After a few initial hindrances, Telangana has finally implemented the Real Estate (Regulation and Development) Act (RERA) in 2017. The state government has proposed a comprehensive set of guidelines governing the real estate sector in a bid to ensure effective implementation of the Central act.
Here are some important facts about Telangana’s implementation of RERA you must know.
1. RERA rules in Telangana exempt real estate projects, which obtained sanction plans before January 1, 2017. With this, a majority of ongoing projects have been excluded from registering with RERA.
2. The state authorities have given three months to developers of ongoing projects to comply and register with RERA.
3. RERA provides for the establishment of a Real Estate Regulatory Authority to ensure sale of plots, apartments or buildings in an efficient and transparent manner, thus protecting the rights and interests of consumers.
4. The Central RERA Act and the Telangana rules both aim at consumer protection, uniformity and standardisation of the business practices and transactions in the real estate sector.
5. This regime also provides provisions to set up the Telangana State Real Estate Appellate Tribunal, which will address appeals and disagreements against any decisions, policies or orders of the authority.
6. RERA stipulates the registration of all real estate projects and agents within the state. In case of non-registration, the government will prohibit the promoters, developments or agents from marketing or selling the project.
7. Under RERA, it is compulsory for developers to unveil all details for registered projects, including details of promoters, architectural plans, land clearance statuses, schedule of execution and status of all approvals.
8. As much as 70% of the buyer’s investment has to be deposited into a separate account that will be used only for the construction of that project and land cost.
9. In case any structural defects in the property are brought to the promoter’s notice within five years of the property being transferred, the defects will have to fixed permanently.
10. If the developer fails to allocate the properties to buyers within the promised timeline, they are likely to punished with fines, suspension or even imprisonment. The Appellate Tribunal may also intercede within 60 days of the complaint’s filing.
The Real Estate (Regulation and Development) Act, 2016, was approved by the Parliament in March 2016. and all the 92 sections of the Act were implemented from May 1, 2017.
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