The Real Estate (Regulation and Development) Act, 2016 (RERA), came into effect in Telangana on August 4, 2017. The Telangana State Real Estate Regulatory Authority was established to regulate and promote the real estate sector in the state, ensuring transparency, protecting consumer interests, and standardising business practices.
The RERA Act is a significant legislative measure introduced in India in 2016 to address challenges in the real estate sector. Its primary objectives are to promote transparency, accountability, and efficiency, thereby protecting buyers and ensuring fair practices.
RERA requires developers to register their projects with the regulatory authority, providing detailed information about project timelines, layouts, and finances. Additionally, the Act mandates that a portion of funds from buyers be placed in an escrow account to ensure timely project completion and prevent fund diversion. Overall, RERA enhances transparency and accountability, creating a more secure environment for both developers and homebuyers.
The Important parties involved in the RERA Act are:
Promoters: These are individuals or entities responsible for the development, construction, and sale of real estate projects. They are required to register their projects with the RERA authority, provide detailed information about the project, and adhere to specified timelines and quality standards.
Real Estate Agents: These intermediaries facilitate the sale, purchase, or lease of properties in real estate projects. They must register with the RERA authority and are responsible for providing accurate information to buyers and adhering to ethical practices.
Allottees (Homebuyers): These are individuals or entities that purchase properties in real estate projects. The RERA Act provides protections for allottees, ensuring transparency, timely possession, and recourse in case of disputes or non-compliance by promoters or agents.

Advantages of RERA for Buyers:
Transparency: RERA mandates developers to disclose project details, ensuring transparency in transactions.
Accountability: Developers are required to adhere to project timelines and quality standards, holding them accountable for delays or defects.
Consumer Protection: Buyers are protected from unfair practices and fraudulent activities, with provisions for grievance redressal.
Quality Assurance: RERA enforces standards for construction quality, ensuring buyers receive what they pay for.
Financial Security: Escrow accounts for project funds offer financial security, reducing the risk of fund diversion by developers.
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Key Aspects and Regulations Under Telangana RERA
1. Registration of Real Estate Projects and Agents
Mandatory Registration: All commercial and residential real estate projects with land over 500 square meters or more than eight apartments must be registered with the Telangana RERA before advertising, selling, or booking.
Real Estate Agents: Agents facilitating the sale or purchase of such projects must also be registered with RERA.
2. Transparency and Disclosure Requirements
Project Details: Developers must provide detailed information about the project, including land status, layout plan, carpet area, and schedule for completion.
Promoter Information: Promoters need to disclose their credentials, including past project details, litigation history, and financial status.
Website Updates: Promoters must update information about the project on the RERA website quarterly.
3. Financial Discipline
Separate Bank Account: Promoters are required to deposit 70% of the project funds collected from buyers into a separate bank account, ensuring that the money is used only for the construction of the project and land costs.
Financial Records: Promoters must maintain financial records and have them audited annually.
4. Protection of Homebuyers
Model Agreement: The RERA Act mandates the use of a model agreement between buyers and developers, ensuring that the agreement terms are fair and transparent.
Timely Possession: Developers must adhere to the possession date promised to buyers. In case of delay, they must compensate buyers.
Defects Liability: Developers are liable to rectify structural defects or any other issues brought to their attention by the buyer within five years from the date of possession.
5. Grievance Redressal
RERA Authority: A state-level Real Estate Regulatory Authority has been established to address grievances and disputes between buyers, developers, and agents.
Appellate Tribunal: An Appellate Tribunal has been set up to hear appeals against the decisions or orders of the RERA Authority.
6. Penalties for Non-Compliance
Failure to Register: Developers who fail to register their real estate projects under RERA may face penalties of up to 10% of the estimated project cost or imprisonment for up to 3 years, or both.
Non-Compliance with Orders: If a promoter fails to comply with any direction or order of the Regulatory Authority or the Appellate Tribunal, they may face a penalty of up to 5% of the estimated project cost or imprisonment for up to 1 year, or both.
Misrepresentation: Promoters who provide false information or make misrepresentations in the documents filed under RERA may face penalties of up to 5% of the estimated project cost or imprisonment for up to 1 year, or both.
Delayed Projects: Promoters who delay the completion of projects beyond the agreed-upon timeline may be liable to pay interest to the allottees for every month of delay, as prescribed under the Act.
How to Check if a Property Has RERA Compliance in Telangana:
Check the RERA Registration Number on Telangana RERA Website: Every real estate project that falls under the purview of RERA has a unique registration number provided by the Telangana RERA authority. This number should be prominently displayed in all advertisements, brochures, and documents related to the project.
Verify Project Details: You can check for the project details on the Telangana RERA website on https://rerait.telangana.gov.in/SearchList/Search. This will provide you with detailed information about the project, including its status, developer details, sanctioned plans, approvals, timeline, and any complaints filed against it.
Check for Compliance Documents: RERA mandates developers to submit various documents such as project plans, approvals, commencement certificates, land title documents, and quarterly progress reports to the RERA authority. Ensure that the developer has submitted all necessary documents and that they are in compliance with RERA regulations.
Look for RERA Clause in Agreement: If you're buying a property, ensure that the sale agreement includes a clause stating that the project is RERA compliant. This provides you with legal recourse in case of any disputes or non-compliance issues.
Visit the RERA Office: If feasible, you can visit the local RERA office to gather more information about the project and seek clarification on any doubts you may have regarding its compliance.
Exemptions from RERA Registration:
Under Section 3(2) of the RERA Act, certain projects are exempt from registration:
Small Projects: Projects where the land area is less than 500 square meters or the number of apartments is fewer than eight.
Completed Projects: Projects that have received a completion certificate before the Act's commencement.
Renovation/Repair: Projects involving renovation, repair, or redevelopment that do not include marketing, advertising, selling, or new allotment of any apartment, plot, or building.
For phased developments, each phase is treated as a separate project requiring individual registration.
Penalties Applicable under the RERA Act
Failure to Register: Developers who fail to register their real estate projects under RERA may face penalties of up to 10% of the estimated project cost or imprisonment for up to 3 years, or both.
Non-Compliance with Orders: If a promoter fails to comply with any direction or order of the Regulatory Authority or the Appellate Tribunal, they may face a penalty of up to 5% of the estimated project cost or imprisonment for up to 1 year, or both.
Misrepresentation: Promoters who provide false information or make misrepresentations in the documents filed under RERA may face penalties of up to 5% of the estimated project cost or imprisonment for up to 1 year, or both.
Delayed Projects: Promoters who delay the completion of projects beyond the agreed-upon timeline may be liable to pay interest to the allottees for every month of delay, as prescribed under the Act.
Time limit prescribed for disposal of complaints under RERA Act: Section 29 of the Act provides that complaints should be disposed off as expeditiously as possible but not later than sixty days from the date of filing the same. However, where it cannot be disposed of during the said period, the Real EstateRegulatory Authority is require to record its reasons for the same.
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