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What if property is not RERA registered?

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Due Diligence
9 2021-12-30T17:35:35+00:00
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“What if property is not RERA registered“ is a common query among people who are looking to invest in a project. Let me tell you that you may land in serious trouble if you invest in a project that isn’t RERA registered. This is why you should be beware of buying in a project under construction that is not registered with RERA. Real Estate Regulatory Authority (RERA) is a regulatory body that was formed to protect the rights of homebuyers. If your builder fails to register his project with RERA, it is his fault. Now, if you buy a property in his project and reach out to RERA for redressal of any grievance, then you’d be asked why you bought an unregistered project in the first case. This makes your case weak. Plus, developers are required to quote the registration number in every promotion, meaning they can’t advertise a project unless it’s registered with RERA. So, you should always check whether the project you are looking to buy has been advertised in the media or not. On the RERA authority official websites, the details of residential and commercial projects are specified. A developer is required to list all the details as well as the updates about the project, floors, number of units, and how many are unsold or sold every 3 months. Residential or Commercial projects with 8 units and more come under the RERA’s ambit. Every under construction or new project comes under the RERA’s ambit. The authority makes sure that a developer is delivering what he promised to buyers as specified in the sale agreement. Want to conduct due diligence of property, take help from experts at NoBroker Read more: What is RERA? How To File RERA Complaint Online? What is RERA Certificate? I hope I answered your query on “what if property is not RERA registered.”
1 2022-09-30T18:44:21+00:00
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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. Know more about the legalities of projects not registered under RERA by consulting the legal experts of NoBroker, here.

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. Read More: Is Rera Number Compulsory For Registration Of Plot? How To Check RERA Registration Number?
0 2023-04-26T17:06:09+00:00
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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. Visit the home page of NoBroker to check out RERA-registered properties to buy/ sell /rent  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.  To whom RERA is applicable? Except for the state of Jammu & Kashmir, the act is applicable across India.  Is RERA applicable for commercial property? 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:) Get expert legal assistance service for property document verification from NoBroker Read More: How to check RERA-registered projects in Pune on APNA RERA? How to check RERA-registered projects in Mumbai?  What is RERA Registration? 
0 2023-08-28T00:55:38+00:00
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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. Avail home loans from NoBroker and get it disbursed easily for your dream house Buy legally verified and RERA-approved properties through NoBroker Read More: What is possession delay penalty as per RERA? How to check RERA approved projects? How carpet area definition changes under RERA approved projects?

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