The real estate sector has been facing rigorous challenges. You may face a delay in delivery and uncompleted projects. Even due to rising cost of construction, and regulatory issues also delay the project completion. However, RERA will change the scenario of real estate which is Real Estate Regulatory Authority effective from May 1, 2017.







RERA will make the lackluster real estate sector to be more attractive by bringing back the consumers interest. You will also be benefited from transparency and on-time project completion.

RERA has given great relief for home buyers who have been harassed for many years. Most of all, house and flat sale agreements are always in favor of builders and always failed to deliver. Real Estate Regulatory Act will also ensure transparency in the real estate sector. It has strict policies including three-year prison terms or huge penalty for builders.

If you are a buyer then RERA also lays down that you must make payments on time. Payments include registration charges, municipal taxes, maintenance charges etc and even the interest prescribed. It also mandates that you have to participate in the formation of an association of allottees. Moreover, you can take physical possession of units within two months of the builder getting the occupancy certificate.

Your Dream Of Having A House Will Come True

You can expect the changes to get affected gradually and may take three to six months for the infrastructure such as a state regulatory website and also most states do not have registration software too.

Many developers and builders have already adopted RERA norms in their builder-buyer agreements. You will get the buyer agreement which includes the interest and the penalty clauses laid down in RERA. Moreover, in the new agreement, the builders have to sell the unit on the basis of carpet area and have to specify common areas and the parking areas separately.

You will also be entitled to know stage-wise time schedule of completion of the project. It includes provisions for water, sanitation, power and other amenities and services. Even you will also be entitled to claim possession of apartment along with completed common areas such as parks, clubs, internal roads etc.

As home buyers, you also have the right to know the completion plans, no-objection certificates from the fire department, invoices of lifts, water pumps, DG sets and even those of air conditioners installed by the builder in the apartment. RERA also ensure you that if you decide to cancel your booking, the builder will have to refund the amount along with interest within a period of 45 days.

States To Have A Regulatory Authority – RERA

All real estate projects must be registered with RERA from May 1, 2017.

So far, only Madhya Pradesh has appointed a regulatory authority. States that have an interim regulatory authority in place include Kerala, Maharashtra, Punjab, Rajasthan, Mizoram, Haryana, NCT of Delhi, Andaman & Nicobar Islands and Chandigarh.

States in an advanced stage of appointing a regulatory authority are Odisha, Bihar, Jharkhand, Assam, Tamil Nadu, Andhra Pradesh, Telangana, Tripura, Dadra and Nagar Haveli Daman and Diu, Andaman & Nicobar Islands and Lakshadweep. Both Puducherry and Chandigarh had appointed an interim appellate tribunal under RERA.







States that have notified rules so far include Uttar Pradesh, Gujarat, Kerala, Odisha, Andhra Pradesh, Madhya Pradesh, Bihar and union territories of NCT of Delhi, Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman and Diu and Lakshadweep.

States that have prepared draft rules are Assam, Maharashtra, Tripura, Karnataka, Tamil Nadu, Punjab, Haryana, Himachal Pradesh, Mizoram, Jharkhand, Telangana, Chhattisgarh, Rajasthan, Uttarakhand, West Bengal and Union Territory of Puducherry.

Beware, Builders and Developers

Promoters of ongoing projects can continue marketing and selling until for three months. However, they have to quote the RERA registration number and website address of RERA within three months. In case they don’t obtain registration within such period, then they cannot continue marketing and selling.

Builders have to submit project-related information such as sanctioned and proposed plans and pending approvals. Estimated project cost (land and construction), and balance cost and receivables etc. must be submitted to RERA for obtaining registration.

Now builders have to submit the originally approved plans for their ongoing projects. They also have to furnish details of revenue collected from allottees. Even builders are required to let RERA know how they utilized funds and the timeline for completion of the projects.

It will also be the responsibility of each state regulator to register real estate projects and real estate agents. Furthermore, the details of all registered projects will be put up on a website for public access.

So, RERA will certainly make the situation good for both the buyers and sellers. This a very positive for real estate sector as a whole and looks very attractive from an investor’s perspective. The sector is laggard since many years now but you can invest in real estate sector. You can invest in GMR Infra, Godrej Properties, HDIL, Indiabulls Real Estate, Oberoi Realty and Sobha Developer.

I will provide you more updates on RERA, So bookmark this post for future insights.

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Last updated: Mar20, 2018