I find this RERA very complex, how this is going to unfold?
It is going to be very easy. Upon receipt of an application by the promoter, the Regulatory authority shall within a period of 30 days, grant or reject the registration. Upon granting a registration, the promoter will be provided with a registration number including login id and password for accessing the website of Regulatory authority. The promoter can create his web page and he needs to get the details of the proposed project filled. If the Regulatory authority fails to grant or reject the application of the promoter within 30 days, then the project shall be deemed to have been registered.
Sounds good! What will be the validity period for the project? What happens if the developer fails to comply with deadline?
The registration once granted will be valid until the project is completed. The period will be extended by the Regulatory authority for a period not exceeding 1 year in aggregate only due to force majeure and on payment of such fee as may be specified by Regulation from Regulatory Authority.
The regulatory authority may revoke the registration granted on receipt of a complaint or on the recommendations of the competent authority in case the promoter is involved in any kind of unfair practices or violates any terms or condition of approvals granted for the project or he fails to comply with rules or regulation by Regulatory Authority.
If Regulatory Authority revokes the registration, what happens to project and consumers like me?
In the event of revoking of registration by Regulatory Authority or if the registration lapses, the Regulatory authority shall debar the promoter from accessing the website in relation to the project, specify his name in the list of defaulters on its website and also inform other Regulatory Authorities in other states and Union territories about such cancellation.
The Regulatory authority shall facilitate the remaining development works to be carried out by competent authority or association of allotted members or in any other manner determined by Regulatory Authority. However, association of allotted members will have the first right of refusal for carrying out the remaining development work. The Regulatory authority can also direct the scheduled bank holding the project bank account to freeze the account. The DE freezing of account will be based on the further course of development action taken from the Regulatory Authority.
The pricing was determined by Super Built Up area, is it going to continue as it is?
The pricing will be on Carpet Area. As per this act, the developers can sell units only on carpet area, which includes floor area covered by internal partition of walls in the apartment. This excludes the external walls, areas under service shafts, exclusive balcony or verandah area and exclusive open terrace area.
Where can I access information about the project, developer and approvals?
The promoter has to create his web page on the website of the Regulatory Authority and enter all details of the proposed project including a)details of the registration granted by the Regulatory Authority b)quarterly up-to-date list of the number and types of apartments or plots or garages, as the case may be, booked c)quarterly up-to-date status of the project along with the list of approvals obtained and approvals pending subsequent to commencement certificate and such other information and documents as may be specified by the regulations made by the Regulatory Authority.
The advertisement or prospectus issued or published by the promoter should prominently mention the website address of the Regulatory Authority, where all details of the registered project have been entered and include the registration number obtained from the Regulatory Authority and other similar details.
Will I be compensated if the information provided is incorrect or false?
In case any potential buyer makes an advance or a deposit on the basis of the information contained in the notice, advertisement or prospectus and sustains any loss or damage because of any incorrect, false statement included in these, he shall be compensated by the promoter in the manner as provided under the Act. Also, if the person affected by such incorrect, false statement contained in the notice, advertisement or prospectus, intends to withdraw from the proposed project, his entire investment (along with interest at such rate as may be prescribed and compensation in the manner provided under the Act), will be returned to him.
How is the payment structure towards project evolving with this act?
A promoter shall not accept a sum more than 10% percent of the cost of the apartment, plot, or building, as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement of sale with such person and register the said agreement of sale, under any law for the time being in force.
Are developers allowed to add and alter the plans without intimation?
The promoter cannot make any addition or alteration in the approved and sanctioned plans, structural designs, specifications and amenities of the apartment, plot or building without the previous consent of the allotted members. In case the promoters want to make any changes, he must obtain written consent of at least two-thirds of the allotted members, other than the promoter, who have agreed to take apartments in such a building.
What happens if there is structural defect in the construction? Will my interest gets protected?
In case any structural defect or any other defect in the workmanship, quality or provision of services or any other obligations of the promoters is brought to the notice of the promoter within a period of five years by the allotted members from the date of handing over possession, the promoter shall rectify such defect without any further charge, within thirty days. If the promoter fails to rectify such defect within such time, the aggrieved allotted members shall be entitled to receive appropriate compensation in the manner as provided in the Act.
What happens to me in case developer chooses to transfer the property or assign it to someone else in the middle of development?
The promoter shall not transfer or assign his majority rights and liabilities in respect of a project to a third party without obtaining prior written consent from two-thirds of the allotted members, except the promoter, and without the prior written approval of the Regulatory Authority.
Please note that the allottee, irrespective of (i) the number of apartments or plots booked by him or booked in the name of his family; or (ii) in the case of other persons such as companies/firms/any association of individuals, by whatever name called, booked in its name or booked in the name of its associated entities/related enterprises, shall be considered as one allottee only.
Will I get refund of amount in case of delay in handing over possession?
In case the promoter is unable to hand over possession of the apartment, plot or building to the allottee (i) in accordance with the terms of the agreement of sale; or (ii) due to discontinuance of his business as a promoter on account of suspension; or (iii) revocation of his registration or for any other reason, then the promoter shall be liable, on demand being made by the allotted members, to return the amount received by him from the allotted members with interest and compensation at the rate and manner as provided under the Act. This relief will be available without prejudice to any other remedy available to the allotted members.
However, where an allottee does not intend to withdraw from the project, he shall be paid interest by the promoter for every month of delay, till the handing over of the possession, at a prescribed rate.
The information provided here in Homemantra.co has been collected from publicly available sources, and is yet to be verified as per RERA guidelines.* Details collected and displayed here are for information purposes only.*