REAL ESTATE REGULARATY & DEVELOPMENT ACT (RERA)

REAL ESTATE REGULARATY & DEVELOPMENT ACT (RERA)

Real Estate Act

Improve the perception of the sector among various stakeholders

Uniform regulatory environment

COMMERCIAL and  RESIDENTIAL projects including  PLOTTED DEVELOPMENT

RESIDENTIAL projects including  PLOTTED DEVELOPMENT

Land under development MORE THAN 500 SQ MTS / NO. of UNITS exceeds  8

Projects which do not have COMPLITION CERTIFICATE before  commencement of ACT

RENOVATION or REPAIR or REDEVELOPMENT projects not involving Marketing, Advertising, Selling & New Allotment NEED NOT BE REGISTERERD

Financial Maters

70% of the funds collected from allottees  needs to be parked in the project account

Withdrawals to cover construction and  land cost

In proportion to the % completion method

Withdrawals to be certified by Engineer, Artichect , and CA

Provision for RERA  to freeze project bank account upon noncompliance

Projects Account  to be Audited / FY . Copy to be submitted  to RERA

Provision for stronger  financial penalties  for RERA  noncompliance

Interest  on delay will be  same for  customer and promoter

Promoter to compensate  buyer for incorrect  statement  with  full rerun of  property cost  with interest

Transparency Details

Number, type & carpet area of apartments

Consent from affected allottees for any major addition or alteration

Consent of 2/3rd allottees for any other addition or alteration

No false statements or commitments in advertisement

Quarterly updating RERA website with details such as unsold inventory & pending approvals

No arbitrary cancellation of units by promoter

Project complition time frame

Informing allottees for any minor addition or alteration

No Launch or advertisement before registration with RERA

Consent of 2/3rd allottees for transferring majority rights to 3rd party

Accountability

Quarterly update of  project progress along with  pending approvals  on RERA website

Every office of the company , who as in charge or responsible  will be liable for the conduct of the company and deemed guilty

Offence by an officer committed with the consent or connivance of any director , manager , secretary or other officer of the company  , will also  be guilty

Authenticated copy of all approvals, commencement certificate, sanctioned plan, layout plan of development work, proposed facilities, proforma allotment letter, agreement for sale & conveyance deed to be given when applying for project registration with RERA

Registrations of brokers/agents with RERA

Timely updating of RERA website

Maximum 1 year extension in case of delay due to no fault of developer

Annual audit of projects account by a CA

Dispute resolution within 6 months at RERA and FERA (Foreign Exchange Regulation Act) appellate rebalance

Developers to share details of projects launched in last 5 years with status and reason for delay with RERA

Conveyance deed for common area in favor of RWA

Mandatory registration of new and existing  projects with RERA  before launch

Separate registration of different phases of a single projects

Construction and land title insurance

Project completion time period