The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square meters, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution. For ongoing projects which have not received completion certificate on the date of commencement of the Act, will have to seek registration within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id, and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years’ imprisonment may be imposed. Real estate agents who facilitate selling or purchase of properties must take prior registration. Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by the agent in every sale facilitated by him.
Benefits of RERA Registration:
It has been seen that developers often make false promises about the completion date of the project, but hardly deliver on time. As per the bill, strict regulations will be enforced on developers to ensure that construction runs on time and flats are delivered on decided time.
Accurate Project Details
In the construction stage, builders promote their projects, defining the various amenities and features related to projects. As per this bill, there can’t be any changes to a plan. And if a builder is found guilty then, he/she will be penalized 10% of the project’s costs or face jail time of up to three years.
Builders often attract buyers with huge discounts and pre-launch offers. And, the buyer, enticed by the offers, does not bother about the clearance. But, due to delays in getting clearance, the buyer does not get the flat on time. This bill ensures that developers get all the clearances before selling flats.
If the buyer finds any structural deficiency in the development of the building, then it is the developer’s responsibility to repair structural defects up to 5 years.
No Advertisement without RERA Registration
Promoters are not permitted to advertise any project without RERA registration with the Real Estate Regulatory Authority established under this Act. Additionally, each advertisement has to carry the RERA registration number.
The amount to be paid by the buyer has been reduced from 20% to 10%, which should be paid only after registering the agreement for sale with the builder. Termination of the agreement is permitted only if the buyer defaults on payment thrice. The Buyer is entitled to a 15-day notice.