RERA Act in Telangana & Rules and Regulations
Though an age-old investment vehicle, Real Estate stood as the most disputed industry due to the lack of a legal and structured approach. All thanks to RERA! RERA, Real Estate Regulation and Development Authority has retorted in the best way possible to all the unaddressed concerns by protecting every individual or entity registered with it.
It forms an all-around armour to everyone involved with the real estate transactions, may it be promoters, real estate agents, or buyers. The rules and regulations like registered projects’ updates periodically and part of the fund to be credited to the bank for construction purposes eliminate stalling projects’ major concerns.
As a brief introduction, the RERA Act was introduced in 2016 by the Indian government and has left it to the discretion of the state in implementation. Almost over 22 states and 6 Union Territories have notified RERA and 19 states to have active portals, reflecting the potential of the RERA Act.
RERA Act in Telangana
The Real Estate Regulatory and Development Act came into existence in Telangana on August 4, 2017, to legitimize the real estate sector. This is introduced to build a robust, transparent, and credible real estate sector.
The Telangana RERA rules must be abided by all the real estate under-construction or start-up projects whose land area is more than 500 sq meters, including more than six units. This applies to all the projects that have bagged the approval on or after 1 January 2017. Telangana RERA has launched a TS RERA website to form a platform for buyers to view the registered projects and their progress.
Objectives of RERA Act in Telangana
- Protecting the interests of both the consumers and developers
- Making the real estate industry transparent and efficient in selling and purchasing a property.
- Regulating the real estate industry and putting a check on fraudulent transactions.
- Ensuring a fast resolution of grievances by establishing an Appellate tribunal.
- Maintain the records of all the projects and agents registered with the RERA Authority on a website for public reference.
Rera Telangana Rules and Regulations
- The state government of Telangana stated that 70% of the total amount must be credited into the bank account, which must be used for construction purposes. This is done to eliminate any lapses in the under-constructed properties.
- Real Estate agents must renew their certificate every five years.
- Every real estate project should be registered with RERA Telangana if it is in the jurisdiction, else attracts penalties.
- If the project is to be completed in phases, then at every phase the project needs to be registered by the promoter.
- The promoters should update the project’s progress every quarter through the online TS RERA website to let the buyers know the status.
- The registration fee varies for different projects, as mentioned in the other section, which must be paid by the promoters.
Project Registration under RERA
The following are the steps to register a project under RERA.
- Get to the official website of the Telangana State RERA, at http://rera.telangana.gov.in/.
- From the ‘Services’ option, select the ‘Real Estate Project Registration’.
- The website redirects you to a TS RERA login page to enter the user name and the captcha code to login into the TSRERA account.
- After logging into your account successfully, click on ‘Project Details’ and then press ‘Add Project’ from the pop-up option.
- You need to enter the details of your project after which you will be redirected to the payment gateway.
- As the final step, you can pay the registration fee through the payment gateway and end-up with the registration process.
Exemption of Projects Under RERA
The projects mentioned do not need the RERA Registration.
- Suppose the projects whose developed area would not exceed 500 sq meters, or the number of apartments proposed would not exceed 8. In that case, such projects are exempted from registration for any of the above conditions.
- The project needs no registration if the developer has received the Completion Certificate (CC) for the real estate project before implementing the RERA Act.
- RERA Act is applicable for all the projects that are approved after 1 January 2017. But suppose you want to renovate or redevelop your property that does not involve the marketing, advertising, selling, or a fresh allotment of any plot, apartment, or building under the real estate project. In that case, you do not require to register it under RERA.
Who Can Apply For RERA?
Below is the given list of persons/entities that can apply for RERA registration of the projects.
- Proprietorship Firm
- Partnership Firm
- Competent Authority
- Local Authority
- Limited Liability Partnership
Telangana RERA Services
TS RERA renders various services to the citizens, promoters, and Real Estate agents through their official website.
- As a Homebuyer, you can register your complaints with RERA online if any. Your complaints would be processed and investigated at the earliest, and the one found guilty would be penalized accordingly.
- You can also access all the records of the RERA Registered projects and their progress. This is done to let you know the project status without having to visit the project often and look over customers and developers’ interests.
- As a promoter of the project, you can register the complaints with RERA online if any. Suppose you have a customer who does not pay you on time or have a Real Estate Agent who is illegally charging exorbitantly. In that case, you can lodge a complaint with RERA that would be processed and investigated to find the guilty and penalize them accordingly.
- Through the official website, you can register your projects under RERA if it falls in the ambit of RERA, i.e. if it does not belong to the exempted projects group. This would build credibility and accountability to your customers, thereby protecting you from defaulting customers.
- You must accurately follow the deadlines of the project completion. Otherwise, you may be charged with a fine. But, RERA provides you with a facility to file for an extension of the Real Estate Project.
- A promoter is required to update the details of a registered project every quarter. This lets the customers know the status of their project and act accordingly like paying the next instalments.
Real Estate Agents
- Real Estate Agents can register the Real Estate Authorities.
- You can also register the complaints if you are breached with non-payment by the customers or promoters protected under the RERA Act.
- You get to renew your registration every five years as it is valid for up to 5 years only.
How To File A RERA Complaint In Telangana (TS) RERA?
The end-users can complain online with RERA for any project, whether registered with RERA or unregistered scheme.
- After registering with RERA through the official website, you will have to log in to your account after which a pop-up appears asking you whether you are a complainant or the end-user accordingly.
- If you are a complainant, you will be redirected to a page where you have to register a complaint with RERA and provide your reasons and the documents as evidence.
- You will later have to pay the complaint fee of Rs.1000 as a fee through TSRERA.
RERA Benefits for First Time Home Buyers
- All the information regarding the project is made available on the builder’s website for home buyers.
- Some part of the total amount is credited to the bank account, which could be used for construction processes. This reduces the risk of construction halts due to financial contingencies.
- Only RERA Act approved projects get the registration search numbers using which the data regarding the projects can be tracked, and only such projects can be allowed to market them. This increases the industry’s efficiency by building trust.
- The investors can view the project progress report as and when required to get the information about it. This lets the buyers know about any deviations in the construction process. The buyers can also view the project plans, government approvals, sub-contractors, bank approvals, and etcetera establishing a transparent atmosphere throughout.
- Any delay in the project would not be encouraged by RERA. Hence, the developers must pay an interest rate of 2% above SBI’s Marginal cost of lending rate to the buyer, ensuring the buyers do not experience any losses.
Owing to the benefits and the regulations, RERA has redefined Telangana’s Real Estate industry’s functionality. It has made the transactions organized and transparent by establishing a procedure to register the projects within Telangana, provide the search numbers to projects registered with TS RERA. Telangana RERA has sometimes issued notices to the tasks that failed to meet the conditions and for not registering with it exhibiting the responsibility and the motive to legitimize the state’s real estate sector. It protects the end-users and real estate agents without a shadow of a doubt to lead a successful trading experience.
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RERA Act in Telangana FAQ's:
Yes. TS RERA has been notified in July 2017 and has been implemented since 4 August 2017.
Under RERA, promoters, buyers, and real estate agents are protected from all forms of breaching.
The promoters can register the complaints, register the projects, file for an extension, and also update the details of the project through the online RERA website.
Buyers and real estate agents can register the complaints if any. Buyers can view all the approvals and the progress of the project. While the Real Estate Agents can renew their certificate through the website.