Frequently Asked Questions

Que 1 : What is RERA act and how will this change REAL Estate industry prospect?
Ans: RERA is Real Estate Regulation and Development Act. The act was introduced on 1st May 2016, and came into force from 1st May 2017. The Act has made the registration of Under Construction Projects mandatory in RERA and only after registration they can start selling. RERA is an act to establish the Real Estate regulatory authority for regulation and promotion of the real estate sector to ensure the efficient real estate sales in a transparent manner and to protect the customer investments. RERA is also focussed on establishing adjudicating mechanism for speedy dispute redressal.
Que 2 : How do I know if the project is RERA registered?
Ans: For RERA registration, developer has to upload all details about projects on RERA website and then they get a RERA number and project page on RERA website. You can go to respected RERA website (state wise) and search through project name. If the project is registered, you will end up opening the page which has all the details about the project.
Que 3 : What is carpet area? Is balcony or veranda area included in the carpet area?
Ans: “Carpet area” means the net usable floor area of an apartment. The area covered by the internal partition of walls of the apartment also comes under carpet area. It is exclusive of area covered by walls (wall width), area under shaft, balcony area or any open terrace given with the apartment.
Que 4 : What rights thee consumer gets under RERA?
Ans: a) Rights to get details about promoter, land status, layout plan, plan of development works, status of statuary approvals, number of parking, consultant, architect, material, specifications, sizes, amenities, time period for project completion etc.
b) Right to know about the name and addresses of agents, contractors, architects, engineer etc.
c) Right to claim on interest in case of delay or refund, non-adherence to approved plans or specifications.
d) Right to claim on rectification if some construction/structural default is witnessed after possession for next 5 years.
e) Right to file a case if there is any discrepancy in arbitration against the developer in the court of RERA.
f) Right to claim refund in case of delay in possession or get interest on the money deposited.
Que 5 : What clauses should be included in Buyer-Seller agreement in RERA?
Ans: The agreement under RERA is standard format of agreement. The consumer right is all protected in this. However, there is a proper arrangement for developer in context of cash flow and delay payment penalty mandate.
Que 6 : How RERA influences the sales process?
Ans: Under RERA, there are amendments in all divisions of work - starting from marketing all collaterals, brochures, pamphlets and hoardings to any other advertising. All of this needs to be transparent and displayed with RERA number and RERA website. Developers/sellers are legitimate to share right information. They cannot misguide the customer. The communication flow needs to be approved under RERA.
a) The brokers/channel partners who work for the project also need to register themselves under RERA and developers are also required to share their name on RERA as sales person of that particular project.
b) A promoter shall not accept a sum of more than 10% of the apartment cost as an advance payment or as an application fee without entering to a written agreement for sale.
c) A promoter shall not accept a sum more than 10% of the apartment cost as an advance payment or as an application fee without entering to a written agreement for sale.
d) The sales process becomes smooth, transparent and informative as from starting every information needs to be in sync with RERA submission.
Que 7 : What is about pre-launch sale under RERA?
Ans: No pre-launch sale exists under RERA until the project is RERA approved. Any transaction with the name of pre-launch is considered to be an illegal dealing and is considered as a punishable offence.
Que 8 : Does RERA allow channel partners or brokers to deal in sales process?
Ans: Any broker/ channel partner needs to sale any property first. They need to register themselves under RERA by paying a fee, and also for any project they want to work. The developers require to register their names under RERA; then only they can go and sell that project. It is more streamlined now.
Que 9 : Which after-possession rights come under RERA?
Ans: There are rights mentioned for the customer under RERA to protect his investment.
a) Right to claim on rectification: If some construction/structural default is witnessed after possession for next 5 years.
b) Right to file a case: In case any discrepancy in arbitration is found against the developer in the court of RERA.
Que 10 : How RERA helps consumer in case of delays?
Ans: Developer is liable for the demand of customer to return the amount he received from him in respect to the flat/property/apartment with interest at such rate that may be prescribed in the agreement including the compensation in the manner as provided under RERA act. (it is equal to the RBI’s MCLR rate +2% on the money paid by consumer)
Que 11 : How RERA helps if the product is different as compared to what was committed?
Ans: If customer finds any default or difference in the product, he can cancel the unit and gets the complete refund with interest or builder has to rectify within a month.
Que 12 : What is the further improvement required to make RERA more impactful?
Ans: The audit system needs to be based not only on the construction stage, but also on all aspects of cash inflow and outflow, for example - other payments are in place, employee salary released, vendor payments made etc.
Que 13 : Is there any relief by RERA in delivering timeliness for builders?
Ans: The Real Estate Regulatory Authority (Rera) of the state has said it will relax delivery timelines and other norms for builders for the time being because of the effect of the coronavirus pandemic on the overall economy.
Que 14 : Is there any relief on refunds and penalties for builders?
Ans: Developers that they be granted relief on timelines as well refunds and penalties.
Que 15 : Till when there will be relief for builders by Rera?
Ans: Though Rera officials confirmed builders would be granted relief, the details of the relaxation would only be available when the authority starts functioning.
Que 16 : What are all others relaxations builders requested Rera to look in to?
Ans: The builders are also not asked to submit quarterly progress reports along with photos and videos of their projects. Usually, this is done by March 31. There is no way builders can follow these norms in the current situation. All such compliances should be deferred at least by a few months,”
Que 17 : Is there any relaxation in registration of projects?
Ans: The developers have also sought relaxations in registration of projects. They have requested UP-Rera for amnesty to unfreeze escrow accounts for the time being. The regulatory body had frozen the accounts of many developers for not complying with orders and timelines.