It’s obviously very important to be able to trust and depend on the developers when it comes down to buying that dream house. The country has been reeling from ill-reputed real estate sector affairs such as project delays, frauds, and sheer non-accountability. Home-buyers consequently feel insecure and even more often paranoid about buying the property. However, it was with these evils in mind that the Indian government introduced the Real Estate (Regulation and Development) Act, or RERA, in 2016 for protecting the home-buyers. Let us see what is RERA registration, the importance of it, and how it affects the real estate market and home-buyers alike.
What is RERA and Why were Its Provisions Enacted?
With a target of implementation in May 2017, this would have been the first opportunity for the RERA Act to allow itself change in course by then. The RERA Act, that is, the Real Estate Regulatory and Development Act, was expected to serve the purpose of enhancing some level of transparency to reduce fraud and attract homebuyers who have suffered greatly at the hands of unethical real estate markets. Home buyers used to take very frustrating tangents because of the delayed projects, misleading ads, hidden costs besides bad construction qualities. This very thing led the government to think about stricter rules for making sure that developers comply with legal and ethical norms leading to the birth of RERA.
RERA stands for Real Estate (Regulation and Development) Act, 2016 which aims basically at regulating the real estate sector with a focus or perspective of bringing transparency and accountability in the dealings of the developers. Like that, the act states that, irrespective of residential or commercial projects, those which exceed 500 square meters are required to register themselves with RERA, prior to being advertised or sold to the public. This would apply across India, with every state developing its regulatory authority for administering the whole process.
What is a RERA Certificate?
A RERA certificate is considered an official document provided on behalf of the RERA authority from the respective state, which affirms legal registration of the real estate project under the RERA Act. This certificate further serves as evidence for compliance with the RERA guidelines by the developer; thereof this document is one of the basic factors considered during the home-buying process. Developers and builders are to acquire this certificate before advertising, marketing, and selling any property.
Upon the registration of a project, the developer is provided with a unique RERA registration number, which is indicated on the certificate. This registration number then legally allows the developer to pursue the real estate market. Important details, including developer names, project names, approval status, and registration numbers, are all mentioned on the certificate. Without this certificate, developers would not be legally permitted to undertake promotional or sales activities in that project.
Key Features of a RERA Certificate
The features covered by the RERA certificate are numerous and intended to provide a greater assurance of security and transparency during the entire real estate process through the home-buyers’ perspective:
State Authority: Specifically, each state has a nominated body in India for the supervision of its real estate projects, the registration of such projects, and the resolution of disputes.
Registration is mandatory for the projects: All residential or commercial projects above 500 square meters must be registered with the RERA authority before advertising or selling.
Transparency in Project Details: Builders have the obligation to make project particulars such as layout plans, approvals, and financial arrangements available on the RERA website such that any potential buyer can access the information with ease.
Secure Fund Management: All developers must deposit a minimum of 70 percent of the money collected from buyers in an escrow account to ensure that such funds are utilized exclusively for the development of that project.
Timely Project Delivery: In case of any delay in the completion of the project, developers are liable to pay interest to buyers for the undue delay as a form of accountability for timely completion.
Wrongful Advertisement Protection: Any advertisement by developers must be in fact an advertisement for the project. Any unfounded allegations may attract penalty clauses.
Fair Pricing Regulation: After the agreement to sell is signed, developers cannot increase the price of the property unreasonably in order to protect against sudden price shocks.
Efficient Dispute Resolution: The RERA Act provides for a quick mechanism for dispute resolution-with either the tribunal or direct confrontation with the developer.
Legal Safeguards for the Buyers: Buyers will then have recourse to the courts in case of default on the part of the builder and can punish him under RERA which brings in provisions for penalties and even imprisonment for the offender.
Consent Required for Third-party Transfers: A developer must secure the consent of at least two-thirds of the allottees and obtain the consent of the RERA authority to transfer the major rights of a project to a third party.
Benefits of RERA Certificate
RERA certification will prove beneficial to both homebuyers and developers; together they will help in developing a transparent and controlled real estate market:
Protection Against Fraud: It guarantees the developer upholds the legal and ethical standards during a project, thereby providing coverage for property fraud and scams.
Timely Projects Completion: According to RERA, all homebuyers are assured that their homes will be delivered to them on time. They can even claim compensation from the developer for not meeting the deadlines.
Right to Claim Defects: Any structural defect or poor exercise of quality on the property declaration has to be rectified by the builders within a defined period of time without cost to the buyer.
Greater Credibility for Builders: RERA certificate enhances a developer’s credibility and reputation, which will win the trust among the home buyers and investors.
Real estate market growth boost: RERA will promote investor confidence and hence foster healthier and more stable real estate markets through fair practices.
How to Check RERA Registration and Approval?
RERA registration guarantees that projects enjoy legal validity and helps to protect one from crooks. Here are the easy steps to check if a project is RERA-approved:
Get into the State’s RERA Portal: Each state in India has its own RERA portal. If you want to find a project in Kerala, go to the Kerala RERA official site, for example.
Search for Project: Enter RERA registration number, project name, or builder’s name in the search window under the site.
Check Project Details: The portal displays the project’s registration number, name, developer, construction period, and project status.
Verify Approval Status: If the project appears, then it means that it has been registered with RERA. If it does not show up, take this as a warning and proceed with caution.
Check Further: Many RERA portals give additional information such as the profile of the builder and consumer complaints.
Why Rera is Important for Homebuyers
Well, RERA is total magic for homebuyers. It gives a chance to ensure developers that maintain transparency, accountability, and efficiency thereby reducing frauds, delays, and legal contentions as well. Under RERA, buyers have access to precious details related to a project and legal protection as well. Such movements add confidence and peace of mind to the process:
Key Points Of Rera For Homebuyers
With an act like RERA, the real estate sector is going to change. It is quite possible to bring transparency among buyers, purveyors and ensure that good architecture is in place. For a home buyer, it is necessary to have knowledge of and keep abreast with the regulations given in RERA. Buying an accredited property is the first step to getting your dream house without any hitch.
Confident Group believes in transparent and ethical business, so that your entire journey of home-buying is smooth and safe. Leave the rest to us, as we will hold your hand every step of the way to make your real estate investment smooth and seamless without a hitch.
