The establishment of the Real Estate Regulatory Authority resulted in a paradigm shift in Odisha’s real estate sector. Buyers and sellers had many conflicts between them in the past years. In 2017, the government of Odisha introduced the RERA Act, Odisha, to regulate the dealings of properties in the state. Today, every estate has a fully functional RERA website for agent and project registration. The RERA Act’s emergence has encouraged investment and brought transparency to the real estate sector.
What Is RERA Act Odisha
On May 1, 2017, the government of Odisha brought the RERA Act into existence to maintain and gain the trust of consumers in Odisha. It encouraged the buyers, meanwhile, it regulated the activities of builders, not only in Odisha but also across the country.
The state government has set up Odisha Real Estate Regulatory Authority or Odisha RERA, as the real-estate industry of Bhubaneshwar, Cuttack, and another tier 2, as well as tier 3 cities of Odisha, is gaining prominence. This regulatory authority is intended to maintain a harmonious environment between buyers and sellers.
RERA Odisha regulates the real estate market and its stakeholders in an organized way. After the arrival of the RERA Act, real estate investments have witnessed a tremendous boost.
According to Section 84 of the Real Estate Regulatory and Development Act of 2016, the State Government is required to establish rules that adhere to the Act’s requirements within six months of the Act’s commencement.
The center published the general rule imposed by the Real Estate Regulation and Development Act, 2016, on October 31st, 2016, with assistance from the HUPA Ministry (Housing and Urban Property Alleviation Ministry).
The Union Territories (Delhi, Daman and Diu, Chandigarh, Lakshadweep, Dadra & Nagar Haveli, and Andaman & Nicobar Islands) are subject to all of the Act’s regulations.
Features of RERA Odisha
Here are some of the important points of the Odisha RERA Act:
As per the RERA Act, 70 percent of the buyer’s and investor’s amount is required to be kept in a separate account that is withdrawn by the builders for construction and development purposes of the project. Developers are not allowed to receive more than 10 percent of the property’s cost as advancement or application charges before signing an agreement.
Builders must submit all the required documents related to the project that they undertake. Builders must receive the consent of the buyer if he wants to make any changes to the project’s plan.
As per the RERA Act, the developers can only sell the property based on the carpet area. Investors and buyers reserve the right to get a full refund in case of a delay in project completion or possession.
The builder is required to resolve any buyer dispute related to any defect in the project within five years of the buyer purchasing the property. The rectification must be provided within 30 days of filing it.
Developers are not allowed to advertise, sell, or book any project without the registration of the regulator. Developers must register their project with RERA and thereafter advertise the project with a unique RERA registration number mentioned in the advertisement.
Functions of RERA Act Odisha
The advent of RERA in Odisha has brought accountability and transparency to the real estate sector for buyers and sellers. Here are the major functions of the RERA Act:
Every state in India has its own set of RERA regulations that regulate real estate transactions. All the disputes relating to real estate are monitored, adjudicated, and resolved under this authority.
A speedy mechanism was established through RERA for the settlement of real estate disputes. An appellate tribunal with dedicated officers is being appointed for this work.
As per the RERA Act, all real estate projects are required to be registered with it. The authority reserves the right to revoke the registration of a project in case if it does not adhere to the guidelines of RERA.
The promoter needs the written consent of two-thirds of the owners in addition to the written approval of RERA if they want to transfer or, in any case, assign the majority of the rights and obligations of a specific real estate project to a third party.
In case of any faults from the sides of buyers or promoters, both parties will need to pay an equal amount of rate of interest.
The promoter is responsible for compensating the buyer if there are any problems on their end with regard to the buyers, such as a defective title to the land (other parties claiming ownership of the property), which has been built or is being built. There is currently no law that determines the amount of compensation.
If a person has a problem with a buyer, promoter, or agent for violating the rules, he can file a complaint with RERA.
RERA can stop the buyer, promoter, or agent from continuing the activity against which the complaint has been raised.
If the buyers are not satisfied with RERA’s decision, they can submit an appeal before the Appellate Tribunal.
The promoters are liable to pay a penalty of 5 percent of the total cost of project if they fail to follow the RERA’s decisions.
If the Appellate Tribunal’s orders are not followed, a penalty will be imposed. This penalty can be three years in prison, 10% of the assessed value of the property, or both.
If a company violates this Act, the person in charge of the company at the time the offense is committed, as well as the company, will be punished.
A civil court has no jurisdiction over any matter that comes under RERA or the Appellate Tribunal’s jurisdiction. The RERA authority will deal with RERA-related cases. So, no court can grant an injunction related to any action taken by the authority.
RERA Act rules for carpet areas
Builders are allowed to sell the project only on the basis of carpet area. There are certain rules formed by the authority for carpet area, which are as follows:
- The carpet area is the area of the floor within the walls of the apartment that the buyer can use. This carpeted area does not include any open terrace space, balconies, shafts, etc.
- To prevent consumers from being duped or misled by illegal promoters, the carpeted area has been normalized.
The builder has the right to inflate the saleable area if the project’s loading factor is high. The builder will be able to lower the earlier increased rate per square foot area. It misleads buyers into believing they are getting a great deal on the project. The flat size remains constant while only the loading factor changes.
The rule of selling projects by carpet area ensures certainty in usable areas. Additionally, it facilitates comparisons between various projects by assisting in the analysis of the cost per square foot of the projects.
Registration procedure for RERA Odisha
For real estate agents
- Complete the application form and submit it to the authority with all the required documents attached and fees for the registration process.
- A registration number will be provided to you by the authority that needs to be mentioned on all the property advertisements.
- You must maintain a book of accounts, documents, and records related to the transactions as a real estate agent in accordance with RERA Odisha on a quarterly basis.
- Promoters must provide the buyers with access to all project-related documents and information.
- The authority will suspend you if you commit fraud or misinterpret yourself during the registration process.
Real estate agents can register online through the RERA Odisha website or in person at the RERA office.
For a real estate promoter
As a promoter, you must make a checklist of all the required documents and collect it before going for the registration process.
Obtain the number of bank accounts opened in accordance with Section 4 (2) (I) (D) of the Act.
- After completing Form A, submit it. This form is used to complete the registration process.
- After that, submit Form B. This form is for the promoter’s declaration in accordance with Section 4 of RERA.
- After completing Form G, submit it because it is the draft agreement for both allotments as well as the sale of the project.
- You must submit an affidavit stating that the information on Form G is correct and in accordance with RERA rules.
- Submit another affidavit stating that you have not collected any booking fees from prospective buyers and implying compliance with Section 3 of the Act.
- Pay the registration fees under the Odisha RERA. The registration fees vary by state.
- Then send properly signed hard copies of the documents to the appropriate RERA authority official via registered post.
- Finally, finish and submit Form C to get the registration certificate.
You can register your project for the RERA Act Odisha by visiting the RERA website, where you will also find the registration form, or by going in person to the RERA office.
Required documents under RERA Odisha
Keep the following documents handy in order to register a project under RERA Odisha.
- The promoter’s income tax returns for the last three years.
- Along with the promoter’s profit and loss statement, the balance sheet and auditor report are all required.
- The promoter’s PAN card and a copy of their Aadhar card.
- Passport-sized photo of the promoter. If the promoter is a company or a group of people, then pictures of every member should be attached, along with pictures of the chairman and directors.
- Any relevant document or legal title deed (with authentication). These documents should reflect all of the promoter’s legal rights to the land. If the promoter is unable to provide this, they must submit a non-encumbrance certificate. This document can only be obtained by revenue officials with the rank of Tehsildar or higher.
- If the promoter is not the owner of the land on which the project is being developed or is under development, a copy of the collaboration agreement and the owners’ consent must be provided.
- The approved project’s floor plan.
- The project’s approved plan was sanctioned.
- A complete blueprint of every amenity that will be offered to buyers. It consists of drinking water, electricity, firefighting equipment, the use of renewable energy sources, and evacuation plans.
- Details of the project are presented in a well-made location. The project’s boundaries, longitude, and latitude should all be included in this detail.
- A detailed and estimated invoice. This must contain the proposed conveyance deed and a sales agreement.
- The number of apartments, carpet area, as well as open terrace area and balcony area if there are any.
- Details of a number of parking and garages for sale.
- The promoter must provide information such as the names and addresses of any real estate agents involved in the project (if any).
- Names and addresses of architects, structural engineers, contractors, and other people involved in the project’s development.
- Form B declaration is required. This form will be completed to ensure that neither the project’s promoters nor anyone they have authorized will discriminate in project allocation.
- Any additional paperwork is needed by the state agency you are registering the project with.
How to file a complaint with RERA Odisha?
The ways mentioned below will help you file a complaint under Section 31 of RERA against buyers, promoters, and agents.
- With the assistance of a RERA attorney, file a complaint under the appropriate jurisdiction.
- File the complaint in accordance with the guidelines recommended by the state where the project is located.
- It must contain:
- Information about the applicants and respondents.
- Address and the project’s registration number.
- The statement of facts and the basis for the claim.
- If any type of relief is sought, the details, as well as any interim relief, must be provided.
- Pay the applicable fees. The fee amount varies by state.
- Another option is to file a complaint on the RERA Odisha website.
- You have the option to file a complaint with the RERA Appellate Tribunal if you are dissatisfied with the RERA’s final decision. Within 60 days of the initial judgment, the complaint must be submitted to the Appellate Tribunal.
- If the Appellate Tribunal’s ruling does not satisfy you, you can also appeal to the high court.
Benefits of RERA Act
- With the standardization of carpet area selling, project costs are calculated.
- Builders’ insolvency has been reduced because they can no longer invest money from one project to another. 70% of the total amount must be submitted in a separate account, and they can only withdraw the remaining 30% after an engineer, architect, or chartered accountant certifies it.
- Buyers will no longer be required to pay the promoter, agent, or builder more than 10% of the project’s total coThe purchasers will be protected from fraud and bulk payments.
- Within five years of the purchase, the builder must resolve any issues raised by the purchasers within 30 days. The builder cannot demand additional fees to fix these issues.
- In the event of a default, both the buyer and the promoter will be required to pay interest.
- If there are discrepancies or inconsistencies between the terms mentioned and the terms delivered to the buyer, the buyer is entitled to a full refund.
- In the event that the project’s title is incorrect, the buyer has the right to compensation.
- The buyer has a right to be fully informed about the project.
The main purpose of RERA is to relieve pressure on buyers. Buyers will now have greater transparency in the project in which they intend to invest, as well as speedy resolution of disputes with sellers.
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