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If any of the above are found guilty of contravening the RERA, they would have to pay heavy penalties. Key penalties in the RERA are: 

• Non-registration with RERA attracts a heavy penalty of up to 10% of the project's estimated cost or imprisonment up to 3 years. Sometimes, RERA may impose both imprisonment and a fine. 

• Furnishing false information also attracts 5% of the estimated cost of construction as a penalty. 

Hence, heavy penalties may be imposed on the builder, promoter, real estate agent, etc., if they are in non-compliance with the RERA. 

RERA Complaint Registration

A homebuyer should have the following details if they wish to register a complaint against the builder: 

• Details such as name, address etc. 

• Registration number of the project and the address where it is situated. 

• The response of the builder. 

• The relief the homebuyer is requesting.

A buyer may file a complaint with the RERA Authority for any violation or contravention of the provisions of the RERA Act by a builder, developer, promoter or real estate agent. Conditions under which a buyer can file a RERA complaint include:

• Delay in Possession: If a builder delays delivery of possession of the property, the buyer can file a complaint against the builder to get immediate delivery of possession or get a full refund along with interest.

• False Advertisement: A complaint can be filed against the developer, promoter, and even the endorsers if false advertisements misled a buyer based on which he/she decided to deposit a sum with the promoter.

• Advance Payment: A builder can ask for only up to 10% of the cost of the building, apartment, or plot as advance payment. If a builder asks for more than 10%, the buyer can file a complaint against the builder.

• Improper Registration of a Project: All projects must be registered under RERA. If a builder has sold or is trying to sell an unregistered project, the buyer can file a complaint against the builder.

• No details about the Project: All details regarding the project including project plan, layout, and government approvals need to be updated on the RERA website. One can file a complaint if a builder or developer doesn't adhere to this provision.

• Structural Defects: In case of any structural defects in the workmanship and quality of the services, the promoter will have to compensate the amount paid by the allottee. If not compensated, the buyer can file a complaint.

• Ownership Transfer: A promoter cannot transfer majority rights to any third party. In case he/she is found transferring majority rights to a third party without the consent of the two-third majority of allottees, one can file a complaint.

Typically, a homebuyer has to file a RERA complaint form along with the requisite fee to register his/her complaint. You can follow the given steps to file a complaint under RERA:

• You can file a RERA complaint form along with the requisite documents and the fee before a RERA or an adjudicating officer. 

• Once the authorities receive the complaint, they constitute an inquiry bench to hear both the parties involved. 

• The matter is typically settled within 60 days of the filing of the complaint. 

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RERA Online Complaint filing

Many states like Gujarat, Maharashtra, and Karnataka now provide online complaint filing under RERA. The method of filing an online complaint almost remains the same in most states. However, the procedure, applicable fees are different.

To register a RERA complaint online in Gujarat, a complainant must comply with the following steps:

• Go to the Gujarat RERA portal. On the home page, there will be a link for complaint registration.

• Once you click on the link, you will be redirected to another page to provide relevant details of the complaint. These details are the same that one would provide in a physical complaint.

• After filling in the personal details like name, address, contact details, etc., there will be an option for the complainant to attach supporting documents.

• The complainant must pay a registration fee of Rs. 1000 to be able to submit the complaint. One can avail of any net banking or mobile banking facility for payment. After payment, one has to click the Submit button to successfully register the complaint.

In order to register a RERA complaint online in Maharashtra, a complainant must comply with the following steps:

• Go to the Maharashtra RERA portal. On the home page, click on the Online Application Menu.

• One must first log in to be able to access the online complaint form. Therefore, the complainant must create a new registration with an appropriate username and password.

• Once registration is completed, the complainant must file his/her personal information to proceed with the complaint.

• After providing relevant personal details, the complainant should find and select Add New Complaints. Here, the complainant would be able to fill in relevant details of the complaint.

• The complainant must pay a registration fee of Rs. Five thousand to be able to successfully submit the complaint.

For all online portal complaints, once a complaint is successfully registered, both the parties would be called to express their facts and figures surrounding the dispute. The RERA will listen to both parties and will give a verdict on the merits of the case.

The aggrieved party would be given the option to challenge RERA's decision if they are not satisfied with such an order. The aggrieved party must challenge RERA's decision before the High Court.

The Real Estate (Regulation and Development) Act (hereafter referred to as “RERA”) came into force on 1 May 2016. The main idea behind this law was the regulation and promotion of the real estate sector. Now development projects in real estate need to register themselves under RERA. RERA provides credibility to real estate projects and protects customers against delays in handing over the projects. 

How to Register Projects under RERA?

The process of Application for Registration of Real Estate projects differs from state to state. The detailed procedure for each state is available on each state’s RERA website. The promoters and real estate agents have to apply for registration on the website, which is relevant for their state. For registration, you need to submit certain documents along with the application. These, too, differ from state to state. However, certain documents are common amongst most of the states. These are:

• Promoter’s PAN Card;

• Legal title deeds of the land. (See Section 4(2)(l)A);

• Encumbrance Certificate (See Section 4(2)(l)B);

• Commencement Certificate (See Section 4(2)(c));

• The Sanction Plan, Layout Plan, location details of the project (See Section 4(2)(d));

• The plan of development works; and

• Details of previous project experience of the promoter, if any (See Section 4(2)(b)).

Some of these documents across different states (as mentioned on their websites) are as follows:

• Name, type, and registered address of the enterprise;

• Registration Certificate, Memorandum of Association (MoA), Articles of Association (AoA) and date of incorporation of the promoter’s enterprise;

• Audited balance sheets of the last three financial years;

• Audited report and director’s report of the last three years; and

• Name, address, contact details, and photographs of the promoter/director/partners/chairman/ or any other authorized person.

What Are the Key Benefits?

Before RERA, the real estate industry was in shambles. Customers faced delays, there was no regulation, and there was widespread corruption and high-handedness of real estate agents and builders. We see the following key benefits after RERA came into the picture: 

• Carpet Area: A statutory definition of carpet area dispels the doubts regarding its determination. Promoters decided on carpet areas before RERA came into being. 

• Buyers can seek information regarding the projects (Section 19, Clauses 1 & 2): Buyers under RERA can seek information such as completion status, plan layout, stages of construction, etc.

• Delaying projects led to consequences for the promoter: Under RERA, each promoter has to give a due date on which they will hand over the possession of the property to the buyer. If the promoter cannot complete the project by this date,he can face penal consequences. 

• Liability of promoters:  If there is any structural defect or flaw in constructing a property, the allottee may bring up such an issue to the notice of the promoter and the promoter will be obligated to rectify such flaws within 30 days. If the promoter does not do the same, the allottee will need to be compensated for such structural defects.

• Advance Payments up to 10%: Under RERA, the builders cannot demand advance payments that are more than 10% of the project's total value.

• The buyers were given rights in case of false promises: If the allottee finds themselves in a position where the initial promises made by the promoter are not being kept, or there is a mismatch in the commitment between the parties, the allottee under this Act, has the right to withdraw from the project and get a full refund (sometimes with interest or compensation).

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Impact On Home Buyers

Homebuyers now have the following rights under RERA: 

• Buyers need not pay for the walls area, as the definition of carpet area is now clear. 

• Builders need to disclose information, establishing transparency between the buyers and builders.

• Registration manifests the credibility of builders and real estate agents. 

• RERA also prevents indefinite delays in project development and misappropriation of funds. 

• Asking for refunds in case of uncompleted projects is also easier under RERA. 

Impact On Real Estate Agents

RERA has the following impact on real estate agents:

• Real estate agents now have to mandatorily register themselves and also keep renewing this registration. 

• If a real estate agent is not registered, he will have to pay penalties. 

• Real estate agents will have to maintain accounts, books, records, etc. 

• They should display their registration number at all times, especially in the advertisements they place. 

• False advertisements will attract a penalty. 

Penalties

Various penalties under RERA are:

• Section 60: We already know that a promoter has to register themselves under Section 4 of RERA. For furnishing false information, a penalty of up to 5% of the approximate cost of the real-estate project needs to be paid.

• Section 61: Just like in the previous section, even if the promoter violates any other provision of RERA (i.e., other than Sections 3 & 4), the same amount of penalty can be levied against them.

• Section 63:  For non-compliance with RERA authority order, a penalty upto 5% per day gets levied on the promoter. 

• Section 64: For failure to comply with the order of the RERA tribunal, a promoter may also face imprisonment. 

• Section 62: If the real-estate agent violates the provisions of Section 9 & 10, they will be required to pay ₹ 10,000 per day till such default continues.

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RERA Laws Across India

Till now, every state has notified the rules for their respective state authority under RERA. The only exception here is the state of Nagaland, which is under process to notify the rules.

Most states have launched their websites regarding the same. However, in this regard, some north-eastern states (such as Assam, Manipur, Arunachal Pradesh, and Sikkim) and Jammu & Kashmir, Ladakh, and NCT of Delhi are lagging.

West Bengal refused to implement RERA and enacted its legislation called, “Housing and Industrial Regulation Act, 2017,” challenged in the Supreme Court.

Several states have implemented a diluted form of RERA. This has increased difficulties for homebuyers in these states.

RERA is forward-looking legislation, and before buying a house, you should always check the RERA registration of the builder and the real estate agent. If you are in the real estate business, make sure to comply with the provisions of RERA.

Consulting a Lawyer is always useful for quick and authentic information about RERA Act

Consulting a Lawyer is always useful for quick and authentic information about RERA Act.

Super Built-Up Area

Before we understand super built-up area, it is important to understand the meaning of built-up area. Built up area includes all areas of your flat (carpet area + balconies, walls etc.). Super built-up area includes built-up area plus your proportional share in the common areas of your building. For instance, if your building has common pathways, parks etc., these would also be included in the term super built-up area, in proportion to your share in them.

Typical common areas included in a super built-up area are: 

• Staircases

• Lobbies

• Lifts

• Club house

• Security rooms

However, the super built-up area, does not include the following: 

• Underground water facilities. 

• Open swimming pools and skywalks

• Open sports amenities. 

Occupancy Certificate

An occupancy certificate is the evidence that the building is inhabitable and that its construction is in compliance with all rules and regulations. It is issued by a local government, agency or planning authority. It is the developer of the building who needs to obtain the occupancy certificate. Occupancy certificate needs to be shown at the time of obtaining public utility connections. Typically, a developer applies for an occupancy certificate within 30 days of the completion of the project. The developer or the person applying for an occupation certificate should furnish the following documents: 

• Project commencement certificate

• Project completion certificate

• NOCs for fire and pollution

• Sanctioned plan of the building. 

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RERA Registration Number

RERA mandates that all real estate developers register under it. RERA registration acts as a stamp of credibility. Once the registration process of RERA registration is complete, the real-estate developers obtain a RERA registration number. This RERA registration number acts as a proof of authenticity that the project is credible and that buyers can put their money in it. 

Floor Space Index

Floor space index, also known as Floor area ratio, is the ratio of the built up area to the total land of the project. Floor space index is important as it indicates the total area that can be built upon a plot of land. The development control regulation department and the building code of India regulate the floor space index. The type of building, which city it is located in and the amenities available in the building are factors taken into account while determining the floor space index. Floor space index helps in maintaining the ratio of open space to closed spaces and helps in sustainable development of cities. 

Leasehold Property

A property which has been taken on lease is a leasehold property. Builders and real-estate developers, build their projects either on leasehold properties or freehold properties. Leasehold properties are typically on lease from 30 to 99 years. Once, the leasehold period gets over, they convert to freehold properties. Buyers prefer freehold properties to leasehold properties, as certain restrictions operate on leased land. 

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Freehold Property

A freehold property absolutely belongs to the owner. The developer may purchase the same form the owner for the purposes of development of the project. Unlike leasehold properties, no statutory approval is required to transfer the ownership of a freehold property. It is easier to get loans for freehold properties and no restrictions are imposed on the same. 

Pre-Launch Properties

You would have heard about pre-launch properties or pre-launch offers. A pre-launch property is a property whose launch has been announced, even before the approval process is underway. Typically, builders solicit offers from customers, who could be old customers or through real-estate agents a discounted prices for pre-launch offers. Such offers and properties attract potential buyers’ attention as they are available at prices lower than the market value. 

These are a few terms or legal jargons which are widely used in the real-estate sector. RERA Act, also uses these terms in its provisions. It is hence, important that you as a customer should know what these jargons mean and make an informed decision, while buying any property. 

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House Registration Process

You will have to register your house with the local Sub-Registrar of Assurances, who has jurisdiction over the locality in which your house is located. 

Most states now allow some steps of house registration online. Depending on your State, a house registry online will be available for some (but not all) house registration procedure steps. For the remaining step[s] of the online house registry, you will need to visit the Sub-Registrar’s Office. Even in states which allow the maximum number of steps online, you have to make a single visit to the Sub-Registrar’s office.

The process typically involves the following steps:

1. Book an appointment. You will get an appointment letter. 

2. Pay the prescribed registration fees. You will get a receipt for the fees paid. 

3. Present/Upload a copy of the transfer deed (the legal document by which you acquired the property, such as a Sale Agreement) and the identity proofs of the parties and witnesses. 

4. The parties, and the witnesses, have to be physically present at the Sub-Registrar’s office at the date, and time, mentioned in the appointment letter. If all documents are in order, the Sub-Registrar will register the deed and return the original deed with the deed's registration number mentioned on it. 

Depending on your State, Steps 1, 2, or 3 can be done online. However, in every State, for Step 4, the parties and the witnesses must be present. 

The online house registration procedure for a rented house is the same as the online house registration procedure for any other house. 

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Online House Registration Check List

This online house registry checklist will help you ensure that all the requirements of the house registration procedure fulfilled: 

1. Ensure that the transfer deed (the legal document by which you have acquired your house, such as a Sale Deed, a Gift Deed, etc.) is, in writing, signed by the parties, attested by at least two independent witnesses, and executed on stamp paper of value equal to the stamp duty payable on the transaction. 

2. Pay the registration fees, and take a receipt. If your State allows this step to be done online, carry the receipt with you when you visit the Sub-Registrar’s office. 

3. Some states may require you to present a true copy of the transfer deed. The Registration Rules of your State will specify this and tell you how to make a true copy (if a true copy is required).

4. If this step is allowed to be done online in your State, upload copies of photographs, and identity proofs, of the parties and the attesting witnesses. In any case, carry copies, and originals, of all these documents at the time of visiting the Sub-Registrar’s office. 

5. Ensure that all the parties and the attesting witnesses are present at the Sub-Registrar’s office on the appointment date and time. 

6. The original transfer deed will be returned to you. If registration has been successfully done, ensure that the registration number is mentioned on the original deed with the Sub-Registrar's seal and signature

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Registration of Old Property

Registration of old property was slightly different than the properties bought recently. While the law governing was the same, the facilities of online procedure were not available. Registration should be completed within four months of execution of the transfer. Before technology was used, the documents submitted took four months to be returned from the registrar’s office. However, the new registration rules in 2019 and 2020 enable the documents to be returned the same day. It is easier to register a property in the present times than it was to register an old property.

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Types of Land Registration

Registering property is the last and most important step after one has bought the property. If your property is not registered in your name then it would be difficult to prove ownership in the courts. If in the future some dispute arises then it is essential to have the property registered in your name. There are various ways in which you can register immovable property such as land:

1. Full Property Value: It is one of the simplest and most straightforward ways to execute a property registry. You register your property at the full value which you have paid for the same.

2. Property Value is Higher than Circle Rate: You can register at the full property value if the value is higher than the circle rate.

3. Property Value is Less than Circle Rate: You may register a property which is less in value than the circle rate. However, the difference between the circle rate and the actual sale value of the property is considered as income and is taxed at rates appropriate to the income slab.

4. Bank Valuation: While In some cases, banks insist borrowers register the property at either full property value or higher value.

5. Sale Certificate: Applicable only in the case of bank auction properties.

6. Undivided Share Value/Sale Agreement Value: To register a property at Undivided Share (UDS) is the most common practice. For an under-construction property, the builder signs two agreements with the buyer which are the Sale Agreement and Construction Agreement. The construction agreement is towards the construction cost of the flat/property. Builders register the property at sale agreement value or UDS. This practice is adopted to save stamp duty costs.

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New rules for Property Registration in India 2020

The documents to be registered must be presented in four months starting from the registration date. As of 2020, due to computerization, copies of the documents are available on the same day. If a property is not registered, it will not serve as valid evidence in court. Unregistered property has no legal validity. In case the property is acquired by the government one cannot be entitled to compensation if the property has not been registered.

Stamp Duty Charges & Property Registration in India, 2020

Stamp duty which is a tax imposed by the government on the parties dealing in property transfer and is charged by the central and state government. The purchasers must pay the stamp duty charges on the agreement of sales that falls under Section 3 of the Indian Stamp Act, 1899.

Stamp Duty charges differ upon state rules also depends upon:

• Property Status: Old or New
• Property Location: rural area, City area, etc.
• Owner’s age
• Owner’s gender
• Property utilization: Commercial or Residential
• Property type: Flat or house

Property Registration Act

If you have entered into a transaction for the sale of immovable property and the value of such property exceeds INR 100, You need to register the same. Section 17 of the Registration Act, 1908 makes such registration compulsory. The Registration Act also provides for which documents are essential for the registration of property and which are optional. Fees for registration vary according to the state. If a property is not registered then it cannot be produced in the court as proof of ownership. Property should ideally be registered within four months of execution of the transfer. A maximum condonation of further four months may be allowed with the penalty for delay in registration. But the document needs to be presented for registration within eight months of execution of the transfer. 

Property registration is a complex procedure and ideally, help from a lawyer should be taken for the same. You should not delay registering your property and get the same registered within the stipulated time.

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Type of Flats being offered under the scheme and related registration charges

There are broadly four categories or types of flats that have been put for sale by the DDA under the current scheme. They are:

• Higher Income Group (HIG) – The registration charges or application amount to be paid for this category of flats are Rs. 2 Lakhs.

• Middle Income Group (MIG) – The registration charges or application amount to be paid for this category of flats are Rs. 2 Lakhs.

• Lower Income Group (LIG) – The registration charges or application amount to be paid for this category of flats are Rs. 1 Lakh.

• Economically Weaker Section (EWS) - The registration charges or application amount to be paid for this category of flats are Rs. 25 Thousand.

Some general conditions to be noted are:

• The application once submitted cannot be withdrawn.

• The spouses (husband and wife) can apply either separately or jointly with their spouse(s). However, if they apply separately/individually and both applications are selected in a lucky draw, only one flat will be allotted as per regulations.

• The allotment of flats will happen via draw of lots, the date of which will be announced by DDA in due course.

• The date of allotment will also be announced soon by the DDA.

• The possession of flats will be given after allotment and receipt of the first payment by the DDA.

• The DDA will initiate the refund of payment for an unsuccessful draw after 30 days from the date of draw of lots.

• It is advisable to regularly visit the DDA website for information on the ‘lucky draw’.

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What are the eligibility conditions for putting a DDA housing scheme application?

As per DDA, any applicant interested in putting up an application needs to fulfill the following criteria:

• Only a citizen of India can apply for the scheme.

• Applicant must be over 18 years of age.

• Applicant must not be an existing leasehold or freehold owner or joint owner of residential house or plot of size 67 square meters in Delhi, New Delhi, or Delhi cantonment.

• Applicant must possess an active bank account.

• Applicant must also have PAN Card.

• Annual income of applicant applying under EWS category must not exceed Rs. 3 lakhs.

• Household income of EWS category applicants should not be more than Rs. 10 lakhs.

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What documents are required for submission along with the application?

The applicant needs to submit the self-attested copies of the following documents:

• Address Proof that may include documents like Driving License, Passport, Voter ID, Electricity Bill, Aadhaar Card, etc.

• PAN Card

• Bank Statement or Passbook

• Income Tax Return filed for the assessment year

• Reserved Category certificate, as applicable, issued by a competent government authority

Conclusion

The DDA Housing Scheme is a good opportunity for all those who are planning to buy a reasonable house in Delhi. The scheme has been created keeping in mind the budgetary constraints of people who dream to own a home. With several nationalized government and private banks providing housing loans at prevailing interest rates, the scheme definitely has the potential of being economical for the common citizen. We suggest you evaluate all your options including the legalities involved and register before the deadline ends if it fits your bill.