The Real Estate Sector in India has now changed its picture towards the shopper of land. Since the implementation of RERA Act from 1st of May 2017, the builders are keen on complying all the legal requirements prescribed under RERA Act and other applicable laws so that a sense of credibility can be accomplished.
Till now most of the States has implemented RERA Act through application of RERA rules, RERA Authority, RERA Tribunal. As per RERA Act the due date for registration of on-going projects in respective state was 31st of July 2017 and since now most of the builders has registered their projects under RERA. The RERA Act obligate builders not only for complying with the registration proceedings but also for fulfilling the legal requirements of the agreements and Documents entered into with the Buyers.
Why Legal Analysis is Required
- Compliance to RERA regulations and formats – State RERA rules has prescribed format and regulation to be followed while selling units, like builder-buyer agreement, conveyance deed etc. Apart from formats, RERA regulation has also prescribed various clauses to be followed for the process.
- Online data for pubic – Since RERA Act, make it mandatory to publish the project details along-with copy of permission and approvals/ status on website of State-RERA, it become easy to access and know the issue if any
- Designated authority for RERA complaints – Before RERA, there was no dedicated authority to deal with real estate related issues. However, after RERA every State has separate RERA authority to hear the complaints. Further, the complaints can be filed online mode
- Publish of complaint against project – whatever complaint is filed for the project are reflected against the project on the website which dilute the credentials and create issue in sales
- Time bound redressal – RERA Act has prescribed a period of 60 days for redressal of complaint which gives the complainant to file complaint and seek resolution.
- Easy to access the documents – online publication of project details and information including completion certificates, give easy access to the public and complaint can be filed very easy.
- Huge penalties for non-compliance – As per RERA Act, the penalty for non-compliance may attract heavy penalty which may go upto 10% of the project cost. Further, the amount parked in separate account may also be freezed.
Conclusion – Apart from above points, there are several provision which a registered builder or developer is required to comply. Hence, we suggest to take complete legal advisory for the documents.
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Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws