Promoters are the builders or the developers who builds apartment buildings and sell those to home seekers. With increasing complaints against the promoters, the Real Estate Regulatory Act notification by the government of India has led multiple guidelines which the promoters have to meet so as to legally build a project or sell it. The complaints of the buyers that have increased in the last decade or so have been mainly about the late possession they get of their flat purchase, faults or changes in the plans of the project after the agreement has been made and many other problems. The promoters are found to play with the hard earned money of a home seeker. RERA is government authority which has been sanctioned under Real Estate Regulatory Act 2016. It is yet to be operationalised in the country, but according to the government, it will be on work under a year from now. It aims to make a system devoid of any loopholes which can maintain a healthy passage of purchasing and selling of real estate projects. It was high time that the government had to bring such a strict policy as the public feeling regarding the real estate marker has gone from bad to worst. This has made the people to stop engaging into the buying and investing in real estate which hampers the inflow of cash which further leads to a slow growth of economy. Thus, the government, even though realising it late, has made measures so as to check the work of the promoters.
AIREAA is a portal which aims to connect the promoters, real estate agents and the buyers so that the real estate market, in general, can be revoked. AIREAA helps the government by providing the information to the people. These guidelines if met properly can do wonders for the overall economy and harmony of India. Following are the guidelines that are set up by RERA for the promoters.
- The rules under RERA says that all the real estate projects, whether commercial, residential or under construction projects have to be registered with RERA under three months of its implementation. While applying for the registration, the promoter shall give a copy of ownership of land, every small detail of the project that has been planned, schedule of the construction, status of land, pro forma agreements and the information of all the real estate agents, contractors, engineers etc.
- The Authority understands that the government is also a culprit in the real estate scams, as their late approval of plans delays a project or its development. This further discourages a promoter and he uses immoral practices. Real Estate Regulatory Agency has given strict guiding principle to RERA that it must register or reject an application within a month. If a project gets rejected, RERA is answerable to the promoter that on what basis his project has been cancelled. If these two things are not met by the government, the promoter’s project will automatically be registered with RERA.
- RERA has the power to cancel the registration of a project if it finds any wrongdoing by the promoter regarding anything.
Changes to the registered plan – If a plan has been registered under RERA, it can only be changed with the consent of two-third buyers of that project. This will help the Authority and the buyers to tackle the problems arising due to the consistent change of plans by a promoter even if the buyer has signed an agreement with a particular plan and layout of the project.
Public Portal – If the project gets registered, then the promoter will be provided a login ID and password so that he can upload all the details of the real estate project along with his photograph on the RERA India’s website. This will be done so that a buyer can access to all the necessary details that he should know before signing the agreement. A promoter cannot advertise a project until it gets registered. Also, the website will contain the list of defaulters so that a buyer can beware of them.
Finishing the misuse of funds – Many times it happens that a builder uses the money he gets from a project to invest it in another project without finishing the previous one first. Doing this, a promoter draws himself into a web created by his owning doings and this leads to major problems for the buyers. Thus, to end this greed of some promoters, RERA has made some rules. Now, a separate account would be made in the name of the project. Leaving a minimum fund of 50% which a promoter gets through a project’s sale is mandatory. This will ensure that even if the promoter faces losses in other deals, he will have money to construct that project.
Functions and Duties of a Promoter – RERA has given certain functions of a promoter that he must do for a buyer. These include the details of a project’s registration, updates on projects, information about actions of a promoter regarding the project etc. A promoter has to take care of the services he provides and will have to guide a society until the society makes a local authority. The promoter shall also provide completion or occupancy certificate from a local governing body. The promoter cannot transfer the real estate project without a consent of two-third buyers of that project and without the prior approval of the Authority. A promoter has to refund and return the entire amount if he fails to deliver a project.
All these provisions are made so that a buyer can feel safe while getting a home. The laws under RERA that have been made for the promoters are not very strict if one sees them clearly and understands how a community should work. These rules are very basic in nature. Real Estate is not a difficult thing to understand, rather it had been made difficult with unfair practices in the past. We hope to see a positive response from the promoters.