RERA- Real Estate Regulatory Agency
RERA makes home buyers the king, builders to benefit from buyers’ confidence
RERA is a government body which comes under the Real Estate (Regulation and Development) Act which was passed in March 2016. This body will deal with all the issues, problems and provisions in the real estate sector of India. India’s landscape is a vast one and so is its population, hence, equitable land dealings becomes one of the primary focal points on which its development depends. Moreover, India is one of the fastest growing economies of the 21st century with massive developments in residential as well as commercial sectors. This calls for a transparent government real estate agency for a fair passage of real estate development in the country. Therefore, the need for RERA was growing. It is a first of its kind authority whose sole purpose is to channelize the people concerned with real estate, be it builders, buyers or real estate agents, into fair practices that can add in the overall development of the country.
In the last decade or so, many problems have arisen in the residential real estate sector. News regarding a buyer being cheated from a property dealer or a builder comes every now and then. These may be related to the delay of possession of a residential project, extra charges that were not told prior to the agreement, change of plans etc. Generally, the sufferers are the middle-class people of India who, by their hard work are trying to improve their overall status. Hence, the regulations of RERA have been made such that a buyer never has to face any sort of problems or irregularities regarding their properties. The problems for buyers are plenty in India, however, one must not forget the difficulties many builders have to face. The issues faced by the builders can range from the project approval to the ever-rising corruption. Thus, meraRERA is a portal where everyone one can understand the beneficial policies that RERA has incorporated for the people.
On this platform, we are trying to connect with the people that deal in real estate business or become a part of it. We are here to guide the buyers, builders and real estate agents on how they can contribute towards making India a better place to live, simply by adhering to the rules and regulations set by RERA. Our team has done thorough research on RERA, right from its inception to its approval in March 2016. We also keep a tab on all the latest updates regarding real estate in India. In this website, you will find detailed highlights of the Real Estate (Regulation and Development) Act, 2016 under which RERA comes. This includes the rules which the promoters, buyers and real estate agents have to follow. Also, it lays the duties of each individual as well as the government in regards to promote the real estate sector in India. These will be the most basic things one should know about the real estate bill.
The property buyers of India are in sheer sorrow due to the difficulties presented by the promoters and the real estate agents. There is numerous complaint against the promoters. We are not talking about every promoter or every real estate agent by everyone knows that there are some people who are not being honest. Due to their unending greed for money, the innocent buyers have to suffer. There are many cases registered where we can find that a buyer looking for a home for his family has to spend his time complaining against the builders. These complaints come in regards to late possessions of apartments by the promoters, unreasonable charges, change of plans etc.
Due to the endless complaints, the Real Estate Regulatory Authority Agency has taken the matters into its own hand and has formulated an agency known as RERA (Real Estate Regulatory Authority). RERA has brought some milestone changes regarding the laws in real estate sector of India. The wholehearted commitment of the government into maintaining fair play in the property business has come as a big relief for the buyers. Apart from the buyers, the promoters and the real estate agents who go by the government norms, but have to suffer from the spread of bad word against them due to some ill practices by some promoters and real agents, also will feel happy and relieved.
meraRERA is a portal made to make a healthy relationship for the promoters, agents and the buyers. It is very necessary that these three bodies work in tandem and help each other as the real sector of any country is its right arm regarding its economy. Apart from informing the promoters about the new guidelines, they have to follow and their functions in order to maintain a just way of purchasing and selling a house. meraRERA is also trying to make the real estate agents more efficient and customer-friendly so that the communication gap between a buyer and a promoter cannot lead to major issues and problems. All this will be done so that a buyer never feels cheated again.
RERA has set up some fundamental functions for the buyers which are laid upon as their rights.
- A buyer is entitled to know all the plans of a real estate project in detail. He has the right to know the stage-wise completion of the project which includes the amenities as well.
- A buyer is entitled to claim a written possession of his house and the common areas which he is entitled to as a member of the project. He has the right to get all the documents regarding the project.
- A buyer has to pay the amount he has signed the agreement in the court. He will have to pay interests if he delays the payment. However, a promoter has to pay the same interest to the buyer if he delays his project or if he has not been able to provide what was said in the agreement.
- The buyer should participate in forming an association after taking the physical possession of his house. He should also be active on the website of RERA India so that the flow of information can be maintained. His participation towards the deed of the apartment can be beneficial for other buyers.
Moreover, the establishment of RERA with those of Central Advisory Council and the Real Estate Appellate Tribunal will work to enhance the real estate market of India, bring the buyer confidence back and penalise those promoters and real estate agents who work unethically.
RERA has designed these functions in their bill. meraRERA’s team has done thorough research on the Real Estate Regulatory Bill as we know that there are many instances where a common man does not know that there are many rights and functions in the law that can help them win any case if they are right. The problem with us is that we get afraid by listening to stories about corruption from the government and the promoters. But, one must understand that these are only some people. The majority of the people still have faith in honesty. Thus, we request our common man to know their right and functions properly so that tomorrow no one can cheat them. For the promoters and the real estate agents, we think that if all the good ones can come to one side, then it will be easy for the government to capture the outlaw. For this, adhering to the guidelines set by RERA is very important for everyone.
The Real Estate agents are the medium between a buyer and a promoter. They have a strong presence in real estate sector as they have the marketing skills to profitably buy or sell a property. A buyer does not know all the property details and a promoter does not sell his properties himself, thus, a real estate agents’ role is of paramount importance. However, there are various unethical agents who fill their pockets by utilizing the gap between the buyer and the promoter. Also, there are many instances that after the sale of a property, the agent stops to take the responsibility of the problems related to that house. RERA India 2016 bill lays few guidelines for the functions and the duties of a real estate agent towards the buyer and the promoter. The formal bill of Real Estate Regulatory Act 2016 pdf can be found online at our website. meraRERA is making an effort to highlight those guidelines in a simpler form. An agent must adhere to these guidelines as these are made keeping in mind the problems arising due to the misconduct of real estate agents. Many a times the term ‘real estate agent’ is seen in a bitter taste in the Indian public. To make a healthy relationship between the agents with those of the buyers and promoters, the government is becoming strict as to grow a level of trust among different bodies of a real estate business.
Following are the guidelines that a real estate agent must have to follow. These are regarding the registration of an agent so that it can also be published in RERA India’s website which will help to build trust with a buyer.
• A person has to get registered with RERA in order to be eligible to sell or purchase a plot, flat or anything related to the real estate sector. Simply put, a real estate agent must register with the authority. For the registration, an agent must be in possession of all his documents and the required fee.
• It will be the duty of the Authority to grant a person the registration that will be applicable in the entire state. If the Authority finds any discrepancies in the documents, the application made by the person to become an agent will be rejected. However, the applicant will be given full details of his incorrect documents so that he gets another chance to apply.
• Many times, people become discouraged by some government rules of rejection if they do not get to know where their mistakes lie and starts to do unfair deeds without proper registration. To stop this, RERA will have to give proper justification on why a person’s application has been rejected. Also, the Authority is bound by the law to give the declaration, whether a person has been registered or rejected, within the prescribed time. If the Authority fails to do any of these, the person automatically gets registered in RERA.
• After a person becomes a real estate agent through registration with RERA, he will still have to keep a check on his activities because if the government finds any fraud in their work, the Authority has the power to cancel their registration with proper remarks and an opportunity for the agent to be heard.
Thus, we see that the RERA bill 2016 has been made with sheer intelligence as to correct the ambiguities which are in the existing laws. It aims to make the Authority proactive so that a person finds no reason to go on an unethical path to do his business. The real estate agency of India understands that people expect them to make rules in which there is no scope of any loopholes, neither from the people’s side nor from the government.
A real estate agent must understand that he is bound by a moral responsibility for the home seekers as a middle-class person puts all his life’s income in buying a home and it becomes a very sad picture when we come to know he has been cheated or not given the services for which he was charged for. The promoters or builders are the rich millionaires and generally work on many projects and thus, it becomes difficult for them to listen to each grievance of the buyer. Hence, it becomes the duty of the agent as he is the one to which buyer contacts and talks. In this Real Estate Regulatory Notification, the government has given a set of functions and duties to the real estate agents which can help the buyers in purchasing properties and in matters related to that.
• The agent should keep and maintain all the records, accounts and documents of a real estate project he has been indulged with. He should also keep a background check of a builder in order to make a buyer safe.
• He should abandon all the fraudulent behaviour related in buying or selling a real estate project. He should not give false or misleading information to a buyer about a project and should not represent himself as a promoter and approve to things of which the real promoter does not approve of.
• As per the RERA bill, a person or an organization working as a real estate agent should not advertise the services which are not a part of the project.
• He must provide all the documents related to booking, account, and registration which a buyer must have while buying a plot or a house.
After knowing these important and must follow aspects of Real Estate Regulatory Act 2016 RERA, a buyer should be able to deal in the purchase and selling off his property quite easily. While buying a property, he must ask an agent to show his registration with the Authority as this will make a buyer stress-free and confident that if any wrong happens, then they can approach the Authority. This will also make an agent to feel proud of his work as the image of real estate agents in India is not good today, but it is of great importance that they get a feel-good response from the public as it will help in the overall flow of money in the right direction. This can only happen is the agent obliges to all these guidelines and duties which are made for them in this RERA bill.
Promoters are the builders or the developers who builds apartment buildings and sell those to home seekers. With increasing complaints against the promoters, the Real Estate Regulatory Act notification by the government of India has led multiple guidelines which the promoters have to meet so as to legally build a project or sell it. The complaints of the buyers that have increased in the last decade or so have been mainly about the late possession they get of their flat purchase, faults or changes in the plans of the project after the agreement has been made and many other problems. The promoters are found to play with the hard earned money of a home seeker. RERA is government authority which has been sanctioned under Real Estate Regulatory Act 2016. It is yet to be operationalised in the country, but according to the government, it will be on work under a year from now. It aims to make a system devoid of any loopholes which can maintain a healthy passage of purchasing and selling of real estate projects. It was high time that the government had to bring such a strict policy as the public feeling regarding the real estate marker has gone from bad to worst. This has made the people to stop engaging into the buying and investing in real estate which hampers the inflow of cash which further leads to a slow growth of economy. Thus, the government, even though realising it late, has made measures so as to check the work of the promoters.
meraRERA is a portal which aims to connect the promoters, real estate agents and the buyers so that the real estate market, in general, can be revoked. meraRERA helps the government by providing the information to the people. These guidelines if met properly can do wonders for the overall economy and harmony of India. Following are the guidelines that are set up by RERA for the promoters.
- The rules under RERA says that all the real estate projects, whether commercial, residential or under construction projects have to be registered with RERA under three months of its implementation. While applying for the registration, the promoter shall give a copy of ownership of land, every small detail of the project that has been planned, schedule of the construction, status of land, pro forma agreements and the information of all the real estate agents, contractors, engineers etc.
- The Authority understands that the government is also a culprit in the real estate scams, as their late approval of plans delays a project or its development. This further discourages a promoter and he uses immoral practices. Real Estate Regulatory Agency has given strict guiding principle to RERA that it must register or reject an application within a month. If a project gets rejected, RERA is answerable to the promoter that on what basis his project has been cancelled. If these two things are not met by the government, the promoter’s project will automatically be registered with RERA.
- RERA has the power to cancel the registration of a project if it finds any wrongdoing by the promoter regarding anything.
Changes to the registered plan – If a plan has been registered under RERA, it can only be changed with the consent of two-third buyers of that project. This will help the Authority and the buyers to tackle the problems arising due to the consistent change of plans by a promoter even if the buyer has signed an agreement with a particular plan and layout of the project.
Public Portal – If the project gets registered, then the promoter will be provided a login ID and password so that he can upload all the details of the real estate project along with his photograph on the RERA India’s website. This will be done so that a buyer can access to all the necessary details that he should know before signing the agreement. A promoter cannot advertise a project until it gets registered. Also, the website will contain the list of defaulters so that a buyer can beware of them.
Finishing the misuse of funds – Many times it happens that a builder uses the money he gets from a project to invest it in another project without finishing the previous one first. Doing this, a promoter draws himself into a web created by his owning doings and this leads to major problems for the buyers. Thus, to end this greed of some promoters, RERA has made some rules. Now, a separate account would be made in the name of the project. Leaving a minimum fund of 50% which a promoter gets through a project’s sale is mandatory. This will ensure that even if the promoter faces losses in other deals, he will have money to construct that project.
Functions and Duties of a Promoter – RERA has given certain functions of a promoter that he must do for a buyer. These include the details of a project’s registration, updates on projects, information about actions of a promoter regarding the project etc. A promoter has to take care of the services he provides and will have to guide a society until the society makes a local authority. The promoter shall also provide completion or occupancy certificate from a local governing body. The promoter cannot transfer the real estate project without a consent of two-third buyers of that project and without the prior approval of the Authority. A promoter has to refund and return the entire amount if he fails to deliver a project.
All these provisions are made so that a buyer can feel safe while getting a home. The laws under RERA that have been made for the promoters are not very strict if one sees them clearly and understands how a community should work. These rules are very basic in nature. Real Estate is not a difficult thing to understand, rather it had been made difficult with unfair practices in the past. We hope to see a positive response from the promoters.