RERA (Real Estate Regulation Act) was enacted by the Government of India on 26th March 2016, with its provisions coming to effect on 1st May 2017. The Act was introduced for protecting and safeguarding the rights of the property buyers so that they do not get exploited by the cunning builders. The main aim of RERA is to build a sense of transparency within the Real estate sector.
Under RERA, the builders were asked to register all their ongoing and completed projects by the end of July 2017. The property agents are still registering themselves under this Act. RERA is hoped to make the future real estate transaction procedures smoother, favoring the buyers’ interests. RERA is announced to stop all the illegal and unfair activities that were previously carried out in the Real estate sector by the builders who always prepared the agreements and bonds supporting their cruel interests.
How will RERA affect property buyers?-
RERA is expected to benefit the property buyers as it has been issued to preserve their interests and solve their concerns. The Act can be beneficial to the common home buyers as:
- The buyers can lawfully withdraw and be fully compensated if the builder fails to handover the concerned real estate by the date penned down in the agreement.
- The builders can’t advertise a project without first getting it registered under RERA.
- The builder’s even need to have the permit from two-thirds allocates for implementing any modifications to their project.
- RERA has given power to a regulatory authority that has been established to protect buyers’ interests and solve their grievances fast.
- For promoting transparency, RERA has given the right to the buyers to question the builders whenever and wherever they have any doubts.
The provisions of RERA thus serve by cautioning the builders against exploiting the property buyers or deliberately making delays in the projects. With RERA, the property buyers are now in a better position in the real estate sector.
Regulations for builders under RERA-
- All projects are covering more than 500 sq. m. of the area or exceeding eight apartments need to be registered under the concerned state RERA.
- The builders have to deposit 70 percent of the property amount collected from the buyer in a reserve bank.
- The builders require updating their project status on the website of RERA at every stage.
- There will be a single standard sale agreement between the builders and buyers for preventing frauds.
With all these guidelines put into action, RERA eliminates the cunning tactics previously used by the builders and promotes healthy property transactions in the real estate sector. Moreover, RERA has a direct influence on property prices as well as the interest rates associated with home loans. As more buyers are now willing to invest in real estate, the demand is increasing, and hence, prices and interest rates are coming down.
Summing up all the points for a final takeaway, RERA has been a great step in giving a positive shape to the real estate sector.
RERA States in India-
In India as on July of 31 2017, 23 States registered under RERA union territories (UTs) have either established their permanent or interim regulatory authorities.
Maharashtra RERA– The Maharashtra RERA called Maharashtra Real Estate Regulatory Authority (MAHARERA), Its come into existence on 1 May 2017.
Uttar Pradesh RERA– The Uttar Pradesh RERA rule, was approved by the Uttar Pradesh government cabinet on 26 July 2017.
Karnataka RERA- The Karnataka RERA rule, have been notified and the state’s RERA website was launched on July 26, 2017.
Tamil Nadu RERA- The state’s cabinet approved the final Tamil Nadu RERA Rules on 22 June, 2017.
Haryana RERA- The Haryana RERA rule, were notified on 25 July, 2017. Exclusion/inclusion of projects for registration.
Rajasthan RERA- The Rajasthan RERA rule have been notified and the website was launched for buyers on June 1, 2017.
Delhi RERA- The Delhi RERA Rules have been notified. The VC (Vice Chairman) of the Delhi DDA (Delhi Development Authority) has been designated as the regulatory authority for the National Capital Territory of Delhi, under the RERA.
Telangana RERA- The Telangana RERA Regulation Bill 2017 was passed by the state assembly by Government cabinet, on 31 July 2017.
West Bengal RERA- The West Bengal government notified its RERA rules on 16 August, 2017 The state’s rules will be called the West Bengal State Real Estate (Regulation and Development) Rules, 2017.
Which Projects Authorized by RERA-
- residential and commercial projects including plotted development
- If Projects measuring size more than 500 sq mts or 8 units.
- You can’t started any Projects without Completion Certificate, before commencement of the Act.
- Each projects is to be treated as standalone real estate project requiring fresh registration.