RERA Consultants- CRAI or Campaign for RERA Awareness in India

The Indian government has come up with a game changing modification in the real estate arena of India. This game changing improvement is called the Real Estate (Regulation & development) Act or RERA. One of the most important objectives of this Act is bringing about accountability, transparency and further enhancing professionalism in the industry for real estate in India. Safeguarding the interest of the consumers is also one of the prime objectives of this Act. One thing that is worth noting is that this Act brings the entire real estate arena within a certain regulatory environment, putting forward the liberties and the liabilities of a real estate developer and presenting the most effective and useful grievance redress system to the purchaser.

At RERA Consultants, we are completely dedicated to spreading knowledge and information about this new law amongst all those who are related to the field of real estate including developers, buyers, architects, agents and chartered accountants. We take pride in launching CRAI or the Campaign for RERA Awareness in India for creating awareness regarding the RERA Act. CRAI looks forward to empowering the consumers while enhancing the credibility of the developers. Our main objective is creating a common podium for the sellers, buyers and the intermediaries working in the real estate sector. Our main focus is on highlighting up to date and relevant information about RERA Registered Projects and Agents throughout the different states of India.

Purchasing property is a vital decision. It requires a lot of thinking and planning. There are individuals who put in the savings of their entire life into buying a house. Investing in a house is almost like a jump of faith decision especially if the property developer is a non-submissive player. By way of CRAI, we have made sincere efforts towards bringing the well-organized developers of all the states with RERA registration into the spotlight. We also aim towards bringing those states into the spotlight that are very well-equipped to execute the different requirements of the property buyers. Our efforts in this direction will help in bridging the trust insufficiency among the customers while spreading awareness about buying only RERA registered assignments among the property buyers.

How will the Property Buyers be Benefitted by the RERA?

RERA or the Real Estate (Regulation and Development) Act is basically a law that looks forward to regulating and standardizing the real estate field where there is the need for transparency and uniform guidelines since a very long time. RERA regulates several facets of real estate and at the same time safeguards the buyers’ interests. However, the rules and the regulations on papers might not be advantageous to the consumers unless and until the people are aware about them. It is important for people to be fully aware of the provisions of getting benefits from the RERA. Some of the basic advantages that people can fetch from RERA are:

  • The Act makes the registration of all upcoming and ongoing real estate development projects mandatory prior to marketing and advertising.

  • The home buyers only have to make payments for the carpet areas.
  • The Act makes it obligatory for the developers to deposit 70% of their real estate development project funds into an escrow account.

  • Property developers are prohibited from charging more than 10% in the form of advance from the allotees without getting into the written sale agreement.

  • Fully dedicated and sincere real estate appellate tribunals shall be appointed for adjudicating cases within a time span of 60 days.

  • Developers need to obtain a written consent for making any structural alterations to the already approved plans. This written consent needs to be obtained from minimum 2/3rd of the allotees.

  • It has also been stated by RERA that structural defects in a property should be brought to the notice of the developers within the time span of five years. The structural defects reported within this time span need to be rectified and worked upon by the promoters and that too completely free of cost.

  • The RERA makes it mandatory for property developers to update and maintain their websites on a regular basis and also provide the details of RERA registration.

  • Developers non-compliant to RERA shall be imprisoned for three years or they may have to pay a fine extending up to 10% of the cost of the project or both.

RERA registration is essential for the real estate agents as well.

The Bottom Line

RERA definitely has an important role to play in the real estate arena of India. This Act has raised the hopes of the homebuyers and it has good chances of enhancing full-fledged activity in the field of property development. This might further result in more supplies throughout the real estate market. The Act will eventually bring-in the much required confidence for infusing more investment which in turn would help in stabilizing the prices of homes.

So, let us come together for spreading awareness among relatives and friends for helping them in understanding the real estate sector of India in the easiest way possible.

UP to Launch RERA site Today, Issue Registration Number Instantly

The Uttar Pradesh government will launch its RERA website on Wednesday, which will allow builders to start registering their projects under the new real estate law and, significantly, also grant them immediate registration numbers as opposed to the current system where the process takes up to a month.

Once a real estate company gets the registration number, it is free to market its projects while staying in compliance with the new Rera rules.

The website for the Uttar Pradesh Real Estate (Regulatory and Development) Act will be launched on Wednesday by chief minister Yogi Aditya Nath. The registrations will happen through online applications and will be done under the state Rera rules that were passed in December 2016 by the previous government led by Akhilesh Yadav.

Rera will bring accountability and transparency into the real estate sector and is expected to renew confidence among buyers who are sceptical about quality of construction and timely completion of projects, particularly in Noida. Rera has clauses for heavy penalties if a developer deviates from promises made to buyers while selling a property.

Under the state’s Rera rules, ongoing projects that have filed for occupancy certificates will not come under the ambit of the new law. Developers say this will help both them and buyers as an ongoing project that files for registration under Rera will have to specify a new date of completion.

Vice-president of real estate body Credai Manoj Gaur, who is also promoter-director of Gaursons, welcomed the state’s move to grant immediate registration numbers. The state will now trust a real estate company and issue a registration number based on documents it files online. These documents will be in the public domain and open to scrutiny. If any discrepancy is found, the company will face heavy penalties.

RK Arora, CMD of Supertech that has a number of ongoing projects in NCR, said his company had already filed applications through physical forms for several projects. “We will scan all the documents of each ongoing project and upload them on Wednesday,” he said.

The central Rera came into effect on May 1 and stipulated that no project could be marketed without registration. But developers faced problems because state governments were still not ready to implement Rera and notify their own rules on the basis of the central law. Subsequently, the Centre had asked all states to have their Rera rules notified by July 31.

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Major Problem Face by Broker Under the Real Estate Regulatory Authority

The Real Estate regulation and Development Act 2016 is taken action on the real estate agent for the noncompliance. Because of provision, agents and other real estate broker worried a lot in their business due to the major reason such as delays in the submitting the possession of houses , flats , apartments and much more. Here the small broker is highly affected because, they need to go registration by themselves and obey all term and condition by the moth of July1.

 It fails to go with the regulatory body due the lack of the clarity on the major execution of fresh rule. Hence, it may affect the property sale of next 2 months, which mentioned in the national new portal. Here the real estate association said to the News portal, that brokers is commonly earn property value of between 1 to 2 percentages in the give deals.

However, they have around 5% of penalty in hefty revenues losses, especially for the small-scale brokers. It is impossible to cope with penalty of reason, which never deliberates on the major part of the Real Estate Agents.

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Impact of Real Estate Regulatory Authority (RERA) in Real Estate Brokers

From 1st May onwards, every real estate agent has to register his or her name as per the Real Estate (Regulation and Development) Act (RERA). The law was amended and brought into action by the government for the fair practice in the real estate industry.

Under the RERA Act, the real estate agents who have registered themselves, as per the government rules, will be able to transact with the clients in a legal way. The statistical study says that the brokerage industry in this real estate segment alone has a turnover of $4 billion every year and growing. The study also depicts that there are 500,000 – 900,000 brokers as an estimated number in India. In fact, the number can be more also. Before the amendment of the act, the brokerage segment in the real estate industry was unregulated and totally unorganized. The channels had no specific rulebook to charge brokerage fee to the respective clients.

The Real Estate Management Institute business head, Shubhika Bilkha depicts that the real estate market in India has advanced to a higher level where the brokers need to register themselves to ensure a better way to do business. The agents and the brokers need to be properly verified and then certified by the government act so that all the transactions should be legal and traceable.

The vigilance over the sale of real estate properties will be multiplied to a considerable extent. This will literally organize the sector and the government will be able to trace all the transactions done in an illicit way and the industry will become more transparent, says Bilkha.

The question that arises in the common people’s head is that how it will benefit the buyer and the industry. The brilliance of the act answers every question perfectly. After the proper validation, Brokers and Agents Registration in this industry are done, the sales of the properties will increase and more revenue will be generated. This is where both the builders and brokers will be benefitted. In fact, the transparency will also aid the buyers as they will find the right methods and rates to acquire a property in a legit way.

The chairman of Pharande Spaces, Anil Pharande said in this context that the amendment of this law will make the booming sector very much measurable and transparent. The market will become more attractive for the stakeholders as the illicit activities will be considerably reduced. The clients will now be harassed less and charged the fixed service charges. The customers will be more protected which will impart much confidence in their buying decision.

Sam Chopra, the chairman and founder of RE/MAX India, says that the agents are also significant stakeholders and the act will bring them in too. The excellent move to bring them under the new act will also increase the value of the industry. Chopra also said that the time for an honest approach has come where the businessmen who like to do transparent and professional business will enjoy the benefits more than the conventional channels. He added that the agents, after being included via the act, will play an important role in the industrial development. Their responsibility to reveal or disclose the information properly needed by the clients or lawful steps will be taken against them. When the customers will go for a RERA compliant builder or an agent, the market trend will soon be followed by the brokers.

As per Gaurav Kapur, MD, Golden Bricks, the hard-earned money of the home buyers will be absolutely protected as the cheating sphere will vanish with time. The customers will start to rely on the developers and brokers based on the act. The illicit activities like selling a withheld or disputed property without the conscience of the customer will be completely stopped as the legal actions will be taken against them.

Another very important development that will be enjoyed by the customers is that the agents will not be able to mention the amenities not present in the properties and lure the clients. The amenities and facilities should be mentioned properly in papers so that the clients can relate and buy properties. Proper information should be disclosed before buying a property. If any false information is provided by the developer or the buyer, they are eligible for penalty or term or both. RERA will act as a filter to strain out the unprofessional and illicit operators easily.

To everyone’s surprise, ‘RERA’ has been accepted by only 70 agents and brokers. In fact, the infrastructure of the states is not ready to comply with the implementation of the new act. The basic problem is that the small-time brokers and the freelancers will not be able to comply with the added expenses. The profit percentage will be reduced considerably for the brokers and they will not be able to afford the operation cost in this industry.

RERA also directs that the agents should maintain proper records and book of accounts for proper transaction details. In fact, all the papers should be documented or penalty will be charged. The success of the act will totally depend on the implementation and acceptance rate of in the states.

Gurgaon homebuyers demand implementation of centre’s of RERA rules

City dwellers on Sunday strongly voiced their support in favour of Centre’s RERA act thereby rejecting the suggestions of draft which was passed by the State Government of Haryana.

All Home owners had a meet at Leisure Valley sector 29 on Sunday and announced their support in favour of the Act that has been suggested by centre which has earned some rave reviews rather than the one being passed by the state cabinet.

Home owners stated that the alteration of RERA draft passed by centre is not at all acceptable as the rules that have been suggested by State Government heavily favors the builders.

The buyers further stated that this RERA act alter the Current projects initiated by central Government and favors all those builders which are yet to complete a Real Estate project in last 40 years in Gurgaon which includes the likes of DLF, Ansal, Unitech, Vatika and many more.

Some buyers even said that these State Government rules will provide privilege for all those projects where the developers have obtained Completion or occupation certificates (CC/OC).

“If the government does not act on our suggestions, we would take the legal course,” said Gaurav Prakash, a member of Federation of Apartment Owners’ Association (FAOA), Gurgaon.

The CC is an issued certification by a competent authority which states that the ongoing project follows all the plan, layout and specification as approved by the authority.

“OC, on the other hand, is a certificate issued by the competent authority, as per rules, permitting buyers to move into their apartments,” Shephalika Sharma, another member of FAOA who was present at the meeting, said.

Home owners stated that they will prepare a draft with final recommendations and will send it to the State Government.

RS Rathee, president of Gurgaon Citizens’ Council who was present at the meeting, said, “Except Garden Estate in Gurgaon, not a single project, with occupancy of roughly 200, has obtained completion certificate. They should all be brought under Real Estate Regulatory Act. The Haryana government draft dilutes this part. The government must disclose the bank guarantee deposit of each and every builder and their deficiencies on its website with a proper definition of ongoing projects.”

Praveen Jain, president of national real estate development council (Naredco), had said during a press conference in Gurgaon on Friday, “We will seek buyers cooperation for our smooth functioning. RERA draft is balanced and there should be no panic.”

Citizens Firmly Demand quick implementation of RERA Act

The citizens of Karnataka organized a protest to address the state government for quick implementation of RERA as soon as possible just two days after the Government passed the Real Estate (Regulation and Development) Act 2016 without suggesting any further changes.

The Activist along with some apartment owners and organizations fighting for quick implementation of RERA said that the government is yet to give a time frame about the implementation of act and also demanded that the Government quickly lay out all the RERA rules.

“We are requesting the government to come out with undiluted RERA rules to protect suffering home buyers and to appoint Shambhu Dayal Meena, retired Principal Secretary, as the head of the Regulatory Authority to take forward implementation of RERA in Karnataka,” said M.S. Shankar, convener of Fight for RERA, in a statement.

After subject to the Opinion of Urban Development Department, the state government gave a green flag to RERA without any alterations.