Read to know about the RERA and the benefits this certificate holds for you.
Overview:
The full form of TN RERA is the Real Estate Regulatory Authority. It came into existence in 2016 with the aim to enhance accountability and transparency in all dealings of real estate. All real estate projects registered with RERA are provided with a certificate having a unique registration number. The certificate has all the information about the property and a unique registration number. A developer, builder, or property agent can do no advertising, booking, or selling real estate without obtaining the RERA Certificate.
What is RERA?
Every person visualizes having their own home. The high cost of real estate is a deterrent, but the dream is further dampened by malpractices resorted to by the developer and builder lobbies. Till 2016, there were no regulations or standard norms in the real estate agency. To protect the interests of property buyers, the government introduced the RERA Act. The Act bill was passed on 10 March 2016 by the Rajya Sabha.
RERA was established to enhance accountability and transparency concerning real estate. RERA specifies certain norms for the building and development of real estate, enhancing transparency in transactions in the real estate sector. It has provided several rights to home buyers and has also specified certain rules and regulations to be followed by all builders and developers.
Moreover, a Real Estate Authority and Appellate Tribunal for each state have been created as specified under the RERA Act. In case of any wrongdoing by the builder or the developer, the home buyer can file a complaint to this authority.
Benefits of RERA
RERA has laid down several guidelines which should act as a relief to the consumers or the buyers of homes.
- The formation of RERA has brought about the regularisation of the carpet area. A standard formula is used now to calculate the carpet area of residences. As a result, promoters are prevented from quoting escalated carpet areas to increase prices. Under RERA, developers have to sell properties based on carpet and not super built-up areas. For all properties having a carpet area of more than 500 square meters, the builders need to register it under RERA.
- With mandatory registration of every real estate project with RERA, 70% of the funds raised must be deposited in a separate bank account. Builders must prove that they have deposited 70% of the total payment into a discrete escrow account instead of using it for some other investment.
- Initial or advance payment for any real estate project to builders cannot exceed more than 10% of the project’s cost. Thereby giving the buyer time to source funds.
- The buyer has the right to know all the project information, including the layout, execution, and completion status.
- Within 5 years of possession of the property by the buyer, if any qualitative defects or structural problems exist in the property and are observed by the buyer, the builder is liable to rectify the problems within a span of 30 days at their own cost.
- Before RERA, if the promoter delayed possession of the property, the interest paid to the buyer was much lower than that paid by the buyer on delayed payments to the promoter. With RERA, both parties have to pay the same amount of interest.
- Once the plans are submitted, builders are not supposed to make any changes to the plans without the buyer’s consent. They will also require the consent of two-thirds of the buyers of a project before changing the project’s design or any other structure.
- If there is a discrepancy or change in the project in terms of what was promised by the builder and delivered, the buyer can refuse to accept the property and get a full refund of the amount paid in advance.
- If the buyer discovers a defect in the title of the property at the time of possession, the buyer can claim compensation from the promoter.
- If the buyer, developer, or agent has any complaints concerning a real estate project, they can file a complaint with RERA. Further, if they are not satisfied with RERA’s decision, they can file a complaint with the Appellate Tribunal.
The Real Estate Regulations Act was introduced in 2016 to protect the interests of home buyers. It was introduced as a regulatory action to protect the buyers’ interests against dereliction of duties and breach of ethics by the builders.
What is a RERA Certificate?
A RERA certificate is a legal document. It has the details of the property or project registered under state-level RERA authority along with the unique registration number. A property or project cannot be advertised, booked, or sold without the issuance of the RERA certificate.
Advantages of RERA Certificate
Once a real estate project has been registered with RERA and the authorities are convinced that their guidelines are followed, a RERA certificate with a unique registration number is issued. This unique registration number must be quoted in all advertisements, brochures, and websites dealing with the sale of that particular property. The RERA certificate:
- Increases the credibility of the builder.
- Provides information on the property or the real estate project.
- Ensures that builders and developers follow the rules and regulations specified by them.
- Reduces chances of malpractice
- Safeguards the interests and rights of buyers
- Provides the buyer and developer with access to the RERA Complaint tribunal
- Ensures that a pan India standardized model is implemented
- Creates a sense of responsibility for the builder as well as the investor
Conclusion
Since 2016, it has been mandatory for all builders and developers to register with the Real Estate Regulatory Authority of the state or union territory that they operate. Moreover, the builders or developers must provide all the necessary information, including financial statements, a copy of the legal title deed, layout plans, and other documents. Once registered, they are issued a RERA certificate. The certificate has all the project details and a unique registration number.
In case of any real estate complaints, contact Vakilsearch. The skilled and experienced team will work to solve the problem as per the procedures of the property’s location.
