Agency in place to protect property buyers’ interest
Real Estate Regulatory Authority (RERA), an agency set up in each state to safeguard interests of property buyers, will start functioning in Madhya Pradesh from Monday. Property buyers can lodge complaints on RERA website. The website is ready and will be launched on May 1.
From May 1, it becomes obligatory for a developer to register him or herself with the RERA before launch or advertising a project. As for the existing projects, developers are given three months beginning from Monday.
Objective of RERA is to make builders to follow conditions, framed keeping in mind interest of buyers.
Under the RERA, details of commercial and residential projects will be online. A developer has to list all project clearance details and update on the project, including exact number of units sold and unsold once in every three months.
Not only developers, real estate agents, too, will have to get themselves registered under the RERA. The authority will ensure a developer delivers what he promised to a buyer as mentioned in sale agreement, including adherence to completion schedule.
As per conditions laid down, any project, commercial or residential with a minimum of 8 units and more is to be registered with the authority. The software is ready in which developers and real estate agents have to list details in a set format. Madhya Pradesh State Electronics Development Corporation has developed the authority website.
Former chief secretary Anthony deSa is the chairman of the authority. He told TOI, people can approach the RERA through its website, which is in English and Hindi. Objective of RERA is not to pressurise developers, but to safeguard interests of buyers by ensuring they don’t get cheated.
RERA will not control pricing of projects, but will see things in a practical aspect so the entire process becomes smooth and transparent, he said.
Confederation of Real Estate Developers’ Associations of India, Bhopal president Wasiq Husain said: “RERA is a welcome move. It will bring more transparency in customer-builder relationship.” He admitted the RERA and GST will increase cost of projects, which ultimately customers have to bear.
The authority with its office in Bhopal will cover the entire state. Officials said if volume of work increases, they can consider opening offices in other parts of the state, too.
Officials clarified the authority will, however, not intervene in work of any other government agency like the municipal corporation, which issues building permission or any other department. It will enter the picture only when interests of buyers are compromised in any way. The penalty on defaulter developers would vary from case to case, officials said.
The real estate agents would be registered on five year basis. They will have to furnish all details, including income tax returns and experience of working in the industry. It would be unlawful if an agent works without getting registered under RERA.
Will the RERA website confirm whether the projects listed on it are legitimate or otherwise or will it just list what is posted on it and once again force the home buyers to run around?kumar
Currently, RERA would operate from MP Nagar. Its office is being developed in board office complex where it is expected to shift in coming days.