RERA Compliance Guide for Home Buyers

Indian lawmakers introduced the Real Estate (Regulation and Development) Act, 2016 (RERA), to safeguard homebuyers’ interests and promote openness in the real estate industry. It’s crucial to comprehend the central tenets of RERA compliance if you’re a property buyer.

Understanding RERA

The Real Estate (Regulation and Development) Act, 2016 (RERA) stands as a pivotal legislation introduced by Indian lawmakers to safeguard the interests of homebuyers and enhance transparency in the real estate sector. For property buyers, comprehending the fundamental principles of RERA compliance is paramount.

RERA Registration

One of the core components of RERA is the mandatory registration of real estate projects and agents. Builders and developers must register their projects with the state's RERA authority before advertising or selling properties. This registration process involves submitting detailed information about the project, such as floor plans, layouts, carpet area, number of units, amenities, and the estimated completion date. RERA ensures that developers provide all essential project-related details to potential buyers, promoting transparency in property transactions.

RERA Registration Check

Homebuyers can verify a project's RERA registration by conducting a simple online check. Most state RERA websites offer an online search facility where buyers can enter the project's name or developer's name to confirm its registration status. This check assures buyers that the project complies with RERA regulations, ensuring their investments are secure.

Guide on the RERA Regulation

Project Informationns to Assist You

Obtain comprehensive project details, such as the project’s floor plans, layouts, carpet area, number of units, amenities, and projected completion date. RERA requires developers to disclose all relevant information to buyers.

2. Agreement of Sale

Ensure that the sale agreement mentions the carpet area, price, payment schedule, possession date, and any penalties for delay in possession. RERA specifies that developers cannot change the agreement without the buyer’s consent.

3. Carpet Area Calculation

Understand how the carpet area is calculated and ensure that it matches what was promised. RERA requires developers to sell properties based on the carpet area, not the super built-up area.

4. Escrow Account

Verify whether the developer has set up a separate escrow account for the project. RERA mandates that 70% of the funds received from buyers should be deposited in this account and used solely for project construction.

5. Completion Timeline

Check if the developer has provided a specific timeline for project completion. RERA requires developers to adhere to the committed timeline and gives buyers the right to seek compensation for delays.

6. Occupancy Certificate

Ensure that the developer has obtained the necessary occupancy certificate from the relevant authorities before handing over possession. The occupancy certificate certifies that the project is completed per the approved plans and fit for occupation.

7. Sale Deed and Title Certificate

Verify the authenticity of the sale deed and the title certificate. RERA mandates that developers provide these documents to buyers within three months of possession.

Documents Required for RERA Registration

Builders and developers need to submit various documents during the RERA registration process. These documents include:

Project Details: Comprehensive information about the real estate project, including its location, size, layout, and sanctioned plans.
Financial Statements: Developers must provide financial statements of the project, including details of the funds collected and their utilisation.
Legal Title: Proof of ownership of the land or property on which the project is being developed.
Encumbrance Certificate: To demonstrate that the property is free from legal dues or liabilities.
Approval and Commencement Certificates: Copies of approvals from relevant authorities and commencement certificates.
Project Timeline: A detailed project completion schedule outlining stages of construction.
Details of Promoters and Agents: Information about the developer, including their track record and previous projects.
Escrow Account Information: Confirmation of the escrow account where 70% of the funds received from buyers will be deposited and utilised exclusively for project construction.

The final words

It is crucial to note that RERA compliance can vary across different states in India. Therefore, home buyers need to understand and acquaint themselves with the specific regulations and requirements applicable in their respective regions. Seeking legal advice and consulting with a qualified real estate professional is recommended to make informed property purchase decisions.

Frequently asked questions

1. Can RERA compliance vary from state to state in India?

Ans: While the RERA Act is a central legislation, each state in India has its own RERA authority responsible for its implementation. The rules and regulations may vary slightly from state to state. Therefore, home buyers need to refer to the specific RERA website of the state where the property is located to understand the exact compliance requirements.

2. What should I do if I find a RERA non-compliance issue?

Ans: If you find a RERA non-compliance issue, you should first try to resolve the matter with the developer directly. You can file a complaint with the respective state's RERA authority if that doesn't yield satisfactory results. RERA provides a dispute resolution mechanism and protects home buyers in such situations.

RERA Compliance Checklist: Explore Guide on the RERA Regulations

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