What is the RERA (Real Estate Regulatory Act)?


The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector. The Rajya Sabha passed the RERA bill on March 10, 2016, followed by the Lok Sabha on March 15, 2016 and it came into force from May 1, 2016. 59 of its 92 sections were notified on May 1, 2016 and the remaining provisions came into force from May 1, 2017. Under the Act, the central and state governments are required to notify their own rules under the Act, six months, on the basis of the model rules framed under the central Act.

How will RERA Impact home buyers


Some of the important compliances are:


  • Informing allottees about any minor addition or alteration.
  • Consent of 2/3rd allottees about any other addition or alteration.
  • No launch or advertisement before registration with RERA
  • Consent of 2/3rd allottees for transferring majority rights to 3rd party.
  • Sharing information project plan, layout, government approvals, land title status, sub-contractors.
  • Increased assertion on the timely completion of projects and delivery to the consumer.
  • An increase in the quality of construction due to a defect liability period of five years.
  • Formation of RWA within specified time or 3 months after majority of units have been sold.

The most positive aspect of this Act is that it provides a unified legal regime for the purchase of flats; apartments, etc., and seeks to standardise the practice across the country. Below are certain key highlights of the Act:

Establishment of the regulatory authority: The absence of a proper regulator (like the Securities Exchange Board of India for the capital markets) in the real estate sector, was long felt. The Act establishes Real Estate Regulatory Authority in each state and union territory. Its functions include protection of the interests of the stakeholders, accumulating data at a designated repository and creating a robust grievance redressal system. To prevent time lags, the authority has been mandated to dispose applications within a maximum period of 60 days; and the same may be extended only if a reason is recorded for the delay. Further, the Real Estate Appellate Authority (REAT) shall be the appropriate forum for appeals.

Compulsory registration: According to the central act, every real estate project (where the total area to be developed exceeds 500 sq mtrs or more than 8 apartments is proposed to be developed in any phase), must be registered with its respective state’s RERA. Existing projects where the completion certificate (CC) or occupancy certificate (OC) has not been issued, are also required to comply with the registration requirements under the Act. While applying for registration, promoters are required to provide detailed information on the project e.g. land status, details of the promoter, approvals, schedule of completion, etc. Only when registration is completed and other approvals (construction related) are in place, can the project be marketed. Reserve account: One of the primary reasons for delay of projects was that funds collected from one project, would invariably be diverted to fund new, different projects. To prevent such a diversion, promoters are now required to park 70% of all project receivables into a separate reserve account. The proceeds of such account can only be used towards land and construction expenses and will be required to be certified by a professional.

Continual disclosures by promoters: After the implementation of the Act, home buyers will be able to monitor the progress of the project on the RERA website since promoters will be required to make periodic submissions to the regulator regarding the progress of the project.

Title representation: Promoters are now required to make a positive warranty on his right title and interest on the land, which can be used later against him by the home buyer, should any title defect be discovered. Additionally, they are required to obtain insurance against the title and construction of the projects, proceeds of which shall go to the allottee upon execution of the agreement of sale.

Standardisation of sale agreement: The Act prescribes a standard model sale agreement to be entered into between promoters and homebuyers. Typically, promoters insert punitive clauses against home buyers which penalised them for any default while similar defaults by the promoter attracted negligible or no penalty. Such penal clauses could well be a thing of the past and home buyers can look forward to more balanced agreements in the future.

Penalty: To ensure that violation of the Act is not taken lightly, stiff monetary penalty (up to 10% of the project cost) and imprisonment has been prescribed against violators.

Impact of RERA On real estate industry

  • Initial backlog.
  • Increased project cost.
  • Tight liquidity.
  • Rise in cost of capital.
  • Consolidation.
  • Increase in project launch time.

Initially, a lot of work is to be done to get the existing and new project registered. Details such as status of each project executed in last 5 years, promoter details, detailed execution plans, etc., needs to be prepared.

With the advent of RERA, specialised forums such as the State Real Estate Regulatory Authority and the Real Estate Appellate Tribunal, will be established for the resolution of disputes pertaining to home buying and the aggrieved party will have no recourse to other consumer forums and civil courts, on such matters. While the RERA sets the groundwork for fast-tracking dispute resolution, the litmus test for its success, will depend on the timely setting up of these new dispute resolution bodies and how these disputes are resolved expeditiously with a degree of finality.

Why use EquiRERA Software Benefits


CUSTOMER
CENTRIC


  1. Easy Booking information.
  2. Sold Units Management.
  3. Receipt management against work schedule.
  4. One Page Customer Report
  5. Easy billing to customer.
  6. Manage Multiple Buyer for Single Unit

CUSTOMER
COLLECTION


  1. Maintain all collection data datewise unitwise and customerwise
  2. Generate all reports of collection by any mode of transactions such as cheque , neft , cash in single click for all units and individual
  3. Generate receipt for all transactions.
  4. Manage receivable and received.
  5. Manage Tax Collection.

RERA
COMPLIANCE


  1. Promoter Information
  2. Project Information
  3. RERA Documents/Certificates
  4. RERA Reports
  5. Easy Freezing of information
  6. Fully quarterly Compliances in most easy way
  7. Easy Trigger of entering agreement as per RERA Rules
  8. Withdrawal working as per RERA Rules
  9. Withdrawal and completion certificates as per RERA Rules
  10. Agreements, Allotment Letter and other documents as per RERA Rules
  11. Daily uploading of documents from around the Maharashtra about RERA Case Laws
  12. Bank management as per RERA
  13. Inbuilt RERA Audit report and module.
  14. Sharing information project plan, layout, government approvals, land title status, sub-contractors.
  15. Inbuilt RERA Support for easy queries and answers from prominent people.

PROJECT
MANAGEMENT


  1. Updation of Cost , Common Areas , Activity , Project
  2. Manage Cost and Track Estimation
  3. Understand Revenue from Project with sold and unsold inventories
  4. Decision Making
  5. Projectwise Cost and Benefits Analysis
  6. Track all project documents in one click
  7. Real Time Property Inventory Management
  8. Tax Management
  9. Stamp duty and registration charges management.
  10. Effective valuations of unsold inventory.
  11. Real time Revenue Cost Management.
  12. Easy Access to CA , Architect and Engineer to keep information updated and verified.
  13. Manage Estimated Cost and Actual Cost
  14. Monitor Variances in Estimated Cost and Actual Cost
  15. Understand Profitability of all project and each project separately.

OTHER BENEFITS


  1. 30 days money back Guarantee*.
  2. Manage all various other project in one screen
  3. Generate all projects under one group company in single screen and in easy way.
  4. Compare project wise information for easy understanding
  5. Manage your books with up to date information of customers.
  6. Time saving
  7. Timely Alerts and Reminders
  8. Decision Making Reports
  9. Reduce Human Errors
  10. Schedule Payment Plan

DASHBOARDS


  1. Dashboards of Units Booked , Allotted , Agreement , Vacant , Possession
  2. Revenue and cost project wise
  3. Amount due to receive
  4. Amount received and cost incurred
  5. RERA Reports

DOCUMENT MANAGEMENT


  1. Upload Unitwise Sale Deed , Demand Letter , Allotment Letter , NOC ,Booking Letter , Receipts , Invoice , etc.
  2. Upload all promoter personal Documents.
  3. Upload all project related documents.
  4. Easy Retrieve all documents from anywhere in easy way.

SYSTEM MANAGEMENT


  1. Unlimited User
  2. Unlimited Documents uploading
  3. Unlimited Phone and inbuilt technical support
  4. Unlimited Leads
  5. Unlimited project at addition of Rs.10000 per project.
  6. 128 bit SSL security
  7. Strong database server
  8. Easy backup and Retrievals.
  9. SAAS world best technology
  10. Cloud System. No database maintenance cost.
  11. Inbuilt technical support.

COMING UP WITH


  1. Inbuilt Enquiry Management
  2. Inbuilt Accounting System

Our Preferable Clients/ Prospective Clients

Preferable following category


  • Promoter / Builder / Developer

  • Sole Selling Agent

  • Project Management Company

  • Chartered Accountant

  • Company Secretary

  • Architect

  • Advocate

  • Engineer

  • Tax Consultant

  • Other Consultants