About RERA
The Real Estate
(Regulation and Development) Act, 2016 is an Act of the Parliament of
India that seeks to protect home-buyers as well as help boost
investments in the real estate industry. The Act came into force on
1 May 2016.
The purpose of this
Act is:
To establish the
Real Estate Regulatory Authority for regulation and promotion of the
Real Estate sector.
To ensure
transparency in projects.
To protect the interest of consumers in the Real Estate Sector and to establish an
adjudicating mechanism for speedy dispute redressal.
To provide proper
information about the Builder.
Provide
recommendations to the appropriate Government matters relating to
the development & promotion of the real estate sector;
The Salient Features
of this Act are:
It establishes the
State Real Estate Regulatory Authority as the government body to be
approached for redressal of grievances against any builder.
This law vests
authority on the real estate regulator to govern both residential and
commercial real estate transactions.
This law makes it
mandatory for developers to post all information on issues such as
project plan, layout, government approvals, land title status,
sub-contractors to the project, scheduled for completion with the
State Real Estate Regulatory Authority (RERA) and then in effect pass
this information on to the consumers.
The maximum jail term for a developer who violates the order of the appellate tribunal
of the RERA is three years with or without a fine.
Currently, if a
project is delayed, then the developer does not suffer in any way.
Now, the law ensures that any delay in project completion will make
the developer liable to pay the same interest as the EMI being paid
by the consumer to the bank back to the consumer
The developer cannot
make any changes to the plan that had been sold without the written
consent of the buyer.
Every project
measuring more than 500 square meters or more than eight apartments
will have to be registered with the RERA.
Click Here to submit your Real Estate Service Request.
How does RERA help
buyers?
The rules of the Real
Estate (Regulation and Development) Act are made to give buyers
certain rights that will help in protecting their interests and
enhance their trust in the Indian real estate sector. Some major
rules that will secure buyers’ are:

- Disclosure and
transparency
Buyers have the
right to get project details such as cost of land, the development agreement, sanctioned plans, open spaces, cost of
construction, covered parking lots, phase-wise plans of development,
project completion time etc. These details will be available on the
respective state’s RERA website. Buyers can also get updates related to the sale of units and covered parking lots.
- Registration of
all projects
The law has mandated
developers to register their projects with their respective state’s
Real Estate Regulatory Authority within three months of the
implementation of the RERA rules in their state. The developer cannot
advertise, market, book, sell or offer for sale, or invite persons to
purchase in any manner any plot, apartment or building until or
unless he/she will not register the said project with the RERA
authority. Those who fail to register their properties as per the Act
will be liable to a penalty, which may extend up to 10% of
the estimated cost of the project. The Act states that on the continuous
violation, the developer or promoter of the project shall be
punishable with imprisonment for a term, which may extend up to three
years, or with a fine which may extend up to a further 10% of
the estimated cost of the project, or with both.
Also, the promoters
shall be required to provide quarterly updates on the status of the
project to the authority.
- Benefits for
buyers
Developers liable
for any structural defect
If a buyer finds any
structural or workmanship defect within five years from the date of being
handed over the flat, then the developer will have to rectify it
without any further charges. If he fails to do so then the buyer has
the right to complain against the developer to the RERA authority.
Developers are
prohibited to make any changes in the sanctioned plan
A buyer can also
file a complaint against the developer if he makes any additions and
alterations in the sanctioned plans, layout plans, and specifications
and the nature of fixtures, fittings and amenities, etc. without the
previous consent of at least two-thirds of the allottees, other than
the promoter, who has agreed to take apartments in a building.
Anti-Discriminatory
Clause to prevent consumer discrimination
The developer is not
to restrict sales on the basis of caste or community. If he does so,
the buyer has the right to file a case against him to the RERA
authority.
Buyers can claim
possessions
The buyer can claim
possession of the unit and the association of buyers can collectively
claim possession of the common areas as declared by the real estate
developer.
Promoters have to
execute a registered conveyance deed
The promoter has to
execute a registered conveyance deed in favour of the allottee when
sixty% of the total number of purchasers in a building or a
wing, have paid the full consideration to the promoter or within
three months from date of issue of occupancy certificate, whichever
is earlier.
- Rules for buyers
Consumers have to
make on-time payments
The consumers must
make the payments on time to the real estate developer as per the
agreement. He/she is also liable to pay the share of registration
charges, municipal taxes, maintenance charges, ground rent,
electricity charges, water supply charges, etc.
Must take possession on time The consumers must
take possession of the unit within two months of issuance of the
occupancy certificate, failing to do so can attract penalties.
Consumers must take
part in legal entities formed by the developer
The consumer must
actively participate in the formation of an association, a consumer
federal or any cooperative society.
- Process of filing
complaint against the developer/agent
If the developer/agent
fails to deliver his promise, buyers will have to approach the
Authority by filling up a complaint form. The complaints will be
heard and disposed of in a time-bound manner. If the buyer is not
satisfied with the orders passed by the Authority, he can appeal to
the Appellate Tribunal, and eventually the High Court.