The rules and regulation under Haryana RERA were legitimate in the state from 1st July 2017. The HRERA website which would be entailing details pertaining to the real estate projects is yet to be launched. The key features of Haryana RERA are as follows –
- The developer has to provide intensive and extensive details about the project as well as the company for registering with RERA. Moreover, ongoing projects will have to provide additional details in terms of the total money collected from the customer and status of the project.
- In case of default by the developer, additional compensation would be applicable apart from standard repayment of the entire amount with interest.
- Haryana RERA has categorically defined the registration fees for projects falling under different zones as well as types.
- It is mandatory on part of the developer to update the number and types of apartments sold, number of garages sold, status of the project and status of approval within 15 days of expiry of every quarter on the webpage.
- If the developer does not work in accordance with the rules and regulation as governed by the authority as well as the appellate tribunal, then a penalty of 5-10% of the project cost or 3 years imprisonment would be pertinent.
- 70 % of the proceeds from the total sales of the project shall be kept by developer in a different bank account. The funds in this account would be redeemable by the developer according to the status of completion of the project which will be certified by the engineer, architecture and charted accountant.
- Carpet area would be the price determinant of the apartment. If the developer makes any changes in the apartment, with the consent of the customer, which leads to an increase in the carpet area by more than 3%, then the developer can proportionally charge extra. Conversely, if the carpet area decreases then the developer has to refund the amount within 45 days with interest.
- Developers can terminate the agreement of sale in case of continuous default by the customer after giving a notice of 30 days. In this case, the refunded amount would be deducted from the booking amount and interest liability.
- Defect liability of the project is in congruence to the central act i.e. 5 years.
- All real estate agents who want to operate their businesses will have to register with RERA. The registration fee for a real estate agent under Haryana RERA is Rs. 25,000. On the other hand, all non-indivudual entities will have to pay a resgitering fee of Rs 2,50,000.
- The agents should work in accordance with the provisions of the act. The validity of their registration is 5 years.
- Customers have to make payments in accordance to the payment schedule. However, if the buyer defaults in his payment as per the payment schedule, then he/she is liable to pay additional interest of MCLR (Marginal Cost of funds based Lending rate) + 2% on the defaulted amount.
- In case of disobedience with the orders and decisions of appellate tribunal, customers and agents would be liable to pay 5-10% of the cost of apartment, plot or building accordingly.
- Customer has the right to terminate the agreement to sale in the case of extension of the time required by the developer to construct the building. Refund would be available to the customer within 45 days along with interest charged on the same.
Overall, the various nuances of Haryana RERA are in congruence with the central act. The act aims to bring transparency and trust in the real estate sector by providing critical information such as scheduled time of completion, construction updates and clearly defined payment schedule to name a few.
However, projects with part occupation certificate or those that have applied for occupancy/completion certificate are exempted from registering under RERA. This may lead to a larger number of projects moving outside the purview of RERA. Nevertheless, if these projects do not receive the certificate within 3 months, it is mandatory for developers to register them under RERA. This increases the chances for a foul play.
A positive outlook can be expected in the longer run as Haryana RERA is expected to bring more number of investors, buyers as well as sellers on a level playing field. Nevertheless, only future can ascertain the actual effect of RERA on price, demand and supply.