RERA is an act for regulation and promotion of the real estate sector to make sure the sale of apartment, plot or building in an effective and clear manner. The Act aims to safeguard the interest of customers. It was authorized by the Parliament in May 2016 and the Act has come into consideration with all its 92 sections from 1st May 2017 all over India.
The execution of RERA is anticipated to bring comfort to the homebuyers as builders will be accountable for the timely delivery of the projects and to protect buyers from deceit sellers. The developers would also profit from the increased confidence of the consumers in a controlled environment.
It is necessary for the developers to get all acceptance from different government agencies before starting a project and revealing all the data on the website that the respective state RERA regulatory authority will set up.
Real estate agents will be given a registration number by the regulator which they have to show in every property sale. This will help in eradicating the possibility of misleading the purchaser. The authority has wide ranging powers to impose penalties and imprisonment of agents in case of breaking of the law.
Key Provisions of RERA
- RERA will be accompanied in every state of India and this regulation pertain to both residential and commercial properties.
- The sale of property will be on carpet area and not on built-up area.
- Builders are needed to give 70% of the funds collected from buyers in a different bank account for the project
- Developers have to disclose the project details on the website and update it on a quarterly basis related to the construction progress
- As per RERA Act Goa, Rera Act Telangana and Maharera Act projects with a plot size of a minimum 500 sq. mt or 8 apartments need to be registered with its Authority
- Builders should submit the real approved plans for their project and the changes made to RERA
- Developers and buyers both have to pay the similar interest rate of 2% above the Marginal Cost of Lending Rate in case of any delay
- As per Rera Goa Rules, Rera Telangana Rules, Maharera Rules Imprisonment of up to 3 years for the developers and up to 1 year for agents and buyers for breaking of law
- Developers cannot demand more than 10% of the property cost as an advanced payment booking amount before signing a registered sale agreement
- Developers are not allowed to advertise, sell, offer, market or book any plot or apartment without registering to the jurisdiction.
- The buyer can contact the developer in writing within 1 year of taking possession to demand the faults in the project. Filling of complaints under Maharera act will be followed and this regulation applies to both residential and commercial properties.
Registration of Projects under RERA
All commercial and residential real estate projects will have to register other than the projects where:
- The promoter has obtained the completion certificate of the project before the commencement of Act
- The area of land proposed to be developed should not be more than 500 sq. mt
- The apartments should not be more than 8
- Any repair or renovation of an existing building or structure that does not need marketing, advertising, and selling of any apartment or plot
Documents required For Registration under RERA
Following documents need to be enclosed in hardcopy with the application:
- PAN Card of the builder
- Last 3 years ITR and the balance sheet of the builder
- The builder must explain about the apartment
- Proclamation by the builder of having legal title of the land with proof
- Details of the land rights, title, loan
- If the builder is not the owner of the land, the consent letter of the actual owner with documents will be needed
- Details of the project should be there
- Ownership documents like Performa of allotment letter, agreement of sale
- Information of the persons involved
The Registration Process for Real Estate Agents
- You will get a registration number as well. This requires to be mentioned in every property sale
- On a quarterly basis, you are needed to maintain the books of account, records and documents related to the transactions
- Share all the data and documents about the project with the buyer
- The agent may be suspended for the garbled or defects at the registration process
Filling Of Complaints under RERA
- Any resentful person may file a complaint with RERA for any breaking of the provisions of the Act.
- In case the person is not happy with the decision made by RERA or its officer, he may file an appeal within a period of 60 days
- From the date of the determination made, a person can file an appeal to the High Court within 60 days