What is RERA?
The Real Estate (Regulation and Development Act) was established by the Central Government in 2016 and is slowly being notified by all the states of India. This act intends to establish discipline and transparency in the real estate sector of our country.
Who is applicable to register under this Act?
All commercial and residential projects are applicable to register under this Act. Any on-going or new projects which have not received Completion Certificate. Any property more than 500 square feet and/or more than 8 rooms. It does not imply to redevelopment and renovation projects.
What does the Act Entail?
The Act has laid disclosure rules for any established or aspiring real estate builder. It involves:
- Maximum percentage (70%) of booking advances has to be declared and stored in a separate account, any withdrawals will have to be approved by the project engineer. This will prevent diversion of funds from the ongoing property to personal or other uses by the builder.
- Mandatory registering of a new or on-going project BEFORE advertising the project.
- No discrimination of property sales under any circumstances.
- Both buyer and seller have to pay penal rate of interest in case of payment delays.
- Any apartments to be sold on carpet area basis only.
- Once a project is registered, it is mandatory for the builder to regularly update and publish the entire details of their project on the website of Regulatory Authority.