RERA is India’s first regular in real estate sector. This act was passed in last year but the authorities asked time till 1st may for formulating and notifying the rules, for the smooth functioning of the regulator.

This act came into existence to bring clarity and fair practices that will protect buyer’s interest and at the same time penalise errant builders and developers.

RERA is normally going to focus on issues related to price, title, delays, quality of construction, and other related issues. Delays are one of the biggest issue a common consumer is facing now a days across country.

Some important Inputs from RERA:

1. Builder or Promoter have to maintain    separate escrow account

The builder or promoter of any real estate development have to maintain a separate escrow account for each of their project and a minimum of 70% money should get deposited and should be used towards land cost and construction cost of the project. At the same time, builder need to keep their customers updated on their other ongoing projects.

2. Documents

Under RERA, every builders need to submit their original documents and information on alternation made as per the approved plans. Also details on revenue collected, how funds got used, timeline of construction and delays details if any. Every delivery must get certified by an engineer/architect/practicing ca before getting delivered to any customer.

3. Project Registration

Every builder and their projects must get register under RERA and the same goes with real estate agents too. After getting the project registered with RERA, builders have to furnish all financial statements, legal deeds and other supporting documents.

4. Quality of Construction

Another important point is that from now onward, quality of construction would be seen with priority. any issue getting highlighted by the buyer within 5 years of possession would be and must be handled by the developer and the same should get rectified within 30 days.

5. Registration Number by the RERA

RERA will provide a registration number of every projects in the state. Any developers can not directly invite, sell, offer, advertise or book any real estate unit (plot, flat, independent house, building, commercial units etc) without getting the said project registered under the regulatory authority. Moreover, every advertisement of the project must carry the registration number provided by the RERA.

6. Money Back as per Agreement of Sales

When it comes to handling delays, it has been understood that if delivery is not been made within stipulated deadline, the builder need to return the entire money to the client along with the pre agreed interest as per the agreement of sales. If in case customer does not want to take the money back, the builder must pay monthly interest on the total money until the buyer get the delivery of the said project/unit. To protect customers interest, RERA has guided that no builder can ask more than 10% as advance or booking advance before getting into registered agreement of sale.

Apart from these, once the builder get registered with the regulator, a micro web page will be created for the builder on the regulatory authority’s website only. the developers will be given login credentials so as to uploads all required information of their registered projects on the said website. These details must get updated at a maximum quarterly basis.

After developers register with the regulator, a page will be created for the builder on the regulatory authority’s website. The developer will be given login credentials using which it will upload all the information regarding the registered projects on the regulator’s website. The number, type of apartments, plots and projects and their completion status will be updated at a maximum quarterly basis.

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