It’s been two years since the government notified the Real Estate Regulation Act (RERA). The stringent penalty clauses coupled with increasing awareness among homebuyers have forced developers to focus on timely project delivery.
Also, “The stringent measures enforced by the authority has erased out non-serious players, and only credible developers with a proven track record are driving the market, both organically and via consolidation. This is good from a buyer’s perspective as one is assured of a quality product within stipulated timelines,” said Surendra Hiranandani, Founder & Director, House of Hiranandani.
Homebuyers have undoubtedly become cautious and are enquiring only about RERA-approved projects. While most of the buyers are treading with caution, some are still confused. One of our followers on Quora asked, “Should I buy a property if it is not registered in RERA?”
To begin with, we do not recommend buying a property which is not RERA registered. The sole purpose of RERA’s existence is to protect homebuyers’ interest while buying a property. If you buy a property that is not registered with RERA, you will not be able to approach the authority to file a complaint, if needed.
So, how should you go about it? Well, “If you are planning to buy a property, you should first check the RERA website. You can get a lot of relevant information by just browsing through the website,” informed Ashutosh Kumar, Lead, Home Buying Advisory Services.
Know about the availability
Finalising the location is one of the first steps in the homebuyers’ journey. Once you have decided the location, the next step is to shortlist the projects. The Real Estate Regulatory Authority’s website can help you with this.
How? Let’s say you want to buy a home in Mumbai. Log on MahaRERA website, and under the ‘Registration’ tab, click on ‘Registered Projects’. Now select ‘Advanced Search’ and enter details such as your desired developer, area, and the locality. You will get the list of registered projects in your chosen area.
In Karnataka RERA website, you can see and download a list of projects that are approved, rejected, and projects that are awaiting approval. Thus, if your developer tells you that he has applied for the registration and is waiting for approval, you know where to check.
Details you really want to know
Tired of seeing the fancy brochures shared by the builder? Worry not! The regulatory website is the best way to get all the required information about a project.
All you have to do is to log in to the site and click on the project name. A page will open that will have three tabs- promoter details, project details, and uploaded documents.
(Note: We have considered Godrej Aqua for all the images in this post)
Under this, you can check the name and contact details of the promoter (read developer) and the company. Here, you can also see previous project details for the last five years.
This section contains all the information you need to make an informed decision. Under this tab, there are four parts, namely:
- Project details
- Project status
- Development details
- Vendor details
The first section will give you details like project name, type, address, project area, approving authority, the number of parking for sale, project status, estimated cost of construction, completion year, and total project cost. You can also download these details in a pdf format. It looks like this:
The second section talks about the project status. It will give you the percentage details of construction work done till a particular date, extent of development pending, total amount of money collected form allotees, total amount of money used from development of project, total amount of balance money lying with developer, any delay in the project, reasons for the delay, and expected completion date.
The next section covers the development details.
It also lists the bank details for the project like bank name, account number, IFSC code, branch, district, and state.
The last section covers all the vendor details including architects, structural engineers, and contractors.
Under this, you can view and download all the documents related to the project. Some of the important ones include:
- Approved building/ Plotting Plan/ Layout Plan
- Sale Deed
- Encumbrance Certificate
- Conveyance Deed / Title Deed (Khatha)
- Collaboration Agreement/Development Agreement/Joint Development Agreement/Other Agreement
- Various NOCs
- Certificate from Registered Engineer indicating the structural safety of the building (for Apartments)
- Transfer of development rights certificate
- Commencement Certificate
- Project Photos, and much more.
Under RERA, the agents also have to register with the authority. On the website, you can also find out the names of real estate agents who are authorised to deal in particular projects. As per the Act, they are not allowed to facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, in a real estate project or part of it, without having a registration number.
The right way to buy a property
With stringent norms in place, real estate developers are now more accountable. In several instances, developers have also been reprimanded by the concerned authorities.
All you have to do is to spend some time on the regulatory website before finally taking the plunge. Trust us; it cannot get simpler than this.