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What is RERA

What Is RERA (REAL ESTATE REGULATORY AUTHORITY)  

What is RERA Know all about it in brief.

❖ Origin : RERA stands for Real Estate Regulatory Authority.

“Real Estate” means to describes the Built Environment, which plays a vital role of an Economy, Society and Environment. Businesses and society can’t function without the services of commercial property, including the provision of offices, shops, factories, malls and many other forms of Real Estate.

“Real estate project” means the development of a building or a building consisting of apartments, or converting an existing building or a part thereof into apartments or the development of land into plots or apartment.

RERA was introduced in 2013 & finally got approved in March last year. The act was passed by Parliament and the Union Ministry of Housing. Urban Poverty Alleviation had given time till May 1, 2017 to formulate and notify rules for the functioning of the regulator.

The Bill was known as Real Estate Regulation and Development Act, 2016 (RERA) from 1st May 2016. Generally, RERA is to protect the interest of the home buyer and timely delivery of projects.

RERA seeks to bring clarity, fair practices, delays, price, quality of construction, title & other changes that would protect the interests of buyers & also impose penalties on errant builders.

These acts gives provisions relate to functions and duties of promoters, rights and duties of allottees, prior registration of real estate projects with the Real Estate Regulatory Authority, recovery of interest on penalties, enforcement of orders, offences, penalties and adjudication, taking cognizance of offences etc . 

❖ Impact : 

Every Real Estate project will have to be mandatory registered with the Real Estate Regulatory Authority. Every promoter shall make an application to the Authority for registration of the Real Estate project in such form, within prescribe time and accompanied by such prescribe fee as may be specified by the regulations made by the Authority.

1) Applicant has to file an application for registration with RERA in prescribed form along with prescribed fees and documents.

2) Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA.

3) On successful registration, the promoter of the project will be provided with a registration number, a login id and password for the applicant.

Under RERA, each state will have to setup regulatory bodies as appellate tribunals to solve the disputes between buyer and builder within 120 days.

RERA will make it mandatory for all commercial and residential Real Estate projects where the land is over 500 sq. mt. or Eight apartments will have to register with the regulator before launching a Project.

RERA also seeks to impose strict regulations on the promoter and ensure that construction is completed on time. A developer’s liability to repair structural defects has been increased to 5 years from the earlier 2 years.

Developers will be able to sell projects only after the necessary clearances.

The benefits of filing a case under the RERA as under ;

  • Chances of fast disposal of complaints.
  • Transparency.
  • Project planning.
  • Timely completion of the project.
  • No ambiguity in area measurements.
  • For delayed delivery, Promoters are liable for

Compensation .

❖ Remedy :

RERA has taken steps to not only make the promoter accountable but also make them pay compensation and penalty in cases of default of any provision of the rules.

A Complaint under the RERA is required to be in the prescribed form under the respective State’s Rules.

The complaint can be filed within the prescribed time limit, for violation or contravention of provisions of the act or the rules or regulations framed under RERA.

The RERA complainant must provide:

  • The particulars of the applicant and the respondent.
  • The registration number and address of the project.
  • A concise statement of facts and grounds of claim.
  • The reliefs and interim reliefs, if any.

❖ Reliefs :

In case the builder defaults and delays the possession of the property as per the ‘Agreement of Sale’, the buyer has the right to claim the refund of the amount paid along with interest. Even in the case, the promoter’s registration is cancelled, the buyer will have the right to a refund. 

Even though the rules are in place, the state RA’s are expected to keep a strict vigil on their implementation and take suo moto action against builders doing any unfair practice.

RERA Lawyers of Bhandari Law Firm having excellency to handle matters before RERA Punjab And Haryana.

Note: For any further information or any query you may contact us on 9855677966 or via email info@bhandarilawfirm.com