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RERA Benefits for You as a Homebuyer

Take a look at some of the key ways in which RERA helps homebuyers:

1. Poor construction quality? Let the builder fix it

If you have been worried about the construction quality of projects these days, here’s a relief for you. As per RERA, if any structural defect occurs within 5 years from the date of possession, it will have to be fixed by the developer. The Act also states that such a defect will have to be fixed within 30 days of notice, without any charge. 

2. No more project delays due to diversion of funds

Before RERA, most developers were found defaulting on their project deadlines as they diverted the funds to start new projects. But, with RERA, the developers are now required to deposit 70% of the funds received from buyers in a separate account. This money can only be used for that particular project.

3. No more false promises by Builders

Under RERA, builders are now required to show their RERA registration number with their advertisements. They can not advertise anything that will not be delivered to the buyers. Additionally, if a builder wants to make a change to the original plan, they will have to seek the Buyers’ approval first.

4. No project to be sold until all clearances are obtainedAll the builders and agents are now required to register themselves with RERA. It is now mandatory for them to get all necessary clearances before they can promote the project for selling. This ensures protection of buyers from projects that get stuck later on for pending approvals.

5. Quick grievance redressal

If you have a complaint against a builder, promoter, agent, or contractor, you can file it with your respective authority for a quick redressal. RERA mandates builders to resolve these complaints within 120 days of filing. Also, the Act states that non-compliance with the regulations can lead to a penalty of upto 10% of the estimated project cost. Read: RERA Complaint Online Filing

6. Penalty for project delays

With RERA guidelines in place, if a builder delays the project, you can ask for your refund and withdraw from the project. Also, if you don’t want a refund, you will be entitled to an interest every month, starting from the due date.

7. Pay for the carpet area, not built-up area

RERA states that the value of a property is to be calculated on the basis of carpet area, instead of built-up area. Carpet area is the net usable floor area of a property. It excludes the area covered by walls, etc. This makes sure that you don’t have to pay an inflated price for the area that you are not even using.

Impact of RERA on Real Estate Agents

Real estate agents play a key role in the marketing of any project, acting as a bridge between the developers and the buyers. These agents are now required to comply with the guidelines of RERA – an Act introduced by the government in 2017 to bring transparency in the market. Let’s find out how this Act has impacted the property agents.

Why was RERA Introduced?
Indian real estate market was mostly an unregulated market until the Real Estate Regulation Authority (RERA) was introduced in May 2017. With the introduction of RERA, all the brokers and builders are required to register themselves with their state authorities, meaning they have to work within a framework of guidelines and rules. The Act was introduced with the aim of bringing transparency to the property market while protecting the interests of the buyers.

How RERA Affects Real Estate Agents
Here are some of the main impacts of this Act on the property agents:

1. Only registered agents can deal in registered properties
RERA has made it mandatory for all property agents to get a brokerage license from their respective state governments in order to deal in any real estate transaction. This means any broker who is not registered with RERA is no longer allowed to deal in a registered property. Also, the registration is not valid for lifetime; agents will have to keep renewing it as required by the Act.

2. Penalty for non-registration
The Act states that any unregistered broker, if found dealing in a registered property, will have to pay a penalty of Rs 10,000 per day for the entire period during which such default continues or a penalty of upto 5% of the value of the deal.

3. Maintaining books of records is now compulsory
The Act requires all the real estate brokers to create and maintain books of accounts, documents, and records as per the country’s Income Tax Act. Furthermore, such accounts must be maintained for every single real estate project that the broker deals in.

4. Registration number be displayed appropriately
RERA requires all the Agents to display their registration number at their place of business at all times. In addition, if they advertise or market any project, the advertisement should also carry their registration number.

5. No more false advertisements
The Act stresses on the need to maintain transparency in the dealings with buyers. Brokers, as well as builders, cannot promote or market a project that’s not in compliance with RERA. Any entity found mis-selling will be penalized.

Real Estate Regulatory Authority (RERA) Certification Process

The RERA certification process involves the following stages:

1. Completion of Paper Work: It is essential to complete the RERA enrolment form and attach the necessary documents to kickstart the process. 
2. Verification: The submitted details and documents are verified. 
3. Filling of Registration Forms: Form-filling based on all the provided facts. 
4. Work Completion: The registration number is given as soon as the Real estate regulatory authority (RERA) account has been made.

What is the RERA Enrolment Duration?

Every dealer’s real estate authority (RERA) license becomes active from the issue date. One can extend the permit for another five years after filling the form 60 days before the expiration date.

Documents Required for RERA Registration To Become a Real Estate Agent in India

For RERA registration, the broker or real estate agent must have a duly filled application form ready. Apart from this, the following documents are required to be submitted:

• Authenticated copy of the address proof, email address, and phone number of the place from where the business will operate.
• Authenticated copy of the agent’s PAN card.
• Name, contact details, photograph, and address of the real estate agent and the directors or partners.
• The last three years’ Income Tax Returns.
• Name, type of enterprise (company, societies, proprietorship, partnership, etc.), and registered address of the enterprise.
• If it’s a real estate agency, then particulars of the agency, including the MoA (Memorandum of Association), byelaws, and AoA (Articles of Association), must be submitted.
• Registration details in any other state (if applicable). 
• Details of any criminal/civil cases pending against the real estate agent or his/her company.
• Copies of acknowledgment receipts, letterheads, and rubber stamp images that the agent wishes to use.
• Details of the real estate projects, promoters, and their advertisers with whom the real estate agent associated for business in the last five years.

RERA Guidelines on Registration of Real Estate Agents and Brokers

The Real Estate (Regulation and Development) Act 2016 launched the Real Estate Regulatory Authority (RERA) with the aim to enhance transparency and accountability in real estate transactions and organize the whole process. The Act requires every real estate agent to register with their state’s respective real estate regulatory authority to procure a RERA registration number/license. Once issued, the license will be valid for five years.  

As per RERA guidelines, a RERA registered/licensed real estate agent shall 

• not facilitate the purchase/sale of any unregistered property.
• obey the rules stated in the Act.
• not indulge in any unfair trade practices such as making a statement (orally or in writing) that is false and misleading or allowing the advertisement of services that will most likely not be offered. 
• facilitate the possession of all the documents and information that the homebuyer is entitled to at the time he/she books any apartment, plot, or building.

RERA Act regulates real estate transactions and ensures that home buyers have access to licensed, responsible agents without having to worry about being misled or cheated. Security, fairness, authorization, transparency, and quality are all taken care of by RERA. It offers a number of benefits to the promoter, the buyer, and the real estate agent as well