All Known about RERA Act
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 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.
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.