Honesty, transparency and discipline are the main pillars of success. The unruled, vast Real estate is now regularized by Real Estate Regulation and Development Act.
TABLE OF CONTENT
1.What is RERA
2.States to frame their own RERA Rules
3.The purpose of the Act is
4.Why did RERA come into effect
5.TSRERA
6.Main objectives of TSRERA
7.Rules of TSRERA
8.Who is Exempted from registering with TSRERA
9.SERVICES PROVIDED BY TSRERA
10.Fees for registration with TSRERA
11.Transparent Real Estate
1.What is RERA (Real Estate Regulation Act)
Real Estate Regulation and Development Act , 2016 has been enacted by the Government of India. Some sections of the Act were enforced from 1st May 2016 and all the sections of the Act came into force from 1st May 2017. As per the Act, all states must appoint a Real Estate Regulatory Authority to ensure that the purposes of the Act are carried out. It came into existence to develop and promote the sector to maintain transparency in terms of buying and selling of property. Through this act the relationship between the buyer and builder is expected to be smooth and transparent.
2. States to frame their own RERA Rules
RERA is an umbrella Act which gives broad guidelines under which the Regulatory Authority of each State and Union Territory can frame their own rules and regulations. These rules are published in the respective State Gazettes.
3.The purpose of the Act is
- To begin the regulation and promotion of the Real Estate Sector.
- To make sure that transparency and efficiency is maintained in selling of Real Estate
- To safeguard the interest of consumers and establish adjudicating mechanisms for speedy dispute settlement in Real Estate Sector
- To create and maintain a website with records of registered real estate projects and agents and it should be open to public viewing.
- To establish an Appellate Tribunal which could hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority
4. Why did RERA come into effect
- Number of complaints increased from the homebuyers.
- Investors were scared to invest in the Real Estate Sector as there was no surety that they would not be cheated.
- There was no transparency in the process of a deal.
- Houses were being sold according to the super built up area.
- The buyers had no place to complain if the construction quality was not good.
- Project delays were becoming a common factor.
5.TSRERA
Government of Telangana notified the Telangana State Real Estate (Regulation & Development) Rules 2017 for regulation and promotion of Real Estate Sector in the state of Telangana. The Telangana Government notified the Telangana Rules under RERA on 31st July 2017. These rules came into force from the date of publication in the Telangana Gazette on 4th August 2017. They are called Telangana State Real Estate Regulatory Act.(TSRERA)
6.Main objectives of TSRERA
- To manage various aspects of Real estate sector
- To regulate the sector
- To standardize the constructions
- To advocate transparency between builders and homebuyers
- To arrange for speedy redressal of disputes.
7. Rules of TSRERA
- Residential as well as commercial projects have to be registered with RERA if the area of the proposed property is more than five hundred square meters.
- If the project has to develop in phases then each phase has to be registered separately.
- Registration is required if the project has more than eight apartments.
If a project is not registered with RERA, then the penalty could be 10% of the project cost and if the offense is repeated, then the penalty could go up to 3 years of imprisonment. - Any change in the declared plan of the project needs the consent of the buyer. If there are more number of buyers then 2/3 of the total number should support the change.
- Timelines have to be respected. Any delay in the timeline will be called for penalty.
- 70% of the project amount has to be deposited in a neutral account and has to be used only for construction. In this way siphoning will be restricted.
- The buyer should take the possession of the house within two months from the date of completion.
- The developers should upload the details of the project on the website and have to update quarterly.
8. Who is Exempted from registering with TSRERA
- If the proposed area of the property does not exceed500 sq m
- If the number of apartments proposed to be developed does not exceed eight.
- If the Project Completion Certificate for a project was received before the commencement of RERA Act.
- Those which are undergoing renovation and do not require marketing, advertising, or selling under the Real Estate Project are exempted from registering with TSRERA.
9.SERVICES PROVIDED BY TSRERA
Benefits for Home Buyers
A home buyer has the right to know about the property. The developer should share all the details about the project such as layout and execution of the plan, status of construction and stages of completion. Carpet area as per RERA is that area which does not include the lobby area or the thickness of the walls. Builders have to offer the price based on the carpet area and not on the super built up area. If any fault is noticed in the construction of an apartment within 5 years of taking possession, then the builder is responsible for its repair. Once the structural defect is detected, it should be repaired within 30 days. Grievances will be addressed and solved quickly. If the builders fail to complete the project in the timeline mentioned, then they will have to face penalties.
Benefits for Promoters
A promoter can register his real estate project under RERA. They will be given a registration number for each of their registered projects. They have to update the details of their projects quarterly. They can file a request for an extension of the delivery date of their projects. They also have the right to file a complaint if any.
Benefits for Real Estate Agents
All Real Estate Agents have to register with TSRERA before facilitating the sale of any project. This registration can be renewed after 5 years. They can also file complaints if any.
10. Fees for registration with TSRERA
Registration fees depend on the type of project. It is as follows:
- Group Housing Project : Rs. 5/- per sq.m if the area of the proposed land is below one thousand sq m and Rs.10/- per sq m. if it exceeds thousand sq m. capped to Rs 5 lacs.
- Commercial Projects : Rs. 20/- per sq.m if the area of the proposed land is below one thousand sq m and Rs.25/- per sq m. if it exceeds thousand sq m. capped to Rs 10 lacs.
- Mixed Projects ( residential as well as commercial) : Rs. 10/- per sq.m if the area of the proposed land is below one thousand sq m and Rs.15/- per sq m. if it exceeds thousand sq m. capped to Rs 7 lacs.
Plotted Projects : Rs. 5/- per sq.m capped to Rs 2 lacs.
11.Transparent Real Estate
RERA is brought into effect to bring in discipline to the unorganized sector of Real Estate. This ensures transparency and accountability and also works in favour of both – the homebuyer as well as the builders. It maintains a website that has the details of all the registered projects and it can be viewed by the homebuyers. RERA addresses disputes and offers quick settlements. With RERA in action, the expenditure and the cash flow of the builder is not only accountable but also traceable. RERA maintains a balance between a buyer and a builder. It regulates the Real Estate sector. Due to the enforcement of RERA, transparency and accountability have become the strong pillars of Real Estate.
Written by Nikhil Gattu
