What is RERA?
Real Estate Regulatory Authority popularly known as RERA is a newly implemented law - THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 to ensure sale of plot, apartment of building, in an efficient manner and to protect the interest of consumers in the real estate sector. It also ensures a dedicated and speedy redressal mechanism.
What is the purpose and why did it come to place?
The act proposes and aims to createtransparency in the real estate related transactions and to safeguard the consumer’s interests. This act is applicable to all the states within India excluding the state of Jammu & Kashmir. To ensure a speedy dispute redressal mechanism.
How is the interest to be paid calculated in RERA matters, as per the RERA guidelines?
Instead of an algorithm or a calculation on the rate of interest to be charged under the RERA guidelines, it is rather fixed and changes as per the SBI rate.
Approximate Rate of Interests :-
State Bank of India Prime Lending Rate plus two percent (paid by the promotors and the allottee).
How is the interest calculated when there is already a clause for liquidated damages, in the Agreement to sell between the parties.
It is the duty and obligation of the promotor/developer to obey and be governed by the terms and conditions of the agreement signed by him/her in lieu of the sale of the said apartment. Failure to obey such terms will make him liable for an action under the RERA act. Meaning thereby, that the sale agreement terms will take precedence over the default conditions set under the law until and unless the agreement stands in contravention to the RERA act.
What is the minimum fee to be paid?
Demand draft drawn in any scheduled bank or online payment mode.
In case of Residential projects :-
- Rs 10 per square meter - In projects with proposed land not exceeding 1000 sq. m.
- Rs 20 per square meter - In projects with proposed land is exceeding 1000 sq. m.
In case of commercial projects :-
- Rs 50 per square meter – In projects with proposed land not exceeding 1000 sq. m.
- Rs 100 per square meter - In projects with proposed land is exceeding 1000 sq. m.
Registration of Agent
Rs. 25,000 in case of an individual and Rs. 2,00,000 in a case other than an individual. Form “G” needs to be filed alongwith the desired fees.
Renewal of the registration of real estate agent/s
Rs 5,000 in case of an individual and Rs 50,000 in case other than an individual alongwith a duly filled “Form J”.
Who can file a complaint with RERA and against whom can the complaints be filed?
Any aggrieved home buyer or the consumer under the ambit of RERA can bring a lawful suit against the developer or the promoter. The documentary procedure to file a complaint is represented below :
How can we file a complaint with RERA?
Filing complaint before Adjudicating Officer of Regulatory Auhtority
Duly filled "Form M" along with a fee of Rs. 1,000 paid using a demand draft payable where the seat of the said Regulatory Authority is situated.
Filing an appeal before Appellate Tribunal
Attested true copy of the order alongwith duly filled "Form L" along with a fee of Rs. 1000. The composition of the authority is :- Chairman + 3 members ; Chapter X of the act.
How to determine the jurisdiction while filing the complaint?
Filing a complaint under RERA is governed as per the simple Civil Procedure code concept of Territorial Jurisdiction i.e. to be filed before the adjudicating officer of the area where the project/home lies or where the cause of action arose.
At what instances can a complaint be filed?
A RERA complaint should lie/ can be filed only, for the violations of the rules and guidelines established under RERA. For instance, under the non-compliance of Sections 59 – Non-registration, 64 – if promoter provides false information, sections 63+64+65+66 – if a real estate agent or promoter fails to comply with the orders or directions of the auhtorities.