{"id":1961,"date":"2021-02-04T09:49:38","date_gmt":"2021-02-04T09:49:38","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1961"},"modified":"2021-02-04T09:56:11","modified_gmt":"2021-02-04T09:56:11","slug":"rera-related-issues","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/","title":{"rendered":"What are RERA Related Issues?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The <strong><em>Real\nEstate (Regulation and Development) Act, 2016 (RERA)<\/em><\/strong> was implemented to\nprovide transparency and accountability of the developers and promoters in the\nRERA project and to safeguard the interest of the homebuyers while investing in\nthe real estate market. However, in the recent years RERA has been facing some\ncritical issues as well. The act is believed to have certain ambiguity and\nloopholes. This article will discuss about what are RERA related issues in\nIndia. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3cc055a6c4d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3cc055a6c4d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#What_is_RERA_Act\" title=\"What is RERA\nAct? \">What is RERA\nAct? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#Few_RERA_related_Issues_in_the_recent_times\" title=\"Few RERA related Issues in the recent times\">Few RERA related Issues in the recent times<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#Right_and_Duties_of_Agents\" title=\"Right and Duties\nof Agents\">Right and Duties\nof Agents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#No_Rules_specified_in_the_act_regarding_the_delayed_Project_Approvals\" title=\"No Rules specified in the act regarding the delayed Project Approvals\">No Rules specified in the act regarding the delayed Project Approvals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#Lack_of_Strict_Deadlines\" title=\"Lack of Strict Deadlines\">Lack of Strict Deadlines<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#Lack_of_Technological_know_%E2%80%93_How\" title=\"Lack of Technological know &#8211; How\">Lack of Technological know &#8211; How<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#Long_and_Tedious_Registration_Process\" title=\"Long and Tedious Registration Process\">Long and Tedious Registration Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#Issues_Over_State_Specific_Content\" title=\"Issues Over State Specific Content\">Issues Over State Specific Content<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#No_timely_permissions_granted_to_Real_Estate_Developers_by_the_Statutory_Authority\" title=\"No timely permissions granted to Real Estate Developers by the Statutory Authority\">No timely permissions granted to Real Estate Developers by the Statutory Authority<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/rera-related-issues\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_RERA_Act\"><\/span>What is RERA\nAct? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Real Estate\n(Regulation and Development Act) RERA, 2016 was implemented to safeguard the\ninterest of the homebuyers in the real estate sector and lays down compulsory <strong><a href=\"https:\/\/swaritadvisors.com\/rera-registration\" class=\"text-primary\">rera registration<\/a><\/strong>\nof all the residential projects where the size of the plot is more than <strong><em>500\nsquare meters<\/em><\/strong>. It is compulsory for the developers to disclose the\nbuilder buyer agreement to the authorities and a proper information of the\nnumber of units sold and the status of the construction has to be disclosed. <\/p>\n\n\n\n<p>If any developer\nprovides an incomplete or incorrect disclosure, it would result into penalty of\n5% of project cost. Also the developer can sell only those projects which are\nbuilt on the usable areas. <\/p>\n\n\n\n<p>The buyer shall\nbe provided with all the information of the project in which they are\ninvesting. Such information includes the sanction plan, layout plans along with\nthe specifications which are agreed and sanctioned by the authority and any\nother information as provided in the act, the rules and regulations made there\nunder and the agreement for sale which is signed with the promoter. <\/p>\n\n\n\n<p>The rights and duties of the buyer are stated under <strong><em>Section 19 of the RERA Act<\/em><\/strong> to protect the interest of the homebuyers.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/rights-and-duties-of-homebuyers-under-rera-act\/\">What are the Rights and Duties of Homebuyers under RERA Act?\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Few_RERA_related_Issues_in_the_recent_times\"><\/span>Few RERA related Issues in the recent times<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the RERA related issued that have been faced in the recent times are as follows: &#8211;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographic-without-heading-2-1.png\" alt=\"RERA related Issues\" class=\"wp-image-1963\" width=\"755\" height=\"224\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographic-without-heading-2-1.png 985w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographic-without-heading-2-1-300x89.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographic-without-heading-2-1-768x228.png 768w\" sizes=\"(max-width: 755px) 100vw, 755px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Right_and_Duties_of_Agents\"><\/span>Right and Duties\nof Agents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The RERA Act\nstates the rights and duties of the homebuyers and the developers. However, it\ndoes not give any clarification regarding the rights and duties of the real\nestate agents who are equally the part of the real estate sector and plays a\ncrucial role in it. The act does talk about the rights and duties of the real\nestate agent with respect to the promoter and allottees. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_Rules_specified_in_the_act_regarding_the_delayed_Project_Approvals\"><\/span>No Rules specified in the act regarding the delayed Project Approvals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The RERA act has\nlaid down rules regarding penalising the developers for untimely delivery of\nprojects. However, a majority of delay in the execution of the projects happen\nduring the process of obtaining approval and clearances from various\nauthorities. And the average time for obtaining all the approvals can take\naround <strong><em>1 to 2 years.<\/em><\/strong> The act does not make the agencies accountable\nfor the delay puts the complete responsibility on the developers. It does not\nconsist strict policy to regulate authorities to meet the timelines of fasten\nthe process of granting approvals. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lack_of_Strict_Deadlines\"><\/span>Lack of Strict Deadlines<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The central\ngovernment has certainly been lenient with the states in terms of deadlines to\ndraft RERA rules and their compliance with the regulations of the centres. Out\nof the 14 states that have met with the deadlines, almost all have diluted\ncertain rules, thereby, defeating the objective and purpose of strengthening\nthe real estate sector. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lack_of_Technological_know_%E2%80%93_How\"><\/span>Lack of Technological know &#8211; How<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Most of the\ntimes, some people do not have computing skills which are required to complete\nthe online registration process under RERA projects. The state and Central\ngovernment need to conduct a proper outreach program to educate all the\nstakeholders in all the places about the registration process under the RERA\nproject. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Long_and_Tedious_Registration_Process\"><\/span>Long and Tedious Registration Process<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The application\nprocess is quite long and tedious for the developers having multiple projects\nin the state. The are many registration forms, such as detailed project report\nand several online forms which are lengthy and time consuming, since it comprises\nof almost same information. There are many challenges and issues that exist in\nthe application process of RERA and the State and Central Government must take\ninitiatives to resolve this issue and implement the same promptly to make the\napplication process more straightforward and easy. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issues_Over_State_Specific_Content\"><\/span>Issues Over State Specific Content<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are\ncertain provisions in the draft of the RERA Act of many states that lack\nclarity. For example, the rules framed by Delhi, Gujarat, Karnataka, Uttar\nPradesh and Tamil Nadu do not state the form and content of audit certificates\nthat are to be issued by the chartered accountants, engineers and architects.\nThis results into overlapping and duplication of roles of many stakeholders and\nmight result into erratic verdicts. Also, few states have failed to provide\ndetailed information about the paperwork and the fee required to be submitted\nfor the registration of the agents of real estate. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_timely_permissions_granted_to_Real_Estate_Developers_by_the_Statutory_Authority\"><\/span>No timely permissions granted to Real Estate Developers by the Statutory Authority<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One of the most significant drawbacks of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Real_Estate_(Regulation_and_Development)_Act,_2016\">RERA Act<\/a> is that liberates the Statutory authorities from granting timely permissions to the developers of real estate for their projects. Since, it is mandatory to take approval or permission for project registration application from such authorities; most of the developers face issues of acquiring approvals from various agencies. This process is difficult and time consuming as different subject matters fall under different statutory or regulatory bodies and municipalities. Therefore, many developers are not able to apply for project registration for long terms. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> The objective of implementing Real Estate (Regulation and Development) Act, 2016 (RERA) is to form certain set of rules and regulations for the developers and to provide aid to the homebuyers when investing in RERA projects. Its purpose is to protect the interest of buyers and lay down procedures that are needed to be followed in real estate. However, in recent times, there are several challenges and issues that exist in the RERA Act. The act lacks clarity which is required to be addressed by the State and Central government, so as to take some important measures and initiative to remove such clarities and solve the RERA related issues.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/how-rera-helps-in-transforming-the-real-estate-market-of-india\/\">How RERA helps in transforming the Real Estate Market of India?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Real Estate (Regulation and Development) Act, 2016 (RERA) was implemented to provide transparency and accountability of the developers and promoters in the RERA project and to safeguard the interest of the homebuyers while investing in the real estate market. However, in the recent years RERA has been facing some critical issues as well. The [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1964,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[28,37],"tags":[332],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1961"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1961"}],"version-history":[{"count":13,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1961\/revisions"}],"predecessor-version":[{"id":1977,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1961\/revisions\/1977"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1964"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}