What is RERA Act?
RERA stands for Real Estate Regulatory Authority came into existence as per the Real Estate (Regulation and Development) Act, 2016 which aims to protect the home purchasers and also boosts the real estate investments. The bill of this Parliament of India Act was passed on 10 March 2016 by the Upper House (Rajya Sabha). The RERA Act was effective on and from 1 May 2016. At that time, out of 92 sections only 52 were notified. All the other provisions were effective on and from 1 May 2017.
The Real Estate (Regulation and Development) Act, 2016 under Section 84 envisions that within a period of six months from its commencement date, State Governments will set the rules to carry out the provisions associated with the Act.
RERA was established to enhance accountability and transparency with respect to housing transactions and real estate. Here are the salient features of this Act:
RERA has a number of benefits for the buyer, the promoter, and the real estate agent. These include:
After the Real Estate (Regulation and Development) Act, 2016 enforcement, registration of sale deed of a project unit cannot be done in the office of the sub-registrar without obtaining Occupancy Certificates or Completion Certificates. At present, unit registrations are taking place without checking. It is occurring without obtaining Occupancy Certificates or Completion Certificates. No one is bothered about the legal consequences. The Department of Stamps & Registrations know about the RERA Act implications but they have not taken necessary steps to stop the unlawful sale deed registrations of such properties. Below are the few impacts:
The Real Estate (Regulation and Development) Act, 2016 has mandated the developers on how to sell their apartments depending on the carpet area.
As the loading factor is high, the saleable area can be inflated by the developer. This will allow the developer to reduce rate per square feet on the saleable area that is inflated. This is extremely misleading as the home purchasers get happy assuming that they are getting amazing rates. However, the flat size never changes, only the loading factor does.
Using the standard for carpet area will ensure that there is a certainty on the usable area. This also helps in the analysis of cost per square feet. Comparison between the different projects also becomes easier.
Things that must be considered to understand if a property is RERA compliant are mentioned below:
|Non-compliance with RERA||Daily penalty up to 5% of the approximate cost of the project|
|Non-compliance with the Appellate Tribunal||Imprisonment up to 1 year or 10% of the approximate cost of the project, or both|
|Non-registration||10% of the project’s estimated cost|
|Giving false information||5% of the project’s estimated cost|
|Violation of laws||Up to 3 years’ imprisonment or a fine of 10% of the estimated cost of the property, or both|
|Non-registration of projects||Rs.10,000 per day up to 5% of the approximate cost of the project|
|Non-compliance with RERA||Daily penalty up to 5% of the project’s estimated value|
|Non-compliance with the Appellate Tribunal||Imprisonment up to 1 year or 10% of the project’s estimated cost, or both|
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), there are certain offences for which applicable penalties are imposed. Listed below are certain offences for which penalties are imposed under applicable sections:
|Offence||Applicable Section||Applicable penalties|
||Section 9 (7)||Cancellation of registration number of the agent.|
|Violation of orders of Appellate tribunal||Section 66||Jail term of up to 1 year or with fine up to 10 percent of cost of unit sold.|
|Violation of Section 9 and 10 of the RERA Act||Section 62||Fine of Rs.10,000 per day during which the default continues extending up to 5 percent of cost of unit sold.|
|Violation of orders of RERA authorities||Section 65||Fine up to 5 percent of the cost of unit sold.|
|Name of the State||Date of Implementation||Official Site|
|Himachal Pradesh||28 Sept 2017||http://www.hprera.in|
|Telangana||4 Aug 2017||http://rera.telangana.gov.in|
|Haryana||28 Jul 2017||https://haryanarera.gov.in|
|Chhattisgarh||26 Apr 2017||https://rera.cgstate.gov.in|
|Punjab||8 Jun 2017||https://rera.punjab.gov.in|
|Karnataka||10 Jul 2017||https://rera.karnataka.gov.in|
|Tamil Nadu||22 Jun 2017||https://www.rera.tn.gov.in|
|Uttarakhand||28 Apr 2017||http://uhuda.org.in|
|Jharkhand||18 May 2017||https://jharera.jharkhand.gov.in/|
|Rajasthan||1 May 2017||http://rera.rajasthan.gov.in|
|Bihar||1 May 2017||https://rera.bihar.gov.in|
|Odisha||25 Feb 2017||http://www.urbanodisha.gov.in/ActsRules.aspx|
|Andhra Pradesh||28 Mar 2017||https://rera.ap.gov.in/RERA/Views/Home.aspx|
|Maharashtra||19 Apr 2017||https://maharera.mahaonline.gov.in|
|Delhi||24 Nov 2016||https://rera.delhi.gov.in|
|Madhya Pradesh||22 Oct 2016||http://www.rera.mp.gov.in|
|Daman & Diu||31 Oct 2016|
|Lakshadweep||31 Oct 2016|
|Andaman & Nicobar Islands||31 Oct 2016|
|Dadra & Nagar Haveli||31 Oct 2016|
|Chandigarh||31 Oct 2016||http://rera.chbonline.in/|
|Uttar Pradesh||11 Oct 2016||https://www.up-rera.in|
|Gujarat||20 Oct 2016||https://gujrera.gujarat.gov.in|
For Real Estate Agents
Under Section 31 of RERA, complaints can be filed against promoters, buyers, or agents. Here are the steps to follow while filing a complaint are:
In order to register a project under RERA, keep the following documents ready:
Look for : Documents Required to Buy Resale Flats
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