A builder Work is to build or repair houses and other buildings.
RERA Registration is necessary for promoters, builders and real estate agents to be able to sell, advertise, market, purchase or book housing properties. Furthermore, the entitled persons need to make an application in the prescribed form along with the supporting documents and fees. In this article, we are going to learn how to obtain RERA Registration from the builders’ perspective.
Benefits of RERA Registration
Given below are some of the benefits of registering under RERA or Real Estate Regulatory Act, 2016[1];
Timely delivery
Previously it was seen that the builders or developers often used to make false promises about the completion date of a project, but hardly delivered on time. As per the Act, strict regulations will be enforced on builders to make sure that construction runs on time and flats are delivered to the customers within the decided time. Additionally, if the in case the builder is not able to provide the apartments on time, he/she becomes liable to refund the amount to the purchaser with interest.
Delivery of Accurate Project Details
Builders need to promote their projects, defining various amenities and features related to projects in the construction stage. As per the Act, the builder cannot make any changes in the projected plan. And if a builder is found at fault then, he/ she will have to pay 10% of the project’s expenses or face jail time up to three years.
Ensuring all permissions
Developers often attract buyers by providing huge discounts and pre-launch offers. Therefore, the buyer, enticed by the proposals, does not bother about the clearances and book or buy a property. But, due to delays in getting approval, the buyer does not get the flat on time. This bill ensures that builders get all the permissions before selling the apartments.
Ensuring Proper Structure
It is the builder’s responsibility to repair structural defects for up to five years if a buyer finds any fundamental insufficiency in the development of the building
No Advertisement is permitted without RERA Registration
Promoters are not allowed to advertise any project without RERA registration with the Real Estate Regulatory Authority established under this Act. Additionally, each advertisement needs to carry the RERA registration number.
Reduction of Booking Amount
The sum to be paid by the buyer has been reduced from 20% to 10%, which needs to be remunerated only after registering the contract for sale with the builder. Termination of the contract is allowed only if the buyer defaults on payment thrice. The buyer is entitled to serve a 15-day notice.
The Validity of RERA Registration
The approved registration will be valid for a period, specified by the promoter for completion of a real estate project. Also, it will be valid for the period specified to complete a particular project, as mentioned in the affidavit following the application form.
However, the validity of such registration can be extended under the following circumstances:
Force Majeure like drought, war, flood, fire, cyclone, earthquake or any other calamity caused due to natural factor, affecting the usual development of a real estate project
Other than force majeure or the ‘Act of God’, the concerning authority may extend the registration to maximum one year in case it feels that the circumstances and reasons for the extension of the case are reasonable.