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Complete Guide About RERA Act And What Are The Rules For Builders In It

Admin 15 Jun 2024 3,588 Views
Knowledge

The Real Estate (Regulation and Development) Act was introduced in the year 2016. It is an act of the Parliament of India. The bill got passed by the Rajya Sabha on 16 March 2016. On the other hand, the Lok Sabha gave its nod to the bill on 15 March 2016.
The Rera act came into the spotlight on 1 May 2016. At first, only 61 out of 92 provisions were notified but then the provisions that were left came out on 1 May 2017.

What is the main goal of the Rera Act?

The main aim of the Rera Act is to protect the home buyers and also make sure that the investments in the field of the real estate industry get uplifted with time. This act was brought in the scenario to see to the fact that the sale of a piece of land whether it be an apartment or a plot transparently takes place.
With the establishment of this act, there was a Real Estate Regulatory Authority (RERA) set up in every state of India. The key emphasis of the Rera act lies in the betterment and welfare of the real estate sector. It’s the core responsibility of the central and state government to notify the rules that are mentioned in the respective act within six months.

What are the components included in the Rera Act?

The Rera Act 2016 was segregated into 10 chapters along with a total of 92 provisions. Let’s begin right from the start, you will find a preamble, title, extent, and commencement, followed by the registration of the real estate projects and real estate agents. 
Next in line are the functions and duties of a promoter, rights, and duties of allottees, more details about the Real Estate Regulatory Authority, Central Advisory Council, Real Estate Appellate Tribunal, various offenses, penalties, and adjudication about finances, accounts, audits, and reports and other miscellaneous provisions

What is Rera Act Maharashtra all about?

The Rera Act takes care of the real estate sector. The real estate agents or developers are not allowed to book, sell or advertise any kind of real estate property without registration under MahaRERA. 
The rules and regulations that fall under the Real Estate Regulation and Development must be followed by all the people residing in that particular state. The Maharashtra Real Estate Regulatory Authority has the power to punish anyone who violates the Rera act. 
These regulations are also known as the Maharashtra Real Estate Regulatory Authority (General) Regulations 2017. In the act, we can also get information regarding the regulations. 
These regulations are stated to provide a roadmap to the authorities about their general functioning and to make sure that they are functioning efficiently and smoothly. These regulations will be the set criteria for any kind of decisions in matters related to real estate.

Here’s everything we know about the Rera Act Karnataka

Karnataka Rera is the Real Estate Regulatory Authority that is solely responsible for watching over the rights of the consumer in the real estate industry. The authority aims to make sure that there are no wrongdoings in the real estate sector. The government is going to achieve its goals and objectives by evicting miscreants and fly-by-night operators.
With the Rera Act, the government wants to ensure that they can protect the consumers in the real estate industry. Their prime goal is to speedup up the process of the matters that are closely related to the real estate sector. They want to maintain a system in which all things take place in the best way possible.
When you go through the set of rules and regulations, you will get to see all the ongoing projects, real estate agents, and promoters are required to be registered with the RERA.

What is stated in Section 63 of the Rera Act?

If you give Section 63 of the Rera Act a read, you will get to know a few interesting things about the act. This section of the action revolves around punishment and penalties. What will happen if a person violates a rule or certain regulation? When we are in the middle of a football game, a single penalty ends up making the difference between the losing team and the winning team. Penalties can cost you a lot to make it a point that you don’t end up in that position. 
If a promoter contravenes with the orders or directions of the respected authority, then he/she will be in a bad spot. No one of us wants to land in a trouble. So it would be better if you follow all the rules and regulations of the authority. Make sure you are well versed with the terms and conditions of the regional authority. It will save you from getting into a bad space. It’s better to know it all than wandering around with nothing in your head.
If a person fails to meet the demands of the authority, then he/she will have to bear a few consequences of it. The person will be liable to a penalty for almost every day during which the order of default continues. The penalty might go higher to a total of 5 percent of the estimated cost of the real estate project as fixed by the authority.

What are the Rera rules for builders?

There is a list of guidelines that have to be followed by the builders no matter what. Let’s take a look at the rules made by Rera for the builders:
1) Security: As per the Rera Act, at least 70% of the investors' and buyers' money will be put in a separate account. Then after that, the money will be given to the builders for construction and land-related costs.
2) Transparency: Builders must submit all the original documents to the authority for the number of projects they undertake.
Quality: The builder needs to modify any error faced by the buyer and that too within 5 years from the date of purchase. The issue must be resolved within 30 days of the complaint.
3) Fairness: Now, the builders have been asked to sell the real estate properties based on carpet area and not on super built-up area. If the project gets delayed, then the buyers can get their full money back. They can also choose another alternative that is they can pick to stay invested and get monthly investment on their money.
4) Authorization: A regulator cannot sell or advertise the property without getting it registered with the authority. After registration, the process of advertisement is a separate project that can be taken forward as per the say of the regulatory body.

Conclusion
The Rera Act will somewhat help the builders to stay ahead in the competition as the untrustworthy people who are indulged in unfair practices will be removed from the clan. The level of risk and uncertainty of insolvency of the builder gets reduced. So when you team up and work with a good bunch of people, then the result will automatically turn out so much better. 

About Author

Jatin Dubey

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

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