How Can a Builder Comply with RERA?
How Can a Builder Comply with RERA?
Project Registration
Registration of Project: Builders must register their projects with the RERA authority before advertising, marketing, or selling any units.
Advertisement
Advertisement: Any advertisement or promotion must adhere to the details provided during the registration of the project.
Withdrawal – POC Procedure
Withdrawal Process: Builders can withdraw funds from the project account according to the Percentage of Completion (POC) method.
Website Update / Disclosures
Website Updates and Disclosures: Regular updates and disclosures must be made on the RERA website to maintain transparency.
Carpet Area
Carpet Area: The carpet area of the units must be clearly defined and communicated to the buyers.
Changes in Project – Approval of 2/3 Allottees
Project Changes: Any major changes in the project plan require the approval of two-thirds of the allottees.
Project Accounts – Audit
Project Accounts Audit: The project accounts must be audited regularly.
Deposit 70% of Collected Funds from Allottees into Project Account
Fund Deposit: Builders must deposit 70% of the collected funds from the allottees into the project account. Withdrawals from this account can be made to cover construction and land costs.
Withdrawals Should Be in Proportion to the Percentage of Completion
Proportionate Withdrawals: Funds should be withdrawn in proportion to the completion percentage of the project.
Withdrawal Certification
Withdrawal Certification: Withdrawals must be certified by an engineer, architect, and Chartered Accountant (CA).
Arrangement to Freeze Non-compliant Project Bank Accounts
Non-compliant Account Freezing: RERA has provisions to freeze project bank accounts if they are non-compliant.
Interest for Delays
Interest for Delays: Interest rates for delays will be the same for both the customer and the promoter.
Information a Builder Must Provide Under RERA
Details of Apartments
Number, Type, and Carpet Area: Information on the number, type, and carpet area of the apartments.
Approval for Major Additions or Alterations
Approval for Changes: Approval must be obtained from affected allottees for any major additions or alterations.
Quarterly Updates on RERA Website
Unallocated Inventory and Pending Approvals: Quarterly updates on unsold inventory and pending approvals must be provided on the RERA website.
Project Completion Timeline
Completion Timeframe: The timeframe for project completion must be specified.
No False Statements or Promises in Advertisements
Accurate Advertisements: Advertisements must not contain false statements or promises.
No Arbitrary Cancellation of Units
No Arbitrary Cancellations: Units cannot be arbitrarily canceled by the promoter.