The government of India has finally decided that a time has come where the real estate property seekers in India should be saved from the exploitation by the promoters. The promoters, commonly known as builders, are doing more harm than good to the real estate sector in India. Where this sector is considered as one of the most important economic interest for people in the developed countries, in India, it is seen as a blot in the economy. Our real estate situation was not always like this, but with the growth of India economically in other sectors, the rich builders’ greed has also gone up. For their personal profits, many promoters seek unethical and cunning ways to get money from a middle-class person, who innocently gives away his whole life’s income to own a house for himself and his family. In return, these middle-class buyers get delayed possession of their flats, faulty societies and many such problems. Many promoters often forget that richness is not an individual luxury, but it comes with many responsibilities for the society. Our team, RERA Consultancy is not asking these promoters to give away free houses, but at least they should develop a conscience that owning a house is a big and a sentimental thing.
However, the good news for the buyers is that at least the government has developed this conscience and have formed a body called as RERA (Real Estate Regulatory and Authority) under the Real Estate Authority Bill 2016. This body will start from scratch and lay down the most basic rules which are always the most important. Our dedicated members of RERA Consultancy know that this policy can be a game-changer in real estate India as the guidelines of this policy brings coordination between the buyer and the promoter. The guidelines of this body mention several laws which are for the registration and functions of a promoter. One of the fascinating aspect about RERA is that it will also overcome the problems that promoters face due to the late approval of their projects which often force them to go for unfair methods to save the enormous amount of money they have invested. We are here to help and guide the promoters in their registration process so that people can gain a trust in them. RERA Consultants with RERA India will help to decrease the gap between a buyer and a promoter so that the future of India can see the real estate sector in the most transparent and disciplined way.
- The promoters would have to make an application to get registered with RERA. This application should be submitted in its respective RERA’s body within three months of RERA being made in that state.
- Along with the application, a promoter has to submit his personal information and his project information. He will also have to submit documents related to projects launched by him in the last five years. This is done so that RERA can keep an official record of all his documents which should be made public. These will be uploaded on RERA India website along with the promoter’s photograph.
- If one study the laws of RERA, he would understand that those builders who follow the norms will not find any difficulty in getting registered with RERA. In fact, it will actually make them happy that good promoters can now be differentiated with the bad ones, where previously many of the good ones had to suffer due to the faults made by other builders. The authority also has to become proactive as now, if it doesn’t approve or rejects an application within a month of its submission or does not give clear reasons that on what ground a promoter’s application has got rejected, the promoter would automatically get registered in RERA.
- Once registered, all the information of a promoter will be uploaded on the RERA website. The promoter would also be given a login ID so that he can update his projects’ details for the awareness of the general public. The defaulters’ list will also be uploaded on this website, thus, the promoters can’t have any other way than doing the right thing.
Now, we can easily see that the fair promoters can now easily be distinguished from the unfair ones. This seems a basic thing, but its affect would be magnanimous in the eyes of the public as each person looks to own an affordable house. The buyer can now easily trust a builder who has a government stamp on its honesty. This is good for the promoter as well, as now he would not have to worry about the government approvals and all and can focus on providing superior quality homes to people in the scheduled time. RERA Consultancy is a platform where a promoter can come and we will guide him so that the registration process goes smoothly. Our expert team will help do anything for the cause of coordination between a buyer and a promoter. RERA Consultancy will not spoon feed anything to anyone, but will rather do things with proper interaction and discussion as we see our consultancy as a base for information.
We will also provide a platform for the buyers and the promoters so that they can do business in a harmonious manner. Following are some new rules under RERA, which the promoters should know.
- Rigidity in Change of a plan- He can now only change a project’s plan that has been registered with a two-third majority of the buyers of that project. To make an easy flow in this regards, we will make sure a proper discussion goes with buyers and the builder.
- Safekeeping Funds- A promoter now has to keep at least 70% of the funds generated through the selling of houses of a project in the project’s account. This will further make a buyer trust a builder as now, the government itself will remove the cause for delayed projects or the promoter declaring lack of funds. The interest paid by the buyer and the promoter in delaying giving money and the house respectively will also be made equal.
- Functions of a Promoter- The functions of a promoter have been increased as they now have to give the buyer every document that a buyer should have while signing an agreement. He has to take the responsibility of the services he provides until a local body is formed with the society. He will also have to get two-third majority in case he thinks to transfer the project to someone else.