9 THINGS YOU SHOULD KNOW ABOUT RERA

RERA or The Real Estate (Regulation and Development) Act, 2016 is a Regulatory Bill, which will help regulate the Real Estate sector and bring in clarity for both buyers and developers. Here are 9 things you should know about this bill, touted as a key reform measure in the vast Real Estate sector. 

1) REGULATORY AUTHORITY

It establishes the Real Estate Regulatory Authority for that particular state as the government body to be approached for redressal of grievances. This will happen once every state ratifies this Act and establishes a state authority on the lines set up in the law.

2) RESIDENTIAL AND COMMERCIAL

This law vests authority on the Real Estate regulator to govern both residential and commercial transactions.

3) BUILDER OBLIGATIONS

This Act puts an obligation on the developer to park 70% of the sale proceeds in a dedicated  Bank account meant only for the completion of the construction of that project. This will ensure that developers are not able to invest in numerous new projects with the proceeds of the booking money from one project, and delaying completion and handover of the project to the consumers. 

4) TRANSPARENCY

This law makes it mandatory for developers to post all relevant information related to the project with the Real Estate Regulatory Authority (RERA) such as the layout, government approvals, Land title status, subcontractors to the project, the schedule for completion etc and pass this information on to the consumers.

5) CLARITY

The current practice of selling on the basis of the ambiguous super built-up area for a Real Estate project will come to a stop as this law makes it illegal. Carpet area has been clearly defined in the law.

6) PENALTIES

The law ensures that any delay in project completion will make the developer liable to pay interest as paid by the Consumer to the Bank.
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. 

7) AFTER SALES

The buyer can contact the developer in writing within one year of taking possession to demand after sales service if any deficiency in the project is noticed.

8) CONSENT

The developer cannot make any changes to the plan on the basis of which it was sold, without the written consent of the buyer. 

9) REGISTRATION

Lastly, every project measuring more than 500 square metres or more than eight apartments will have to be registered with the RERA.