All you wanted to know about RERA

October 17, 2017by Team CapitaWorld0
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Introduction

The RERA (Regulation and Development Act) has come into force from May 1, 2017. It is a Central Act which is applicable all Indian States & Union Territories except Jammu & Kashmir. It covers all home buyers, real estate agents, web portals and all other parties, which are involved in the sale, purchase & registration of properties. The RERA will be applicable to all ongoing and upcoming commercial and residential projects.

Objective

  • Regulation of Real Estate Industry.
  • To protect the home buyers interests.
  • To promote transparency in the sale of real estate projects.
  • To establish a decisive authority that accelerates the dispute resolution process.

Benefirs of RERA

Benefit of RERA

Features of RERA

  • All Real estate agents need to be registered them under RERA.
  • All structural defects of the projects have to be rectified by builder.
  • The houses to be sold under RERA are done only on carpet area basis.
  • To modify project details, consent of two-third allotters are mandatorily required.
  • All consumer complaints will be resolved within 60 days of time by Adjudicating officers, Real Estate Authorities, and Appellate Tribunals.
  • The promoter of the project has to compulsorily register themselves before the starting the advertising of the project. They are supposed to disclose all their financial & legal details
  • 70% of the money, which is taken from the customer as an advances will be kept into a separate bank account. For withdrawal of funds from this account, certification needs to be taken from CA, Project Engineers, and Architects.

For latest information about RERA: http://bit.ly/2pbNy5J

Penalty Matrix

Non-compliance of rules will attract a financial penalty, imprisonment of 3 years or both. The list of all the offences and its respective penalty given below:

RERA Sections Details of Offence Penalty for doing offence
Section 9 (7) Registration secured through misrepresentation or fraud Cancellation of Agent Registration Number.
Section 62 Violation of Section 9 & 10 Rs 10,000/- penalty per day during which the default continues extending up to 5% of cost of unit sold.
Section 65 Violation of orders given by RERA authorities Up to 5% penalty of cost of unit sold.
Section 66 Violation of orders given by Appellate tribunal Either fine up to 10% of cost of unit sold or confinement up to 1 year.

Conclusion

This act has an ability to revive the confidence buyer’s real estate sector. With the implementation of RERA, more transparency will bring between home buyers, real estate agents, and builders.

If you have any query related to RERA, Home Loans or any other loans, then you can get a free consultation at CapitaWorld.


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