Implications of buying in projects not registered with RERA
You may land in serious trouble if you purchase in a project which is not registered with your state’s or UT’s RERA. Read below the benefits of RERA-registered projects, and the risks involved in those not registered.
Homebuyers beware of buying in a project under construction, which is not registered with your state’s Real Estate Regulatory Authority (RERA).
These regulatory bodies were formed last year in many Indian states and UTs with the objective of protecting the rights of homebuyers and July 31, 2017, was the deadline for registration of projects under RERA, while projects not registered are now deemed illegal.
In simple words, buyers purchasing properties in a project that is still not registered with RERA can face difficulties and will be on the weak side if they approach RERA in case they want to file a complaint.
Narendra Kumar, advocate on record with the Supreme Court, says that RERA takes care of everything involving developers and consumers in the real estate sector. “RERA is a foolproof regulation to re-build trust, bring in transparency, and safeguard consumers’ interest. If a builder fails to register his project with RERA, it is his fault. When buyers approach RERA for redressal of any grievance, they would be asked why they opted for an unregistered project,” Kumar says.
It is mandatory for developers to quote the registration number in all their promotions, which means they cannot advertise a project unless it is registered with RERA. So, check out if the project you are interested has been advertising in the media or not.
Anthony De Sa, Chairman of Madhya Pradesh RERA, said that though RERA will not refuse to accept the complaints of any homebuyer, it is the responsibility of consumers to check whether the project they are investing in is registered with RERA or not.
On the RERA authority portals, the details of commercial and residential projects are mentioned. A developer has to list all the details and updates about the project, number of units, floors and how many are sold or unsold every three months. Commercial or residential projects with 8 units and more come under the ambit of RERA.
All new projects and those under construction come under the ambit of RERA. The authority ensures that a developer delivers what he promised to buyers as mentioned in the sale agreement, including adherence to the completion schedule.
What comes under RERA?
The Real Estate (Regulation and Development) Act of 2016 defines projects that come under its purview:
a) Every project where the area of land proposed to be developed exceeds 500 square metres, or the number of apartments proposed to be developed exceeds 8, inclusive of all phases;
(b) Where the promoter has received completion certificate for a real estate project prior to the commencement of this law;
(c) Any project other than that where renovation or repair or re-development is undertaken, provided that this does not involve marketing, advertising, selling or new allotment of any unit, plot or building, as the case may be, in that real estate project.