Top 10 Must Know RERA Rules
Apr 04, 2017 Real Estate News
Back in March 2016, Central Government came up with a proposed bill with an aim to protect home buyers and help boost the investments in the country’s real estate sector. The Government proposed several regulations through the said bill which together came to be known as the Real Estate (Regulation and Development) Act, 2016 (RERA). In order to make RERA more robust and secure, the union government on Monday notified certain rules to implement the said Act. The new set of rules aims to make the RERA Act more transparent thereby making the real estate sector accountable and reliable. Moreover, the new provisions in the RERA Act will act as a catalyst for the completion of the stalled real estate projects.
Let us discuss the rules of the Real Estate (Regulation and Development) Act, 2016 (RERA) which will be applicable in the union territories of Chandigarh, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep and the islands of Andaman and Nicobar.
1.Compensation for delayed projects: According to the new rules in the RERA Act, builders and developers will now have to pay monetary compensations to their customers if the project gets delayed than the promised schedule. The developers will have to pay the penalty to their customers with interest rates of SBI’s highest marginal cost of lending rate plus 2 percent within 45 days of its becoming due.
2.Depositing the money collected: The developers will have to deposit 70 percent of the amount collected for under construction projects which are unused in a separate bank account. The developer will be given 3 months of time to deposit this amount from the date of project registration with the RERA.
3.Provisions for Punishment: There are provisions for capital as well as custodial punishments for developers who violate the orders of Real Estate Appellate Tribunal.
4.Punishments on account of unfair selling of properties: The new rules strictly state that the developer should not indulge in any kind of discriminative behaviour with the potential home buyers. Moreover, the cases of discriminations against the selling of properties will be settled within 2 months by Adjudicating Officers, Real Estate Authorities, cand Appellate Tribunals.
5.Total Transparency in case of no completion certificate received: For those ongoing projects which have not yet received the completion certificate in specified time, the developer will be liable to make public all the legal documents of the project such as sanctioned plans, amount collected from allottees, the time period which was decided to complete the project etc.
6.Specify Total Carpet Area: The developer will now need to specify the carpet area of the apartment to the home buyer.
7.The process of project Registration: To register the project with the concerned authorities, the developer will be required to submit the copy of his PAN card, annual audit reports, balance sheets, auditor reports of the developer of the past three years, legitimate title deed. Also, the developer will need to specify the total number of parking slots in the project.
8.IT Returns: The new rules in RERA Act allow the concerned parties in the project not to disclose their income tax returns with a view to protecting privacy and boost confidentiality.
9.Registration fees: As per the suggestions of real estate developers and promoters, the registration charges have been reduced by 50%.
10.Availability of information: The RERA will ensure the publication of various information and details of the promoters on its websites. The information which will be available includes a track record of promoters, ads, and prospectus of the projects, apartment specifications, development plans to name a few.
Let us discuss the rules of the Real Estate (Regulation and Development) Act, 2016 (RERA) which will be applicable in the union territories of Chandigarh, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep and the islands of Andaman and Nicobar.
1.Compensation for delayed projects: According to the new rules in the RERA Act, builders and developers will now have to pay monetary compensations to their customers if the project gets delayed than the promised schedule. The developers will have to pay the penalty to their customers with interest rates of SBI’s highest marginal cost of lending rate plus 2 percent within 45 days of its becoming due.
2.Depositing the money collected: The developers will have to deposit 70 percent of the amount collected for under construction projects which are unused in a separate bank account. The developer will be given 3 months of time to deposit this amount from the date of project registration with the RERA.
3.Provisions for Punishment: There are provisions for capital as well as custodial punishments for developers who violate the orders of Real Estate Appellate Tribunal.
4.Punishments on account of unfair selling of properties: The new rules strictly state that the developer should not indulge in any kind of discriminative behaviour with the potential home buyers. Moreover, the cases of discriminations against the selling of properties will be settled within 2 months by Adjudicating Officers, Real Estate Authorities, cand Appellate Tribunals.
5.Total Transparency in case of no completion certificate received: For those ongoing projects which have not yet received the completion certificate in specified time, the developer will be liable to make public all the legal documents of the project such as sanctioned plans, amount collected from allottees, the time period which was decided to complete the project etc.
6.Specify Total Carpet Area: The developer will now need to specify the carpet area of the apartment to the home buyer.
7.The process of project Registration: To register the project with the concerned authorities, the developer will be required to submit the copy of his PAN card, annual audit reports, balance sheets, auditor reports of the developer of the past three years, legitimate title deed. Also, the developer will need to specify the total number of parking slots in the project.
8.IT Returns: The new rules in RERA Act allow the concerned parties in the project not to disclose their income tax returns with a view to protecting privacy and boost confidentiality.
9.Registration fees: As per the suggestions of real estate developers and promoters, the registration charges have been reduced by 50%.
10.Availability of information: The RERA will ensure the publication of various information and details of the promoters on its websites. The information which will be available includes a track record of promoters, ads, and prospectus of the projects, apartment specifications, development plans to name a few.
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