Frequently Asked Questions
A multi-storey remains the most preferred housing units in metros and large cities today. It is a cluster of apartments in a high-rise building developed in a plot with all amenities available within a gated community. These units can be aggregated and constructed by developers or in the cooperative mode as Cooperative Group Housing Societies (CGHS). These need good common facilities management to take care of aggregating services and providing them to individual units for a fee. This fee is levied as monthly maintenance charges. They cover water and power supply, including back-ups, lift and common area maintenance and landscaping. Many developments also provide plumbing and electrical services for a fee.
With RERA, the Government has codified the best practices for the first time in this sector. Consumers’ interests are taken care of, covering all commercial and residential real-estate. There was an over-whelming need for regulations and uniform guidelines in a scenario where the consumer discontent was rising by the day, as evidenced by the increase in litigations. Some broad objectives that are covered by the Act are as follows –
- To bring transparency and efficiency in the process of buying and selling of Real-estate.
- To provide legal cover and to protect consumers’ interests / rights in the RE sector
- To ensure that there is a defined process and efficient handling of disputes
- To define and standardize term and measures, so as to bring all concerned parties to the same level of understanding, thereby also lending certain standardization across builders / projects. This will further help consumers to compare diverse projects and developers with ease.
- Defining duties, liabilities and penalties for builders / developers and brokers / intermediaries.
- Setting up timelines for registration processes and dispute resolution.
- RERA mandates all developers / builders to upload all relevant information regarding a project – viz. Details of land titles, approvals, construction progress, names of brokers etc, on their website. These information shall then be easily available in one place.
(a) Where area of land proposed to be developed does not exceed 500 sq m or number of apartments proposed to be developed does not exceed eight, inclusive of all phases. While the central government provides for these minimum area requirements the local governments can change the area requirements to conform to the Act, if required such minimum area threshold can be revised even lower.
(b) Where promoter has received completion certificate for Real Estate Project prior to commencement of Act
(c) For purpose of renovation or repair or re-development which does not involve marketing, advertising, selling or new allotment of any apartment, plot or building, under real estate project
Once the occupancy certificate is issued by the real estate developer, the consumer is required to take possession within two months’ time.
If the consumer is not able to make timely payments for his purchase, he is required to pay interest at a prescribed rate. It is compulsory for a consumer to exhibit active participation in the formation of an association, a cooperative society or any federation of consumers.
A consumer shall participate towards registration of the conveyance deed of the unit.