Know All About RERA
All About RERA Act - 2016
Property Buy Karne Se Pahle Har Kisi Ke Mind Me Ek Baat Aati hai Ki RERA Kya Hai – (What is RERA Act?) RERA stands for Real Estate Regulatory Authority came into force as per the Real Estate (Regulation and Development) Act, 2016 which aims to protect home buyers and also boosts the real estate investments. By Indian Parliament Rera Act 2016 bill was passed by Upper House (Rajya Sabha) on 10 March 2016. On May 1, 2016, the RERA Act went into effect. Only 52 of the 92 sections had been notified at the time. All of the remaining provisions were effective on May 1, 2017.
Rera Act Has The Following Objectives
- It protect the allottees’ interests and assure their responsibilities
- It Maintain transparency and reduce the risk of scam
- It bring about professionalism and implement Pan-India standardization
- It enhance the flow of accurate information between the home buyers and the sellers
- It improve the sector’s sustainability and, as a consequence, boost investor confidence.
- It make both the builders and the investors bear more responsibility.
Some Points Under (RERA) Act
A good policy change is a significant boost to a growing economy. And with RERA all set to transform the realty market, Consumers can benefits from investing in a wealthy market like India, especially in Gurgaon, which is a growing market for maximising returns.
Authorisation: Without registering with the regulator, a regulator cannot advertise, sell, build, invest, or book a plot. Following registration, all investment marketing must include a unique project registration number given by RERA.
Security: A average of 70% of buyers’ and investors’ money would be kept in a separate account under the RERA act. This money will thereafter be used only for construction and land costs by the builders. Before the sale agreement is finalised, developers and builders cannot ask for more than 10% of the property’s cost as an advance payment.
Transparency: Builders are required to present original documents for every project they take on. Builders are not allowed to make alterations to the plans without the buyer’s permission.
Fairness: Developers are now required by RERA to offer properties based on carpet area rather than super built-up area. In the case that the project is delayed, customers have the option of receiving a full refund or opting to be invested and get a monthly return on their money.
Quality: Within five years of the buyer’s ownership, the builder must resolve any issues. This problem must be resolved within 30 days of the complaint being filed.
Grievance Redressal: Consumers will have an official authority to address their problems and complaints related to their real estate investments when RERA comes into effect. They will be able to act more easily and make better decisions as a result of the above.
Timely Possessions: The fear of delayed possessions is the most common problem customers face while purchasing real estate in India. RERA will ensure that they will not have to face any possession-related issues.
Salient Features of Rera Act
RERA was established to improve accountability and transparency in real estate and housing deals. The following are the key features of this Act:
1) In each Indian state, a Real Estate Regulatory Authority must be established to oversee, judge, and arbitrate any disputes relating to real estate projects in the concerned state.
2) The establishment of a fast-track mechanism for dispute settlement. This will be done via an appellate tribunal and dedicated arbitrator officials.
3) All real estate projects must be registered with RERA so that the authority will have jurisdiction over the projects.
4) In case a promoter want to transfer or assign a majority of your rights and responsibilities in a real estate project to a third party, two-thirds of the allottees must give written consent, in addition to RERA’s written approval.
5) If a person has a problem with a promoter, buyer, or agent violating the Act’s provisions or rules, they can register a complaint with RERA.
6) RERA can prevent an agent, promoter, or buyer from continuing any action that has been the basis of a complaint while an investigation is ongoing.
7) A penalty will be imposed if the promoter does not follow RERA’s guidelines. This amount approximate 5% of the property’s assessed value.
8) A penalty will be imposed if the Appellate Tribunal’s orders are not followed. This can be a punishment of up to 3 years or, a fine of up to 10% of the project’s estimated cost, or both.
9) If a company violates this Act, any person in charge of the business at the time the offence was committed, as well as the company, will be held liable and punished.
10) If a complaint’s resolution by RERA is not satisfactory, the aggrieved party can submit an appeal before the Appellate Tribunal.
Filing a complaint under RERA
The builder can present the homebuyer with concerns like project delivery delays, unanticipated changes in construction plans, unexplained extra expenses, and failing to deliver on promised features. Section 31 RERA Act allows for the registration of complaints. The regulating authority or the adjudicating officer can receive complaints against developers, builders, and agents.
How to file a complaint under RERA?
Any homebuyer can submit an RERA complaint by completing a form and paying the registration fees on online. The various State governments have simplified the procedure of filing a complaint under RERA more easy and hassle-free by launching official RERA websites.
Step 1 – Visit RERA website of respective State. Find the ‘Online Complaint Registration’ or ‘Complaint Registration’ link. For instance, on the Haryana RERA website here, homebuyers can file their complaints by clicking on the link placed under ‘Complaint Registration’
Step 2 – Click on the complaint registration form. form will be opend to the complaint, where you are required to fill the details of the complaint.
Step 3 – While filing the complaint, homebuyers would be asked to submit their personal details like Name, Address, phone number as well as the project details. Complainants can also attach Required documents.
Step 4 – After filling all the details, Next you will need to pay complaint registration fees, Rs 1,000 for a normal complaint and Rs 5,000 for filing a complaint with an adjudicating officer.
penalties under RERA
Certain offences are liable to relevant penalties under the Real Estate (Regulation and Development) Act of 2016 (RERA).
In Buyer’s Case
Non-compliance with RERA Daily penalty will be implemented up to 5% of the approximate cost of the project
Noncompliance with the Appellate Tribunal can result in a sentence of up to one year in prison or a fine of up to 10% of the project’s estimated cost, or both.
In Promoters Case
Non-registration, 10% of the project’s estimated cost
Giving false information, 5% of the project’s estimated cost
Violation of laws, Up to 3 years’ imprisonment or a fine of 10% of the estimated cost of the property, or both
In Agent’s Case
Non-registration of projects will result in a penalty of Rs.10,000 per day or up to 5% of the project’s estimated cost.
Non-compliance with RERA is a serious offence. A daily penalty of up to 5% of the project’s estimated value may be imposed.
Noncompliance with the Appellate Tribunal Penalty of up up to 1 year in prison or 10 percent of the project’s estimated cost, or both
Haryana is one of the fastest growing and highly urbanised states in the country, Haryana is also in the forefront of urban development in the country. for entrepreneurs, real estate developers, and apartment buyers, it is a land of opportunity. The Haryana government has decided to establish two Real Estate Regulatory Authorities, one for the district gurgaon and the other for the entire state, in order to facilitate organic and systematic growth of real estate and to establish a transparent and harmonious relationship between estate developers and apartment buyers.