Introduction

Registration with RERA

The foremost step for any real estate company is to register their project with the respective state RERA authority. This involves:

• Submitting Application: Fill out the application form provided by the state RERA authority. The form requires detailed information about the project, including the developer’s credentials, project details, timeline, and financial information.
• Documentation: Provide necessary documents such as the title deed, sanctioned plan, layout plan, and details of the land. Financial statements, legal status, and details of contractors, architects, and structural engineers involved in the project must also be submitted.
• Payment of Fee: Pay the registration fee as prescribed by the state authority. The fee varies depending on the type and size of the project.

Project Advertisement

Once the project is registered, developers must ensure that all advertisements and promotional materials include the RERA registration number. This transparency builds trust with potential buyers and ensures compliance with RERA regulations.

Quarterly Updates

RERA mandates that developers update the project’s status on the RERA website every quarter. This includes:

• Construction Progress: Details about the ongoing construction activities.
• Approvals and Clearances: Information about any approvals or clearances obtained.
• Sales and Inventory: Number of units sold and available inventory.
• Financial Status: Financial updates including funds collected and utilized.

Maintaining Escrow Account

Developers are required to deposit 70% of the project funds, including land and construction costs, in a dedicated escrow account. This ensures that the funds are used only for the specific project and not diverted elsewhere. Regular audits and transparent fund management are crucial to comply with this provision.

Timely Completion and Possession

RERA emphasizes the timely completion of projects. Developers must adhere to the timeline provided during registration. In case of delays, they are liable to compensate the buyers. Ensuring timely possession of the property is critical to maintaining compliance and avoiding penalties.

Dealing with Complaints and Disputes

RERA provides a mechanism for handling buyer complaints and disputes. Developers must address complaints promptly and cooperate with the RERA authorities in resolving issues. Establishing a dedicated customer service team to handle such complaints can be beneficial.

Documentation and Agreements

Ensure that all agreements, such as the sale agreement, are RERA-compliant. The agreement must include:

• Project Details: Clear description of the project and the specific unit being sold.
• Completion Timeline: Expected date of possession.
• Payment Schedule: Detailed payment schedule aligned with the construction milestones.
• Rights and Obligations: Clearly defined rights and obligations of both the buyer and the developer.

Transparency and Disclosures

Transparency is a cornerstone of RERA compliance. Developers must disclose all relevant project information on the RERA website, including:

• Project Plans: Sanctioned plans and layout modifications.
• Approvals and Legal Status: Details of all necessary legal approvals.
• Contractor Details: Information about contractors, architects, and engineers.

Conclusion

Compliance with the Real Estate (Regulation and Development) Act is essential for real estate companies to ensure transparency, build buyer trust, and avoid legal complications. By following the steps outlined above, companies can adhere to RERA provisions and contribute to a more regulated and trustworthy real estate market. Regular audits, transparent communication, and adherence to project timelines will not only help in compliance but also enhance the company’s reputation in the market.