• Appoint competitive professionals which include sales executives, property specialist accountant, contractors, architects, engineers, surveyors and more
• Appoint a reputed project management company or a trustworthy project engineer to guide you in you in developing the project
• Obtain all the necessary approvals, sanctions, NOCs etc. to be on a safer side
• Do a survey on existing properties, upcoming properties, competitors’ projects & prices, survey in the area where you are going to develop the project
• Price your property right and appoint recognized real estate agents for a flawless marketing of your property
• Avoid diverting funds received for the said project. It will delay the project and will hamper your reputation
• Develop a proper floor plan and share all the required details with buyers
• Avoid making false promises and cutthroat business attitude
• Fulfil what you had committed while selling the units

Note

• Here, consumer is the synonym for buyer and allottee
• Here, parties means promoter and allottee

RERA for Real Estate Agents

To stimulate fair practice of doing business in the real estate sector, RERA mandates intermediaries (including intermediary websites) to get themselves registered and retain a valid RERA registration number before facilitating any real estate deal on the behalf of any real estate developer. The intermediary is also required to maintain and preserve account logs and other documents as prescribed by the Act. Also, he/she must facilitate all information and provide any further assistance as prescribed by the Act to the consumer.
If the intermediary fails to comply with the duties and responsibilities prescribed by the RERA, his/her registration can be revoked. Further, he/she can be penalized up to R 10,000 per day, which may extend up to 5% of the total estimated cost of the unit in question. The intermediary can also face imprisonment up to one year if he/she breaches any orders given by the Appellate Tribunal.

Advice to Real Estate Agents from  RERA

• Respect and follow the regulations prescribed by the Authority
• Be very informative and make sure that have sound knowledge of real estate market
• Conduct real estate brokerage business with trust & integrity and provide your best value services to the parties
• Keep the parties updated of all the facts, information and circumstances
• Give fair and respectful treatment to the parties involved in the transaction
• Ensure confidentiality and privacy of parties’ information
• Avoid giving forgery or false information to the parties
• Make transaction transparently and protect the interests of the contracting parties

Note

• Here, consumer is the synonym for buyer and allottee
• Here, parties means promoter and allottee

More Informations Coming Soon....