RERA: A Gold for Real State Sector

Introduction:  Real Estate sector is the most revenue generating sector in India.  But there is no regulatory Authority to regulate it. Because of which the project gets delayed unnecessary and buyers have to face problems. It is the sector in which black money generation is very much high. Due to which foreign Investor are not interested in Investment in real state sector. Real Estate Sector is the second biggest  employment generator after agriculture and contributes between 5-6% to the  country’s GDP.

Some of the Important provision of RERA :

• Registration of real estate projects shall be required where the area of land proposed to be developed  exceed five hundred square meters or the number of apartments proposed to be developed  exceed eight inclusive of all phases:
• All Under Construction Project for which completion certificate has not been issued, the promoter shall make an application for registration within a Period of 3 months from the date of commencement of this Act.
• Following documents are required to be Submitted along with application for registration:

⇒ A Brief detail of enterprise

⇒ A brief detail of the projects launched by him in Past 5 Years.

⇒ An authenticated copy of approval and commencement from the competent authority.

⇒ the sanctioned plan, layout plan and specifications of the proposed project or the phase.

⇒ the plan of development works to be executed in the proposed project and the proposed facilities to be provided

⇒ the location details of the project

⇒ Proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees;

⇒ the number, type and the carpet area of apartments for sale in the project

⇒ the number and areas of garage for sale in the project

⇒ the names and addresses of his real estate agents, if any, for the proposed project

⇒ the names and addresses of the contractors, architect, structural engineer.

⇒ a declaration, supported by an affidavit stating legal title to the land, land is free from all encumbrances, time period to complete the project and 70 percent of amount realized for real state project should be deposited in a separate account to be maintained in scheduled bank.

• Certificate from an engineer, an architect and ca in practice that the amount withdrawal from separate account maintained in scheduled bank is in proportion to the percentage of completion of the project.
• Promoter shall be required to get his account audited within six month after the end of every financial year by a CA in Practice.
• The authority shall grant registration within a period of 30 days.
• Every Real Estate agent shall be liable to register under this act.

Some of the benefits for home buyers under this Act :

• The State Real estate regulatory authority shall become the government body to which any grievances, problems, issues can be addressed to for solutions.
• The rule of RERA of depositing around 70 per cent of funds in a dedicated account will ensure sufficient funds for the projects to speed up and lead to getting completed on time
• RERA shall bring in more clarity in the deals between the developers and the homebuyers leaving out ambiguities