{"id":1383,"date":"2019-11-26T13:35:33","date_gmt":"2019-11-26T13:35:33","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1383"},"modified":"2021-04-02T12:45:21","modified_gmt":"2021-04-02T07:15:21","slug":"need-to-know-regarding-the-rera-act","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/","title":{"rendered":"Everything You Need to Know Regarding the RERA"},"content":{"rendered":"\n<p class=\"has-drop-cap\">RERA or Real Estate Regulatory Authority was established under the Real Estate (Regulation and Development) Act was first commenced on 1<sup>st<\/sup>\u00a0May 2016. However, on 59 out of 92 sections of the Act was enacted on this date and the rest were commenced exactly one year later on\u00a0<strong>1<sup>st<\/sup>\u00a0May 2017<\/strong>. The Real Estate (Regulation &amp; Development) RERA Act was introduced to address and solve the concerns of builders, brokers, home buyers and other stakeholders of the Real Estate Sector.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#What_is_RERA\" >What is RERA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#What_is_the_need_of_RERA\" >What is the need of RERA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#Key_benefits_of_RERA\" >Key benefits of\nRERA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#Impact_of_RERA_on_Homebuyers\" >Impact of RERA on\nHomebuyers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#Impact_of_RERA_on_Real_Estate_Agents\" >Impact of RERA on\nReal Estate Agents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#RERA_in_different_states_of_India\" >RERA in different\nstates of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#Projects_under_RERA\" >Projects under RERA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#How_can_you_register_projects_under_RERA\" >How can you register projects under RERA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#Filing_complaints_under_RERA\" >Filing complaints under RERA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#Penalties_that_apply_under_RERA\" >Penalties that apply under RERA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-act\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_RERA\"><\/span>What is RERA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Real Estate (Regulation &amp; Development) Act, 2016 is an act of the Parliament of India that strives for protecting home buyers and helps escalate the investment made in the real estate industry. The<strong>\u00a0(RERA)<\/strong>\u00a0<strong>Real Estate Regulatory Authority<\/strong><sup><a rel=\"noreferrer noopener\" href=\"https:\/\/en.wikipedia.org\/wiki\/Real_Estate_(Regulation_and_Development)_Act,_2016\" target=\"_blank\">[1]<\/a><\/sup>\u00a0was established under this Act to regulate the real estate sector. Additionally, it acts as the adjudicating body for faster dispute resolution related to the real estate industry.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_need_of_RERA\"><\/span>What is the need of RERA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the\u00a0<strong>Real Estate (Regulation &amp; Development) RERA Act<\/strong>, numerous RERA committees have been set up across the country to promote uniformity and transparency in the real estate sector. Additionally, it was founded to regulate the real estate industry.<\/p>\n\n\n\n<p>With Real\nEstate Regulatory Authority in effect, every builder or developer has to inform\nhome buyers of the progress of construction, offer the keys to their property\nby the mentioned date, and abide by every rule outlined by RERA, to ensure\naccountability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_benefits_of_RERA\"><\/span>Key benefits of\nRERA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>RERA has brought about many positive changes in every facet of the real estate industry.<\/p>\n\n\n\n<p><strong><em>The list given below are some of them;<\/em><\/strong><\/p>\n\n\n\n<ul><li>RERA aims to reduce project delays and to mis-sell the properties. To ensure that, authorities have made it obligatory for all builders\/ developers to carry out RERA registration before they start any project.<\/li><li>The RERA has been sub-divided into smaller regulatory bodies, each of which looks after the real estate development in a particular state or union territory in India.<\/li><li>The policies of Real Estate Regulatory Authority are applicable to both      residential and commercial properties<\/li><li>The regulations brought about by RERA aims to protect the interests of buyers and developers similarly.<\/li><li>The RERA has brought about more accountability and transparency within the real estate industry.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_RERA_on_Homebuyers\"><\/span>Impact of RERA on\nHomebuyers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The RERA holds many \u00a0benefits for homebuyers in a number of ways as follows;<\/em><\/strong><\/p>\n\n\n\n<ul><li>With the implementation of the RERA\u2019s rules, builders have to release every detail of the project they have undertaken on the RERA\u2019s official website. Also, more importantly, they need to update the details on a regular basis. In like manner, this keeps the buyers updated about the project timelines and increases transparency regarding the same.<\/li><li>As per RERA rules, you need to pay for the property based on the carpet area. Additionally, the Builders cannot charge you for the super built-up area, which includes balconies, lifts, lobbies and stairs.<\/li><li>Developers\/ Builders have to put 70% of the money they collect from homebuyers into a separate bank account, which they are only allowed to use for the construction purposes.<\/li><li>RERA pays attention to the timely completion of projects. Additionally, any delay means that the developer has to pay you (the home buyer) interest of  2% over SBI\u2019s MCLR for the period of delay.<\/li><li>Also, when you get a handover, you can report constructional defects for up to 5 years and have the builder rectify them for you.<\/li><li>Furthermore, Developers have to resolve disputes with buyers within 120 days of it were filed.<\/li><li>The builder or developer cannot make alterations or additions to the building plan without informing two-thirds of the owners about such a change. Also, it can only proceed if a majority of homebuyers consent is provided.<\/li><li>The Act prohibits builders from taking more than 10% as advance from homebuyers.<\/li><li> In case of the time of possession, you discover a discrepancy in your title deed, and you can immediately ask for compensation from the developer. <\/li><\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> As per the guidelines of the RERA, the carpet area for an apartment or home is defined as the area within the four walls of the house. Also. It cannot include the amenities or common area measurements that are usually included in the super built-up area.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_RERA_on_Real_Estate_Agents\"><\/span>Impact of RERA on\nReal Estate Agents<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>After the launch of the Real Estate Regulatory Authority, builders and developers have to be more transparent with the home buyers;<\/em><\/strong><\/p>\n\n\n\n<ul><li>All projects exceed an area of 500 sq. Mt. or is more than eight apartments must be registered with the respective state Real Estate Regulatory Authority.<\/li><li>Also, it is compulsory for builders to deposit 70% of the project amount collected from the homebuyers in bank accounts through cheques. Also, it means the builders can no longer engage in fraudulent transactions or money laundering.<\/li><li>There has to be a sale agreement between all builders and homebuyers as prescribed. <\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/rera-complaint-or-consumer-forum\/\">RERA Complaint or Consumer forum (NCDRC): Which is better?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RERA_in_different_states_of_India\"><\/span>RERA in different\nstates of India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>RERA Karnataka, RERA Delhi, RERA West Bengal, RERA UP, RERA Punjab, RERA Goa and so on.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Projects_under_RERA\"><\/span>Projects under RERA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All the\nstates and union territories comply with RERA, and all real estate projects\ncome under its purview. Furthermore, these are the conditions under which a\nproject can be registered under RERA;<\/p>\n\n\n\n<ul><li>Projects do not hold completion certificate but were completed or had finished construction before the commencement of the (Real Estate Regulatory Authority) RERA Act.<\/li><li>Furthermore, the projects that have undertaken construction for the purpose of renovation, repair or re-development. Additionally, projects which are not marketing, re-allotting, advertising, selling or allotting any apartments, plot or building, will not come under the purview of RERA.<\/li><li>Also, projects that are under construction have to report each phase of      construction as a standalone project through a fresh RERA registration.<\/li><\/ul>\n\n\n\n<p>As a home\nbuyer, it is important for you to select a RERA registered project so that you\nmake a safe investment and eliminate any possible losses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_can_you_register_projects_under_RERA\"><\/span>How can you register projects under RERA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Follow these steps if you wish to register a project under RERA\nArunachal Pradesh, RERA Sikkim, RERA Haryana, RERA Kerala or any other state;<\/em><\/strong><\/p>\n\n\n\n<ul><li>Open a bank account as specified by\u00a0<strong>Section 4 (2) (I) (D) of the RERA      Act\u00a0<\/strong>and then accumulate all the necessary documents.<\/li><li>Then, fill and submit Form A, the form specified for <a href=\"https:\/\/corpbiz.io\/rera-registration\"><strong>RERA registration<\/strong><\/a>. Furthermore, being a promoter or agent, you will also need to submit Form B, declaring your role within the real estate sector.<\/li><li>Also, you may have to submit other forms as per Real Estate Regulatory Authority guidelines to further clarify your project\u2019s purposes.<\/li><li>Furthermore, you need to pay the RERA registration fees to complete the registration procedure. This amount is different in different states of India.<\/li><li>Once registered, you can use the RERA number allotted to you, for procuring the project and for all future communications.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Filing_complaints_under_RERA\"><\/span>Filing complaints under RERA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the Section 31 of RERA, 2016 the Complaints can be filed by the aggrieved parties to the adjudicating officer or the Real Estate Regulatory Authority(RERA Act). These complaints are generally against the real estate brokers or agents, allottees or the promoters. \u00a0The regulations of the State Government already have the complete procedure and form granted for applications in this regard.<\/p>\n\n\n\n<p>All the complaints are to\nbe in the prescribed form according to the concerned rules of the States. With\nrespect to Uttar Pradesh or the Chandigarh, we have the Forms M or N. This can\nbe filed for all the projects under the RERA registration within the prescribed\ntime period in case of any contravention or violation of provisions or rules\nunder RERA. Other offences (with exception under Sections 14, 12, 18 and 19 of\nthe complaints) can be filed to the authority of RERA.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_that_apply_under_RERA\"><\/span>Penalties that apply under RERA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The penalties that are applicable under the RERA framework is given below &#8211;<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Section\n  Applicable<\/strong>\n  <\/td><td>\n  <strong>Type of\n  Offence<\/strong>\n  <\/td><td>\n  <strong>Penalties\n  that apply<\/strong>\n  <\/td><\/tr><tr><td>\n  Section 9 (7)\n  <\/td><td>\n  Securing of\n  registration via fraud or breach of terms or misrepresentation\n  <\/td><td>\n  Number of Agent\n  Registration will be revoked.\n  <\/td><\/tr><tr><td>\n  Section 62\n  <\/td><td>\n  Contravention of\n  Section-9 &amp; Section 10 \n  <\/td><td>\n  Fine of Rs. 10,000\/-\n  each day for the default period \n  Extending up to 5% of\n  unit cost\n  <\/td><\/tr><tr><td>\n  Section 65\n  <\/td><td>\n  Contravention of\n  orders by RERA authorities\n  <\/td><td>\n  Penalty up to 5% of\n  unit cost\n  <\/td><\/tr><tr><td>\n  Section 66\n  <\/td><td>\n  Contravention of\n  Appellate tribunal orders\n  <\/td><td>\n  Imprisonment up to 1\n  year &nbsp;or\n  Fine that extends up\n  to 10% of unit cost\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>Equally,\nbuyers too have to abide by the guidelines of the RERA. Furthermore, if you\u2019re\nfound guilty of non-compliance, you will have to pay a daily penalty which can\nbe up to 5% of the approximate cost of the project. Then again, non-compliance\nwith the Appellate Tribunal can lead to imprisonment for up to 1 year, or 10%\nof the project\u2019s probable cost, or both.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before the establishment of Real Estate Regulatory Authority (RERA Act) , there was no authority or body which was responsible for regulating or providing guidelines regarding the real estate sector. However, with the commencement of the Real Estate (Regulation and Development) Act, 2016, everything fell into its place, and new rules were set up. The real estate sector was made more transparent from the ends of builders, developers and brokers for the home buyers.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/need-to-know-regarding-the-rera-the-real-estate-act\/\">Everything You Need to Know Regarding the RERA<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RERA or Real Estate Regulatory Authority was established under the Real Estate (Regulation and Development) Act was first commenced on 1st\u00a0May 2016. However, on 59 out of 92 sections of the Act was enacted on this date and the rest were commenced exactly one year later on\u00a01st\u00a0May 2017. The Real Estate (Regulation &amp; Development) RERA [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":1384,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[182],"tags":[183],"acf":{"service_id":"102"},"authorName":"Tanya Verma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/10\/IMG-20190703-WA0001__01-150x150.jpg","authorDescription":"Tanya is working as writer &amp; editor from past 2 years with experience in covering startup and technology related topics.","postViews":7395,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1383"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1383"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1383\/revisions"}],"predecessor-version":[{"id":28494,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1383\/revisions\/28494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1384"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}