FROM THE DESK OF ADV LEENA KAULGEKAR

  DUTIES OF HOMEBUYER Under the Real Estate (Regulation and Development) Act (RERA), buyers, also referred to as allottees, have certain duties and responsibilities. These duties are aimed at ensuring transparency, fairness, and compliance in real estate transactions. Here are some of the key duties of buyers under RERA: 1.     Verification of Project: It is the duty of the buyer to verify the details of the real estate project before making a purchase. This includes checking the registration status of the project with the respective state's RERA authority, reviewing the project's plans, specifications, approvals, and other relevant documents. 2.     Payment of Consideration: The buyer is responsible for making timely payments as per the agreed terms and conditions of the sale agreement. This includes payment of the purchase price, instalments, and any other charges or dues as specified in the agreement. 3.     Compliance w...

  DOES RERA PROTECT AGENTS FROM UNPAID COMMISSIONS BY BUILDERS The Real Estate (Regulation and Development) Act (RERA) primarily focuses on regulating the real estate sector and protecting the interests of homebuyers and allottees. While RERA aims to bring transparency and accountability to the industry, it may not specifically address the issue of unpaid commissions to real estate agents by builders or developers. The act primarily governs the relationship between promoters (builders/developers) and allottees (homebuyers) rather than the relationship between promoters and agents. However, it's important to note that some state-level RERA rules may include provisions related to agents and their commissions. For instance, the RERA rules of Maharashtra include provisions stating that promoters are required to pay the agreed-upon commission to registered agents within a specified time frame. In cases where a builder or developer fails to pay the agreed-upon commission to an ag...

  DOES RERA PROTECT AGENTS FROM UNPAID COMMISSIONS BY BUILDERS The Real Estate (Regulation and Development) Act (RERA) primarily focuses on regulating the real estate sector and protecting the interests of homebuyers and allottees. While RERA aims to bring transparency and accountability to the industry, it may not specifically address the issue of unpaid commissions to real estate agents by builders or developers. The act primarily governs the relationship between promoters (builders/developers) and allottees (homebuyers) rather than the relationship between promoters and agents. However, it's important to note that some state-level RERA rules may include provisions related to agents and their commissions. For instance, the RERA rules of Maharashtra include provisions stating that promoters are required to pay the agreed-upon commission to registered agents within a specified time frame. In cases where a builder or developer fails to pay the agreed-upon commission to an ag...

  What is an ESCROW ACCOUNT and why is Real Estate Regulatory Authority (RERA) mandating 70% funds collected be deposited in an escrow account by a real estate developer? An escrow account is a designated bank account where funds are held by a neutral third party, typically a bank or a financial institution, on behalf of two parties involved in a transaction. The purpose of an escrow account is to safeguard the funds and ensure that they are used for their intended purpose. The Real Estate Regulatory Authority (RERA) mandates that real estate developers deposit a certain percentage of the funds collected from homebuyers into an escrow account. The requirement varies between states, but it is commonly set at 70% of the funds collected. Here's why RERA mandates the use of an escrow account and the benefits it offers: 1.     Protection of Homebuyers: The primary objective of RERA is to protect the interests of homebuyers. By mandating the deposit of funds in...

  Can a real estate developer exit the project mid-way by selling to another developer or party UNDER RERA Under the Real Estate (Regulation and Development) Act (RERA), a real estate developer cannot exit a project mid-way without appropriate measures and compliance with the regulations. RERA has provisions to protect the interests of homebuyers and ensure the completion of real estate projects. Here are some key points regarding a developer's exit from a project under RERA: 1.     Prior Consent of Homebuyers: If a developer intends to exit a project mid-way by selling it to another developer or party, they are generally required to obtain the prior consent of the homebuyers who have invested in the project. The consent of a specified percentage of homebuyers, as mentioned in the RERA rules of the concerned state, is typically required for such transactions. 2.     Transfer of Rights and Liabilities: In case of an approved transfer of the ...

Are there any restrictions on ADVERTISEMENTS or promotions UNDER RERA ? Yes, there are specific restrictions on advertisements and promotions under the Real Estate (Regulation and Development) Act (RERA). The aim of these restrictions is to ensure transparency and protect the interests of homebuyers. Here are some key points regarding the restrictions on advertisements and promotions under RERA: 1.     A dvertisements only for Registered Projects : Developers can advertise and promote only those real estate projects that are registered with the respective state's RERA authority. It is mandatory for developers to obtain registration before advertising, marketing, or selling any units in the project. 2.     Display of RERA Registration Details: All advertisements and promotional materials related to the registered project must clearly display the RERA registration number obtained from the regulatory authority. This helps buyers verify the authenticit...

  If RERA revokes  registration of a project, what effects will it have on the builder/ developer? When the registration of a builder/developer is revoked by the Real Estate Regulatory Authority (RERA), it can have significant consequences for the builder/developer and their real estate projects. Here are some effects that revocation of registration can have: 1.     Inability to Sell or Market Units: Once the registration is revoked, the builder/developer loses the authority to advertise, market, or sell any units in the project. They are prohibited from engaging in any promotional activities related to the project. 2.     Legal Consequences: Revocation of registration may lead to legal proceedings against the builder/developer. Homebuyers or affected parties may initiate legal action seeking compensation, refunds, or other remedies for the violations or non-compliance that led to the revocation. 3.     Project Stagnat...

  Can the registration BE revoked under RERA?   Yes, registration under the Real Estate Regulatory Authority (RERA) can be revoked under certain circumstances. The revocation of registration is a measure taken by the regulatory authority to address non-compliance or violations by the developer. Here are some reasons that may lead to the revocation of registration under RERA: 1.     Non-Compliance with RERA Regulations: If a developer fails to comply with the provisions and requirements of RERA, the regulatory authority may initiate the process of revoking the registration. Non-compliance can include violations related to project timelines, disclosure of information, utilization of funds, or any other obligations outlined under RERA. 2.     Misrepresentation or Fraudulent Activities: If the developer is found to have engaged in misrepresentation, misleading practices, or fraudulent activities related to the project, the regulatory aut...

  What is the tenure or validity of registration under Real Estate Regulatory Authority (RERA) The tenure or validity of registration under the Real Estate Regulatory Authority (RERA) depends on the specific provisions outlined in the respective state's RERA regulations. While I can provide a general understanding, it's important to refer to the specific rules and regulations of the concerned state for accurate and up-to-date information. Here are some key points regarding the tenure or validity of registration under RERA: 1.     Registration Duration: RERA requires developers to register their real estate projects with the respective state's regulatory authority before advertising, marketing, or selling any units in the project. The registration duration is generally linked to the timeline of the project. 2.     Validity Period: The validity period of registration is typically defined by the state's RERA regulations and can vary between di...

  What projects can be exempted under RERA? Under the Real Estate (Regulation and Development) Act (RERA), certain types of real estate projects may be exempted from its purview. The specific exemptions can vary between states, as each state has the authority to make some variations and provide exemptions based on their respective laws and regulations. However, here are some common categories of projects that may be exempted: 1.     Projects with a Small Number of Units: In many states, projects that have a limited number of units, typically less than a specified threshold, may be exempted from RERA compliance. The rationale behind this exemption is to exclude smaller projects that may not have significant commercial implications or pose significant risks to buyers. 2.     Projects Completed Before RERA Implementation: Real estate projects that were completed and received the completion certificate before the implementation of RERA may be e...