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Know All About RERA
If we are talking about RERA Act, Goverment has taken a path to stop corruption and frauds in the real estate, That is really helpful for all investors and other people so builders could not take there money and get disappear.
RERA is the Real estate Regulatory Authority . Every under construction society or township must have RERA registered. Indian Goverment made this mandatory so no builder can make false promises to the investors. With this kind of idea builder have to hand over there homes or shops in the given time period, they only sale 47% of flats in the society before development. Every person who want to buy home in any under construction society should ask for RERA Registration number first.
Konw All About RERA Act 2017
- What is RERA Act?
- What are it's salient features?
- How does RERA protect the buyers?
- what is the difference in scenario before and after RERA Act?
As the question has several part, we would go part by part and understand about RERA Act and the changes brought by the provisions under the RERA Act.
RERA is a Real Estate regulation Act of parliament which was passed in 2016. The main of RERA is to protect home buyers and help boost investment in the real estate. In short this is act to avoid malpractice and fraud in real estate sector and consumer can trust RERA approved projects as this kind of projects follows all rules and regulations mentioned in RERA Act.
- What is RERA Act?
Real Estate Regulatory and Development Act is the full form of RERA. 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 implemented on 1st May 2017, with an aim to regulate the real estate sector of India with a strict hand. RERA Act 2017 has not only empowered the buyers but also shaped the total regulation of the activities of the builders regarding the real estate property.
- Salient Features Of RERA Act
There are certain features of the RERA Act which makes the RERA rules totally consumer friendly and appropriate for managing any transaction relevant to the real estate
- More security to the investment made by the first time home buyers
- Better assurance of timely possession
- More strict actions against any fraud or false promise
- Digitization of all records, to reduce loss of data.
- Quick remedies for any dispute
- Difference between Old Rules and New RERA Act Rules
The Real Estate Development and Regulatory Act has brought several changes in dealing with the real estate projects. Follow this article to know how it has changed the scenario of the buying and selling of the real estate properties
- How does it protect the buyers? and what is the difference in scenario before & after RERA Act?
1. Registration:
- Before RERA: Before 2016, many projects started its transaction without a valid registration. Neither the authority, nor the law were much serious regarding the registration and security of the buyer’s rights.
- After RERA: RERA Act has made the registration of each project compulsory. Without registration, they can not - proceed with the construction, sell any plot or flat, take any advance, make advertisement for selling, or get into any agreement.
2. Advertisement:
- Before RERA: Before the Act came into existence, anytime the advertisements were published, and people were shown a empty plot and designs on the paper. They were promised that a project will be constructed over there, but often it was seen that, no project took place even after few years.
- After RERA: RERA rules clearly bans any kind of false promise. If a rooftop swimming pool is promised, it has to be delivered, if a 8 ft/3 ft balcony is promised, they can not reduce it to 6ft/2ft. Even if they have not mentioned in the agreement but has mentioned in the advertisement, they are liable to that.
3. Transferring Right:
- Before RERA: Before the implementation of RERA Act, even if the project was transferred from one builder to another, the buyer were often not informed. If the buyer faced any issue, the previous owners refused to respond to it, stating the reason that the previous owners does not have any more responsibility towards the project.
- After RERA: The Real Estate Development and Regulatory Act made it compulsory that any project which is being transferred to any other person, it requires to get notified to the allottees, investors, buyer, and the authority. The name and the ownership will be changed on the documents. Everything must be done in the prescribed way. Until the total procedure is completed, the previous owner shall not be released from the responsibility.
4. Timely Possession:
- Before RERA: Before the Act took the matter into its grip, there was no assurance when the property would be delivered to the buyer. Often it made delay of 10-15 years, which is really stressful matter for a common man. Many times, the project was not even started on the promised delivery day. The builders and sellers also used to get unresponsive to that problem.
- After RERA: The Real Estate Development and Regulatory Act imposed certain rules regarding the delay in possession. If the possession is delayed for an unreasonable period, the buyer gets certain options like - alternate shelter till the project is completed, money back policy along with interest or alternate residence of same standard that has been promised by the builder. In the alternate residence, if any extra cost is required, the builder shall bear it.
5. Quality Material:
- Before RERA: When the sale deed of a property or a plot is prepared, it is necessary to write the quality of each essential materials those are to be used. Often it was seen that, the material used were of lower quality that has been promised, which resulted in earlier decay and damage to the products. When a person spending his hard earned money in projects, it is really a fraud happening on such person.
- After RERA: When the Real Estate Development and Regulatory Act was implemented, it became compulsory to use the promised product and if any issue appears, materials of similar quality is to be used. In case, worse quality products are used, the builder is liable to pay compensation on that ground. If anyone has suffered any loss due to usage of such material even later on, the victim can claim for a compensation from the builders.
6. Essential Documents:
- Before RERA: Before this Act came into existence, the buyers hardly used to get any essential documents other than the sale deed in their hand, which always kept them in ambiguity regarding the project.
- After RERA: After the Real Estate Development and Regulatory Act got implemented, all the builders are obliged to handover necessary documents related to the details of the project and the area or plot where the person is investing his money. The documents include - brochure, copy of registration, copy of the drawing of the flat and the project where he is investing.
7. Bankruptcy:
- Before RERA: Bankruptcy of the builders terrified the buyers in previous time. The builders often after taking money from the buyer, leaving the project incomplete, used to declare himself bankrupt. That used to safeguard him from any liabilities, and ultimately it is the common people who used to suffer an irreparable loss.
- After RERA: As per the Real Estate Development and Regulatory Act, the builder has to open a separate account for the project under consideration. This account must be totally separate from the personal account of the builder or any of his relative/friends. The builder has to deposit 70% of the total raised money in that separate account, which will be used only for the purpose of the project.
8. Post Possession Liabilities:
- Before RERA: Before RERA was implemented, the builders used to go totally non-responsive towards any issue occurring to the project. The law prescribed that any damage occurring within 6 months of possession (legal/physical whichever is earlier), due to the manufacturing fault, shall be taken care of by the builder.
- After RERA: The Real Estate Development and Regulatory Act has extended the period till 3 years from the possession. Therefore, RERA has brought a drastic change not only in regulating the real estate laws, but also brought the buyer and the seller under tight observation.
GRIEVANCE & PENALTIES UNDER RERA
GRIEVANCE UNDER RERA
Under RERA, all States are mandated to form an Appellate Tribunal which will look into the conflicts between stakeholders and provide a fair and timely solution. Real estate complaints and grievances must be resolved within 60 days of the date of filing by appellate tribunals governed by state regulators. In certain situations, you may petition the RERA tribunal.
- Non-registration of an advertised project with the state’s regulatory authority
- False information on the RERA website about a builder, promoter, agent, or project.
- Violation of any Act restrictions by the builder, promoter, or agent
- Builders charge for heavily developed areas rather than carpeted areas.
- Altering the building plan without receiving the agreement in writing of two-thirds of the project's allottees.
- Delay in completing your job compared to the anticipated timeline
- Structural issues five years after you take possession of your apartment
PENALTIES UNDER 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
HOW TO FILE A COMPLAINT UNDER RERA
It is now simple and convenient to file a complaint under RERA against irresponsible developers. The Real Estate (Regulation and Development) Act (RERA), passed in 2016, aims to guarantee compensation of purchases or delivery of property to buyers. However, complainants are required to pay a service fee to the respective State Authority for it. Here’s how you can file a complaint under RERA Act.
Have you been having unexplained delays receiving a property you booked? A buyer may file a complaint under Section 31 of the Real Estate (Regulation and Development) Act (RERA), 2016, according to the Act. Developers, builders, and agents could all be the target of complaints made to the regulatory body or the adjudicating officer.
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
Clicking on either of the complaint registration links will take you to the complaint form where you will be required to fill the details of your complaint.
Step: 3
Additionally, you will also be required to furnish your personal details such as your phone number, address as well as the project details. Some websites, such as the Delhi RERA website, will require you to make a buyer account before you can file a complaint. Other websites ask you to attach the relevant documents.
Step: 4
After filling in all the details, you will be directed to the payment gateway for the payment of the complaint registration fees, Rs 1,000 for a normal complaint and Rs 5,000 for filing a complaint with an adjudicating officer. You may also pay the fees at the office of the sub-registrar.
HARYANA RERA
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. In order to facilitate the organic and systematic growth of real estate and to create a clear and peaceful relationship between apartment buyers and estate developers, the Haryana government has decided to create two Real Estate Regulatory Authorities, one for the district of Gurgaon and the other for the entire state. Visit the Haryana RERA website, and select either HRERA Panchkula or HRERA Gurgaon microsites to check project details
FAQ's
Section 2, sections 20 to 39, sections 41 to 58, sections 71 to 78 and sections 81 to 92 were notified by the Central Government to come into effect from 1st May, 2016.
In case of default, RERA not only imposes fine but also imprisonment, which is not the case of National Consumer Disputes Redressal Commission (NCDRC). This makes RERA a stricter real estate law.
Yes, it is safe and recommended. When you invest in a project approved by RERA, your rights as a buyer are secured. RERA ensures legal compliance and possession timings. It ensures the delivery of possession of the property as promised.
As per Section 31 of the Act, anyone can file a complaint if they possess the knowledge to draft an accurate statement including the relief sought from RERA. Hiring a lawyer is not mandatory. However, it is advisable to get professional help.
You can visit the RERA website of your respective State and check the status of your RERA complaint.
Section 40 of the Act states that if the promoter, allottee or real estate agent fails to comply with the order passed by the adjudicating officer or the RERA Authority, the buyer can file for the execution of the order and can recover the amount of compensation as an arrear of land revenue.
As per section 16 the promoter is required to take an insurance of the real estate project towards title of the land and towards construction of the project, in the manner as may be notified by the appropriate Government.
Section 19 provides for the various rights of the allottees. This section specifies various rights which the allottees have, including those which the promoters are liable to fulfill based on the agreement entered into with the allottees, namely– stage-wise schedule of completion of the project and the services, claim timely possession of the apartment/ plot, entitlement to necessary documents and plans etc.
The Central Advisory Council is required to advise the Central Government on matters relating to implementation of the Act, questions of policy, protection of consumer interest, foster growth and development of the real estate sector, and other matters as may be assigned to it by the Central Government.
As per section 59, it is obligatory for the promoter to register a project with the Authority, and if he fails to do so, he shall be liable to a penalty of up to ten percent of the estimated cost of the real estate project.
In case the promoter consistently defaults or does not comply with the directions/ orders of the Authority as regards registration of the project with the Authority, he shall be liable to additional fine of ten percent of the estimated cost of the real estate project or imprisonment upto 3 years or both.
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