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Delhi, the nation's capital, has already formed a Real Estate Regulatory Authority (RERA) to manage and regulate the city's real estate market. This was done in accordance with the Real Estate (Regulation and Development) Act of 2016, which aims to improve the industry's openness, accountability, and professionalism.
The Benefits of an RERA Registration for Agents -
Transparency is ensured : The primary motivation for agents to obtain an RERA registration is to provide complete transparency in real estate developments.
Trustworthiness of the builder : The agent provides assurance of the builder's credibility through RERA registration. Typically, purchasers prefer to work with builders who are RERA-registered.
Detailed Information on the Project : RERA-registered agents are well-versed in all specifics such as project plans, layouts, government permissions, and other information that aids the customer in making decisions.
The complaints are amused : All concerns or issues filed by clients and investors are addressed immediately by the RERA-registered agent.
Builder's Complete Information : RERA registration helps real estate purchasers and investors to obtain complete information about the builders and developers.
The RERA Act and Regulations : State governments must create rules to carry out the requirements of the Real Estate (Regulation and Development) Act, 2016 within six months of the Act's commencement date, according to Section 84 of the Act.
· The general rules of the Real Estate (Regulation and Development) Act, 2016, were announced by the centre on October 31, 2016, through the HUPA (Housing and Urban Poverty Alleviation) Ministry.
· All of these regulations apply to Union Territories such as Chandigarh, Lakshadweep, Daman & Diu, Dadra & Nagar Haveli, and the Andaman and Nicobar Islands.
Penalties Associated with the RERA Act for Agents
· In the event of default, the agent will be liable for a penalty of Rs 10,000 each day, up to 5% of the land or building's cost.
· In the event that the agent engages in any unfair commercial practises, he will be sentenced to one year in prison.
· Non-compliance with REM's instructions might result in a fine of up to 5% of the property's value.
· Non-compliance with the Appellate Tribunal's instructions can result in a fine of up to 10% of the cost, a year in prison, or both.
Some Issues Concerning Real Estate Development and Regulation (RERA)
Ø Security: The RERA act requires that at least 70% of the money paid by buyers and investors be maintained in a separate account. This money will thereafter be used only for construction and land charges by the builders. Before the sale agreement is signed, developers and builders cannot ask for more than 10% of the property's cost as an advance payment.
Ø Transparency: Builders are required to produce all original paperwork for any job they undertake. Builders are not allowed to make alterations to the plans without the buyer's permission.
Ø Fairness: RERA has now mandated that developers offer properties based on carpet area rather than super built-up area. In the event that the project is delayed, customers have the option of receiving a full refund or opting to be invested and get a monthly return on their money.
Ø Quality: Within five years after purchase, the builder must correct any issues that the buyer has. This problem must be resolved within 30 days of the complaint being filed.
Ø Authorization: Without registering with the regulator, a regulator cannot advertise, sell, build, invest, or book a plot. Following registration, all investment advertisements must include a unique project-specific registration number given by RERA.
What is the validity of RERA registration?
The validity of RERA registration is five years.