Until RERA (The Real Estate Regulation Act, 2016) came into force, the real estate sector was largely unregulated where the grievances of the buyer and seller were addressed in the consumer courts.
The lack of regulation made investing in real estate unpopular among people. The real estate industry needed a regulator who can frame rules, regulate transactions, and bring in more transparency to the sector. RERA is the answer to all the needs of buyers and sellers.
To summarise, the need for regulating the real estate sector are:
To standardise all real estate transactions.
To bring in more transparency.
To set up a grievance redressal forum.
To protect the interests of consumers, builders, intermediaries, and so on.
A Brief History of RERA
In January 2009, a law to regulate the real estate sector was proposed by the National Conference of Ministers of Housing, Urban Development and Municipal Affairs of State and Union Territories (UT).
The Real Estate Bill, 2013 was first introduced in Rajya Sabha in June 2013. After revision based on changes recommended by the Standing Committee, the Real Estate Bill, 2015 was passed by Rajya Sabha, Lok Sabha, and approved by the President of India in March 2016.
Although RERA got approved by parliament in 2016, it took almost one year for it to come into full force. From May 2017 the act got implemented with 92 sections all over India.
What is RERA?
RERA is The Real Estate (Regulation and Development) Act, 2016. It is got into existence for the development and promotion of the real estate sector to provide transparency in the real estate sector like in terms of buying & selling of property. It has built confidence in buyers and boosted the real estate sector.
Through this act, it is assumed that the communication between buyers and builders will be in a smooth manner. RERA act proposes that developers share up-to-date information about projects delivery time. So, the property buyers will have an estimated time of their project delivery and will beware of imposters.
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What Is the Aim of RERA?
RERA aims to regulate and promote the real estate sector by ensuring the sale of the plot, apartment or building in an efficient and transparent manner. It protects the interest of consumers in the real estate sector. This act helps to establish an adjudicating mechanism for speedy dispute redressal and appellate Tribunals to hear appeals.
For builders to start any new project, it has been made mandatory to get all required approvals from the different government firms. They need to publish every detail of their project on their website under the corresponding state RERA rules and regulations.
The regulatory will provide a registration number, which the sellers must include while marketing the property. By this, buyers will be protected from any fraud or mischiefs. In case of violation of the RERA act, their construction may get seized or the regulatory board may impose penalties. In severe cases, if they ignore the rules the builders may even get imprisonment.
Highlights of RERA Real Estate Bill
RERA real estate bill is to promote hassle-free transactions between buyers and sellers.
Any residential project needs to be registered under a particular state government RERA under which the construction is taking place.
Without the completion of registration, builders are not allowed to promote or marketise their projects.
Builders need to be updated timely updates about their projects on the website.
In the total, a 70% amount is needed to be credited in a bank account which is to be utilised solely for constructing the projects. Individual state governments can alter this as per their rules.
How RERA Benefits Home Buyers?
Any updated information on the project will be available on the builder's website for the home buyers.
Amount paid by the buyer will be protected by RERA act as a certain portion of the amount is credited in a separate bank which the builders are liable to use for construction of the project.
Only approved RERA projects get registration numbers and are allowed to market their project
Investors get a full right to view the project plans, government approvals, sub-contractors, bank approvals, etc.
In the case of delay in the project, developers are liable to pay an interest rate of 2% above SBI’s Marginal cost of leading rate to the buyer.
Why Are the States Framing Their Own RERA Rules?
According to RERA, each State and Union Territory has its own Regulatory Authority to frame rules and regulations.
This means that RERA is an umbrella Act that gives broad guidelines under which every State can frame rules. These rules are published in the respective State gazettes.
According to RERA, the respective State Governments had to formulate rules and regulations by May 1, 2017. As of now, 14 states including union territories such as Andhra Pradesh, Telangana, Madhya Pradesh, Bihar, Uttar Pradesh, etc. have specified their RERA rules.
RERA Act Telangana
Although the act came into existence earlier, due to many reasons the state government didn't enforce the act. The Telangana Government notified the Telangana RERA rules under the RERA on July 31, 2017.
The Telangana RERA rules came into force from the date of publication in the Telangana Gazette on August 4, 2017, to motivate the regulation of the real estate sector in Telangana.
This initiative is to promote the majority and development of a robust, translucent, and competitive real estate sector. At the same time protecting the interest of buyers, builders, and agents to boost real estate in India.
All real estate under-construction or startup projects, whose building permissions are approved on or after January 1, 2017, and is constructed on more than 500 sq.mts of land including more than 6 units are liable to follow Telangana RERA rules. TSRERA, short for Telangana RERA launched a website so that buyers can easily view registered real estate projects and agents.
As the capital city of the youngest state Telangana, Hyderabad real estate is increasing rapidly. It is considered one of the most affordable metropolitan city in India. Want to live in Hyderabad and enjoy all the modern facilities? Find all the information about the latest apartments for sale in Hyderabad through our website at www.propertysdviser.in and find your perfect home today!
RERA Telangana Rules
The rules notified by the Telangana Government is called the Telangana State Real Estate (Regulation and Development) Rules, 2017. On September 2018 the state government has stated that all builders who acquired permissions for their projects on or after January 1, 2017, must register their projects to avoid any penalties.
The state government stated that builders should credit 70% of the total amount in the bank account and must utilise the amount for the construction of the project.
In case the real estate project includes a group housing without exceeding 1000 sq.mts then a registration fee of Rs 5/- per sq.m is to be charged. And if the land area exceeds 1000 sq.mts then a registration fee of Rs. 10/- per sq.m capped to RS.5 lakhs is charged.
For a commercial project, if the land area is below 1000 sq.mts, a registration fee of Rs. 20/-per sq.m is charged and Rs. 25/- per sq.m capped to Rs. 10 lakhs if the area exceeds 1000 sq.mts.
If it is a mixed project then, a registration fee of Rs. 10 per sq. m is charged if the land area does not exceed 1,000 sq.mts and Rs. 15 per sq.m, capped to Rs. 7 lakhs if the area of the land exceeds 1,000 sq.mts. For plotted projects, the registration fee is Rs. 5 per sq. meter capped to Rs 2 lakhs.
The Telangana State Real Estate (Regulation and Development) Rules, 2017 apply to all real estate projects that received building permits on or after 1 January 2017 from:
Urban Development Authority (UDA)
Director of Town and Country Planning (DTCP)
Telangana State Industrial Infrastructure Corporation (TSIIC)
Documents Required for Telangana RERA Registration
Document of legal title of the land attested with a proof
Complete details of the property including mortgage, title, etc.
In case, if the developer is not the rightful owner of the property, approval letter from the legalised owner
Proforma of allotment letter and agreement of sale.
Authenticated copy PAN card of the developer
Information about all the major persons involved in the project like builders, architects, etc.
Income Tax Return (ITR) form of the last 3 years of the builder
Details about the flat like carpet area, number of floors, parking space
Details of the project like location, sanctioned plan, plan layout, etc.
What If the Builder's Application Gets Rejected by RERA?
Sometimes, if a builder doesn’t submit or reach certain guidelines, they will not get approval to build the project. RERA ensures that the buyer is provided with the legalised project without any hassles. Builders will be provided with an opportunity to rectify their mistakes and resubmit the application in the specified period.
Wondering how to check whether a project is registered under TSRERA or not? One can log on to the TSRERA website to check if the project is a legalised under the act or not. In this online portal, they can find the details of all registered projects. Before investing in real estate buyers can find the RERA registration number on all advertising campaigns of the builders. As it is mandatory for builders to publish the registration number of the projects on all of their marketing campaigns.
RERA Act For Builders Website
After successfully registering the property, according to the act, builders are subjected to update details about the project to disclose all information to the buyers like:
Builders need to disclose their enterprise name. In case, if it's been incorporated with others, they must also include their partnering firm details.
Contact details, track record or past construction projects of the builder in Telangana.
Authenticated copy of the approvals, permissions, clearances under the authorization act.
Plots & Apartment details like carpet area, type of the project, number of parking spaces, balcony and verandah area, etc
Location and development plan of the project
Facilities and Amenities available at the project
Status of the project and its approximate completion time.
Approval of bank loans
How to Register a Complaint Under the RERA Act?
Every state in India has certain guidelines to be followed under the RERA act. In case of violation of the law, strict penalties are applied. To resolve the complaints, the Telangana state government headquartered in Hyderabad had established an Appellate Tribunal. It is to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority
Under the RERA Act, 2016 anyone can register their grievances to Real Estate Regulatory Authority and Adjudicating Officer. The application is made web-based, followed by a fee of RS 1000/-.
They need to submit any relevant documents as evidence to the adjudicating officer. Complaints can be registered against promoters, agents, and even on home buyers. Based on the registered complaint on the individual, an investigation will take place and they will be penalized accordingly.
Real Estate sector is unpredictable and is constantly changing. Want to get up-to-date information on real estate? Go through our online portal at www.propertyadviser.in to know about the latest happenings.
By Lotus Tech & Govi
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