Introduction to RERA

RERA stands for Real Estate Regulatory Authority. It’s a significant regulation passed in 2016 as RERA act by the Indian Government to control the Real Estate sector. Its position to protect home buyers, investors to establish accountability amongst developers and promoters, boosting Real Estate investments even more.

Significance of RERA 

The Real Estate market in India was hugely unregulated before the RERA act that led to property possession delays, misrepresentation by developers, financial frauds and so on. This is introduced to create a transparent and structured framework that satisfies Buyers for fairness in Real estate transactions and allows RERA penalties for builders.

Necessity of RERA for Developers and Homebuyers

For Developers

• Increase Investors Confidence.

• Reduces unwanted Litigation.

• Promotes Fair Business Practices.

For Homebuyers

• Prepare a Grievance Redressal Mechanism.

• Confirms Timely Delivery of Projects.

• Safeguard against Fraud act & practices.

Benefits of RERA Act for Buyers & Investors

      1. Financial Security: 

Developers must deposit 70% of the project funds in a separate Escrow Account, ensuring that money is used for Construction purpose only. 

                 What is an Escrow Account?

It's a secure financial arrangement where a third party manages and holds the assets or funds on behalf of two parties involved in a transaction. These funds are released when the agreed conditions between seller and buyer are met. These accounts are used in Legal settlements, real estate, mergers and big financial transactions to confirm security and transparency. 

               Benefits of an Escrow Account 

1. Security & Trust

2. Confirms & Regulate Compliances

3. Protect from Fraudulent Activity

4. Financial Safety for Buyers & Investors

5. Smooth Transactions

      2. Accountability & Transparency: 

Every Real Estate project must be registered under RERA. Developers or Builders are required to open project details such as Approvals, Layout plans and possession time.

      3. Safety Against Delays: 

Buyers or Investors are allowed for full refund with interest or compensations as per the RERA agreement, if projects are delayed. 

      4. Systematic Sale Agreement: 

The act interdict unfair clauses in sale agreement that ensures buyers are not subjected to inconsistent terms. The right agreements should be:  

 

                         The “Real Estate Sales Agreement”

Seller:

(Full Name)
(Address)
(Phone Number)
(Email)

Buyer:

(Full Name)
(Address)
(Phone Number)
(Email)

PROPERTY DETAILS 

The Buyer agrees to purchase and the seller agrees to sell, the following Real estate property:

• Property Address: (Full Address)
• Legal Description: (Plot No./Survey No., Registration Details)
• Type of Property: (Residential/Commercial/Land)
• Size of Property: (Area in Sq. Ft.or Acres) 

 

PURCHASE RATE & PAYMENT TERMS

1. The Total purchase rate of the property is ₹(Amount).

2. Buyers agree to pay in following:

• Earnest Money Deposit: [Amount ₹]  (Paid on [Date]) 
• Balance Payment: [Amount ₹] (will be Paid or before [Closing Date])
• Payment will be made via [Cheque/Bank Transfer/Demand Draft]

ESCROW ACCOUNT (If Applicable) 

• The Escrowed Funds shall be released when meeting all contractual Obligations.

• The Buyers shall deposit payments into an Escrow account managed by [Escrow Agents Full Name]

POSSESSION & TITLE TRANSFER

1. The buyer ensures that the property is free from liens, encumbrances or legal disputes or project related details such as construction progress and completion deadlines before buying. 
2. The Seller agrees to transfer Legal Ownership and hand it over to Buyers during possession [ Possession Date].
3. The property will be registered in the Tehsil (Purchase Property Location) in the name of Buyer at the relevant Sub-Registrar Office upon Full Payment. 

TAXES & EXPENSES

1. Stamp Duty & Registration Charges: Paid by [ Buyers/Seller/Shared ]

2. Property Tax & Utility Bills: The Seller shall clear all dues before the registry.

INVESTIGATION

1. The buyer has the right to inspect before finalizing the property.

2. The buyers get all Legal Property Document from Seller, such as: 

                  1. Title Deed

                  2.  Encumbrance Certificates

                  3.  Sales Deed Copy

                  4.  Authority Approved Building/Plot Plan (If needed)

TERMINATION & DEFAULT

• If the Seller Defaults, the Buyer is subject to a full refund with all legal damages.
• If the Buyer defaults, the amount paid shall be forfeited. 
• Both parties can terminate the Agreement under mutual consent in writing.

GOVERNING LAW 

• This Agreement shall be controlled by Indian Real Estate Laws and RERA Authority.
• Any disputes shall be resolved in the [District/City] Court jurisdiction.

SIGNATURE & ACKNOWLEDGEMENT

Both Buyers and Sellers acknowledge that they have read, understood and agreed to the terms contract. 

 

SELLER SIGNATURE

NAME:

DATE:

BUYERS SIGNATURE

NAME:

DATE:

WITNESS OF SELLER’S SIGNATURE

WITNESS OF BUYER’S SIGNATURE

 

How to verify if a Property is RERA-Complaint?

Step 1: Visit the Official RERA Website

Every state of India has a dedicated RERA portal where projects are registered. Example: Uttarakhand RERA.

A list of various States & Union Territories RERA official Website in India: 

• Andhra Pradesh: https://rera.ap.gov.in/
• Arunachal Pradesh: https://arunachalpradesh.gov.in/ (RERA is not fully functional, check state housing dept.)
• Assam: https://rera.assam.gov.in/
• Bihar: https://rera.bihar.gov.in/
• Chhattisgarh: https://rera.cgstate.gov.in/
• Goa: https://rera.goa.gov.in/reraApp/
• Gujarat: https://gujrera.gujarat.gov.in/
• Haryana (Panchkula): https://haryanarera.gov.in/
• Haryana (Gurugram): https://hareraggm.gov.in/
• Himachal Pradesh: https://www.hprera.in/
• Jharkhand: https://jharera.jharkhand.gov.in/
• Karnataka: https://rera.karnataka.gov.in/
• Kerala: https://rera.kerala.gov.in/
• Madhya Pradesh: https://rera.mp.gov.in/
• Maharashtra: https://maharera.maharashtra.gov.in/
• Manipur: https://eservicesmanipur.gov.in/eda/
• Odisha: https://rera.odisha.gov.in/
• Punjab: https://rera.punjab.gov.in/
• Rajasthan: https://rera.rajasthan.gov.in/
• Tamil Nadu: https://rera.tn.gov.in/
• Telangana: https://rera.telangana.gov.in/
• Tripura: https://rera.tripura.gov.in/
• Uttar Pradesh: https://up-rera.in/
• Uttarakhand: https://ukrera.org.in/
• West Bengal: https://hira.wb.gov.in/ (Note: West Bengal has its own act, HIRA)

Step 2: Search for Project Details

Enter the Project's Name or the Developer Name in the search bar to check out its RERA registration status.

Step 3: Verify Key Information

• Registration Number
• Project Start and End Date
• Legal Clearance and Approved Layout Plan

Step 4: Check Developer’s Track Record

RERA maintains a file of complaints, penalties and past project performance of Developer/Builder. 

 

Conclusion

RERA has revolutionized the Indian Real Estate Sector by providing transparency, financial security and timely project possession. Homebuyers or investors can make informed decisions before investing in any properties.

 

FAQs

Q1. Is RERA applicable to every Real Estate Projects in India?

No, RERA applies to projects exceeding 500 sq mtr or more than 8 apartments. 

 

Q2. Can I File a Complaint against a Builder under RERA?

Yes, Buyers can file complaints against builders through the official RERA website of the respective location you’re purchasing.

 

Q3. What happens if a Developer Fails to register under RERA? 

Developers who fail to register face heavy penalties and potential imprisonment under RERA act.

 

Q4. Does RERA cover current or ongoing projects?

Yes, Current projects that have not received a completion certificate must register under RERA.

 

Thank you for reading till the end.

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