Before the Real Estate (Regulation and Development) Act of 2016 was passed, the Indian real estate sector was unregulated. This meant that those investing in real estate were at risk. For instance, investors would often face issues such as sub-standard quality of construction and delayed possession. The introduction of RERA countered this by bringing about greater accountability, in the process making the real estate sector safer for investors. Now that you know what is RERA, find out why it has become mandatory.
Why have RERA Rules become Mandatory within the Real Estate Sector?
The Indian Government has made RERA mandatory all across states and union territories in order to put an end to malpractices, as well as to bring about transparency within the Indian real estate sector. This has increased accountability on the part of the developers, promoters, and real estate agents.
However, to ensure that the provisions of the RERA Act are implemented across the country, every state and union territory is required to form its own regulatory body.
Following these instructions, the government of Bihar implemented RERA Act in Bihar on 28 April 2017. The government appointed the Principal Secretary, Urban Development and Housing Department as the regulatory authority and The Bihar Land Tribunal as the appellate tribunal under the umbrella of the RERA Act Bihar.
Know more about RERA Bihar
Functions of RERA Bihar
RERA rules encapsulate the functions and duties of RERA in Bihar. In a nutshell, RERA overlooks the registration/renewal process for real estate promoters, developers, and agents. The authority is also responsible for registering complaints from homebuyers and solving them within the stipulated 120 days. Apart from this, it also undertakes a list of other administrative functions as specified by RERA.
Rules and Regulations of RERA Act in Bihar
The RERA rules in Bihar are divided into 10 chapters, where each one addresses a different aspect. Some of the subjects included are as follows.
- Overseeing and verifying the documents required to register a real estate project
- Verifying the disclosure of existing projects submitted by a real estate promoter or agent
- Registering a project and approving an extension only if the project fulfils RERA requirements
- Overseeing the application/renewal of registration of an agent
- Filing a homebuyer’s complaint against a builder or developer
Fees and Charges of RERA in Bihar
According to RERA Bihar guidelines, projects and real estate agents in Bihar have to be registered with RERA. Promoters are required to register all projects except the ones mentioned below.
- Project where the area of the land does not exceed 500 sq.mt.
- Projects where the total number of apartments, including all phases of development, does not exceed 8
- Projects where the promoter has received a certificate of completion before the RERA Act was passed
In order to register your project as a builder or developer you will have to pay a registration fee online, via a demand draft or cheque. The fees vary and are as follows.
For Group Housing Projects
- Rs.5 per sq.mt. if the area is equal to or less than 1,000 sq.mt.
- Rs.10 per sq.mt. (capped at Rs.5 lakh) if the area exceeds 1,000 sq.mt.
For Mixed Development (residential and commercial) Projects
- Rs.10 per sq.mt. if the area is equal to or less than 1,000 sq.mt.
- Rs.15 per sq.mt. (capped at Rs.7 lakh) if the area exceeds 1,000 sq.mt.
For Commercial Projects
- Rs.20 per sq.mt. if the area is equal to or less than 1,000 sq.mt.
- Rs.25 per sq.mt. (capped at Rs.10 lakh) if the area exceeds 1,000 sq.mt.
For Plotted Development Projects
- Rs.5 per sq.mt. capped at Rs.2 lakh.
RERA Forms for Real Estate Agents and Promoters
As a real estate agent or promoter, you will have to fill one of the following RERA forms from to register a project, make an appeal or renew a real estate agent’s license.
- Form-G: Application for registration of a real estate agent
- Form-H: Registration certificate of a real estate agent
- Form-I: Intimation of the rejection of application for registration of real estate agent or rejection of application for renewal of registration of real estate agent or revocation of registration of real estate agent
- Form-J: Application for renewal of registration of real estate agent
- Form-L: Appealing to the appellate tribunal
- Form-M: Lodging a complaint with the authority
- Form-N: Lodging a complaint with the adjudicating officer
RERA Impact on Real Estate in India
Being the first regulatory body of the Indian real estate sector, RERA impacts the real estate sector in several ways. It has instilled transparency and accountability. While it aims to protect all the stakeholders, its success depends on the participating states and union territories. While states like Maharashtra have set high standards in implementing RERA, many others are yet to implement RERA to regulate the real estate sector.
RERA Benefits for First Time Homebuyers
With the implementation of RERA Act Bihar, you can be sure that your rights as a homebuyer are protected, an assurance that’s especially beneficial if you’re a first-time homebuyer, unfamiliar with the ins and outs of the real estate sector. Whether you want to invest in an under-construction project or a ready-to-move-in property, you can do so without any worries.
Additional Read: Benefits of RERA Act for First Time Home Buyers
Further, you can make your home purchase affordable and hassle-free by financing it with a Home Loan offered by reputed lenders like Bajaj Finserv. Here, you can access a high-value sanction of up to Rs. 5 Crore* on cost-effective terms. What’s more, you can check your pre-approved Home Loan offer from Bajaj Finserv to get finance via a tailor-made deal. This not only saves time but also expedites approval.
To get started, simply submit details like your name and contact number. Apart from a home loan, you can also view pre-approved offers for other financial products like personal loans and business loans. With RERA and this stellar financial solution by your side, you can become a homeowner with relative ease.
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