Real estate being one of the largest sector out there in the market has seen a huge shift in the way of administering the business. The transformed advancement adopted by the sector in the way of conducting the procedures and activities has got this sector boom with noticeable speed.
The Indian Real Estate sector, after IT, is the largest employment sector in India. Hence, it has a direct impact on the economical growth of the country. In essence of which, the Government has passed and implemented a number of acts and regulations for the smooth conducting of this sector. RERA( Real Estate Regulatory Authority) is a body established to manage and monitor the sector. This facilitation will implement the Acts and Rules enacted by the Government of India and make sure of the promotion and growth of a transparent, efficient and healthy regulation of the sector.
In the past few decades, the Real Estate Sector had a stigma of an unimpressive performance. The Real Estate sector had witnessed decrease in demand, increase in number of unsold inventories, which in turn affected the liquidity for developers and delay in possession. All of it had become a vicious circle. It had massively impacted the reputation of the Developers.
However, since RERA has come into action, Real Estate sector has seen a huge change in the performance graph pointing towards the north.
The Key components of RERA are as follows :
1. Real Estate Project Registration – All the residential and commercial projects will have to be registered under RERA. No developer/promoter shall promote, market, sell, offer for sale or invite any buyer to purchase any property prior to the registration. Any developer/ promoter fails to register any project as per the Act, shall be liable to penalty that can extent upto 10% of estimated cost of the project. On continued violation shall be subject to punishment of imprisonment of 3 years or extended penalty of more 10% or both.
2. Real Estate Agents Registration – All Real Estate Agents should be registered under this Act. No agent can perform sale or purchase of any project or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, without registration under this Act.
3. Filing of Complaints – Any aggrieved person can file a complaint with RERA with respect to any registered project for any violation of the provisions of this Act. The Authority shall adjudicate for speedy redressal of issue. If aggrieved in directing or decision by the adjudicating authority, the person can further appeal before the Appellate Tribunal. If aggrieved by the decision of the Appellate, the person may file an appeal to the High Court.
4. Financial Discipline – The Act aims at ensuring a strict financial discipline in real Estate sector. Below are some important provisions of it :
• A Developer/promoter isn’t allowed to accept more than 10% of the cost of any Real Estate property as an advance payment or application fee from a buyer without entering into Written agreement for sale and registered the same.
• Promoter to compensate the buyer for any false or incorrect statement with full refund of property cost with interest.
• Project accounts to be audited/ FY copy to be submitted to MahaRERA
• Provision for RERA to freeze project Bank Account upon non compliance of act.
• Provision for RERA for stronger financial penalties for non-compliance.
5. Transparency – Details of all the projects registered should be available online for the citizens including sanctioned plan, layout plan, along with specifications, floor space index to be consumed, number of building or wing to be constructed, the stage wise time schedule of completion of project, the provision of civic infrastructure, quarterly updation of the booking and availability of inventories, parking and garages booked, quarterly updation of status of the project, etc.
6. Citizen Centricity – Citizen shall be able to view all the details regarding any registered project on the MahaRERA website.
• Promoter cannot make any changes or alterations in any sanctioned plan, layout, fittings, amenities without previous consent of atleast two-third of the allottees other than the promoter, who have purchased apartments or any sort of property in the project.
• If the promoter fails to complete or give possession of any apartment, plot or building with the registered timeline, he shall be liable to pay interest of every month of delay. Further, if the allottee wishes to withdraw from the project, promoter is liable to return amount received by him with interest.
Real Estate Regulatory Authority is nothing but an advancement towards the growth of real estate sector in India, ensuring, fair trades, transparency, accountability and financial discipline.