The real estate landscape has undergone significant transformations with the introduction of the Real Estate (Regulation and Development) Act, commonly known as RERA. For real estate investors, navigating this regulatory framework is crucial to ensuring successful and compliant investments. Let us present a comprehensive RERA compliance checklist, highlighting key considerations that investors should keep in mind.
RERA Compliance Checklist – Key Considerations
Understand RERA Basics – Begin by familiarizing yourself with what exactly RERA registration means and the fundamental principles of RERA, its objectives and the specific regulations applicable to your region.
Verify Project Registration – Ensure that the real estate project you are interested in is registered under RERA. Check the registration details, including project timeline and approvals.
Scrutinize Promoter Details – Thoroughly review the credentials of the promoter, ensuring they have a clean track record and the financial capability to complete the project.
Examine Project Plans and Specifications – Assess the project plans, layouts and specifications to confirm that they align with your investment goals and expectations.
Evaluate Carpet Area Calculation – RERA mandates the sale of properties based on carpet area. Verify the accuracy of carpet area calculations to avoid any discrepancies.
Review Allotment Letter and Sale Agreement – Carefully scrutinize the allotment letter and sale agreement. Ensuring that all terms and conditions comply with RERA regulations.
Understand Payment Terms and Schedule – Analyze the payment terms and schedule outlined in the agreement. RERA ensures payment practices and any deviations should be addressed.
Monitor Construction Progress – Regularly check the progress of construction against the timeline provided by the developer. RERA mandates timely project completion.
Track Project Delays – Be aware of any project delays and understand the compensation mechanisms in place as per RERA regulations.
Stay Informed about Changes in Plans – Developers must seek consent for any alterations to the project. Stay informed about such changes and assess their impact on your investment.
Check RERA Website for Complaints – Visit the official RERA website to check for any complaints filed against the developer. This can provide valuable insights into their reputation.
Ensure Transparent Communication – Maintain transparent communication with the developer to address any concerns or seek clarification on RERA related matters.
Scrutinize Advertisements and Promotions – Verify that the project’s advertisements and promotions comply with RERA guidelines, providing accurate and transparent information.
Evaluate Infrastructure Development – Consider the surrounding infrastructure development, as it can impact the appreciation potential of your investment.
Stay Informed about Force Majeure Events – Understand how force majeure events are defined in agreement and the implications for the project timeline.
Verify RERA Certificate – Ensure that the developer possesses a valid RERA certificate, a mandatory requirement for initiating any real estate project.
Evaluate Title of the Property – Conduct a thorough check on the title of the property to confirm that it is free from any legal disputes.
Check for Insurances – Confirm that the developer has obtained the necessary insurances as per RERA requirements to safeguard against unforeseen risks.
Assess Post Completion Obligations – Understand the post completion obligations of the developer, including the formation of a resident’s association.
Legal Consultation – When in doubt, seek legal counsel to ensure that all aspects of your investments align with RERA regulations and protect your interests.
By adhering to this RERA compliance checklist, real estate investors can make informed decisions, mitigate risks, know about the latest real estate market trends and contribute to a more transparent and accountable real estate market. Remember, a well informed investor is a key driver for the success of RERA in achieving its objectives of protecting the interests of homebuyers and promoting fair practices in the real estate sector.