You must be aware of RERA rules and regulations as a builder or a buyer in order to navigate the real estate sector.

What is RERA?

RERA stands for Real Estate Regulatory Authority and responsible for transparency in the real estate industry. RERA was introduced to eradicate the disputes and discrepancies in the Real Estate landscape.RERA has been established across the country to ensure the uniformity and regulations in the Real Estate Industry. You can do a little research on RERA Karnataka, RERA Delhi, RERA West Bengal, RERA Goa, RERA Punjab and others.

As RERA has been brought into action, each and every builder is required to let the homebuyers know about the construction progress, hand over the keys of the property by the due date and adhere to every single rule established by RERA in order to ensure accountability.

Key Benefits of RERA

RERA has channelized positive changes in the whole real estate sector. We will discuss some of them below-

• RERA’s main aim is to reduce project delays and faulty selling. To ensure that, the authority has made it mandatory for the builders and developers to register under RERA before starting a project.
• RERA is sub-divided into small regulatory bodies that look after real estate functions in all the states and union territories of India.
• RERA rules are applicable to all residential and commercial properties.
• RERA has brought about certain standardization to protect buyers’ interests and also the developers’.
• RERA is responsible for more accountability and transparency in the real estate sector.

Impact of RERA on Buyers

RERA benefits homebuyers in various ways. Let’s take a look at them-

• According to the RERA rules the builders have to inform every detail of all the undertaken projects on RERA’s official website. Most importantly, they need to update this information on a regular basis to assure buyers of the transparency regarding the project’s timeline.
• As per RERA regulations, you have to pay for the property depending on the carpet area enclosed by walls. Builders cannot take money for the super built-up area including lift, balconies, lobbies and stairs.
• Builders have to put 70% of the money collected from homebuyers in a separate bank account that can be used only for construction purpose.
• RERA puts emphasis on the completion of projects on time. Any delay in completion will ensure that the builder has to pay the buyer a 2% interest for the delayed period.
• Once you get the handover, you can report for any construction defect for up to 5 years and the developer has to rectify his mistakes.
• Developers have to rectify and resolve the disputes with the buyers within 120 days of the filing of the complaint.
• The builder cannot make any changes to the building plan without informing two-thirds of the buyers regarding the same. He can only proceed with the consent of the majority of owners.
• As per the Act, the builders are prohibited from taking advance more than 10% from the buyers.
• If you find any discrepancy in the title deed during the time of possession, you can ask for immediate compensation from the builder.

Impact of RERA on Real Estate Agents

Since RERA has been brought into action, the developers and the builders require being more transparent. Here we will discuss how RERA impacts the Real Estate agents.

• Every proposed project that exceeds an area of 500 sq. mt. or more than 8 flats, must get registered with the respective state RERA.
• The builders must mandatory deposit 70% of the money received from the buyers in bank accounts via cheques. This ensures that the developers cannot engage in fraudulent transactions or laundering of money. Authorities can keep a track of every rupee earned and spent.
• Only one model sale agreement will be there between the builders and the buyers.

What are the penalties under RERA?

A homebuyer can register a Complaint with RERA if he faces any dispute. Based on your complaint and the offence mentioned, the promoter or builder will be penalized. There is a list of penalties to be charged if a builder is found guilty.

• Builders have to pay 10% of the estimated cost of the property if they don’t register under RERA. Also, they are charged 5% of the total cost of the property if they provide false information regarding the project.
• Violation of laws can make the developer end up with 3 years imprisonment and also cost them 10% of the project’s estimated price.
• The agents will be charged Rs. 10000 per day (up to 5% of the total cost of the property) if they are found to be conducting construction and sales of the properties without RERA Registration.
• Developers will be charged with a daily penalty of up to 5% of the probable value of the property if they indulge in severe non-compliance with RERA.
• If there is any non-compliance with the Appellate Tribunal, the penalty is 10% of the project’s price or 1-year imprisonment or both.

Buyers have to abide by RERA as well. If a buyer is found guilty of any non-compliance, he will be penalized with a daily charge of up to 5% of the approximate cost of the property. Not only that, any non-compliance with Appellate Tribunal will make you land into imprisonment for a year or 10% of the project’s probable cost or even both.

How to register projects under RERA?

If a builder is willing to register a proposed project under RERA, he requires following the below-mentioned steps-

• Open a bank account according to Section 4 (2) (I) (D) of the RERA Act followed by a collection of all the essential documents.
• Fill up and submit Form A or popularly known as RERA Registration Form. As an agent or promoter one needs to submit Form B, mentioning the role of yours in the industry.
• One may have to submit other several forms as per RERA regulations in order to clarify your project details.
• You are required to pay the RERA Registration Fees for completion of the registration process. This amount varies from state to state.

Once you are registered under RERA, it allots a RERA number for you and the project as well to conduct future communication.

How can Online Legal India™ help you?

We all know how time and money consuming legal proceedings are Government officials take their own sweet time and ask you to pay extra just to get the job done. If you too have fallen into the same malicious loop it would be a smart move to File an Online Complaint against RERA. We here offer you varied legal support services that will help you achieve the justice you want and rightfully deserve without over exhausting your resources.

Already gratified with 1,20,000+ satisfied complainants from every nook and corner of the country, as we work until your contentment. From gathering the necessary pieces of evidence to write up the application letter and filing the complaint in the Consumer Forum.

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