What if Property is not RERA Registered?

What if property is not rera registered? Being a legal expert, let me tell you that it may lead to several implications for both buyers and developers. Buyers of unregistered properties may not have the same level of legal protection as those purchasing RERA-registered properties. RERA provides a framework for accountability, ensuring that developers adhere to project timelines and quality standards.

• Without RERA registration, buyers may find themselves in situations where the developer does not fulfill their obligations, leading to potential financial losses.

• In the absence of RERA registration, buyers may have limited options for recourse in case of disputes. RERA establishes a grievance redressal mechanism that facilitates resolution between buyers and developers.

• Properties that are not RERA registered may face issues related to project delays or substandard construction quality, as there is no regulatory oversight ensuring compliance with established norms.

• Financial institutions often prefer lending against RERA-registered properties due to the reduced risk associated with them. 

Purchasing a property that is not registered under RERA can expose buyers to significant risks and uncertainties. It is advisable for prospective buyers to thoroughly verify the registration status of any property before making a purchase.

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According to the Real Estate (Regulation and Development) Act, 2016 (RERA), all residential and commercial projects above 500 square metres or 8 units must be registered under RERA. But what if property is not RERA registered? If a property is not RERA registered, it raises several legal and financial concerns. Let us go through them in detail.

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What are the Consequences of Non-Registration Under Rera?

Non-RERA projects may not be eligible for loans from banks and other financial organisations. For non-compliance, developers risk severe penalties or even imprisonment. In the event that the builder postpones possession or cancels the project, buyers are not legally protected.

In the absence of RERA, purchasers are unable to protest to the RERA authority about fraud, delays, or subpar construction. There are no legal protections against cost increases or hidden fees for buyers. Developers may insert unjust terms that impact buyers' rights in the sale agreement.

Before buying property, verify RERA registration on the state’s RERA portal. Avoid purchasing non-RERA projects to prevent legal and financial risks and check builder credibility through past projects and online reviews. 

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How to Search Project on RERA Website?

Wondering what if property is not RERA registered? If you consider purchasing a property that is not registered with the Real Estate Regulatory Authority (RERA), there are significant risks to be aware of:

1. Lack of Regulatory Oversight: Without RERA registration, there’s no regulatory control over the project. This can lead to disputes, delays, or even fraud.

2. Ambiguity and Disputes: The absence of RERA oversight may result in ambiguity regarding promised amenities or project timelines. Disputes between buyers and builders can arise.

3. Impact on Property Value: An unregistered property may have reduced market value due to the lack of RERA compliance. This can affect your investment.

4. Loan Challenges: Financial institutions often prefer RERA-registered properties for loan approvals. Unregistered properties may face challenges in securing loans.

Exemptions: Some projects are exempt from RERA registration, such as those with land areas below 500 sq m. However, it’s advisable to opt for RERA-registered properties to safeguard your investment and ensure a smoother buying process. I hope you understand what if project is not registered in RERA.

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RERA stands for Real Estate Regulatory Authority. It is a real estate law in India that ensures transparency, accountability, and buyer protection, compelling developers to register projects. When we were interested in buying a property in Bangalore, we learned that the project was not RERA-approved. We consulted with a legal expert to know what if project is not registered in RERA. There can be several implications for why the project is not RERA-approved so let me share the implications here.

What if builder is not registered with RERA?

If a property is RERA-approved, it means that the property abides by all construction rules and is legal. It is better not to buy any property that is not RERA-approved. Projects might not be RERA-approved for:

• Non-compliance with zoning and land use regulations.

• Environmental concerns or lack of clearances.

• Violations of building codes or safety standards.

• Inadequate infrastructure provisions (water, sewage, roads).

• Land title disputes or legal encumbrances.

• Failure to meet fire safety requirements.

• Non-payment of necessary fees and taxes.

• Incomplete documentation, incorrect information submission or for other reasons

So whenever you invest in a property, make sure

• The property has RERA-approval

• OC certificate

• No pending loans, and also check other legal aspects as well.

Real estate investments are huge investments, so make sure everything is perfectly fine before investing any money.

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With the increased amount of real estate fraud, it is essential to buy properties which are RERA registered. However, I was confused about whether is RERA registration required for plots. According to my research, I got to know that RERA approval is mandatory for all real estate projects, including plots.

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To enhance the transparency, control, and promotion of India's real estate sector, the RERA (Real Estate Regulatory Authority) Act of 2016 was passed. The protection of investors' and consumers' interest in the sector is its main goal. The government ensured that the RERA Act was fully implemented by establishing a RERA authority in each state. 

Except for the state of Jammu & Kashmir, the act is applicable across India. 

All residential and commercial real estate projects will have to be registered with RERA.

I was going through Farah Ali’s answer, regarding what if builder is not registered with RERA. I completely agree with the points that she mentioned regarding the same. 

It is true that if the unregistered builder sells his property then he will face a penalty of Rs. 10000 per day till he complies with the rule. Also, if he continues to violate the rule then he can even face imprisonment.   

All new and ongoing projects must be registered under the Real Estate (Regulation and Development) Act, 2016 (RERA), in order to safeguard the interests of the project's stakeholders.

I’d like to conclude my answer here about whether is RERA registration required for plots. I hope this helps:)

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RERA has already been announced in nearly all states, and any property that is not recognized with RERA is unlawful. In fact, without registration with the RERA administration, no project can even be initiated. So, if you are planning to buy any property, make sure you check their RERA approval. But wait! Before you do that, try to understand what

RERA approved means actually means.

Is RERA applicable to old projects?

RERA is applicable to all new as well old projects. Before commencing the project, the developer had to provide specifics about it and provide frequent updates via RERA on its website. As a result, both purchasing and selling such property are prohibited. Even though it is currently offered at a low price and appeals to you, it is advised that you avoid such a property.

Is RERA approval mandatory for plots?

RERA has already been announced in nearly all states, and any property that is not recognized with RERA is unlawful. In fact, without registration with the RERA administration, no project can even be initiated. Before commencing the project, the developer had to provide specifics about it and provide frequent updates via RERA on its website. As a result, both purchasing and selling such property are prohibited. Even though it is currently offered at a low price and appeals to you, it is advised that you avoid such a property.

What if project is not registered in RERA?

The following penalties need be faced id a property is not RERA registered.

• A fine of up to 50%, a term in jail, or both may be imposed as punishment for breaking the regulations. Karnataka got well over 700 registration requests via its website before the deadline expired on July 31. These requests came from both brokers and builders.

• Estimates place the number of real estate brokers at much more than 10000 in Bangalore, which includes at least 868 active projects that were started since 2014.

• An unregistered agent who sells a property will be fined 10,000 rupees every day until they comply with the law.

• The total fine could equal up to 5% of the price of the building, apartment, or land, as appropriate. 

• A builder who violates the regulation may be subject to a fine of up to 10% of the project's anticipated cost, as decided by the authority.

• If the builder persists in disobeying the order, he may potentially be sentenced to a maximum of three years in prison, a fine equal to 10% of the project's anticipated cost, or both.

Now you know

RERA approved means.