Rera – The Guardian of Property Buyer

30th April, 2024 - 7:29 am Categories: RERA 0 Comments

INTRODUCTION

Real Estate Regulatory Authority is an act aimed to protect the interests of buyers. Like all other have fields have legislation to regulate it, real estate also needed a proper legislation. A normal person spends his hard-earned money in real estate and it is the duty of the state to give protection to all those individuals. Absence of legislation was leading to misuse of powers by the builders and not giving possession of the property on time, charging extra due to no fixed definitions of practical terms. To solve this problem the Rajya Sabha approved the bill on March 10, 2016, and the Lok Sabha approved it on March 15. 61 of the 92 parts of the Act were announced when it went into effect on May 1, 2016. The remaining clauses went into effect on May 1, 2017.

What is RERA Act?

In order to govern the real estate industry, India passed the Real Estate (Regulation and Development) Act, 2016 (RERA Act), a comprehensive piece of law. safeguard buyers’ interests and encourage accountability and openness in the sector. Each state has created particular rules and regulations in addition to the Act to properly implement and enforce RERA.

The Rera Act of 2016, consists of Ten Chapters, further subdivided into 92 Sections.

The Preamble of the Act sets forth its title, extent, and commencement. It also addresses registration of real estate projects and real estate agents, promoter functions and duties, allottee rights and duties, the Real Estate Regulatory Authority, the Central Advisory Council, the Real Estate Appellate Tribunal, various offenses, penalties, and adjudication, as well as miscellaneous provisions pertaining to finances, accounts, audits, and reports.

PROJECTS THAT COME UNDER RERA

All real estate projects will be subject to RERA after all states and union territories have complied with it. Examine a few requirements that specify whether a project is subject to RERA and if it is not in the interim.

• House Loan RERA includes projects that were finished prior to the RERA Act’s adoption but do not now have a completion certificate.
• RERA will not apply to projects that have work underway for the purpose of renovation, repair, or redevelopment and are not selling, marketing, advertising, or re-allotting any apartments, plots, or buildings.
• Under construction projects must register with the RERA as new projects and record each stage of construction separately.

KEY PROVISIONS

1. Project registration:

• Before advertising, marketing, or selling any units, developers are required to register their real estate projects with the Real Estate Regulatory Authority (RERA) of the relevant state.
• Comprehensive details regarding the project, such as land title, permits, plans of arrangement, timeline, and state of implementation, must be supplied at.

2. Compulsory disclosure:

• On the RERA website, developers must publish all pertinent information about the project, including blueprints, specifications, the carpet area, facilities, and project details.
• Any alterations or adjustments to the project have to be revealed and shared with the purchasers.

3. Escrow account: 

• At least 70% of the money that developers receive from buyers must be deposited into a distinct escrow account that they must keep up to date for each project.
• These money may only be used for the development and building of the particular project.

4. Carpet area:

• The net usable floor area inside the unit’s walls—that is, the area that does not include the balcony, terrace, or shared areas—is the basis for unit sales.
• Developers are required to provide the carpet area in the marketing and sale agreements.

5. Timely completion:

• RERA places a strong emphasis on projects being completed on schedule. Developers are required to follow this deadline and deliver the project in accordance with the promises they made to customers.
• Developers are responsible for compensating buyers and paying fines in the event of a delay.

6. Real estate agents:

• Real estate brokers and agents are required to register with RERA and furnish correct details about their business, the projects they handle, and the commission they get.

7. Protection of buyers and grievance resolution:

• RERA gives purchasers a forum to register complaints and seek resolution of any problems or complaints they may have with developers or agents.
• A Real Estate Appellate Tribunal is established in each state to review cases involving disagreements between purchasers and developers.

Advantages provided by RERA

Every aspect of the real estate industry has improved as a result of RERA. Here’s how to do it:

• RERA seeks to lessen property fraud and project delays. To achieve this, before beginning a project, all builders and developers are required by law to complete the RERA registration process.
• Each of the various regulatory organizations that make up RERA is responsible for overseeing real estate development in a particular Indian state or union territory.
• Both residential and commercial properties are subject to RERA regulations.
• The goal of RERA’s standardization is to safeguard the interests of both developers and purchasers.
• Increased accountability and openness in the real estate sector are results of the RERA Act.

Penal provisions under RERA 

Promoters – 

Agents – 

CONCLUSION

For Indian homeowners, RERA is a financial lifesaver that protects them against hidden fees, project delays, and financial hardships. The previously opaque real estate market is been made more transparent and accountable by its required registrations, escrow accounts, and grievance redressal procedures. RERA has surely brought in a new era of justice and protection for India’s property buyers, even though there are still obstacles to overcome

Author: ABHISHEK RAMANUJ, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.

 REFRENCES

Real Estate (Regulation and Development) Act, 2016

https://www.bajajfinserv.in/insights/know-all-about-rera-act

https://www.indiacode.nic.in/handle/123456789/2158?sam_handle=123456789/1362