Under the RERA Rules- Real Insights by RealDocs: Part 1, we introduced you to RERA rules set by the Karnataka government. In Part 2, we will highlight the variations and additions in the RERA Rules covering some major states like Maharashtra, Haryana and Telangana. Let’s take a look:
MAHARASHTRA RERA RULES (the “MahaRera”):
- Definition of covered parking space: MahaRera has added the definition of covered parking space, floor space index, legal practitioner, redevelopment scheme etc.
- Additional Documents: In MahaRera there are additional documents asked for registration i.e. information relating to Floor Space Index/Transferable Development Rights, proposed development of a building, open space area etc.
- Clarity on Completion Certificate: Under the RERA Act there is a clear definition of Completion Certificate which verifies if the project has been developed in accordance with the approved plan. However, under MahaRera obtaining a Completion Certificate means permission for development has been granted. It may be debated that this variation creates room for ambiguity and confusion amongst buyers and builders.
- Prior consent of allottees before alterations: In line with the Karnataka Rules, the MahaRera has also specified the conditions for exemptions on prior consent of two-third allottees before any alteration in the Project which is:
- If the proposed plan is disclosed to the allottee under the Agreement before registration;
- If it is in compliance with the order issued by the competent authority.
- Deposits: MahaRera in consonance with the RERA Act has incorporated the provision for deposit of seventy percent of the amount received from buyers in a separate bank account. Additionally, MahaRera stipulates that the promoter has to deposit 100 percent of the amount if the received amount is less than the estimated project cost.
- The rate of interest: MahaRera has also fixed the rate of interest payable by the Promoter and the allottee to be the highest lending rate of State Bank of India plus additional two percent. Further, the timeline of thirty days is fixed for the refund from the due date.
- Maharashtra (Regulation and Development) Act, 2012: The Maharashtra (Regulation and Development) Act, 2012 is now no more in existence. However, in MahaRera, some of the important provisions of Maharashtra Act is included i.e. relating to the Formation of Legal Entity and the transfer of title via registration of sale deed within three months:
- For single plot, if the buyer has paid the entire consideration;
- For single building Project, where occupancy certificate is granted or fifty percent of allottees have paid the entire consideration;
- In case of a building a layout, within three months from the date the Co-operative Society is registered or occupancy certificate has been issued whichever is earlier.
- Performa of agreement: Performa of Agreement is notified, it implies that all the clauses in the agreement of sale entered between the promoter and the builder need to be same as in the Performa if there is any deviation in the terms and conditions, the terms listed in the Performa will supersede.
- Booking amount reduced to 10%: The common practice is that the booking amount is usually 20% of the consideration, which has been reduced to 10%. Further, for each construction phase, the MahaRera defines the percentage of the price to be paid by the buyer, which gives immense clarity on the payment plan.
HARYANA RERA RULES:
- Definition of ‘Colony’: Haryana government has added the definition of ‘Colony’ which means more than one project at a time and each project should be developed in phases.
- Ongoing projects: Haryana RERA has its own interpretation of the Ongoing Project, which are projects for which licence for development has been issued under the Haryana Development and Regulation of Urban Area Act, 1975 on or before May 1st, 2017 and where the development is yet to be completed; but there are certain exemptions as follows:
- An application is submitted for obtaining a Completion Certificate;
- Part of the Project has been granted occupancy/completion certificate.
- Discrimination rules: Haryana has categorically mentioned in its Rules that there should not be any discrimination on the allotment based on sex, caste, creed, color, religion, etc.
- Zoning details: For the plotted development, the promoter shall also disclose the zoning of the plot approved by the competent authority.
- Occupancy certificate registration: If the project’s Occupancy Certificate Application is refused by the competent authority on or after 31/07/2017, the Promoter is required to register the Project under RERA within 30 days of receipt of communication for refusal.
- The rate of interest: Haryana has the same rate of interest for a refund as given in MahaRera, however, the timeline for refund is ninety days.
- The penalty for violators: RERA Act has determined the penalty for the violators who do not register the on-going Projects as 10% of the Project cost. However, Haryana Rules have diluted it from 5 to 10 per cent.
- Performa of agreement: Under the Performa of Agreement, if there is any increase in the taxes/charges after the expiry of the completion date of the project as per the registration, the increase in taxes shall not be charged to the allottees.
- Execution of sale deed: On receiving the entire consideration, the promoter shall within 3 months execute a sale deed in favor of the allottee and under no circumstances, this can exceed six months.
TELANGANA RERA RULES:
- Definition of a saleable area: In Telangana Rules, the association of allottees is defined as given under the Karnataka Rules. Under these Rules, the Saleable Area includes carpet area plus exclusive veranda/terrace area along with common areas.
- Exemptions for ongoing projects: For the Ongoing Projects, Telangana Government has also brought an exemption for registration i.e. the Projects for which building permissions were approved prior to Jan 1st, 2017 by the Competent Authority. It can be inferred that such Projects covered under the cutoff date does not require registration even though they have not received the Occupancy Certificate or Completion Certificate as mandated under the RERA Act.
- Performa agreement:
- Under the Performa of Agreement, as given under the Haryana Rules, any increase in taxes shall not be charged to the allottees, upon expiry of the completion date.
- The method of calculating the undivided share in the land corresponding to the carpet area in the Apartment has also been provided under the Performa.
- Timeline for refund: The timeline for refund from the promoter to the allottee is ninety days.
We hope this article helped you understand the RERA Rules and the distinction from the Act in Maharashtra, Haryana and Telangana. We will shortly be coming up with our third series [Part #3], where we will be covering other states. Stay tuned!
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