WHY RERA?

It was ideated for following reasons

1. Ensures Transparency and accountability

2. Uniformity in rules across India.

3. Curb land-related scams

4. Reduce delay in documentation

5. Improve compliance

6. Provides the benefit and maintains the interest of the promoter and purchaser

ROLE OF AUTHORITIES –

1. Registration and necessary approvals for registration of commercial properties and residential apartments under RERA,

2. Controlling real estate property sale and purchase transactions.

SALIENT FEATURES OF RERA ACT –

1. All projects with more than eight flats or 500 square metres in size must be registered with the RERA.

2. The State Real Estate Regulatory Authority is the government agency that must be contacted under RERA to resolve complaints against any builder.

3. It is required that developers post all relevant information on RERA, including project plans, layouts, government permissions, land title status, subcontractors working on the project, and completion dates. This information must be passed on to customers.

4. The RERA Act provides that if project completion is delayed, the developer is responsible for paying the same interest as the EMI being paid by the customer to the bank back to the customer.

5. Without the buyer's express written consent, the developer is not permitted to make any alterations to the offered plan.

EXEMPTION FROM REGISTRATION UNDER RERA –

1. In cases where there are no more than eight flats or a land area of more than 500 square meters

2. When the work is limited to redevelopment, renovation, or repair, it must not entail selling, buying, or allotting new apartments, plots, or buildings.

3. A real estate project for which the promoter already has a completion certificate when the commencement of the RERA Act.

BENEFITS OF RERA REGISTRATION –

1. Timely possession of the property.

2. Increased compliance reduces chances of fraud

3. Enhances trustworthiness

4. Clearance of assured license

5. Handles all complaints or grievances raised by the buyers

6. Proper disclosure of projects is made.

PENALTIES UNDER RERA REGISTRATION –

1. The agent is subject to a penalty of Rs. 10,000 per day, up to a maximum of 5% of the price of the plot or building, if he commits any defaults.

2. If the agent engages in any unfair business practices, he will face a one-year prison sentence as punishment.

3. In case of violation, a developer is subject to a three-year maximum prison sentence, with or without a fine.

WHEN CAN RERA REGISTRATION BE REVOKED?

Under RERA, registration can be revoked

1. If the promoter is responsible for default.

2. In the event that the Promotor violates any terms and conditions of the Authority's approval.

3. If the agent or promoter did not follow the rules and regulations.

4. If the Promotor is using any unfair methods, irregularities, or fraudulent techniques.

5. On the basis of a complaint received or Suo moto by the Authority, followed by 30 days' written notice to the project's promoter.