How has Business Changed for Real Estate Agent under RERA Act?

RERA aims to protect home buyers by laying down rules for agents and estate brokers. With around 8 to 9 lakh agents in the country things had been unorganised and no regulation existed in this segment. With RERA act in effect, only registered brokers will be able to sell new property, the rest will play in resale market. Only fair and organised agents can sell projects and properties. Business will be fair with no false promises to any clients. And regular training and certification on RERA guidelines will have to be carried out by RERA registered agents.

Highlights of RERA act for Agents:

  1. Marketing unregistered projects will attract penalty and cancellation of licence
  2. Validity of registration of Agent’s licence is for 5 years.
  3. Agents will Undergo a certification course and take up refresher course every year.
  4. Agent is required to maintain the books of accounts, records, and documents separately for each real estate project.
  5. Penalty for unregistered broker selling registered project.
  6. Cheating on Title documents, litigation, false promise of amenities, will all come to an end.
  7. This will improve the overall transparency and accountability in the sector.

How will RERA registered Agents, impact the industry and home buyers?

  1. Home buyers’ trust is likely to increase and this could lead to an increase in sales for brokers and builders.
  2. Home buyer with help of agents can make an Informed purchase decision on property.
  3. Agent will Help home buyers chose a RERA-compliant developer
  4. They will be consultants to buyers. They will educate customers with Title deeds, land documents, building certification documents, buyers’ right and so on.

How can Developers and Agents team up to contribute to growth in real estate sector?

  1. ‘Pictures speak a thousand words’, projects can exhibit more site photos, videos & install CCTv cameras for home buyers to have a good view of the development
  2. After stage completion they can inform the agents and announce to probable buyers of timely & competent speed of construction.
  3. Websites can have building wise details of development, this will ensure bookings & investments.
  4. Brokers can be informed of the sold & unsold inventory status at all times to enable spot booking
  5. All amenities on the brochure can be supported by appropriate photos
  6. Builders can Proactively share  RERA certificates with Agent members
  7. By supporting customers even after the agents role is over. Like Client Support post sales.
  8. All Disclosures on website can be clearly understood by home buyers
  9. Inclusion of brokers details explicitly on RERA website of projects (to prove authenticity of broker)

In conclusion, yes business has changed and will change for Real Estate Agent under RERA Act. RERA rules for agents and estate brokers will safeguard the rights of home buyers. You will see fair and organised agents selling projects and properties. Business will be transparent and no false promises will be made to any clients. Market will start believing in the phrase ‘Pictures speak a thousand words’.  A lot of site photos, videos & CCTv cameras installations will be seen at sites. Faith and trust will be restored in the coming years.

What are the Rights of a Home Buyer in RERA act?

Real Estate Regulatory Authority (RERA) Act is aimed at protecting the interests of buyers in the real estate sector. First and foremost rights of a Home Buyer in RERA act is a mechanism for quick dispute redressal like conciliation forum. Right to compensation on issues like delay in project delivery, Occupation certificate, completion certificates. Grievances on matters of property pricing, quality of construction will be answered. Matters of title deeds and other land or building agreements will be solved. Benches and conciliation forums will solve disputes in an quick, efficient and transparent manner.

Benefits of RERA to Home Buyers

Delay in the projects can be addressed

Developers who default the delivery date will pay an interest rate of 2%
Possibility of imprisonment of up to three years.

Quarterly progress disclosure

Common area and amenities’ progress has to be updated quarterly on MahaRERA website
Every building has to produce its progress report on quarterly basis along with CA’s certificate on expenses incurred.

Selling by Carpet area

Selling of property can only be based on the carpet area. Built-up and super built-up areas are demolished. Earlier buyers would be misled by builders on the carpet area, super built-up area, they would receive. Simply because nobody measures these things, thereby builders would deceive the consumers.

Buyers Consent for any change in plans

Developers will have to acquire consent of two-thirds of the buyers in a project before changing project’s design or any other structure. Earlier the builder would change the plan any time without intimating the home buyers. Now this will be punishable or penalised by RERA act.

Responsible for any defect in the construction for 5 years

Quality of the construction has been a concern for many buyers. Structural defect that takes place to the property for up to five years from the date of handing over possession will have to be repaired by the developer. Builder will have to repair it within 30 days without further charge.

Use of your money on your project only

The developer will be required to transfer 70% of the money received from buyers to an escrow account. Post which, the money will be withdrawn as per the stage of the construction, that will be approved by engineers and chartered accountants of builders.

Conciliation forum for grievances to quickly solve disputes
CREDAI and NAREDCO are a part of conciliation bench in Mumbai and Pune. Disputes will be addressed quickly and amicably. RERA body is working on many such benches across major cities. This is a part of Alternate Dispute Resolution (ADR) mechanism.
Builders will need all clearances before selling
Builders and agents will have to register themselves with the RERA, disclose every detail about the project and will be able to sell projects only after the necessary clearances have been attained.

No more false promotions. What you see is what you will get
Advertisement will have to carry the RERA registration number
Honest pictures and on false commitments on amenities or look of the building

EXCERPTS:
Rights of a Home Buyer in RERA act is aimed at protecting the interests of home buyers and providing financial transparency, legal transparency, Commitment transparency, Administrative redressal is ensured in the new rule of RERA law. RERA registered projects have to abide by Quarterly progress disclosure, be responsible for any defect in the construction, use money of home buyers on that project only (Escrow account)
Make sure you are an informed and a savvy buyer. Give us a call to know how we can show digital transparency to home buyers. Also see all the projects that are frequently updated on our platform. See a platform that offers transparency and builds faith in the system.We help you fulfil your  dreams Ghar!
Backlink: https://umber-ghar.com/home.html#forCustomer

How is RERA and Transparency Related?

RERA was enacted to bring about transparency in the real estate market. Such need aroused due to lack of confidence of consumers in builders/promoters, poor access to legal documents and most importantly an absence of a government regulating body. In the RERA guidelines, developer has to register all his existing and upcoming projects under RERA and this will be monitored by authority and home buyers.
Builders have stringent compliance norms to follow. Umber Ghar software is developed out of his need. It is a bridge to RERA compliance requirements of the builder and their projects. Home buyers  through Umber Ghar- RERA filing software can have remote, definite and highly detailed view on what’s the status of their investment.

What is RERA ?

RERA or Real Estate Regulation and development act was enacted to bring about transparency
in the real estate market and enhance the consumer – developer relationship. It empowered the consumers to have better rights for his/her investments. Enabled builders to bridge the gap between them and their home buyers

What is the need of RERA?

RERA is a solution to a lot of problems floating in the real estate market. Like weak project progress monitoring, lack of confidence of consumers in builders, poor access to legal documents and most importantly an absence of a government regulating body.

How RERA functions?

Basically the developer has to register all his existing and upcoming projects under RERA, once registered the developer can give all the project relating information on the website. Maybe architectural details, construction plans, schedules etc. This happens before the sales and marketing starts.
After this the developer has to update the project status every 90 days in both physical and financial respects with the help of an engineer and C.A. This information will be provided to RERA and can be accessed by home buyers with the help of RERA registration number on RERA websites.

How does this benefit Consumers?

The consumer can now monitor all the progress and legalities on their own.
The builder has to complete the project on time if they want to avoid any legal action and penalty for delay
The builder cannot alter any part of the project as earlier specified without the consent of at least 2/3rd of the investors
What was promised by the developer has to be delivered.

Detail can be seen on https://maharerait.mahaonline.gov.in/PDF/FAQMergedPDF.pdf

How does this benefit Developers ?

With Transparency and confidence giving policy (RERA) sales will surely increase in real estate market and help bringing back the lost trust for developers.
Transparency is maintained throughout the progress of the project, at registration and after registration also. Return filing on every quarter is a mandate. Now all details regarding project progress and development, certificates and documents, CA ‘s audited reports are available.  There is no chance of any after sales complaints and if any arises there is a conciliation forum to address to redressals and grevances.
Marketing and branding opportunity is huge with the introduction of this act. A remarkably high customer satisfaction percentage can be obtained through this.

What is the role of Umber Ghar – Property Tracking application in all of this?

So now we see that legally there has to be transparency in real estate industry. Umber Ghar- RERA filing software is the medium to see through it. This software eases out all the compliance needs through its easy to use interface. Builders can update their project progress; certificates of architect, engineer and CA can be prepared and filed on the platform. Builder will get the most updated RERA website for his project.

On the other hand customers have remote, definite and highly detailed view on what’s the status of their investment. Facility of CCTv integration, video and photo uploads will establish a remote access to the site. Such transparency will improve the builders brand name.

In Conclusion RERA was enacted to bring about transparency in the real estate market. Home buyers through Umber Ghar- RERA filing software can have remote, definite and highly detailed view on what’s the status of their investment. Builders can efficiently, timely and accurately, carry out quarterly updates on the software. In effect faith and trust will be established between both the builder and home buyer mutually.

CA CERTIFICATES AND AUDIT REPORT UNDER MAHARERA

Withdrawals from project account

Withdrawal from project accounts – following documents are required for withdrawal from project account
A certificate from Architect certifying the percentage of completion of construction work
A certificate from the engineer for the actual cost incurred on the construction work
A certificate from a CA for the cost incurred on construction cost and land cost
The Chartered Accountant shall also certify the proportion of the cost incurred on construction and land cost to the total estimated cost of the project
The total estimated cost of the project multiplied by such proportion shall determine the maximum amount which can be withdrawn by the promoter from the project account.
As per the Act, the land cost can be withdrawn only in proportion to construction cost even if it has been paid in full.

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