Without Registration no Project Promos: RERA to Realtors

In a bid to prevent misleading advertisements by real estate developers, the Real Estate Regulatory Authority (RERA) has made it mandatory for realtors to quote the registration number in all their promotions.The authority that came into existence from May 1 has in an advisory to media houses advised that advertisements that do not bear its registration numbers should not be entertained.Under the RERA it is mandatory for every project and real estate agent to register with the authority in 3 months from May 1.

“Any project not registered with the authority after the July 31 deadline will be deemed as illegal. The authority can also levy a fine of 10% of the total cost of Project on the promoter,” said the chairman of the RERA, MP Anthony de Sa while talking to TOI.

So far, four real estate projects and 11 real estate agents have applied for registrations with the authority.
Meanwhile, property buyers have started lodging complaints on the authority’s website. It received 70 complaints so far from across Madhya Pradesh, the majority from Bhopal. Of them, notices have been issued in 50 complaints while the remaining are being examined.Out of the total complaints received, the majority are about the delay in possession and only 10% are about poor quality construction. The hearing is underway in 40 cases. Officials said three cases have been decided and realtors were directed to compensate the property buyers.

In case if a builder seeks more time to present his side at a hearing, he may be asked to pay for the transportation of complainant. The authority asked a builder from Indore to do so recently, officials said.
Hearing of a complaint is held every fortnight to keep pendency low. However, things may get slow once the volume of work increases.The state has reduced registration fee under the RERA after it was enacted by the Union government. From Rs 20 and Rs 50 per square meter respectively for residential and commercial projects, it is now down to Rs 10 and Rs 20 per square meter for the same, officials said.

A complainant must pay a nominal fee to the authority. People willing to approach RERA can do so through its website, which is in English and Hindi. Under the RERA, details of commercial and residential projects will be online. A developer must list all project clearance details and update on the project, including the exact number of units sold and unsold once in every three months.

RERA will not control pricing of projects, but will ensure smooth and transparent process, officials said. It is applicable to all real estate projects involving beneficiaries, including of government and private.

The Ambit Of Authority

  • Projects, real estate agents must register by July 31.
  • Applicable to all projects, including govt and private.
  • Projects cannot be advertised without RERA registration.
  • 10% fine of the project value for those who fail to register.
  • Commercial or residential projects with 8 units or more will come under its ambit.
  • Authority does not control project pricing.
  • Four projects and 11 agents have registered so far.
  • 70 complaints made since May 1.
  • Majority is about Delay in possession.

Source From: http://timesofindia.indiatimes.com/city/bhopal/without-registration-no-project-promos-rera-to-realtors/articleshow/59272576.cms

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