Registration of projects: A double-edged sword under RERA
The second chapter of the governed and Development Act (Act), which deals with the inscription of a project and agents can largely determine their future or failure. It could be a double-edged sword.
Rising Issue 1: Wait for Delays
The Law establishes the basic rule that no one can sell / offer / advertise / invite / market / book unless you have saved the project with the Real Estate Regulatory Authority (RERA). What government infrastructure should be in place for that?
1. President of the RERA
2. The contracting members RERA office
3. A selection committee set up to select the previous one
4. A robust online system to accept registration and monitoring updates
5. A court of appeal to establish
By 1 May 2017, only 13 States had notified the rules. With the exception of some states, no state government has set up infrastructure for recording.
The Law requires that, within three months, the proponents must submit an application to the RERA register. But states have one year to establish RERA governments. Until the end, Authority / Regulatory Officer would be designated by RERA. There is little or no clarity on this subject on earth.
Nervous problem 2: The attack of a different type
Projects, which are underway and for which a Certificate of Compliance (CC) has not been issued before May 1, 2017, must register with the RERA. Ongoing projects have 31 July 2017 and registration. What about finished projects, documents submitted to the competent authorities, but the certificate of completion still to be delivered?
CC applications were filed nationwide before May 1, although much work is still waiting on site. At present there is a fashion in this type of projects. Developers have been trying to be completed before CC inspection. This allows the developer to limit their responsibilities.
Almost all projects within the law and we can expect a lengthy and tedious registration process given the amount of data that needs to be checked and confirmed before signing up.
Unless the submission, revision, clarification and confirmation process is simplified in advance for each RERA, we are able to perform a difficult task for both RERA and developers. Important resources must be deployed to undertake and carry out this task diligently.
Nervous problem 3: increase in paperwork
Most of the information required by the RERA, in relation to the structure of the building, already presented by developers in major metropolitan areas, due to current development norms or municipalities. This should be easy to share. However, these are new, some logical, and another confused. Two of these inclusions are:
1. Locate the details of the project with the latitude and longitude of the project endpoints. The way it protects the interests of an allottee remains a mystery.
2. Details about the area and the number of garages provided / sold. I’m not sure of the popularity of garage now one day, but the parking basement is not mentioning.
If you look at the list of about 15 sub-clauses of the Law that highlight the data submitted by the proponent, he realizes that the designs, consultants, deadlines, etc. Changes due to internal and external factors. Agents may not be able to execute; It may be to hire consultants, the area or design department can be improved.
What does the developer do when these changes occur? Inform RERA on a regular basis? Submit details or drop an addition?
Cutting-edge number 4: rising costs
Registration, quarterly documentation, additional time and costs, title insurance, delays in approval, free registration for each phase, etc., would increase construction costs. This should be sent to the consumer.