"Roles & Responsibilities of Promoters as Per RERA"
The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to regulate the real estate sector in India and to protect the interests of homebuyers. One of the key components of RERA is the role of promoters, who are responsible for developing and selling real estate projects. In this blog, we will discuss the roles and responsibilities of promoters under RERA.
Registration of Projects
As per RERA, it is mandatory for all real estate projects that are over 500 square meters or have more than eight apartments to be registered with the respective state RERA authority. Promoters are responsible for registering the project and providing all the necessary information, including project details, land title, approvals, and financial statements.
Advertising and Marketing
Promoters are responsible for advertising and marketing the project only after it has been registered with the RERA authority. All promotional material must be accurate and not misleading in any way. The promoter is also required to disclose the RERA registration number in all advertisements and marketing material.
Construction and Development
The promoter is responsible for completing the project within the timeline specified in the agreement with the homebuyers. The promoter must provide regular updates on the progress of the project, including delays, if any. They are also responsible for obtaining all necessary approvals and permits from the relevant authorities before commencing construction.
Transparency in Transactions
Promoters are required to maintain transparency in all transactions related to the project. They must disclose all information related to the project, including the layout plan, carpet area, and the number of units sold. Promoters must also maintain separate accounts for each project and provide regular updates on the financial status of the project.
Liability and Compensation
Under RERA, promoters are liable for any structural defects or other deficiencies in the project, which may arise within five years from the date of possession. In case of any such defects, the promoter is required to rectify them within a reasonable time. In case of delay in possession, the promoter is liable to pay compensation to the homebuyers.
Conclusion
Promoters play a crucial role in the real estate sector and are responsible for ensuring that the project is completed within the specified timeline and to the satisfaction of the homebuyers. RERA has provided a comprehensive framework for regulating the real estate sector, and it is the responsibility of promoters to comply with all the provisions of the Act. It is essential for homebuyers to be aware of the roles and responsibilities of promoters under RERA to ensure that their interests are protected.