RERA Registration Services in India

RERA

REAL ESTATE REGULATORY AND AUTHORITY

REAL ESTATE REGISTRATION SERVICES

SUMMARY OF RERA

The Real Estate Agency of India passed the Real Estate Regulatory and Authority (RERA) Act in March 2016.

This act has been made in accordance to increasing complaints against the builders or promoters and the real estate agents. These complaints are mainly regarding the late possession of a house to the buyer, faults in the homes, irresponsible behaviour of promoters after the signing of the agreement and many such issues.

RERA Policies The policies in RERA have been made keeping in mind that due to the lack of activeness in the government work such as approval of a project, many promoters have to seek an unfair way to continue their work so that their massive investment in a project does not get lost. Also, the Real Estate Agency is establishing Central Agency Council and Real Estate Appellate Tribunal with RERA so as to bring in a level of confidence in buyers for the builders and the agents and also to punish the defaulters.

The thing is, there are several government rules and regulations which, if made aware properly to the general public, then many things will get proper transparency and discipline.

Agents Registration Real estate agents are the back bone of the real estate market. They channelize the markets in which the money is either brought by the promoters or by the buyers.

A promoter builds a project but he neither has the skill nor the network to sell those units and a buyer can only reach the promoter through a personal relation or through agents. But the problem in India is that with the passage of time, the general public is losing trust in the real estate agents.

RERA implementation ensures that Agents get their credibility back if they follow government guidelines

Registration Requirements ✓ The agent must have all the records of the promoters as well as their projects.

These documents should be presented to the buyers as and when required. ✓ He should not advertise or misguide the general public with the facts of the project that are false. ✓ He should understand that being an agent is a responsibility to fairly handle the hard earned money of a common man. Thus, he should not try to trick a customer by giving him false information or by any method.

Promoters Registration ✓ Now The Real Estate Agency of India will enforce several laws which are for the registration and functions of a promoter. One of the fascinating aspect about RERA is that it will also overcome the problems that promoters face due to the late approval of their projects which often force them to go for unfair methods to save the enormous amount of money they have invested. ✓ Enterslice can help and guide the promoters in their registration process so that people can gain a trust in them. New provisions in RERA can also help promoters establish their competitive positioning and differentiate from others following unfair means.

Registration Process ✓ This application should be submitted in its respective RERA’s body within three months of RERA being made in that state. ✓ Submit personal information and project information. Also submit documents related to projects launched by builder in the last five years. ✓ Once registered, all the information of a promoter will be uploaded on the RERA website. The promoter would also be given a login ID so that he can update his projects’ details for the awareness of the general public. The defaulters’ list will also be uploaded on this website, thus, the promoters can’t have any other way than doing the right thing.

Requirements Rigidity in Change of a plan - He can now only change a project’s plan that has been registered with a two-third majority of the buyers of that project. To make an easy flow in this regards, we will make sure a proper discussion goes with buyers and the builder.

Safekeeping Funds - A promoter now has to keep at least 50% of the funds generated through the selling of houses of a project in the project’s account. This will further make a buyer trust a builder as now, the government itself will remove the cause for delayed projects or the promoter declaring lack of funds. The interest paid by the buyer and the promoter in delaying giving money and the house respectively will also be made equal.

Requirements Rigidity in Change of a plan - He can now only change a project’s plan that has been registered with a two-third majority of the buyers of that project. To make an easy flow in this regards, we will make sure a proper discussion goes with buyers and the builder.

Safekeeping Funds - A promoter now has to keep at least 50% of the funds generated through the selling of houses of a project in the project’s account. This will further make a buyer trust a builder as now, the government itself will remove the cause for delayed projects or the promoter declaring lack of funds. The interest paid by the buyer and the promoter in delaying giving money and the house respectively will also be made equal.

Functions of a Promoter - The functions of a promoter have been increased as they now have to give the buyer every document that a buyer should have while signing an agreement. He has to take the responsibility of the services he provides until a local body is formed with the society. He will also have to get two-third majority in case he thinks to transfer the project to someone else.

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