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Top 10 Frequently Asked Questions About RERA

Real Estate in Sarjapur Road

1. Does the RERA act, 2016 cover all Indian states?

Yes, except for Jammu and Kashmir, this act is applicable in all states.

2. What are the objectives of RERA, 2016?

  • Real estate regulation
  • Promoting transparency and reducing red tape in the sale of real estate projects with plans.
  • Protects consumer's interests in real estate.
  • Establishing adjudging authority speeding up the dispute settlement process.
  • Creating an Appellate Tribunal hearing based on decisions, directions, or order of the RERA.

3. Under the rulings of the new Real Estate Regulatory Authority Act, who is the promoter?

All private and public real estate sale bodies fall under this act. This act says the person who construction is considered to be promoters and jointly responsibl for theor roles.

4. Who else is under the regulatory body’s purview?

Real estate agents, web potals, and parties involved in sale, purchase, and registration.

5. What to do if the regulatory body doesn’t respond to an application filed by the Developer for registration of a project?

Section 5 of the At says the Regulatory Authority needs to act on the application within 30 days of receiving it. If the autbority fails, ttthe property is considered to be registered.

6. When can the promoter withdraw the buyer’s money deposited in a Scheduled Bank account?

70% of the buyer's amount is deposited to cover the cost of the project and the promoter can withdraw it. Further, it needs to be certified by an engineer, an architect, and a chartered accountant.

7. What is the rate of payment if the promoter or the allottee defaults?

The government decides it under the RERA rules. Although the percentage payable by the promoter or the allottee shall be the same.

8. What are the promoters obliged to do in regards to insurance?

The promoter should get the insurance of the projects towards the title of the land and the construction of the project and pay premiums and charges before transferring the insurance to the association.

9. Can civil courts and consumer forums entertain disputes under this Act?

Civil courts are barred from settling the disputes, but the Real Estate Authority or the Adjudicating Officer is empowered under the act. Concerning payment of compensation, pending before the consumer forum, State Commission or National Commission may be withdrawn and must be filed before Adjudicating Officer.

10. In case of non-compliance with the guidelines by the Buyer, what are the penalties and punishments?

Section 68 says, if the buyer fails to comply with orders of the authority, they shall be liable to pay a penalty of up to 5% of the cost of the property, of Appellate Tribunal, penalty cumulatively extends up to 10% or imprisonment of one year or both.

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