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What is RERA in Real Estate – Manglam Radiance

Here you will find the RERA Act, what is RERA in real estate, its registration process, benefits, features, and more…

RERA in real estate stands for Real Estate Regularity Authority. The Indian Parliament passed the RERA bill under the Real Estate (Regulation & Development) Act on 10 March 2016, Lok Sabha approved this bill on 15 March 2016. After all the approval finally, the RERA Act came into force on 1 May 2016. Only 52 sections of the Act was notified at that time and the rest 40 section came into existence on 1 May 2017.  The main motive for passing this bill is to protect the interest of home buyers and increase investment in the real estate sector.  To understand more about RERA Act, read the article till the end

Some Rules under RERA Act

In Section 84 of the Real Estate (Regulation and Development) Act, 2016, it is envisaged that the State Governments will be in charge of implementing the Act’s provisions within six months of its commencement.

  • The center, through the Housing and Urban Poverty Alleviation Ministry (HUPA), released the general rules on 31st Oct. 2016 of the Real Estate (Regulation and Development) Act, 2016.
  • These rules apply to all the Union territories, including Dadra & Nagar Haveli, Chandigarh, Daman & Diu, Lakshadweep, and Andaman & Nicobar Islands.

What are the benefits of the RERA Act?

RERA Act can be beneficial for a property buyer in many ways. The following are some of the benefits of the RERA Act

  1. Earlier there was no tool or standard fixed to calculate the price of the project, but after the RERA Act, a standard formula was described to calculate Carpet area.
  2. The builder cannot take 100% advance payment of the project from the buyer. As per the rule in RERA Act, the builder is eligible to take only a 10% advance of the project as an application fee.
  3. Before the RERA Act, if the possession of the property is delayed by the builder the lower rate of interest is to be paid to the buyer, or if the buyer delayed payment to the builder a high rate of interest is charged by the builder. This scenario is changed in the RERA Act, both the parties need to use the same rate of interest.
  4. The buyer has the full right to ask for a refund of the property if the builder does not deliver what was promised at the time of booking or makes false promises.
  5. The buyer of the property has full rights to ask the builder everything about the property or project.
  6. The buyer, agent, or promoter can file their complaint in RERA Act, and in case, if they are not satisfied with RERA’s decision, they can file the complaint in Appellate Tribunal.
  7. The buyer of the property has the right to ask the builder to rectify the structural problem or defects. This rule is only applicable within 5 years of possession. The builder has to rectify the damages within 30 days at no cost to the buyer.

What are some important rules/points under in RERA ACT?

  1. The builder or promoter should maintain transparency with the buyer. They need to submit the original document of the undertaken project and can’t change anything to them without buyer consent.
  2. To maintain the quality of the project the builder has to rectify property issues faced by the buyer within 5 years of possession.
  3. For security purposes, a minimum of 70 % of the investor’s and buyer’s money is kept in a separate account.
  4. To maintain fairness, RERA Act instructed that builders cannot sell properties on the basis of the super built-up areas they need to sell properties based on carpet area.
  5. A regulator needs to register the property then only can sell, advertise, build or invest in the property. Authorization of the property is a must in the RERA Act.

What are the salient features of the RERA Act?

The following are some of the salients features of the RERA  Act

  • RERA Act was launched to improve accountability and transparency in real estate transactions
  • There is a total of 92 sections in the Real Estate Regularity Authority.
  • All the real estate projects need to be registered under RERA
  • An equal rate of interest would be charged from the buyer or the promoter in case of default.
  • Any matter falling under RERA or Appellate Tribunal is not subject to the jurisdiction of civil courts
  • The promoter is liable to follow the RERA orders and if not then has to pay the penalty

What are the documents needed to register the project under RERA Act

The following are some of the documents that will be needed at the time of property/project registration under the RERA Act

  1. PAN card and copy of Aadhaar Card of promoters
  2. Last 3 years Income tax Reports of the promoter
  3. Passport size photograph of the promoters, and in case the promoter is a company then all the board members’ photographs should be attached
  4. Audited balance sheet, P&L, and auditor report of the promoter
  5. Declaration under Form B should be submitted.
  6. A copy of the collaboration agreement along with the consent of the landowner needs to be delivered and will be submitted if the promoter is not the owner of the land
  7. Name and address of all the members involved in the development of project
  8. Name and address of real estate agent
  9. All the details of the facilities are provided in project
  10. The approved layout & sanctioned plan of project
  11. The entire location details of the project.
  12. All the details of the garage and open parking are in project
  13. Complete details of a number of flats, carpet area, balcony area, etc.

What is the procedure to register a project under RERA Act?

The procedure to register under RERA Act is different for the promoters and Real estate agents.

Registration procedure for promoters

  1. At the very first, make a checklist of all the documents required at the time of registration
  2. Obtain the number of accounts that can be opened under section 4(2) (1) (D) of the RERA Act
  3. Fill out the application form A and submit it.
  4. Fill out the declaration Form B and submit it
  5. Fill out Form G and submit it. Form G is the draft agreement of the allotment
  6. Along with Form G, submit an affidavit stating that the details filled in this form are not contrary to the rules set by RERA Act.
  7. Submit an affidavit stating that no advance payment of more than 10% has been taken from the buyer
  8. Pay the required registration fees
  9. Send a hard copy of each of these documents by registered post, accompanied by a signature, to the appropriate RERA authority.
  10. Fill out Form C and submit it. Form C helps you to get a registration certificate.

Registration procedure for real estate agents

  1. Fill out the application form for registration and pay the required fee
  2. Get your registration number and you need to mention this while selling any property
  3. You need to submit your book of accounts, and records related to all transactions every quarter.
  4. If any misrepresentation or misleading facts are mentioned by you in any documents, you may be suspended.

What is the procedure for filing a complaint under the RERA Act?

Section 31 of the RERA Act state that a person can file a complaint against a buyer, promoter, or real estate agent. The following steps are to be followed for filing a complaint under RERA Act

  1. Get an appointment with a RERA lawyer and file your complaint under the appropriate jurisdiction
  2. Fill out your complaint as per the rule prescribed by the state in which the property is located
  3. Details of the applicant and the respondent, registration number and address of the project, issues faced by you, etc should be included during filing a complaint
  4. Pay the complaint fees and which might differ from state to state

If not satisfied with the RERA decision, you can file a complaint with RERA Appellate Tribunal within 60 days. If not satisfied with the RERA Appellate Tribunal’s decision, you can also file a complaint in High Court within 60 days of the RERA Appellate Tribunal’s decision.

What are the penalties charged under RERA?

Every buyer, real estate agent, and promoter needs to pay the penalty in case they don’t follow the RERA orders. The penalties under RERA Act are different for promoters, buyers, and real estate agents.

 

  • Penalties for real estate agents

 

 

S.No Offence Penalty
1. Non-compliance with RERA Daily penalty up to 5% of the project’s estimated value
2. Non-compliance with the Appellate Tribunal 10% of the project’s estimated cost or Imprisonment up to 1 year, or both
3. Non-registration of projects Rs.10,000 daily up to 5% of the approximate cost of the project

 

 

  • Penalties for buyers

 

S.No Offence Penalty
1. Non-compliance with the Appellate Tribunal 10% of the project’s approximate cost or Imprisonment up to 1 year, or both
2. Non-compliance with RERA Daily penalty up to 5% of the approximate cost of the project

 

 

  • Penalties for promoters

 

S.No Offence Penalty
1. Giving false information 5% of the project’s estimated cost
2. Non-registration 10% of the project’s estimated cost
3. Violation of laws A fine of 10% of the estimated cost of the property, or up to 3 years’ imprisonment, or both

Which of the Indian States and Union Territories have enforced the RERA Act?

The following is the list of states and Union Territories that have enforced the Real Estate (Regulation & Development) Act, 2016

S.No States Date of Implementation Official website
1. Rajasthan 01 May 2017 http://rera.rajasthan.gov.in
2. Gujarat 20 October 2016 https://gujrera.gujarat.gov.in
3. Andhra Pradesh 28 March 201 https://rera.ap.gov.in/RERA/Views/Home.aspx
4. Haryana 28 July 2017 https://haryanarera.gov.in
5. Uttarakhand 28 April 2017 http://uhuda.org.in
6. Jharkhand 18 May 2017 https://jharera.jharkhand.gov.in/
7. Chhattisgarh 26 April 2017 https://rera.cgstate.gov.in
8. Telangana 04 August 2017 http://rera.telangana.gov.in
9. Himachal Pradesh 28 September 2017 http://www.hprera.in
10. Uttar Pradesh 11 October 2016 https://www.up-rera.in
11. Chandigarh 31 October 2016 http://rera.chbonline.in
12. Punjab 08 June 2017 https://rera.punjab.gov.in
13. Odisha 25 February 2017 http://www.urbanodisha.gov.in/ActsRules.aspx
14. Delhi 24 November 2016 https://rera.delhi.gov.in
15. Karnataka 10 July 2017 https://rera.karnataka.gov.in
16. Maharashtra 19 April 2017 https://maharera.mahaonline.gov.in
17. Bihar 01 May 2017 https://rera.bihar.gov.in
18. Madhya Pradesh 22 October 2016 http://www.rera.mp.gov.in
19. Uttarakhand 28 April 2017 http://uhuda.org.in
20. Tamil Nadu 22 June 2017 https://rera.tn.gov.in
21. Daman & Diu 31 October  2016 https://www.rerafiling.com/rera-daman-diu.php
22. Lakshadweep 31 October 2016 https://www.rerafiling.com/rera-lakshadweep.php
23. Andaman & Nikobar 31 October 2016 https://www.rerafiling.com/rera-andman-nicobar.php
24. Dadra & Nagar Haveli 31 October 2016 https://www.rerafiling.com/rera-dadra-nagar-haveli.php

So, if you understand what is RERA in real estate and how it can help you then check out Mangalam radiance luxury properties and give a luxury look to your lifestyle. Contact us now.

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