detailed explanation of the types of schemes and projects that come under RERA:
Types of Real Estate Schemes Under RERA
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a comprehensive legislation designed to bring transparency, accountability, and efficiency in the real estate sector. RERA covers a wide range of real estate schemes and projects, ensuring protection for home buyers and imposing strict regulations on developers and agents. Here is a detailed explanation of the types of schemes and projects that come under RERA:
1. Residential Projects:
- Apartments and Flats: Any housing project involving the construction of apartments or flats must be registered under RERA.
- Independent Houses and Villas: Individual residential units such as houses and villas also come under the purview of RERA if they are part of a larger real estate project.
2. Commercial Projects:
- Office Spaces: Commercial real estate projects that involve the development of office buildings must comply with RERA regulations.
- Retail Spaces: Projects including shopping malls, retail complexes, and showrooms are required to be registered under RERA.
3. Mixed Development Projects:
- Projects that combine both residential and commercial units, such as integrated townships and mixed-use developments, fall under the ambit of RERA.
4. Ongoing Projects:
- Projects that were already underway before the commencement of RERA but have not received a completion certificate must also be registered under the Act.
Key Features and Requirements Under RERA
1. Mandatory Registration:
- All real estate projects (residential and commercial) that exceed 500 square meters or involve more than eight apartments must be registered with the respective state RERA authority.
- Developers must provide detailed information about the project, including the layout plan, land status, approvals, timelines for completion, and financial details.
2. Project Transparency:
- Developers are required to upload project details on the RERA website, including the sanctioned plans, layout plans, the status of approvals, and completion schedule.
- The registration number and other project details must be displayed prominently in advertisements and promotional materials.
3. Protection for Home Buyers:
- RERA mandates the creation of a separate escrow account where 70% of the project's funds must be deposited. This ensures that the funds are used only for the project's development and not diverted elsewhere.
- Developers cannot make any changes to the project's plan without the consent of two-thirds of the buyers.
4. Timely Completion and Delivery:
- Developers are accountable for delivering the project on the promised date. If they fail to do so, they are liable to pay interest on the amount paid by the buyers for the delay period.
- Buyers have the right to withdraw from the project with a full refund if the developer fails to deliver as per the agreement.
5. Defect Liability:
- Developers are responsible for fixing any structural defects or poor quality work within five years from the date of possession without any additional charges.
6. Grievance Redressal:
- RERA provides a mechanism for home buyers to file complaints against developers, real estate agents, and projects. The Real Estate Regulatory Authority and Appellate Tribunal are established to handle such disputes and ensure justice is served.
Exemptions Under RERA
While RERA covers a wide array of projects, certain projects are exempt from registration:
- Projects where the area of land proposed to be developed does not exceed 500 square meters.
- Projects that do not involve more than eight apartments.
- Renovation, repair, or redevelopment projects that do not involve marketing, advertising, selling, or new allotment of real estate properties.
In summary, RERA aims to create a more organized and transparent real estate sector, protecting the interests of buyers and ensuring ethical practices by developers. It mandates the registration of a variety of real estate schemes, including residential, commercial, and mixed development projects, while also offering mechanisms for timely delivery, quality assurance, and grievance redressal.