by akshayRERA Compliance Checklist for Real Estate Developers and Agents
RERA was implemented in May 2016 to promote more transparency in buying and selling houses. Its sole objective is to address the concerns of builders, real estate agents, buyers, and brokers.
If you plan to buy your dream house, take a few minutes to read this entire article and keep the compliance checklist in your mind.
Purpose of RERA
RERA makes home-buying easy and safe. However, you can get a concise idea of the purpose of RERA from the following points:
- It guarantees a home buyer that all the papers regarding a particular property are transparent and no issue is underlying it.
- It also guarantees real estate investors that a property is safe and you will not face any issues.
- The body sets up regulations to safeguard buyers’ interests and maintains a closer look if
builders follow them. - The body holds the builders or developers accountable if they delay in delivering their operations.
- Last but not least, RERA ensures that every buyer knows their rights while buying a home or investing in real estate properties.
Benefits of RERA
RERA brings an array of benefits to buyers, and it is high time you share a glance at them:
- Builders and developers must carry out a RERA registration before starting any project. This helps in reducing the chances of fraud.
- This body safeguards the interests of both builders and buyers.
- It is applicable for both commercial and residential sites.
Impact of RERA on Real Estate Agents
RERA has an extensive impact on buyers and builders. However, real estate agents have faced a more significant impact of RERA. If you are a real estate agent, keep the following in mind:
- RERA of each state will resister every proposed project that exceeds an area of 500 sq. mt. and has more than eight apartments.
- You must submit 70% of the money collected from the buyers to the bank to ensure no chance of laundering money.
- You must maintain one agreement model among all the buyers and yourself.
RERA Compliance Checklist
You might be sure that, like any other compliance or government issues, you must maintain a proper checklist. However, if you have yet to know about them, here is a clear and straightforward checklist. Please go through them. They will help to get a clear idea of the checklist.
- Document Upload:
First thing first, you have to upload all the necessary documents, including the approvals, plans, agreements, advertisement or prospectus, etc., on the online portal of the RERA of your state. It will enable everyone to go through all the details of your project. - Update the Quarterly Compliance with RERA:
You have to register your projects, and then you have to maintain quarterly updates of the compliance reports of your projects. If you fail, you might have to pay a hefty penalty. - Open an Escrow Account:
You might already know that RERA safeguards the interests of buyers. Therefore, you must submit 70% of the money collected from the buyers into the designated RERA account. You are supposed to use that money as your project cost. - Comply with the Set of Allotments:
You have to fulfill some of the responsibilities as per the RERA regulations. These responsibilities have to be fulfilled while buyers are booking your flats. These are as follows:- Ensure that all the transactions are made through the registered account f RERA.
- You have to make all the approved plans available to every buyer.
- You can receive up to 10% of the unit cost as an advance payment.
- Establishing a Society:
As per the government guidelines mentioned in the RERA, as a developer, you must form a cooperative or wellness society for your buyers. This is a crucial point that you cannot ignore. - On-time Delivery:
If you have promised to deliver your finished project within two years of initiating the project, you have to provide them on time. However, you will get a three months-time to hand over all the possession. Moreover, you must transfer the shared space to the association of the allottees. - Check the Building Quality:
If your buyer points out any discrepancies regarding the construction within 30 days of delivery, you have to mend it without asking for any extra cost.
Conclusion
In short, RERA is a government body that aims to safeguard buyers’ interests while they buy homes or residential properties. Hence, they have set up a series of rules and regulations that developers have to abide by. This checklist reduces the chance of fraud and money laundering.
