RERA New Rules 2022

The previous two decades witnessed a property boom in India, particularly in the metropolitan cities. Having a home, a personal space is something special for everyone. There has been much buzz around big real estate corporations not delivering the projects for years while home-buyers have paid more than 80% while awaiting possession. This fact crushed hundreds of dreams of having their own home. Sometimes, the builder owned land advertising beautiful real estate prospectus ended up being a case of land grab only. All of this brought into existence the much needed law and a legal authority which could regulate the builders and keep a check of whether the so called real estate project is a sham in the name of your own home!!

The Real Estate Regulatory Authority (RERA) Act, 2016 came into force on May 1, 2016. Some parts took more time and were notified by the lawmakers on May 1, 2017. RERA is a central law which specifies various requirements on part of the builders, promoters, agents, real estate advocates, home-buyers, etc. to bring transparency in the buying and selling process of real estate. Clear RERA rules for possession help home-buyers be more aware and empowered to save their financial interests. The new RERA rules particularly focus on the consumer’s interest. States and Union Territories are required to have their own local laws which duly comply with the RERA Act requirements through a state/ UT RERA website. RERA new rules 2022 provide for strict implementation by states against the central RERA Act, 2016.

Since the states need their own RERA guidelines, new RERA rules in Maharashtra may significantly vary from those applicable in the state of West Bengal. Thus, for compliance with RERA Act, 2016 in a particular state or Union Territory, the official website of that particular area should be checked as provided in the table below.

State-UT Wise RERA New Rules 2022

RERA Rules for Payment

Provisions under the RERA Act, 2016 related to payment are explained below:

• The rights and duties of home-buyers include necessary payment to the builder as agreed in the agreement to sell.
• Any delay in the necessary payment as agreed may also result in payment of interest by the home-buyers.
• RERA new rules 2022 also require sharing the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, etc. as provided in the agreement.
• Payment of all the outgoings like water or electricity needs to be borne by the builder until possession is handed over to the buyers.
• No more than payment of 10% the total amount is allowed to be paid by the buyer to the builder as per RERA new rules 2022 unless the agreement to sell is done with.

 It may be noted that these are provisions under the centre’s new RERA rules. There might be some more requirements under the state/ UT rules.

RERA Rules for Possession

The RERA new rules 2022 have their roots in the 2016 Act as complied with by the concerned states and Union Territories. Given below are some pull outs from the central Real Estate Regulatory Authority (RERA) rules for possession:

• If the builder does not hand over possession of the project as per the terms in agreement to sell, buyers are entitled to claim refund with interest (such interest rate be decided by the applicable new RERA rules of such state/ UT).
• If the home-buyers do not want to back out, they may also seek interest rate for every month of delay.
• Even if the lack of possession is due to suspension or revocation of RERA registration of such a builder, the buyers are entitled to a refund with interest.
• Once the home-buyers get the occupancy certificate, they are rightful to get the possession within 2 months.
• After getting physical possession of the said property, allottees/ home-buyers are entitled to get all the necessary documents with them.
• Within 30 days of obtaining the completion certificate, the promoters/ builders have to hand over the title documents related to common areas to the concerned authorities or association of home buyers, as the case may be.

RERA Rules for Renewal

The real estate laws require agents and advocates to register with their state/ UT’s authority for projects which fall under the category of beyond 500 sq. metres or more than 8 apartments. Registration as per RERA new rules 2022 requires a document checklist for real estate by the concerned persons. Once a real estate promoter/ agent has duly completed registration with state or UT’s Real Estate Regulatory Authority (RERA), there is no provision for renewal of such licence in the central RERA Act, 2016. However, such registration may be suspended in case of a breach. The state or UT’s RERA new rules 2022 may lay something in this regard which needs to be complied with RERA rules for renewal by the concerned person.

Frequently Asked Questions (FAQs) on RERA New Rules 2022

Q- What is carpet area as per RERA?

A- The net usable area of an apartment including the area covered under the internal partition walls of the apartment constitutes the carpet area as per RERA.

The carpet area does not include the following:

• Area covered by external walls
• Area under service shaft
• Balcony
• Verandah
• Open terrace area

Q- What are the conditions for RERA?

A- The conditions applicable on the real estate agents for a particular project are as follows:

• Registration of the agent with state/ UT’s RERA authority.
• Prove ownership of land for upcoming projects.
• To obtain all the necessary certificates, approvals, etc. for the project.
• Quarterly update of bookings, approvals, etc. on RERA website account.
• Clarification of facts to the home-buyers related to property layout, schedule for project completion, etc.
• Provide and maintain essential services till the home-buyers overtake.
• Execute a registered conveyance deed in favour of the allottee (home buyer) depicting the undivided share.
• Prepare and provide all such details as required by the state/ UT’s RERA authority.
• Requirement of builder to compensate home-buyers under RERA in case of suspension of project.

Q- What is the RERA penalty?

A- If the promoter/ real estate agents fail to act in accordance with the requirements applicable as under the state/ UT RERA Act, such a person will have to bear the punishment for contravention. Chapter 8 of RERA Act, 2016 (Sections 59 to 72) provides for the offences and the penalties in contravention of the duties provided under the RERA Act. Most of the punishments for new RERA rules are a certain percentage of the cost of the real estate project in question.

Q- Is RERA applicable for old projects?

A- As per the provisions of RERA Act, 2016, it is retrospective in nature. However, in case of Newtech Promoters and Developers Limited v. State of UP (2021), the hon’ble Supreme Court has clarified any prevailing confusion over the applicability of RERA on old projects. The bench made it clear that projects that have obtained ‘Completion Certificate’ from the concerned authorities do not fall under the umbrella of RERA. However, projects ongoing at the time when RERA Act 2016 came into force, the provisions do apply. The property lawyers in Kolkata may better be able to suggest whether a particular Kolkata real estate project falls under the clutches of RERA.

Q- Is RERA approval mandatory for plots?

A- It is mandatory for real estate promoters to register with RERA and seek necessary approvals for plots, apartments, buildings, etc. However, the Section 3 (2) requires RERA approval for a plot which is more than 500 square metres or the apartments proposed on such a plot is more than 8 in number.