After a few initial hindrances, the authorities of Telangana have finally implemented the Real Estate Regulation and Development Act (RERA) in 2017. The State government has proposed a comprehensive set of guidelines, governing the real estate sector in a bid to ensure effective implementation of the Central Act. Well-known real estate developer, Janaharsha Group reviews some important facts about RERA that you must know.
- RERA rules in Telangana exempt real estate projects, which obtained sanction plans before January 1, 2017. With this, majority of the ongoing projects have been excluded from RERA Registration.
- The state authorities have given three months to developers of ongoing projects, August 4-November 3, to comply and register with RERA.
- RERA provides for the establishment of a Real Estate Regulatory Authority to ensure sale of plot, apartment or building in an efficient and a transparent manner, thus protecting the rights and interests of consumers.
- The central RERA as well as its Telangana Rules aim at consumer protection, uniformity and standardization of the business practices and transactions in the Real Estate Sector.
- This regime also provides provisions to set up a Real Estate Appellate Tribunal, which will address appeals and disagreements against any decisions, policies or orders of the Authority.
- RERA stipulates registration of all real estate projects and agents within the state. In case of non-registration, the government will prohibit the promoters, developments or agents from marketing or selling the project.
- Under RERA, it is compulsory for developers to unveil all details for registered projects, including details of promoters, architectural plan, land clearance status, schedule of execution and status of all approvals.
- As much as 50 per cent of the buyer’s investment has to be deposited into a separate account that would be used only for the construction of that project.
- In case of structural defects in the property, within the tenure of five years of transferring the property to a buyer, realty builders will have to fix them permanently.
- If the developer fails to allocate the properties to buyers within the promised timeline, the appellate tribunals will intercede, thereby issuing fines to developers within 60 days.
The Real Estate (Regulation and Development) regime, 2016 was approved by the Parliament in March 2016, and all the 92 sections of the Act were implemented from May 1 2017.