Guidelines of RERAs
Earlier, before RERAs Regulations in the real estate sector, there were multiple malpractices that had always been suffered by home buyers. For developers incomplete or delayed project was a common practice in the real estate market.
At that time multiple cases as usual come into existence but the worse scenario was then when after living in the society for long time 15-20 years, property owners vacant the society due to the builder’s mistake of not taken approval from the government for the project, to remove all these issues and for better transparency between home buyers and promoters of the project RERA act plays a vital role.
Guidelines of the RERAs for real estate developers come into existence in 2016 after many issues by the developers and in the end home buyers suffered the problems. Government brings the legislation to regulate the Real Estate market and control frauds and scams and build confidence among home buyers to buy the property more confidentially. RERAs full form is “REAL ESTATE REGULATORY AUTHORITIES”.
We will discuss here all those major Loopholes and Malpractices that builders and agents used to do in the real estate sector.
- Provide wrong information about the project to the buyers
- Use the customer’s fund for other projects or for different functions
- Provide poor-quality of construction
- Delay the project from the given date of completion
- Provide special booking rate
- The date of completion does not mention in the Agreement
- Change project developments without any information
- Refer to a particular institution for loan facilities with a low rate of interest
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How RERA will benefit us:
RERAs do provide rules and regulations with some exceptions to sell or promote residential and commercial projects. It has become mandatory for all projects to register under RERA and then to promote or sell the projects.
Project developers can not do the booking process without registration under the RERA. Real Estate channel Partners or Agents also need to register under RERA.
At the time of registration, the developer needs to upload all the details of the projects on the website of the RERAs. These include the site and layout plan and completion of the real estate project.
As per the Guidelines of RERAs, 70% collected amount from buyers of the project must be in a separate bank account and that should be used only for the construction of that project.
The state government has the authority to change the amount to less than 70%.
The Bill establishes state-level tribunals called Real Estate Appellate Tribunals. Decisions of RERA can be appealed in these Tribunals.
If a developer wants to launch a new project or any project whose carpet area is more than 500 meters Or 8 apartments or more than 8 apartments that must be registered under RERAs.
According to RERA, the promoter has to upload all the details like project layout, carpet area, quantity and space of storage, and so forth.
RERA does provide an individual number for each project through the help of anyone who can check all the details regarding that particular project on the MAHARERA website. It helps to provide transparency about the project and avoids malpractice, creating with home buyers.