RERA_Services

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.


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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:
  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.



Here you can click on respective links to download ActRulesRegulationsNotifications, and Agreement to Sale/Lease.

For more details, get in touch with your respective Relationship Managers or may write us on WhatsApp: 91-8077071219 or Email: info@decentspace.com