The real estate sector in India has over the last decades gone through a transformation in terms of markets, products, and regulations.
Over the recent years, the regulatory compliance in Real Estate Sector has gone many notches up by the introduction of the Real Estate (Regulation and Development) Act 2016 (RERA).
RERA intends to bring transparency and accountability to the sector. Besides that mandatory registration for Real Estate Projects and Real Estate Agents/ Intermediaries, a multitude of revealings is be needed to be made by the Promoters of such Real Estate Projects.
There are vital penalties proposed for non-compliance.
Moreover, Buyers/Allottees are bestowed with a host of rights and are abundantly protected.
A fast track mechanism for non-compliance and grievances redressal is provided.
Some key features of RERA:
- Every real estate project over 500 Sq Mtrs or 8 Flats or more needs to be registered with the State RERA, State Real Estate Regulatory Authority.
- Completion certificate on or before April 30th, 2017 shall also be categorized as an ongoing project and shall need registration with RERA (Real Estate Authority) of the concerned state.
- The details of the project under registration including the type of land, locations, litigations, status of payment of land, the situation of approvals, schedule of implementation of the project, type of product, specifications, details of project participants like Architects, Engineers & Real Estate Agents, and other sector were required to make.
- For & on registration with Authority, the Promoter/ Developer has to provide a host of information concerning his track record. In the case of Ongoing Projects, the status of projects including the status of approvals, development, funds collected and spent on projects, etc need to be disclosed.
- RERA has included a standard agreement to Sale ‘has been introduced. Without entering into a Registered Agreement to Sale, beyond 10%, no money can be collected by the developer.
- Real Estate Agents now have to be registered with the STATE RERA Authority, and they have several duties and obligations to accomplish.
- Buyers have to be given extensive rights like the right to receive the information, copies of sanction plans, approvals, the right to receive compensation against misrepresentation or unfair practices, for delays in handing over possession, etc.
More Projects Under RERA:
30 States/UTs have anchored up a Real Estate Regulatory Authority. Meghalaya, Jammu & Kashmir, Ladakh, Sikkim, and West Bengal have promulgated their rules but are yet to establish their authorities.
The Chairman of ANAROCK Group, Anuj Puri is said, RERA rules had been reduced in many states, and many projects are under construction which is not completed at the time of RERA’s and implementation did not come within its ambit.
Within this conclusion, the court has given more powers to RERA, and it now also covers such under-construction projects.