ALL ABOUT RERA ACT
The Real Estate Regulatory Authority, better known as RERA, was incorporated under the RERA Act, 2016 (Real Estate Regulatory and Development Act). The RERA Act was proposed to protect property buyers from prejudice while facilitating real estate transactions.
The Prime Minister of India approved the official bill related to this law on March 10, 2016. This bill came into effect on May 1, 2016, and initially, the bill contained 52 clauses and later 92 clauses were introduced under the RERA Act.
The remaining sections were approved for the next financial year in May 2017. RERA is a new territory with much to consider to understand.
WHY IS RERA IMPORTANT?
RERA offers various benefits to agents, promoters, and home buyers. This has somehow changed the situation by providing huge benefits to the real estate sector. Here are some top reasons that justify its importance:
Security
According to the Real Estate Regulation and Development Act 2016, an amount equal to 70% of buyers and investors is kept in a separate account. In addition, this amount is provided to the builder for special purposes such as the cost of construction and other costs related to the land. Regardless of your status as a developer or builder, you are allowed to use 10% of the cost of the mortgage as a down payment. This amount will be allowed before signing the final contract.
Transparency
The builder is obliged to agree with all the main documents related to the completed project. However, the manufacturer is not allowed to make any changes to the agreed plans, especially without the consent of the buyer.
Fairness
RERA has made the developers aware of the fact that all the properties that are completely marked in carpet areas have to be sold. Due to the old super urban area of the property, if the RERA-approved project is delayed for any reason, the buyer is allowed to claim the entire amount paid originally invested in the property. The buyer has the right to withdraw the investment as a monthly investment amount.
Quality
The builder is obliged to compulsorily solve all kinds of problems faced by the buyer within five years after the purchase of the property. In addition, the manufacturer must correct the problem within a limited period of 30 days from the date of filing the complaint.
License
Regulatory Authority cannot advertise, build, sell, or even reserve land without actual registration with the RERA Regulatory Authority. After registering as a regulator, all advertisements submitted for a particular investment will be assigned a unique number. It varies per project and is generated by RERA.
States and Union Territories where the RERA website is operational
The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to bring transparency and accountability to the real estate sector in India. RERA ensures that all stakeholders in the real estate sector are protected and the interests of buyers are protected.
Types of projects subject to RERA law, 2016
- Residential and commercial projects, including plot development
- Projects with a construction area of more than 500 square meters / 8 units
- Projects started before RERA Act without a completion certificate
- Projects meant for renovation, repair, or redevelopment without reallocation
- Each phase of a project is treated as an independent real estate project
Features of real estate law
RERA was initially established to increase overall accountability and transparency in all housing and real estate transactions.
- Each state has a Real Estate Regulatory Authority
- RERA-approved projects must be registered
- Penalties for non-compliance with RERA rules
- Buyers can claim compensation for defective land titles
- Fines and imprisonment for violations under RERA
BENEFITS ASSOCIATED WITH RERA
- Standardization of carpet area calculation
- Reduction in risk of bankruptcy
- Limited prepayment requirement
- Compensation rights for buyers in case of incomplete titles
- Grievance redressal through RERA authorities
THESE ARE RIGHTS OF BUYERS UNDER RERA ACT
- If defects appear within five years, the builder must fix them for free
- Buyers can request a full refund if the builder fails to meet promised conditions
Impact of RERA on Real Estate Industry
- Initial slowdown in project launches
- Increase in project costs
- Liquidity restrictions for developers
- Higher compliance costs
- Faster dispute resolution
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Frequently Asked Questions (FAQs)
What is RERA and why should I care?
RERA stands for the Real Estate (Regulation and Development) Act. It’s a law that helps make real estate transactions more transparent, fair, and safe for both builders and buyers. It protects buyers by ensuring developers stick to timelines and deliver what they promise.
How can Early Grow help me with RERA?
At Early Grow, we make sure that your project is fully compliant with RERA by:
- Helping you get your project registered.
- Ensuring you meet all the necessary legal requirements.
- Supporting you in solving any disputes that might arise between builders and buyers.
Who needs to register under RERA?
Both real estate developers (builders) and agents must register with RERA. Builders need to register their projects before selling or promoting them, while agents must be registered to deal with RERA-registered projects.
What are the benefits of RERA registration?
Registering your project under RERA brings many benefits:
Trust: Your project gets official recognition for following the law.
Protection: It gives you a legal way to handle any issues that may arise.
Transparency: Buyers can see all the details, timelines, and costs upfront.
How do I register my project under RERA?
Here’s the simple process for registration:
- Fill out the application form online with your project details.
- Upload necessary documents like plans, approvals, and legal titles.
- Pay the registration fee.
- Wait for approval – RERA will review and give you a registration number.
Do I need to register ongoing projects?
Yes, even if your project has been running for a while, it needs to be registered with RERA if it hasn’t been completed or received an occupancy certificate yet.
What happens if I don’t follow RERA rules?
If you don’t comply with RERA regulations, you could face penalties like fines or even jail time, depending on the seriousness of the violation. It’s important to follow the rules to avoid these consequences.
How does RERA protect homebuyers?
RERA protects homebuyers by making sure developers stick to deadlines, share important project details, and provide a way for buyers to resolve any issues.
Can RERA rules change? How will I know?
Yes, RERA rules can change. But don’t worry! We at Early Grow will keep you updated on any important changes that might affect your project or investment.
How do I get started with Early Grow’s RERA services?
Getting started is easy! Just contact us at [contact information], and we’ll help guide you through the process step by step. We’re here to make sure your project stays on track and fully compliant with RERA.
