RERA regulations have been implemented with the vision to bring transparency and accountability to Real estate developers for their related real estate projects. Real Estate Developers have been entrusted with multiple requirement and compliance as the different stage. For ease of understanding, we have summarized the compliances as under:
- Registration of Real Estate Project – As per RERA Act, every developer shall register its ongoing and new project measuring more than 500 square meters in size and no. of the apartment does not exceed 8 inclusive in all phases, with respective State RERA authority. RERA registration is required for on-going project and new project as under-
- On-going Project – every project which has not received completion certificate as on 01/05/2017, shall be required to get registered with respective State RERA authorities. Some State RERA has excluded the real estate project which has received occupation certificate
- New project – As per RERA Act, every project shall get RERA registration before any kind of advertisement, promotion, booking or offer to sell or any kind of invitation for the purchase of any part of the project.
- Periodical Update – Every promoter is required to update the status of the registered project on quarterly with the respective State RERA Authority. Audited financial shall be submitted on yearly basis.
- Separate Bank Account – Every promoter shall maintain a separate bank account for every project and shall deposit 70% of the prescribed collected amount which would be withdrawn as per the prescribed manner.
- Timely Completion, Fair Agreement to Sell etc.- There are multiple prescribed guidelines to be complied with towards allottees/consumers.
Heavy penalties – At the one side where RERA prescribe compliances, it also prescribes heavy penalties for violation of the prescribed regulations. The penalties for the violation may extend up to 10% of the project cost.