A ground-breaking legislation known as the Real Estate (Regulation and Development) Act, of 2016 completely changed the Indian real estate market. It is an important move towards ensuring accountability and transparency in the real estate sector. RERA rules are meant to safeguard homebuyers' interests and advance equitable competition in the real estate industry.

RERA offers homebuyers a variety of advantages, making it a crucial instrument. The requirement that builders register their projects with the regulatory body is one of RERA's most important benefits. By registering the project, the builder is required to provide all pertinent information, such as the project's budget, estimated cost, and building schedule. This enables homebuyers to make informed choices and steer clear of funding dubious or unsatisfactory initiatives.

Additionally, RERA rules make sure that builders follow the building schedule and finish the project by the deadline. The builder must compensate the homebuyers if they are unable to complete the job by the deadline. With the aid of this clause, homeowners are better protected from dishonest contractors who might purposefully put off projects.

A method for filing complaints against builders for any legal violations is also provided by RERA for homebuyers. The RERA-established regulatory authority is responsible for addressing these complaints and protecting the interests of homebuyers.

Let's take a look at some of RERA's new rules updated in 2022

Rules for payment In RERA

It is important to comprehend your rights and obligations as a homebuyer, particularly in regard to payments, when purchasing a home.

RERA has recently introduced new regulations in 2022 mandating the equitable distribution of fees such as registration fees, municipal taxes, water and energy costs, maintenance fees, ground rent, and other expenses as outlined in the sales contract. Homebuyers must make payments on time as agreed, or they risk incurring interest fees.

It is essential to note that the builder is responsible for all outgoings, including water and electricity until possession is transferred. RERA's new rules updated in 2022 also limit the amount a customer can pay in advance to no more than 10% of the total price unless the sale agreement has been executed.

These new regulations of 2022 are part of the central government's stipulations, but it is important to note that state/UT regulations may have additional requirements.

By understanding these regulations, homebuyers can protect their rights when making payments to their builder and make informed decisions.

Rules for possession In RERA

Buying a home is a significant life achievement, but it can be a frustrating experience if the builder fails to deliver the property on schedule. RERA steps in at this point.

The central government's new RERA regulations updated in 2022 are based on the 2016 Act and contain a great deal of information about possession.

Homebuyers are entitled to a refund plus interest if the builder fails to transfer control of the project in accordance with the provisions of the purchase agreement. If they choose to wait, they may request a monthly interest rate increase. Even if the builder's RERA registration is revoked or suspended, homebuyers are entitled to reimbursement with interest.

The purchasers are entitled to possession within two months after obtaining the occupancy certificate. Once they have physical possession of the property, they may also transport any necessary documents with them.

Within thirty days of obtaining the completion certificate, the builders must deliver title documents for common areas to the appropriate authorities or homebuyer associations. By understanding these guidelines, homebuyers can protect their rights and ensure that their possession experience is hassle-free.

Rules for renewal in RERA

Agents and advocates are required by real estate regulations to register with their state or UT authorities for projects exceeding 500 square meters or eight units. Under the new RERA rules of 2022, registration requires the completion of a real estate document checklist.

After completing registration with the state or UT's Real Estate Regulatory Authority (RERA), a real estate promoter or agent is not required to renew their license. However, If they violate any rules or regulations, their registration may be revoked.

The state or UT's RERA rules updated in 2022 may outline specific requirements that the individual must adhere to in order to comply with the rules for renewal.

Overall, registration with RERA is required for real estate agents and advocates who wish to work on larger projects, and adherence to RERA regulations is essential to prevent legal violations or suspension of registration.

Let's address some of the FAQs related to RERA

What is the definition of carpet area according to RERA?

According to RERA, the term "carpet area" refers to an apartment's net usable space, which includes the area covered under the internal partition walls of the apartment. It does not include the area covered by external walls, service shaft, balcony, verandah, and open terrace area.

What are the conditions that apply to real estate agents under RERA?

The conditions that apply to real estate agents under RERA are as follows:

The requirement to register with the state/UT's RERA authority, prove ownership of land for upcoming projects, obtain all necessary certificates and approvals, provide regular updates on the RERA website account, clarify all facts related to the property layout and project completion schedule to the home-buyers, provide and maintain essential services until the home-buyers take over, execute a registered conveyance deed in favor of the allottee, prepare and provide all required details to the state/UT's RERA authority, and compensate home-buyers in case of a suspension of the project.

What are the penalties for non-compliance with RERA requirements?

Penalties for failing to comply with RERA regulations are laid out in Chapter 8 of the RERA Act, 2016 (Sections 59 to 72). These penalties typically include a certain percentage of the cost of the real estate project in question.

Is RERA applicable to old projects?

Retrospective in nature, the RERA Act, 2016 is applicable to both past and present projects. However, a project is not covered by RERA if it has already received a completion certificate from the relevant officials.

Is RERA approval mandatory for plots?

Yes, real estate developers who want to construct plots, structures, or apartments must obtain RERA approval. A plot that is more than 500 square meters in size or has more than 8 planned apartments on it must receive approval, according to Section 3 (2) of RERA.

To conclude, RERA has significantly impacted the real estate industry in India. The implementation of this system has enabled individuals looking to purchase a home to gain a sense of empowerment and access a multitude of advantages, such as increased transparency, heightened accountability, and safeguarding against unethical practices by builders. The Indian real estate market has witnessed enhanced organization, efficiency, and buyer-friendliness consequent to the implementation of RERA.