Real Estate Regulatory Authority (RERA) | Act and Rules | Registration Process | Benefits of RERA
Know all about RERA Act?
RERA stands for Real Estate Regulatory Authority came into existence as per the Real Estate (Regulation and Development) Act, 2016 which aims to protect the home purchasers and also boosts the real estate investments. The bill of this Parliament of India Act was passed on 10 March 2016 by the Upper House (Rajya Sabha). The RERA Act was effective on and from 1 May 2016. At that time, out of 92 sections only 52 were notified. All the other provisions were effective on and from 1 May 2017.
RERA Act and Rules
The Real Estate (Regulation and Development) Act, 2016 under Section 84 envisions that within a period of six months from its commencement date, State Governments will set the rules to carry out the provisions associated with the Act.
• On 31 October 2016, the centre, through HUPA (Housing & Urban Poverty Alleviation) Ministry, released the general rules of the Real Estate (Regulation and Development) Act, 2016.
• All these rules are applicable to the Union Territories like Chandigarh, Lakshadweep, Daman & Diu, Dadra & Nagar Haveli and Andaman & Nicobar Islands.
Some Points Under Real Estate Regulation and Development (RERA)
• Security: Under the RERA act, a minimum of 70% of the buyers’ and investors’ money will be kept in a separate account. This money will then be allotted to the builders only for construction and land related costs. Developers and builders cannot ask for more than 10% of the property’s cost as an advance payment before the sale agreement is signed.
• Transparency: Builders are supposed to submit the original documents for all projects they undertake. Builders are not supposed to make any changes to the plans without the consent of the buyer.
• Fairness: RERA has now instructed developers to sell properties based on carpet area and not super built up area. In the event that the project has been delayed, buyers are entitled to get back the entire money invested or they can choose to be invested and receive monthly investment on their money.
• Quality: The builder must rectify any issue faced by the buyer within 5 years of purchase. This issue must be rectified within 30 days of the complaint.
• Authorisation: A regulator cannot advertise, sell, build, invest, or book a plot without registering with the regulator. After registration, all the advertisement for investments should bear a unique project wise registration number provided by RERA.
How to Register Projects Under RERA?
1. Prepare a checklist and collect all the documents required for registration.
2. Obtain the number of the bank account opened as per Section 4 (2) (I) (D) the Act.
3. Complete and submit Form A. This is the application form for registration.
4. Complete and submit Form B. This is a declaration made by the promoter in accordance with Section 4 of RERA.
5. Complete and submit Form G. This is the draft agreement of allotment or sale of the project.
6. Submit an affidavit stating that the details entered in Form G aren’t contrary to the rules set out by RERA.
7. Submit an affidavit stating that no booking amount has been taken from prospective buyers and is in accordance with Section 3 of the Act.
8. Pay the fees required for registration which varies from state to state.
9. Dispatch a duly-signed hard copy of all of these documents by registered post to the relevant RERA authority.
10. Complete and submit Form C which then lets you obtain the registration certificate.
For Real Estate Agents
1. Complete the application form and submit it along with the required documents and fee to RERA.
2. A registration number will be provided to you. This number needs to be mentioned for every property sale.
3. You are required to maintain books of accounts, documents, and records related to all transactions on a quarterly basis.
4. All information and documents regarding any project must be shared with the buyer.
5. You could be suspended if you misrepresent yourself or commit any fraud during the registration process.
How to File a Complaint?
Under Section 31 of RERA, complaints can be filed against promoters, buyers, or agents. Here are the steps to follow while filing a complaint are:
1. Find a RERA lawyer and file a complaint under the appropriate jurisdiction.
2. Fill the complaint as per the rules prescribed by the concerned state in which the project is situated.
3. Include the following details:
• Details of the applicant and the respondent.
• Address and registration number of the project.
• A brief statement of the facts as well as the grounds of the claim.
• If any relief is sought, then details of the relief and interim reliefs (if any).
4. Pay the fee. Keep in mind that this amount differs from state to state. For example, the fee in Maharashtra is Rs.5,000, while it is Rs.1,000 in Karnataka.
5. Alternatively, you can file a complaint online by visiting your state’s RERA website.
6. If you aren’t satisfied with the decision made by RERA, you can file a complaint with the RERA Appellate Tribunal within 60 days.
7. You can also approach the High Court within 60 days if you aren’t satisfied with the Appellate Tribunal’s decision.
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