The Real Estate Regulation and Development Act or RERA is a law that was enforced to promote transparency in the real estate sector. According to the RERA Act, 2016, safeguarding home buyers’ interests was the chief aspect that was addressed further to avoid fraudulent activities. It has become mandatory for investors to fulfill the requirements of RERA compliance. Moreover, builders and real estate developers should comply with RERA guidelines. Additionally, the accountability factor also gets affirmed when RERA-compliant real estate projects are invested in. Here is a handy guide that will help you understand the role of RERA consultants in India in making the transactions between real estate and investors transparent.
Firstly, you must understand that RERA compliance boosts the confidence of investors by ensuring that the guidelines related to project registration, completion, allocation of funds, and the usage of the right materials in the construction process. Since the RERA compliance guidelines need to be cautiously addressed and fulfilled to get certified, the highly qualified RERA consultants in India help clients navigate the regulatory landscape, land verification & procurement, and RERA consultancy to comprehensive project management. At this point, let’s take a look at the parameters that contribute to trust and transparency through RERA compliance.
RERA compliance checklist – A basic guide for beginners
As a part of RERA compliance, real estate developers must register projects, share project completion timelines, and adhere to the regulatory guidelines. Here’s the step-by-step explanation of this law for further understanding:
- Verification of RERA registration and the record of the builder
The foremost aspect that RERA consultancy focuses on is the registration of the project. It further implies that all real estate developers and builders should get the project registered by the state’s RERA authority before advertising the property. This step is an assurance to investors that the project complies with the RERA guidelines and is a secured option for investment.
- RERA registration number of the real estate has to be verified.
The record of the builder shows his financial stability, reliability, and the feedback of the customer.
- This aspect is also essential to ensure that the builder is not involved in any dispute related to the previous project.
- The credibility of the real estate developer can be verified while ensuring the project is RERA-approved.
- Project details and sale agreement evaluation
To maintain transparency between the real estate developer and the investor, it is essential to check if the building plans proposed by the builder are approved and comply with the RERA guidelines. As a part of this assessment, ensuring that building plans are not unauthorized is a key element.
- Checking the provisions and detailed overview of the real estate project is involved in this step.
- Carpet area disclosure needs to be discussed with the builder
- Sale agreement terms should comply with the terms of RERA
Detailed project overview must be provided by the real estate developer
All the details about the project should be transparently shared by the builder including:
- Structural approval
- Project completion details
- Amenities provided to the buyer
- Legal clearances Real estate project blueprint
Escrow account verification
To attain financial transparency, RERA consultants in India help builders create separate escrow accounts. Keeping in mind this requirement of RERA, 70% of the project funds must be deposited in this separate account.
- This step is aimed at the prevention of improper allocation of funds during the project.
- Risk of diversion of funds to other projects is minimized.
- The funds are used for the buyer’s project by employing this step
Project timelines
According to this RERA law guideline, the project must be completed by the real estate developer and his team within the specified period. It also implies that:
- If the builder fails to timely complete the project, then, he must provide compensation to the client.
- He might be liable to liability if the project completion goals are not fulfilled as planned.
Project delays and changes in the schedule
Even though the project timeline is set initially, at times, the real estate developer may not be able to execute the plan in, a timely manner. In such a scenario, the builder or real estate developer should inform the buyer and RERA. Additionally, he should:
- Share the revised project completion timeline
- The change in the plan including the structure layout or specifications must be approved by the buyer
Buyer rights and duties
RERA has ruled out guidelines that protect buyers while investing in RERA-approved real estate projects. Hence, this aspect covers:
- Timely possession, right to information, and quality construction must be maintained throughout the project execution.
- Buyers should pay the builder timely as per the discussed terms of the real estate project agreement
Defect liability
The real estate developer is liable to address the liabilities arising after the possession of the property. It implies that:
- During the specified defect liability period, the issues related to construction or any workmanship liabilities need to be addressed by the builder.
- This aspect is applicable from the date of property possession and applicable till the specified period
Boost transparency & accountability through RERA compliance
If you are planning to invest in a registered project and want to seek assistance from RERA consultants in India, then, V3 Infrasol is the right match. Our experts have profound knowledge of RERA compliance terms and we focus on grievance redressal and anti-discrimination, primarily. As a part of these two provisions of RERA, we help our clients in knowing how to get their concerns addressed. For instance, if there is any complaint related to the real estate project owner or builder concerning the RERA compliance, then, proper dispute resolution is worked over. Furthermore, the detailed verification of builder credentials, project evaluation, assessment of the carpet area, and confirming the payment process are some of the points of consideration that get addressed by our RERA consultants.
The bottom-line
Invest in the RERA approved project and identify all the green flags by partnering with V3 Infrasol to get familiar with the legal framework. Being the top RERA consultancy, we execute the project documentation process efficiently while adhering to the updated RERA guidelines.
