Best RERA Practices to be followed by Builders
- Monday 12th July 2021
- Author: Riya Kapoor
The Real Estate Regulatory Act, 2016 was enacted for ease of difficulties being faced by the Builders as well as the allottees in transacting through the earlier complex system of Real Estate regulations and reliefs.
The authorities are also meeting through Conclaves, discussion papers, public feedback, etc. to achieve the best possible practices which would be suitable to all the stakeholders
The Real Estate Regulatory Act, 2016 was enacted for ease of difficulties being faced by the Builders as well as the allottees in transacting through the earlier complex system of Real Estate regulations and reliefs. The different authorities established under RERA are developing the best practices regularly by evaluating the situations being faced by the authorities from time to time and proposing amendments to the well established Real Estate Regulatory Act, 2016.
The authorities are also meeting through Conclaves, discussion papers, public feedback, etc. to achieve the best possible practices which would be suitable to all the stakeholders. Recently 01st National RERA conclave was organized by Uttar Pradesh Real Estate Regulatory Authority in association with the Government of India, Government of Uttar Pradesh, NAREDCO, CREDAI and National Home Buyer’s Association in which best processes and practices devised by different authorities were presented which shall help other state authorities which are still under the budding stage to develop to achieve the basic fundamentals of the act.
Following are some of the best practices and regulatory changes introduced during the passage of time under RERA, 2016;
- All promotional brochures of the promoters have now to be submitted by them, within 7 days of their issuance, to the RERA office with the signature of the promoter. This helps in keeping a record of what all has been promised by the promoter for any project, in cases of dispute. In many cases of disputes, promoters just refused to own the brochures. Similarly, directions have been issued that such brochures should be annexed to the documents of sale registered.
- All the promoters have to provide booking status of the project same as the tickets are shown in any ticket booking website. Hence now the progress of the project they are putting their money in can be checked online.
- In case of joint development projects, both land owner and land developer have to take registration ‘as promoter’ of the real estate project for the protection of interest of allottees.
- Haryana Real Estate Regulatory Authority has also formed regulations related to the opening of bank account. There are 3 accounts namely master account (100%), a Separate RERA account (70%) and Free account (30%) which are mandatory for the promoter to open in the bank which shall be monitored by HARERA.
- Earlier the Sale agreement were under such format as may be decided by the Home Buyer but now as per changed RERA norms, a standard model sale agreement is circulated by RERA which the promoters and homebuyers have to enter to ensure equality and protect buyers from various penalties and charges.
- The area of a property is often calculated in 03 different ways i.e carpet area, built-up area, and super built-up area. Actually when the property is bought, lot of disconnect is there between what the home buyer pays and what he actually gets. But, now it is mandatory for the developers to disclose the size of their apartments, on the basis of carpet area (i.e., the area within four walls).
- Promoters are required to disclose clear title over the property and project in the information disclosed in the public domain.
- Promoters should ensure that the quality of the construction is upto the mark otherwise he would be liable under the ‘Defect Liability Clause’ under which the promoter is liable to rectify the quality issues/structural defects/repairs etc. for a period of 05 years.
- If a Promoter wants to make alteration in plans and other specifications in the already agreed details, the promoter must take approval of the 2/3rd number of buyers of such project.
RERA is a huge step forward for the benefit of buyers as well as developers to stop the malpractices of the defaulting Promoters and provide speedy resolution to the buyers who have been caught in the virtuous circle of malafide builders
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- Working of RERA after its enactment
- Legal Remedies if real estate project is stucked
- Rules governing Punjab RERA
- Best RERA Practices to be followed by Builders
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