All About RERA (The Real Estate Regulation and Development), Act 2016

RERA ACT

The dream of your home is of everyone, but many times it takes many years to make this dream, despite booking and paying the money. This gives a double blow to the buyer. He/She has to be paid for rent or EMI which means monthly instalment also has to be filled. This situation persists for years. To provide relief to the buyer, the Central Government has passed RERA (The Real Estate Regulation and Development) Law.

The main points of the central government’s RERA:

1. Need for registration of the project:

It is necessary for the builder to register in the RERA. Customers buy flat, plot or shop in the same project, which is registered in the Regulatory Authority. The builder has to register in his project State Regulatory Authority. Together, all information related to the project must be given. Builders will be given the registration number according to the project and tower.

2. Prison sentence:

If the builder makes fraud or a claim from a buyer, then the buyer will be able to complain about the regulatory authority according to RERA law. In such a situation the builder will have to accept the decision of the  RERA authority. If he violates it, he can be sentenced to three years.

3. Real Estate Agent also registered in RERA:

Real Estate Agents who play the role of a middleman, not just real estate companies, but also have to register themselves into RERA. They have to submit a fixed fee along with the regulator. If these agents were found guilty to making false promises to the buyer then they could be sentenced to one year’s punishment.

4. Government projects also within the scope:

Not only the private builder or developer, the organizations like Housing and Commercial Projects, DDA, GDA will also come under the purview of this law i.e., if DDA also does not make flat on time, But interest will be paid. Not only this, RERA  (real estate regulatory) laws will apply to commercial projects.

5. Five Years of Responsibility Builder:

If the builder prepares a project then its structure will be guaranteed five years. If there is a fault in the structure in five years, then the builder will have the right to repair it.

6. The delay in the project will be looked upon:

The buyer is most likely to delay the project. Often the buyers put the money into the builder’s other project, so that the old projects are late. According to RERA, builders have to create separate accounts for every project. It will have to deposit 70 percent of the money received from the buyers, which can be used only for that project.

7. Online information:

The builder will be given a log-in ID and password to create a page on the RERA Authority’s website. Through this, they will have to upload all the project related information to the website. Every three months will have to update the status of the project. No project will be able to advertise without registration from RERA.

8. Due to complete information:

RERA will not only bring new launches to the projects, but the projects already released will also come in. Developers with no compliance certificates will have to make all the information public. For example, the actual scheme, the subsequent changes, the total deposited funds, the amount of money used, the actual date of completion of the project and how long it will be completed. Regulatory authorities in all the states have to control real estate projects and registered real estate agents. The RERA Authority will also have to maintain a website, which will update the information of all the projects. Union Minister of Housing and Work Hardeep Singh Puri says that RERA has reduced the problems of the people considerably. State Governments are implementing this with enthusiasm.

9. Booking Amount:

Currently, the builders take 10 % of the property’s total value as a booking amount. According to RERA, cannot take more than 10 % of the amount as advance payment or application fee, unless there is a registered agreement for sale.

10. Quality of construction:

If there is any breakage within 5 years of the settlement, the builder will have to repair within 30 days for no money.

11. Compensation on delay delivery:

If the buyer does not get a possession on time, the buyer can withdraw his entire money with interest or take interest every month till the appointment is given.

12. The complaints will be far away:

Real Estate Appellate Tribunal will be formed in all states. If a person objected to any decision or order of the Authority, he could file an appeal before the tribunal.

How to buyer complain in RERA:

If you are unhappy with your builder then you can complain online in RERA. All states have created separate websites for RERA. First of all, to see if it is registered in Project RERA? This information will be obtained from RERA’s website.

step 1

First go to the state’s RERA website and create your user ID and password. Some websites can complain without even creating IDs.

Step 2

After this click the complaint on the home page of the RERA website. After that go to the registered complaint and fill in the full details. You are complaining against a builder fill his details, then your own.

Step 3

All documents related to the property, such as payment receipt, copy, layout plan, payment plan and Booking form copy etc. will be scanned and downloaded.

Step 4

Then you have to pay online or offline. This is 1000 rupees in UP, Delhi, Haryana and Rs 5000 in Maharashtra.

Step 5

After this you will get a compliant number from RERA Website. Combine these numbers and documents together to create 3 or 5 copies. It is different according to each state.

Step 6

Give a hard copy of the document to the builder and keep a copy of it. Then put the Complaint number inside the complaint and keep checking the status of your complaint.

If there is a case in the Consumer Forum :

Officials say that many complainants are those who have also filed the case in the Consumer Forum. In such a case, the same case can not run in two places. If the Consumer has to complain in the RERA then the first Consumer Forum will have to withdraw its case. If they want to run the case only in the Consumer Forum, then they should not complain in RERA.

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