All Known about RERA Act

Introduction: 

   Real Estate as a general term describes the built environment, which plays a vital role in every aspect of an economy, society, and environment, the common man who invested his lifelong savings in buying a property. To protect and safeguard the interests of the home buyers and to ensure that they are not exploited by the developers/builders.

RERA:

• RERA stands for Real Estate Regulatory Authority, the bill of this parliament of India act was passed on 10th March 2016 by Rajya sabha was effective from 1st May 2016.

 

• Under the RERA act, a minimum of 70% of the buyers and investor's money will be kept in a separate account. This money will then be allocated to the builders only for construction and land-related cost.

 

• Developers and builders cannot ask for more than 10% of the property's cost as an advance payment before the sale agreement is signed.

 

• Builders are supposed to submit the original documents for all projects they undertake and not supposed to make any changes to the plans without the consent of the buyer.

 

• The builder must rectify any issue faced by the buyer with 5 years of purchase, this issue must be rectified within 30days of the complaint.

Standardized Carpet Area:

• The Builder would calculate the carpet area as 1500SFT and the other would calculate the carpet area of 1400SFT.

 

• RERA emphasizes on timely completion of projects. Any delay means that the developer has to pay the buyer interest of 2% over SBI's MCLR for the period of delay.

 

• The developer has to resolve disputes with buyers within 120 days of it being filed.

 

• The rate of interest to be paid shall be the same for both parties.

 

• The buyer has the option to withdraw from the project wherein he is entitled to a full refund of the amount paid as advance or otherwise along with interest and claim compensation.

 

Registration of Projects Under RERA:

All commercial and residential real estate projects have to register except in projects Where-

• The Promoter has received the completion certificate of the project before the commencement of the act.

 

• The area of land proposed to be developed does not exceed 500Sq.mt

 

• The number of apartments is not more than 8 

 

• Any repair or renovation of an existing building or structure that does not require marketing advertising, and selling of any apartment or plot.

The Registration process for Real Estate Agents:

• Fill an application to the filing of complaints under the RERA Act along with fees and documents to get registered with RERA.

 

• You will receive a registration number from the regulator and this number to be mentioned in every property sale.

 

• Every quarter you are required to maintain the books of account, record, and documents related to the transactions.

 

• Share all the information and documents about the project with the buyer.

 

• The agent may be suspended for the misrepresentation or found during the registration process.

Documents required for registration under RERA:

 

The following documents should be enclosed in hardcopy with the application.

• Pan Card of the builder

 

• ITR of the last 3 years and the balance sheet of the builder

 

• The builder must clarify about the apartment( Carpet area, No of floors, parking space)

 

• Declaration by the builder of having the legal title of the land with proof.

 

• Details of the land ( rights, title, mortgage).

 

• If the builder is not the owner of the land, the consent letter of the actual owner with the document will be required.

 

• Details of the project(Location, Sanctioned plan, Layout plan)

 

• The ownership document( Proforma of allotment Letter agreement of sale)  

 

• Information of the persons involved( Architects, Engineers, and others)

 

Filling of Complaints under RERA:

 

• Any aggrieved person may file a complaint with RERA for any violation of the provisions of the Act.

 

• In case the person is not satisfied with the decision made by RERA or its officer, he may file an appeal before the RERA appellate tribunal within 60 days.

 

• From the date of the decision made by the appellate tribunal, a person can file an appeal to the high court with 60 days.
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Where to apply:  RERA Application 

 

Conclusion: For every real estate company, real estate agents are must and should be applied RERA, if anyone has facing issues with builder or agent you can directly complain in RERA.