The Government of India Passed the Real Estate Regulation and Development Act on 26 March 2016, and all its Provisions Came into Existence From 1 May 2017. According to the RERA Act, 2016, the Government of India has Set up the Real Estate Regulatory Authority (RERA) in Every State of India to Regulate the Real Estate Sector. RERA is a Regulatory Body that Brings Transparency and Accountability to the Regulation of Residential and Commercial Assets in the Real Estate Sector and Protects Property Buyers from Conflict and Fraud by Unethical Real Estate Developers. In this Article, We Discuss 10 - Important Rules of RERA that Every Buyer Should Know.
1. RERA Registration:
RERA Makes it Mandatory for each Builder to Register a Real Estate Project with RERA if the Proposed Land on which his Project is Being Developed Exceeds 500 Square Meters or More than Eight Units. No Builder/Promoter can Sell or Advertise the Project without Registering with RERA.
2. Agent Registration:
Every Real Estate Agent is Required to Register with RERA. If the Promoter Does not Include the Name of the Real Estate Agent at the Time of RERA Registration, the Promoter Must Include it and, Subsequently, Update it on the RERA Website. Only Then can the Real Estate Agent Work on the Project.
3. RERA Bank Account:
The RERA Bank Account, also Known as the RERA Escrow Account, is a Separate Bank Account maintained by the Promoter at the Scheduled Bank in the Local Branch Where the Project is taking Place to Cover the Project Construction Cost and Land Costs. Every Builder/Promoter has to Deposit 70% of the Amount Collected from the Buyers in this RERA Bank Account. Withdrawals from the RERA Escrow Account Must be Certified by the Project Engineer, Architect, and Chartered Accountant, and these Accounts must be Audited each Financial Year and a Copy Submitted to the Authority.
4. Carpet Area:
According to RERA Act, each Builder Must Disclose the Carpet Area in Brochures and Sale of Agreement. The Carpet Area, also Known as the Net Usable Area in the Flat or an Apartment that Covers Using a Carpet. The Carpet Area Covers Bedrooms, Dining room, Dressing room, Study Room, Storeroom, Kitchen, Bathrooms, and Balconies & Staircase within the Flat. The Carpet Area Doesn't Cover Common Areas, Terraces, External and Internal Walls.
5. Agreement for Sale:
RERA Gave a Standard Format of an Agreement for Sale. So Each Builder Uses the Format Provided by RERA in the Respective State.
6. Advance Payment:
According to RERA Act, the Builder Cannot Take an Advance Payment or Application Fee of More Than 10% of the Total Cost of the Unit From the Buyer Before Entering into a Written Agreement.
7. Quarterly Updates:
Builders Should Update Quarterly, Updating Project Details, Including the Number of Units They have Sold, Approval So Far, and Certificates from Experts. This Will Help Buyers to Track the Progress of the Project Online.
8. Filing a Complaint:
If the Buyer Has Any Dispute with the Builder/Agent/Promoter, He/She Can Complain to RERA About Them. RERA Resolves the Complaint Within 2 months From the Date of Receipt of the Complaint.
9. Amendments in Project Plan:
If the Builder Wants to Make Any Changes/Amendments in the Approved Plan of the Project, He Must Get the Approval of 2/3 of the Allottees.
These are the 9 -Important Rules of RERA that Every Buyer Should Know Before Investing in Real Estate. Bookmark it if You Find it Useful.
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