What does TSRERA mean for Home-buyers in Hyderabad? Part 3

This is part III of the article, and explains how the Telangana Real Estate Regulation Act (RERA) is a boon and has REGULATED the Real Estate sector!

Please read part I.

Please read part II.

of the article for better understanding.

1. Complaint mechanism: Putting a builder in a tight spot legally

• A registered project qualifies for a complaint being filed against a builder
• A home buyer or a builder can even make an appeal before the appellate tribunal
• You can also approach the high court if the need be through the RERA channel if required
• This was missing until 2017
• In the pre-2019 era, builders had a field day in the absence of an organized mechanism to address complaints and grievances
• RERA Act gave teeth to the legal mechanism backed by very stringent rules and expectations IN FAVOUR OF THE BUYERS

2. How to know which PROJECT or an AGENT is registered under RERA in Hyderabad

• The TSRERA has made complete transparency possible. Details of ALL REGISTERED projects visible on the TSRERA website
• Citizens can easily VERIFY details about a registered project in Hyderabad / Telangana on the Telangana RERA website
• This is easy: Just type the project title, and you will know if a project or an agent is registered in Hyderabad / Telangana
• Telangana RERA website http://rera.telangana.gov.in/
• Use tab: ‘SEARCH REGISTERED PROJECTS AND AGENTS’ which opens a new window where details can be types
• An external website opens up where you can check the ‘registered projects’ and ‘registered agents’. The complete details of the project, as well as the agent, are made visible. You can not only view the ‘application’, but also the ‘certificate’ issued by Telangana RERA authorities.
• The website shows you:
  • Sanctioned plans
  • layout plans
  • specifications
  • number of the building(s) or wing(s) in the project
  • schedule of completion
  • provisions for civic infrastructure like water, sanitation, and electricity
  • quarterly update of the bookings done, covered parking/garages booked, approvals have taken/pending after Commencement Certificate is issued, and the status of the project among other things
• Marketing efforts like advertisements or prospectus etc. need to carry the website address of the Telangana RERA authority
• Marketing efforts also need to have the RERA registration number allotted by the Authority

3. Strict buyer-centric rules for builders

• Complete information to be made available about residential/commercial project
• Consumers can AVOID UNREGISTERED PROJECTS, and save themselves from the risk
• No alterations or additions in plans can be made by the builder
• Builder needs to stick to the sanctioned plans
• Timely possession (delivery) is a must, else the builder is liable to pay interest to the buyer on a monthly basis
• If a buyer wants to withdraw from the project, need to refund their money with interest
• Builder to make sure that within 2 months of occupancy certificate, and after 60% of the possession is complete, the builder needs to form an ‘Association of Allottees’
• Builder needs to issue conveyance deed (registration of property in buyer’s name) (i) within 3 months from the date of occupancy, OR, (ii) when 60% of the allottees have taken possession after making full payment to the builder

4. Key highlights of TSRERA: a SUMMARY

• Promote transparent and smooth financial transactions between buyers and sellers
• The project must be registered with Telangana RERA prior to construction
• Marketing and selling are simply NOT allowed unless the property is registered with RERA
• Builder is accountable for the money taken from buyers
• Builder needs to provide periodic construction and relevant update of their projects to buyers
• 70% of the amount taken from buyers must be used for the sole purpose of use in construction only
• Strong deterrence mechanism with penalties
• Customer-centric redressal mechanism to secure FINANCIAL DISCIPLINE by the builder
• Telangana RERA helps the buyers, sellers, and agents benefit
• The real estate industry grows on the foundation of trust, and transparency with a well-regulated structure
• Business in the Real Estate sector has already boomed/flourished with an environment of trust and safety

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To know more about “What does Telangana RERA mean for Home-buyers in Hyderabad? Part 2”. Click here!