What Is RERA?
Are you find it difficult to understand what is RERA? RERA stands for the Real Estate Regulatory Authority, legislation enacted by the Government of India in 2016. RERA aims to regulate and promote transparency in the real estate sector in India, protect the interests of homebuyers, and establish an adjudicating mechanism for speedy dispute resolution.
In this blog, Larisa Realtech will give you information regarding the objective of RERA, some points of RERA, the main goals of the RERA Act, what RERA is, how to register projects under RERA, and what is RERA approved; so let us start this blog with the main objective of RERA.
What are the main objectives of RERA?
1.Establishment of Real Estate Regulatory Authority: RERA mandates the establishment of a state-level regulatory authority in each Indian state and union territory. This authority acts as a watchdog to oversee real estate transactions, ensure compliance with regulations, and protect buyers’ interests.
2.Registration of Real Estate Projects: Under RERA, developers and builders must register their real estate projects with the regulatory authority. It ensures that projects meet certain standards and developers fulfill their commitments, such as delivering the project within the agreed-upon timeframe
3.Disclosure of Project Details: Developers are obligated to provide comprehensive information about their projects, including details about the promoter, project layout, land status, approvals, timeline, and other relevant information. The transparency of RERA helps buyers during property purchasing.
4.Escrow Account for Funds: RERA mandates developers to deposit a specified percentage of the project funds into a separate escrow account. This measure ensures that the funds are utilized only for the specific project and reduces the diversion of funds to other projects.
5.Protection of Homebuyers’ Rights: RERA provides several safeguards for homebuyers, such as the right to obtain accurate project information, the right to timely possession of the property, and the right to claim compensation for any losses or deficiencies in the project.
6.Adjudication and Dispute Resolution: RERA establishes dedicated adjudicating authorities and appellate tribunals to handle disputes between buyers and developers. These bodies are empowered to resolve conflicts time-bound, ensuring a faster and more efficient resolution process.
Some Points Under Real Estate Regulation Authority
1.Security: According to this act, the investors’ and buyer’s minimum of 70% of the money will be kept in a separate account. The builder cannot demand an advance payment of more than 10% of the property price before the sale agreement.
2. Transparency: Builders must turn in the original document project they work on. Without the buyer’s permission, builders cannot alter the plans.
3. Fairness: Buyers can receive their full investment back if the project is delayed, or they can elect to remain invested and receive monthly interest.
4. Quality: The developer must resolve any issues within five years of the buyer’s acquisition. If there is an issue against the property, it must be resolved within 30 days.
5. Authorization: Any builder or developer must register with the regulator before they can promote, build, invest, sell, or reserve a plot. According to RERA, any particular project must contain the RERA registration number before any advertisement.
What is the main goal of the RERA Act?
The main goal of RERA Act is to protect the interests of homebuyers and promote efficiency, accountability, and transparency in the real estate sector in India.
The key importance of the RERA Act lies in the betterment and welfare of the real estate sectors. It is the Central and State government’s important responsibility to notify the rules mentioned in this Act. RERA Act is valid on apartments, flats, and pieces of land.
After this implementation of this Act, it is implemented in every state of India.
What is RERA Registration?
According to the RERA, a real estate project must be registered if the land being developed exceeds 500 square meters or if there are more than eight apartments. Additionally, it stated that projects were also required to register with the RERA if the completion certificate (CC) or occupancy certificate (OC) had not been issued on or before the day the Act went into effect.
The builders are expected to disclose all project-related information during the RERA registration procedure, including the project’s land status, approvals, anticipated completion date, promoter information, etc. Without the required RERA registration, developers and builders cannot market or advertise any real estate project or any component thereof.
How to Register Projects under RERA?
If you want to register your project under RERA Haryana, RERA Madhya Pradesh, RERA Rajasthan, or any other state of India, follow these simple steps.
- Pre-requisites: Ready all the important documents related to the project, such as ownership documents, approvals, sanctions, building plans, etc. Ensure compliance with the rules and regulations specified by the state’s RERA authority. Now you have to prepare all the required project details, such as project name, location, project type, carpet area, number of units, amenities, timeline, etc.
- Create an account: Now you have visited the official website of RERA as per the state. Then Create an account on the RERA portal by providing the required details, such as your contact information, name, and email address. After creating your account, you have to verify your account through email or any other method.
- Fill out the application form: After creating an account, log in to your RERA account. Fill in the application form for project registration. Fill in all the relevant project details as required in the form, such as financial information, the project’s land details, and builder information. Upload all required documents along with the application form, such as building plan approvals, land title documents, commencement certificate, and any other documents specified by the authority.
- Pay the registration fees: Calculate the registration fees based on the total area or number of units in the project, as per the guidelines provided by the RERA authority. Make the payment online through the portal using the prescribed payment methods.
- Submit the application: For accuracy, review all the entered information and uploaded documents. Submit the application form and pay the registration fees. After submission, you will receive your project’s acknowledgment or registration number.
- Track the application: Log in to your account on the RERA portal to track the progress of your application. Check for any additional information or documents the authority requests and provide them.
- Obtain the registration certificate: After the approval of your application, the RERA authority will issue a registration certificate for your project.
Download and print the registration certificate for future reference.
It’s important to note that these steps provide a general guideline, and the actual process may differ based on the state’s RERA rules and regulations. It is recommended to refer to the official website of your state’s RERA authority for detailed instructions and to stay updated with any changes in the registration process.
What are the penalties under RERA?
Here are some penalties under the Real Estate (Regulation and Development) Act, 2016 (RERA) that can be imposed for non-compliance with the provisions of the Act. These penalties mainly depend on the nature and intensity of the violation. Here are some of the common penalties that come under RERA:
1.Non-registration of a project:
Penalty: A property not registered under RERA may be fined up to 10% of the project cost. This percentage may vary based on the state’s RERA rules.
2. Violation of project registration conditions:
Penalty: If a builder fails to follow the terms and conditions and commitments specified during the project registration, they may face penalties of up to 5% of the project’s total cost.
3. Failure to deliver the project on time:
Penalty: If a builder fails to complete and deliver the project according to the right time, they may be responsible for paying a penalty for every day of delay. The penalty amount can vary from state to state.
4. Misrepresentation of project details:
Penalty: If a developer provides misleading and false information about the project to the authority or the buyers, they may face penalties, up to 5% of the project cost.
5. Non-compliance with orders and directions of the Regulatory Authority:
Penalty: If a developer fails to comply with the orders or directions issued by the Regulatory Authority, they may be responsible for penalties, up to 5% of the project cost. Even they are liable for imprisonment.
6. Diversion of project funds:
Penalty: If a builder diverts funds allocated for a specific project to other purposes, they may face penalties, up to 10% of the project cost, or imprisonment for a term that may extend to three years or both.
The Penalties may be varied from state to state…
We hope you read our blog completely and all your doubts regarding RERA. What is RERA, what are the penalties under RERA, and Goal of RERA has been resolved? If you have any queries about what RERA is or anything else, please contact us.
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What is the validity of RERA Registration?
Five years validity 0f RERA Registration.
What is RERA Act?
RERA stands for the Real Estate (Regulation and Development) Act, which is a legislation enacted by the Government of India in 2016. RERA aims to regulate and promote transparency in the real estate sector in India.
What is RERA Approval?
RERA Approved means RERA Registration. Approval, property, insurance, etc, are the guidelines that every builder has to follow to register their project.
Is RERA Registration mandatory?
yes. RERA registration is mandatory for every builder because who build commercial or residential property or land that has 500 meters square areas or the number of Apartment is developed above eight.
Is it safe to buy flat without RERA?
No, you should always buy a RERA registered project
Is RERA mandatory for loan?
Yes, it is mandatory for loan.
What is the full form of RERA?
Real Estate Regulatory Authority