Real Estate Regulatory Authority (RERA) in India
Real Estate Regulatory Authority (RERA) is a division or a branch of government of state or union territory which regulates the real estate sector by ensuring an efficient and transparent sale of the real estate projects like apartments, buildings, plots, lands etc. It protects the buyer of real estate and it also provides a mechanism to resolve the disputes between the buyer and developer and by making a formal judgments for solving the dispute immediately and if necessary, by establishing the one or more benches of the Appellate Tribunal (higher jurisdiction of state or union territory) to solve the disputes.
The Real Estate (Regulation and Development) Act, 2016 (Government of India):
The Real Estate (Regulation and Development) Act, 2016 (Ministry of Law and Justice) is a beneficial act for the Indian real estate sector and homebuyer at large. As per the law, the developers have to first register the real estate project (which has greater than 500 Sqm development area or greater than eight units of apartments inclusive of all phase) with Real Estate Regulatory Authority (RERA).
Registration of Developer’s Project under Real Estate Regulatory Authority (RERA):
The developers have to submit the following information to register with the Real Estate Regulatory Authority (RERA):
- Details of developer’s enterprise like registered address, type of enterprise, etc.
- Details of the current project which are completed in last five years including current status, delay in completion, pending payments, etc.
- Details of sanctioned plans, layout plans and specifications of the project and their government approvals from the town planning and/or equivalent competent authority.
- Details of development of infrastructure services plans including fire fighting facilities, emergency evacuation services, drinking water facilities, use of renewable energy, etc.
- Title clearance certificate for land and stating that it is free from any impediment (burden) along with encroachment right with latitude and longitude of boundaries.
- Performa of the allotment letter and also agreement for sale in the project dually signed by the developer and the buyer.
- Detail of carpet area of apartments excluding the balcony, verandah or open terrace. Detail of area of the garage, staircase, etc.
- Information about the real estate agents, structural engineers, architect or contractors and their name and address.
- The developer has to deposit the 70% amount in a separate account which they collect from the buyers to cover the cost of construction and the land cost. They can only withdraw the amounts after the certification of an engineer, or an architect and a chartered accountant in proportion to the percentage of completion of the project.
Also Read: Check List Points When Buying a House
Purpose of Real Estate Regulatory Authority (RERA):
RERA will ensure the timely submission and will check all legal/technical and commercial details related to the property at the time of registration. Real Estate Regulatory Authority (RERA) shall operate a web-based online system for submitting the application for the developer’s registration within one year from the date of its establishment. RERA ensure the protection of invested money by the buyers. RERA ensure the transparency of project and reduces frauds by fraudulent builders. RERA also ensure the fast resolution of the disputes.
RERA have raised many hopes for the home-buyers to invest in real estate project as the transparency in projects will ultimately increase the profit margin of developer or promoter and also protect the interest of home/land buyer.