The Real Estate (Regulation & development) Act , (RERA) is a revolutionary reform by the Government of India in the real estate sector. Promoting the professionalism and infusing the transparency, this Act strikes out all unambiguous deeds of doing business in the realty sector.
Before the government implemented the RERA there were lots of maladies for property buyers and the most common one was the betrayal by the unprofessional developers. Apna RERA received a lot of emails from suffering home buyers asking how RERA can help them. Many aspiring real estate buyers asked us whether they can buy a unit in RERA registered projects without any suspicion of being cheated.
Well, we all know that the motive of the RERA is to safeguard the interest of buyers, but the way of doing so by the RERA is usually misunderstood.
According to Central Government’s RERA notification, the developers must submit the authentic documents related to the project to the authority. The notification never states that the authority will verify the documents submitted by the developer. Now, if the RERA is not verifying the documents then how it will approve the project registration? How will the RERA safeguard the interest of buyers?
The answers to these questions are present in the Central Government’s RERA Gazette.
According to Section 16 of chapter III of part II of the REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016, the promoter has to obtain insurances on the title of the land and building as a part of the real estate project and on the construction of the real estate project.
It also states the promoter has to transfer the insurance and documents related to the project to the allottee or the association of allottees at the time of making sale agreement with the allottee . The promoter has to pay the premium and charges for all insurances specified above before transferring the insurance to the association of the allottees.
If a promoter fails to obtain the mentioned insurances, the Real Estate Regulatory Authority will not approve the project registration and the developer can’t market or sell the units. It also states that the project must be verified by an authorised architect, including minor alternations after the construction of the project. Thus, the RERA will not directly verify the documents related to real estate projects submitted by the developers. It makes the promoter, engineer and the architect involved in the project construction liable for any ambiguities and misconducts.
So, one can buy the RERA registered projects, but the buyers must verify all the documents related to the project on their level. Also, the rules may change from state to state so we would recommend buyers to go through the state-wise RERA rules before taking any decision.
The Real Estate (Regulation & Development Act) popularly known as RERA came into effect on 1st May 2016 after the government of India sought to promote discipline and transparency in the real estate sector of the country.
The government of Uttar Pradesh has notified the UP Real Estate (Regulation & Development) Act (RERA) on 29 October 2016. Counting to regulate the real estate sector in the state
We all have heard a proverb “Tit for Tat” but it seems that this is not true when it comes to the RERA.