As a traditional means of investment, real estate was the most controversial sector because it lacked a formal legal framework. RERA, the Real Estate Regulation and Development Authority, has responded in the best possible way to all the unaddressed concerns by protecting every individual or entity registered with it.
It protects all parties engaged in real estate transactions, including buyers, agents, and promoters. The provisions, such as periodic updates of registered projects and part of the fund to be credited to the bank for construction purposes, eliminate the main worries about the project stalling. The government of India established RERA Act in 2016 and has left its implementation to the discretion of the states. Almost over 22 states and 6 Union Territories have a notified RERA, and 19 states have active portals, reflecting the potential of the RERA Act.
What is Telangana RERA Act
The Real Estate Regulatory and Development Act came into existence in Telangana on August 4, 2017, to support the real estate sector. It is introduced to regulate the transactions in the market and protect consumers from any malpractices by promoters, developers, and agents.
The Telangana RERA provisions are required to be followed by all the real estate under construction or startup projects whose land area exceeds 500 sq meters, including more than 8 units for proposed residential projects. This applies to all the projects seeking approval on or after January 1, 2017. Telangana RERA has launched a TS RERA website to provide a platform for buyers to check on the registered projects and their status.
Functions of RERA Telangana
- Safeguarding the interest of both buyers and sellers
- Bring transparency in real estate dealings and transactions
- Eliminate fraudulent transactions by regulating the real estate industry
- Establish an Appellate Tribunal to provide speedy resolutions to disputes
- Maintaining the records of registered projects and agents on a website for public reference
Provisions of RERA Telangana
- As per the state government, or Telangana, 70 percent of the total amount must be credited into a bank account that must be used only for construction purposes. This rule aids in the elimination of any delays in the under-construction properties.
- Real estate agents are required to renew their certificates every five years.
- On failure of project registration with RERA Telangana, the promoter is liable to a penalty
- In case the project is completed in phases, then the project must be registered at every phase by the promoter
- Promoters should provide quarterly updates of project status through the online TS RERA website to let the buyers know the status
- Under RERA, promoters must pay registration fees based on the project’s Project Registration.
How to Register a Project under RERA?
Here are the given steps to register a project under RERA –
- Go to the official website of Telangana RERA at http://rera.telangana.gov.in/.
- Navigate to the “Service” option, and click on “Real Estate Project Registration”.
- You will be redirected to the login page to enter the username and the captcha code to login into the TSRERA account.
- After logging into your account, select “Project details” and then press “Add project” from the pop-up option.
- Now, enter the details of your project, and it will redirect you to the payment gateway.
- Make the required payment and complete your project registration process.
Exemption of Projects Under RERA
The projects are not required to get registered if –
- The proposed project whose developed area does not exceed 500 sq meters or the number of apartments proposed to be constructed does not exceed 8. In that case any of the above conditions, projects are exempted from registration.
- If the developer has received the completion certificate for the project before implementing the RERA Act.
- RERA Act applies to all the projects that are approved after 1 January 2017.
- Any redeveloping and renovating project that does not involve marketing, advertising, selling, or a fresh allotment of any plot, apartment, or building are not required to get registered.
Who can apply for RERA
Here is the list of entities that can apply for RERA registrations of the projects.
- Local Authority
- Limited Liability Partnership
- Partnership Firm
- Competent Authority
- Proprietorship Firm
Services of RERA Telangana
Through their official website, TS RERA offers a number of services to the general public, business owners, and real estate brokers.
- Homebuyers can register their complaints with RERA online and the Appellate Tribunal Authority would process the complaint and investigate at the earliest, and the guilty would be penalized accordingly.
- Consumers can check whether the projects are registered with the RERA and their status with all the required details. This option aids in getting information about the project and looking over customers’ and developers’ interests.
- If your project is within RERA’s purview, that is, if it does not fall under the category of exempted projects, you can register it through the official website. This would increase your credibility and accountability to your clients, thereby defending you against defaulting clients.
- You must follow the deadlines for the project completion. Otherwise, you may be charged with a fine. But, RERA provides promoters to file for an extension for the project.
- The registered projects are required to be updated by promoters every quarter. This will allow the consumers to know the status of their project and make payments for the next installments.
Real Estate Agents
- Agents can register with the real estate authorities.
- They can file a complaint if they got breached with non-payment by the customers or promoters protected under the RERA Act.
- Agents are required to get renew their registration every five years
Filing a complaint in Telangana RERA
Consumers can submit their complaints online with RERA for any project, whether registered or unregistered.
Log on to your account on the RERA official website and select whether you are the complainant or the end-user accordingly.
If you are a complainant, you will be redirected to a page where you have to provide your reasons and the documents for registering a complaint.
Now, pay the complaint registration fee of Rs 100 and complete the registration process.
Benefits for first-time home buyers
Home buyers can access all the required information regarding the project on the RERA website
Some part of the total amount is credited to the bank that is used for construction purposes. This reduces the risk of project stalling
Only approved projects get the registration search numbers, which are used to track the data regarding the projects, and only such projects are allowed to market them. This drives efficiency in the industry by building trust
Investors can view the project status when required to get information about it. This informs potential buyers of any construction-related deviations. Additionally, the buyers can see the project plans, government approvals, subcontractors, bank approvals, etc., fostering an environment of transparency throughout
In case of delay in the project, the developers are liable to pay a penalty of 2 percent above SBI’s Marginal cost lending rate to the buyer, ensuring the buyers do not experience any losses.
RERA has reshaped the functionality of Telangana’s real estate sector thanks to its advantages and regulations. Establishing a procedure to register the projects within Telangana and providing the search numbers to projects registered with TS RERA, has made the transactions organized and transparent. Telangana RERA has occasionally sent notices to projects for failing to comply with the requirements and for not registering with it, demonstrating the responsibility and the motivation to legalize the state’s real estate sector. Without a doubt, it safeguards users and real estate agents to have a successful trading experience.
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