Key Features in RERA
Key features-
RERA Insights
RERA aims at preventing the interest of homebuyers and instil transparency in the real estate sphere. All States, barring a few, have replicated the regulations under Central RERA with slight discrepancies at some places. For a homebuyer, it is important that they know the key provisions of the Act prior to investing in real estate.
Some of the key provisions under RERA as per the central government include –
Mandatory registration of all residential and commercial real estate projects before the official launch. (For area more than 500 sq. m, or eight apartments)
- Mandatory registration of all promoters, developers and agents under respective state RERA.
- Mandatory registration of all ongoing projects without Occupation Certificate as on the date of 1 May, 2017. As per rule, developers were to be given a three-month period to register ongoing projects, however, many states have reported delays.
- Price quotes by developers on basis of Carpet Area only and not on the Super-Built-Up area.
- Providing and regularly updating all relevant information including profile, track record, litigation details about a project, developer, promoter or agent on official RERA website of the State concerned.
- For any alterations, additions or reduction in plans and layouts of any commercial or residential property the developer needs written consent of at least two-thirds of project allotees.
- All the original, approved plans of ongoing projects need to be submitted to RERA authority, including details about the changes made later, construction, completion and possession timelines which are attested and certified by an authorized engineer, architect or a practicing chartered accountant.
- Escrow account needs to be maintained for all projects, where the promoter needs to deposit 70 percent of funds and these funds are released for construction and land cost relating to that particular project only.
- During Advance bookings, promoters are permitted to take only up to 10 percent of cost until the agreement for sale.
