Mastering RERA Compliance_ A Comprehensive Guide for Real Estate Professionals (1)

1. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals From Registration to Redressal: Your Guide to RERA Compliance What is RERA Compliance? The Real Estate (Regulation and Development) Act, commonly known as RERA, was introduced in India to regulate and promote transparency in the real estate sector. RERA compliance is mandatory for all real estate developers and builders. Rera Registration Check RERA Compliance Checklist 1.   Registration: Ensure your real estate project is registered with the state’s RERA authority. Registration is mandatory before advertising or selling any project. 2.   Project Details: Provide accurate and complete project details, including the name, address, layout plan, land title status, and approvals. 3.   Builder Details: Furnish details of the builder, including their financial status, past projects, and contact information. 4.   Project Advertisement: Any advertisement for the project must carry the RERA registration number. It includes brochures, websites, and promotional materials. Enquire  WhatsApp  Call https://shreebalajiconstruction.com/rera-compliance/ 1/14

2. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals 5.   Project Delays: If there are any delays in project completion, you must inform buyers and the RERA authority about the reasons for the delay and provide a revised timeline. 6.   Changes in Plans: Any changes in the project’s layout, plan, or specifications must be approved by most buyers and reported to the RERA authority. 7.   Allotment Letter: Issue an allotment letter to buyers specifying the apartment or unit allocated. 8.   Agreement for Sale: Execute an agreement for sale with each buyer and specify the carpet area, possession date, and other relevant terms and conditions. 9.   Project Bank Account: Maintain a separate bank account for the project and use it only for construction and land cost-related expenses. 10. Project Updates: Regularly update project progress on the RERA website per the prescribed format. 11. Advance Payments: Only demand up to 10% of the property’s cost as an advance before signing the sale agreement. 12. Defects Liability: After the possession of the property, address any structural defects or poor workmanship for up to five years as per RERA guidelines. 13. Insurance: Secure insurance for the project against structural defects and share the policy details with buyers. 14. Occupancy Certificate: Obtain the occupancy certificate from the local authority before handing possession to buyers. 15. Escrow Account: Open a separate escrow account for the project to deposit 70% of the funds collected from buyers. This amount can only be used for construction and land-related expenses. 16. Penalties: Be aware of the penalties for non-compliance with RERA rules, including imprisonment and fines. 17. Monthly Updates: Provide monthly updates on the project’s progress to the RERA authority and upload them to the RERA website. Enquire  WhatsApp  Call https://shreebalajiconstruction.com/rera-compliance/ 2/14

3. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals 18. Completion Certificate: Obtain the completion certificate for the entire project once it is finished. 19. Complaint Handling: Address buyer complaints promptly and transparently. 20. Maintain Records: Maintain all records related to the project, including financial transactions and communications with buyers, as these may be required for compliance and dispute resolution. PS: Remember that RERA regulations may vary from state to state in India, so it’s essential to understand the specific requirements of the state where your project is located. FAQ 1. What is RERA?  RERA stands for the Real Estate (Regulation and Development) Act, a law in India to regulate the real estate sector. 2. Who needs to register under RERA?  Real estate developers and builders must register their projects under RERA. 3. When did RERA come into effect?  RERA came into effect on May 1, 2017. 4. What is the purpose of RERA?  RERA aims to promote transparency, protect the interests of homebuyers, and ensure timely project delivery. 5. Is RERA applicable to commercial real estate?  Enquire  WhatsApp  Call https://shreebalajiconstruction.com/rera-compliance/ 3/14

4. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals Yes, RERA applies to both residential and commercial real estate projects. 6. What happens if a project needs to be registered under RERA?  Unregistered projects cannot be advertised or sold legally. 7. Can buyers check a project’s RERA registration status online? Buyers can verify a project’s RERA registration status on the official RERA website. 8. What percentage of project funds must be kept in an escrow account? 70% of the funds from buyers must be kept in an escrow account. 9. How long can a builder delay possession under RERA? Builders can’t delay possession beyond the timeline specified in the agreement. 10. What information must be included in a builder-buyer agreement under RERA? The carpet area, possession date, and project specifications must be included. 11. What is the penalty for non-compliance with RERA? Penalties may include fines, imprisonment, or both. 12. Can buyers seek a refund if a builder violates RERA provisions? Yes, buyers can seek a refund and compensation for violations. 13. Is RERA applicable to resale properties? RERA typically doesn’t apply to resale properties, but builders must disclose RERA compliance. 14. How can buyers ?le a complaint under RERA?  Buyers can file complaints with their state’s RERA authority. 15. What is the role of the RERA authority?  The RERA authority oversees project registration, compliance, and dispute resolution. Enquire  WhatsApp  Call 16. Can builders change the project without the buyer’s consent?  https://shreebalajiconstruction.com/rera-compliance/ 4/14

5. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals Major changes require buyer consent and RERA approval. 17. Does RERA cover ongoing projects launched before RERA came into effect? Yes, ongoing projects must also comply with RERA regulations. 18. Is RERA applicable in all Indian states?  Yes, RERA is applicable in all states and union territories in India. 19. What is the validity period of a RERA registration certi?cate?  The registration certificate is valid until project completion. 20. Can builders advertise a project without RERA registration? No, builders can’t advertise or sell a project without RERA registration. 21. How does RERA protect buyers from fraud?  RERA mandates transparency, project updates, and escrow account usage to protect buyers. 22. Is there a provision for online project updates on the RERA website? Yes, builders must provide monthly project updates on the RERA website. 23. What happens if a builder fails to complete a project as per the timeline? The builder must explain the delay and a revised timeline to buyers and the RERA authority. 24. What is the maximum advance payment a builder can demand from a buyer? A builder can demand up to 10% of the property cost as an advance. 25. Can builders charge additional fees beyond the agreement in RERA- compliant projects?  No, builders can’t charge additional fees beyond the agreement terms. 26. What is the defect liability period under RERA?  Enquire  WhatsApp  Call Builders are responsible for structural defects for up to five years after possession. https://shreebalajiconstruction.com/rera-compliance/ 5/14

6. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals 27. Can buyers request project-related documents from the builder?  Yes, buyers have the right to request project-related documents. 28. Can builders advertise a project without the RERA registration number?  No, advertising must include the RERA registration number. 29. What is the role of the RERA appellate tribunal?  The appellate tribunal handles appeals against RERA authority decisions. 30. Can builders transfer their responsibilities to another party?  Builders can only transfer their responsibilities with buyer consent. 31. Are there any exemptions for small projects under RERA?  Projects with less than 500 square meters or less than eight apartments may be exempt in some states. 32. Can buyers form an association for collective action under RERA? Yes, buyers can form an association to address issues with the builder collectively. 33. What is the maximum interest rate for delayed payments to buyers?  The state’s RERA authority prescribes the interest rate (8.05% pa approx.) for delayed payments. 34. Can buyers withdraw from a project before possession and seek a refund? Buyers can withdraw from the project and seek a refund if the builder defaults. 35. What happens if a builder fails to register a project under RERA?  The builder may face penalties and legal action for non-registration. 36. Is RERA applicable to real estate agents? Yes, real estate agents must also register under RERA. 37. What documents are required for RERA registration? Enquire  WhatsApp  Call https://shreebalajiconstruction.com/rera-compliance/ 6/14

7. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals Documents include project plans, approvals, financial statements, and builder details. 38. Can builders advertise amenities that must be provided in the project? Builders must accurately represent project amenities in their advertisements. 39. Can builders make unilateral changes to the project layout?  Major changes require buyer consent and RERA approval. 40. Can builders demand more than 10% of the property cost as an advance payment?  No, builders can’t demand more than 10% as an advance before the agreement. 41. Can buyers ?le a complaint directly with the RERA appellate tribunal?  Buyers must typically go through the RERA authority before approaching the appellate tribunal. 42. Are there any tax bene?ts for buyers under RERA?  RERA doesn’t provide specific tax benefits; these depend on existing tax laws. 43. Can buyers complain against the builder for quality issues after possession?  Buyers can file complaints for quality issues during the defect liability period. 44. What happens if a builder defaults on their obligations under RERA?  Buyers can seek compensation, and builders may face penalties and imprisonment. 45. Can builders charge different prices for the same property in a project? No, builders must maintain uniform prices for the same property type. 46. What is the role of the RERA authority in resolving disputes? The RERA authority can mediate and resolve disputes between buyers and builders. 47. Are any provisions for project delays due to force majeure events under RERA? Enquire  WhatsApp  Call Force majeure events can grant builders an extension for project completion. https://shreebalajiconstruction.com/rera-compliance/ 7/14

8. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals 48. Can buyers request project documents from the RERA authority?  Yes, buyers can request documents related to the project from the RERA authority. 49. How can buyers verify a builder’s ?nancial status under RERA?  Buyers can check the builder’s financial status in the project’s registration details. 50. Can builders transfer funds between different projects? No, funds collected for a specific project must only be used for that project’s expenses. 51. How much time it takes for RERA registration? The time for RERA registration can vary by state. Still, it typically takes a few weeks to a couple of months, depending on the completeness of documentation and the efficiency of the state’s RERA authority. 52.   What is the meaning of RERA compliant? RERA compliance means adhering to the rules and regulations of the Real Estate (Regulation and Development) Act, ensuring transparency, accountability, and compliance with the law in real estate dealings. 53.   What is the RERA compliance in India? RERA compliance in India involves following the provisions of the Real Estate (Regulation and Development) Act, including project registration, financial transparency, timely possession, and addressing buyer grievances. 54.   What is compliance in a real estate company?  Compliance in a real estate company involves adhering to all applicable laws, regulations, and industry standards to ensure transparency, legality, and ethical conduct in real estate operations. 55.   What are the compliances under RERA that a builder should be adhering to?  Builders should adhere to various RERA compliances, including project registration, maintaining escrow accounts, providing timely updates, honouring buyer agreements, and addressing project-related complaints. Enquire  WhatsApp  Call https://shreebalajiconstruction.com/rera-compliance/ 8/14

9. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals 56.   What is Rule 26 of the RERA Act?  Rule 26 of the RERA Act pertains to the withdrawal of a project by the promoter (builder) and the return of the amount collected from allottees (buyers). 57.   What is Section 31 of the RERA Act?  Section 31 of the RERA Act deals with the role of the Real Estate Appellate Tribunal, including its powers, jurisdiction, and procedures for appeals. 58.   What is Section 46 of RERA?  Section 46 of RERA relates to the punishment for contravention of the provisions of the Act, which may include imprisonment and fines. 59.   What is Section 79 of the RERA Act? Section 79 deals with the powers of the appropriate government to make rules for carrying out the provisions of the Act. 60. What is Section 17 of the RERA case law?  Section 17 of the RERA Act pertains to the maintenance and repair of the common areas and facilities in a real estate project. 61. What is Section 40 of the RERA Act?  Section 40 deals with withdrawing amounts from the project’s separate bank account by the promoter (builder). 62. What is Section 20 of the RERA Act?  Section 20 concerns the builder’s duty to rectify structural defects and other deficiencies. 63. What is Section 59 of the RERA Act?  Section 59 of the RERA Act deals with the powers and functions of the Central Advisory Council. 64. What is Section 81 of the RERA Act?  Section 81 protects action taken in good faith by government officers and employees under the Act. Enquire  WhatsApp  Call https://shreebalajiconstruction.com/rera-compliance/ 9/14

10. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals 65. What is Section 71 of the RERA?  Section 71 of the RERA Act deals with recognising offences and their prosecution. 66. What is Section 41 of the RERA Act?  Section 41 deals with the responsibility of real estate agents to register under RERA and adhere to its provisions. 67. What is Section 80 of RERA?  Section 80 relates to the power of the appropriate government to make rules to carry out the provisions of the Act. 68. What is Section 21 of the RERA Act?  Section 21 deals with the functions and duties of the Real Estate Regulatory Authority. 69. What is Section 38 of the RERA Act?  Section 38 pertains to the powers of the Real Estate Appellate Tribunal. 70. What is Section 7 of the Maha RERA Act?  Section 7 of the Maharashtra Real Estate Regulatory Authority (Maha RERA) Act relates to the authority’s functions. 71. What is Section 19 of the RERA Act?  Section 19 deals with the rights and duties of the allottees (buyers). 72. What is Section 15 of the RERA Act?  Section 15 relates to rectifying structural defects and other deficiencies by the builder. 73. What is Section 58 of the RERA Act?  Section 58 pertains to the power of the appropriate government to make rules for carrying out the provisions of the Act. 74. What is Section 13 violation of the RERA Act?  Enquire  WhatsApp  Call https://shreebalajiconstruction.com/rera-compliance/ 10/14

11. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals Section 13 of the RERA Act relates to the duty of the promoter (builder) to rectify structural defects and other deficiencies. 75. What is Section 11 of the RERA Act case law?  Section 11 of the RERA Act deals with the registration of real estate projects. 76. What is Section 14 of the RERA case law?  Section 14 of the RERA Act relates to revoking a real estate project registration. 77. What is Section 3 of the RERA Act case law?  Section 3 of the RERA Act pertains to establishing the Real Estate Regulatory Authority. 78. What is Section 43(5) of the RERA Act?  Section 43(5) deals with the interest payable by the promoter to allottees for delayed possession. 79. What is Section 56 of the Real Estate Act?  Section 56 relates to the penalty for non-compliance with the orders of the Real Estate Appellate Tribunal. 80. What is Form 5 in Maha RERA?  Form 5 is used for filing a complaint with the Maharashtra Real Estate Regulatory Authority (Maha RERA). 81. What is Section 11(5) of the RERA Act?  Section 11(5) deals with the grounds on which the Real Estate Regulatory Authority may refuse to grant registration to a project. 82. What is Section 18 of the RERA Act Judgements?  Section 18 of the RERA Act pertains to the rights and duties of the allottees (buyers). 83. What is Section 4(2) of the RERA Act?  Section 4(2) deals with the criteria for project registration under RERA. Enquire  WhatsApp  Call https://shreebalajiconstruction.com/rera-compliance/ 11/14

12. 1/2/24, 11:27 AM Mastering RERA Compliance: A Comprehensive Guide for Real Estate Professionals 84. What is Section 18 of the RERA case law?  Section 18 of the RERA Act relates to the rights and duties of the allottees (buyers). 85. What is Section 6 of the RERA Act?  Section 6 deals with the establishment of the Real Estate Regulatory Authority. 86. What is Section 34 of the RERA Act?  Section 34 pertains to the power of the Real Estate Appellate Tribunal to regulate its procedure. 12/14 https://shreebalajiconstruction.com/rera-compliance/