REAL ESTATE SECTOR 

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The real estate sector which has so long been afflicted by lack of transparency and regulatory mechanisms has been resurrected by the enactment of the RERA Act. This is expected to bring in more investor confidence and growth in the sector. This also ensures that the gullible buyer is not deceived by the sinister designs of builders and developers with mala fide intentions. It is imperative for law making bodies to formulate laws that optimize sectors of business through frameworks and regulatory authorities. The Real Estate (Regulation and Development) Act, 2016, as the Act describes it, was enacted for the establishment of a Real Estate Regulatory Authority and for the regulation and promotion of the real estate sector. The primary objective behind the legislation of RERA was to ensure the protection of the interests of homebuyers.

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BENEFITS TO BUYERS UNDER RERA

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• Primarily, the RERA Act and allied rules prevent the promoters and the builders from taking the consumer for a ride by ensuring timely completion of the projects.

• The Act assists in bringing transparency by preventing anyone from leaving the buyers in the dark and prevents the scope for the indirect accumulation of the black money.

• “Agreement for Sale Rules" has brought an end to the one-sided agreement and the buyer exploitation in the sector.

• The Real Estate Regulatory Authority and the Appellate Tribunals facilitate the faster, efficient and more convenient resolution of disputes relating to the real estate sector.

• The Act also brings equity in operations.

• The Act has defined “carpet area” objectively, thus eliminating different standards being adopted for the carpet area calculation by different builders.

• The Act makes sure that the consumers have their right to information regarding the projects they are interested in investing in.

• Similar interest rates for delays have been brought to bring parity between the consequences of delays in the payment by the buyer and the consequences of the builders for not completing the project on time.

• The Act mandates the builder or promoter to maintain an escrow account for each project and the funds of each project are maintained in the respective escrow account, thus avoiding diversion of funds

• Selling on wrong promises, defective titles and defective projects have been prevented by the introduction of the Act since it provides the compensations and countermeasures for these situations.

• Furthermore, setting up of the state Authority for grievance redressal favors the buyers by the creation of a forum for a specific response to the grievances rather than general and non-specific relief as given by the Consumer Disputes Redressal Forum.

 

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BENEFITS TO DEVELOPERS UNDER RERA

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• The Act promotes genuine developers ensuring more security for the well-intentioned businessmen in the sector.

• As mentioned above, the Act brings transparency and accountability into play.

• The Act instills investor confidence ensuring more investment flows to the sector. This even magnifies the possibilities for foreign investment (FDI, ECB) in the real estate sector.

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HOW TO REGISTER PROJECTS UNDER RERA?

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Registration of projects under the RERA has to necessarily happen as per these steps:

1. The Builder or Promoter is required to open an escrow account in accordance with Section 4 (2) (I) (D) of the RERA Act.

2. All the necessary documents have to be collected and submitted with Form A, the form for RERA registration.

3. Any other applicable form has to be filled and submitted as required.

4. Pay the registration fee for the registration of projects as applicable to the respective state.

5. A RERA number shall be allotted on completion of the registration. This could be used for further references.

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HOW TO FILE RERA COMPLAINT?

STEP 1: Visit the State’s official website and file the complaint on the said portal’s complaint registration page. One can easily find the link to the same.

STEP 2: The said link leads to the complaint form, where all the relevant details including Name, Address, Contact details, and Project details need to be filled up with supporting documents.

STEP 3: Finally, after the filling of the form, the complainant can pay the complaint registration fee and complete the process. The said complaint will be taken up by the respective authority.

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