What is RERA Compliance for Societies? Checklists & Rights
Real Estate (Regulation and Development) Act, 2016, or RERA Compliance is a legislation designed to introduce accountability, transparency, and fairness to the real estate industry. Although initially RERA was concerned with the builders and developers, housing societies and apartment owner associations must comply with the provisions once the project is received.
The following article explains the meaning of RERA compliance, why it is important to a housing society and the way societies can comply with all requirements.
What is RERA Compliance?
RERA Compliance means the compliance of the housing society, builders, and real estate developers with the provisions under the Real Estate (Regulation and Development) Act 2016.
RERA Compliance ensures that:
- The society is legal and transparent.
- The accounts, costs, and approvals are shared with residents.
- Legal provisions such as registration, audits, and disclosures are fulfilled.
- Under the RERA norms, disputes are settled fairly.
With RERA Compliance, societies should earn the trust of strangers, ensure that their members are not exploited, and establish an effective system of governance.
Importance of RERA Compliance for Societies
RERA Compliance is not only a legal requirement but also an important measure to be commercial in housing societies. It protects the rights of residents and supports the continued running of the society according to the standards of the regulations.
- Legal Protection: Compliance with RERA Laws will protect society’s finances and legal claims.
- Transparency & Trust: With Transparent Financial and Operational Records, the members will come to trust.
- Dispute Resolution: Under RERA Compliance, a dispute that arises between a resident, a builder, or a committee can be settled under the supervision of the authority.
- Accountability: Supports running committees with residents.
- Property Value: A RERA Compliance-certified society has more property value and market credibility.
Benefits of Following the RERA Compliance Checklist
The process of achieving the RERA Compliance checklist applies not only to compliance with the legal requirements but is one that will enable a seamless business flow and the protection of the maximum interest of all stakeholders. For housing societies, it is commonly advantageous in the long-term development of trust and creates value overall.
- Seamless Operation: Ensures smooth operation without any hassle, including society handover process, documentation, and maintenance.
- Reduce Conflicts: Minimises the potential for conflicts between builders, residents, and the managing committee.
- Secure Tenancies: Guarantees rights of occupancy for tenants, who will be assured of their immediate legal possession, and according to the facilities that will be provided.
- Transparency & Accountability: It builds trust amongst its members based on principles of fairness.
- Compliance: Legal protection from sanctions, legal actions, or risk of regulatory compliance.
- Increased Popularity: Enhances the reputation of the society, leading to more demand and higher attraction for buyers to buy properties.
RERA Compliance Checklist for Societies
To ensure efficient operation and legal safeguards, each housing society should adhere to a well-organized RERA compliance checklist.
| Compliance Requirement | What to Check | Who Is Responsible |
| Project Registration | Check through the register number RERA. | Builder |
| Completion/Occupancy Certificate | Make sure the CC/OC was issued in advance of possession. | Builder, verified by Society |
| Society Formation | Enquire whether society or RWA is registered. | First Builders, then Owners. |
| Transfer of Documents & Deeds | Make sure that any initial plans, approvals, and legal documentation are received. | Builder |
| Common Area Handover | Radical legal conversion of common spaces into society. | Builder, with Society review |
| Pending Litigation | Certify that there are no pending RERA legal suits against the developer. | Legal Committee of Society |
| Annual Maintenance Dues | Check bills received and costs to completion. | Builder and Society Treasurer |
| Defect Liability Period | Maintain a history of complaints and response hours. | Builder (within 5 years) |
Read Also: Apartment Maintenance Charges
RERA’s 70:30 Project Account Rule
RERA says that project funds, 70% of them, should be deposited in a special bank account and can only be spent on land and construction expenditure. The remaining 30% may be utilized at will.
Any cash withdrawal in the RERA account is to be certified by an engineer, architect, and chartered accountant, with funds getting used transparently and in a project-specific manner.
- For Residents
The people become assured knowing that their investments are secure. They may bring complaints over missed facilities or exorbitant upkeep fees, even over safety concerns under direct RERA.
- For Managing Committees
It is important that committees have clear financial observances, make timely disclosures, and ensure that they observe the functioning of their societies according to the rules of law, which minimises risks of penalties.
- For Builders/Developers
Although handover remains, builders are also responsible for ensuring structural safety, quality, and agreed facilities throughout the 5 years of defect liability.
Rights of Housing Society Members and Flat Owners
RERA Compliance will provide all members of a housing society and owners of a flat with a set of unambiguous rights that ensure the safety of their investments and living conditions. The rights assure transparency, accountability, and group participation in societal management.
- Right to Timely Possession and Title: while the owners receive their homes and legal interests within the commitments given to them.
- Right to Information: At any time in the project, residents may request to see all project approvals, plans, and other legal documents involved with the project.
- Right to Compensation: Homebuyers may obtain compensation or money back as a result of a project delay, layout deviation, or unprovided amenity.
- Right to Fill Interim Coordination: Members have a right to the State RERA authority, and this does not exclude the consumer courts in matters of possession, defects, or society formation.
- Right to Management Participation: It gives the Flat owners a right to participate in the affairs of the society, i.e., decision-making and financial control.
Penalties for Non-Compliance under RERA
The RERA Act has clearly defined stringent penalties for violations by promoters, builders, real estate agents, and even allottees. These penalties bring credibility to RERA Compliance for all stakeholders:
Failure to Register Project
The promoter who does not register the project under the RERA Authority will be subject to a 10% penalty over and above the estimated total cost of the proposed project. Penalties for agents for default: ₹10,000 per day, max 5% of property cost.
False Advertising or Information
If there was false advertising or misrepresentation of information provided by the promoter, then a penalty of 5% of the estimated cost of the project is imposed.
Violation of Provisions of the Act
Penalties amounting to a sum equivalent to 5% of the project/property cost (for both promoter and agent) shall be imposed for any contravention of provisions (other than those mentioned above) of the Act.
Non-Compliance with RERA Orders
Non-execution of RERA’s order results in a penalty of 5% daily of the cost of the project/property for promoters, agents, or allottees until the end of the order.
Non-Compliance with Orders of Appellate Tribunal
Failure to take action on the order of the Appellate Tribunal may result in a penalty amounting to 10% of the Project/Property Cost by promoters and allottees.
These stringent measures stress the importance of adhering to RERA Compliance not only by the builders and society, but also by the people living in the building.
Read also: Apartment Car Parking Rules
Streamline RERA Compliance with NoBrokerHood
NoBrokerHood is a powerful platform that helps housing societies maintain RERA compliance effortlessly. It streamlines the management of vital records, timely documentation, and financial transparency all essential for meeting RERA regulations.
- Automates statutory record-keeping and RERA filings to ensure societies never miss compliance deadlines.
- Tracks maintenance payments and financial audits with accuracy, supporting transparency mandated by RERA.
- Facilitates seamless communication of RERA-related notices and updates to members digitally.
- Supports society handover processes aligned with RERA rules, making transitions smooth and documented.
All Solutions By NoBrokerHood
Summary
In conclusion, RERA Compliance is an essential requisite for all housing societies to ensure that there is a smooth and legal operation. By knowing what RERA Compliance is and following the correct RERA Compliance checklist, societies can ensure that transparency and accountability are carried across the sector. If not, proactive measures can lead to complaints by citizens and enforcement actions by the state authorities, and resistance due to incorrect decisions. On the other hand, good compliance establishes trust, efficiency, and long-term equity for the property. With digital solutions like NoBroker, societies are able to handle compliance without a hitch while shaping a contemporary and transparent community living experience.
FAQs
It follows the standards/norms of RERA, such as correct project registration, financial disclosure, meeting and non-meeting, resolution of disputes, etc.
It provides legal security, creates trust, avoids conflicts, and boosts the value of the property.
RERA Compliance checklist includes record-keeping and disclosure of information, timely meetings, financial audits, dispute resolution and record-keeping..
Not really, they all have to comply with similar basic principles; however, requirements to be met gradually become complicated for large societies.
They face fines, litigation, disputes, and loss of resident trust.