After the commencement of Real Estate (Regulation and Development) Act, 2016 every builder is required to register an ongoing residential project with the Real Estate Regulatory Authority of that state or union territory.
To register their project, the builder is required to give all the details pertaining to the project and that information is put up on the regulator’s website and it is visible to the public at large.
Anuj Puri, the Chairman of Anarock Property Consultants said, “This is a major step forward as it solves a lot of informational asymmetry that hitherto made investment decisions difficult.”
Visiting the RERA website will enable you to make informed decisions about your real estate investment. Among other things, the website gives information about the following things-
Look for a house at your desired location
If you know in which city you want the house, say for instance if you want an apartment in Pune, Maharashtra, then log on to the state’s website- (http://maharera.mahaonline.gov.in) and under the “Registration” tab click on the “Registered Projects”. After this, you can do an “Advance search” and enter all the other details such as your desired developer, area and the locality. On the RERA website, you can also search at the level of division, district, taluka or even a village in which you are looking for a property. The list of registered projects in your selected area will be displayed.
Know everything about the developer
Once you have seen the list of the registered projects, choose the desired project and you can find all the details of the project and the developer. Puri states, “A prospective buyer can view the pertinent details of the project such as name of the developer along with its address, (and) track record in the market.” A homebuyer must choose a reliable developer, the one who has successfully completed few projects. Take note of track record of timely delivery and quality of construction.”
Tejas Patil, head-real estate services, Sanctum Wealth Management, said, “Sometimes, from a resale point of view, it helps to know whether the developer has a good standing in the particular area of a larger market, which can be construed from the past track record published by it on the RERA’s website.”
Through the information available on the website of RERA, you can also get to know all the financial details of the developer, like, its financiers, promoters, and lenders.
Get the details of the project
Once you have selected the area and decided on the developer, you can browse through all his projects in that area. This information is submitted by the developers for all their registered projects. Patil said, “Knowing the exact facts—such as approved plans, exact project layout, carpet area and clear title, to name a few—will become a prerequisite for a purchase decision. Homebuyers can easily find the complete set of documents relating to the project on the website, right from approvals to application for occupation certificate, along with the expected timeline projection. It is now also possible to know the details about the sale of a project, which was not easily made known.”
In case, if you are planning to buy an apartment in an under-construction project, you must know before hand, how many units are sold and how many are left. This information is very critical as no agent can fool you by asking you to immediately book your flat as only a few are left. At the same time, you must also know if the construction for the under-constructed units is going as per the schedule.
Puri said, “the date that the developer has committed for the project to be completed, as well as any revisions of this date; the current stage of development, information on the support infrastructure like water, electricity and internal roads, along with the progress made on them.”
Get the details of the agents
Prior to the introduction of the RERA act, the real estate agents are known for tricking the homebuyers and misleading the claims of the projects and the worst part was they could not be held accountable for such claims. As per RERA, real estate agents are mandatorily required to get registered under RERA. Therefore, if you log on to the website, you can find out the list of real estate agents who are authorized as per the act.According to the Act, a ‘real estate agent’ is anyone who acts on behalf of one person in a transaction of the plot, apartment or building and receives a remuneration as commission or otherwise. This includes property dealers, brokers, and any other middlemen. They are not allowed to facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, in a real estate project or part of it, without having a registration number.
If you are planning to buy a flat through a real estate agent, then you must know his registration number. If the real estate agent makes any false promises then he can be penalized for the same.