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.
- 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
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
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.|
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.