Under the Real Estate (Regulation and Development) Act 2016, the state government of Bihar established Bihar RERA on 28th April 2017. The main objective of this panel was to strengthen the real estate sector in Bihar.
The real estate sector is protected under various laws in our constitution. However, these laws can be manipulated for personal interests. Therefore, the central government came up with The Real Estate Act. Under this act, each state is required to establish a regulatory authority to ensure transparency in the real estate sector.
Functionalities of RERA Bihar:
Bihar RERA is allotted with the following responsibilities:
● To ensure the registration of all the ongoing real estate projects and agents:
RERA Bihar administers all the real estate projects in Bihar. To record all the ongoing projects, promoters are urged to get their projects registered with RERA.
The projects that were completed before RERA came into effect do not fall under this category.
Small-scale projects are also relieved from the registration process.
Real Estate projects that are under five hundred square meters are not restricted to be registered under RERA Online Registration Bihar. Similarly, the projects with less than eight apartments are also ruled out.
Any project that is not registered and verified is not considered a legal real estate project. RERA Bihar holds the authority to halt any such projects.
● Registration of projects:
There are no third-party platforms for the registration of projects. Promoters are supposed to register their projects on the official module of RERA Online Registration Bihar itself.
Promoters can register their projects on the official website of RERA Bihar Patna. The projects can be registered through desktop as well as handheld devices.
After the successful registration of their project, promoters are requested to submit original documents regarding the project. If the promoter fails to submit the documents within thirty days, the registration is dismissed.
If any promoter commences the project without successful registration, the project is considered unauthorized by RERA.
In case, the promoter violates the RERA guidelines, he is fined 10% of the total project cost. If the violation continues, the fine can extend up to another 10% or imprisonment.
After the successful registration of the project, promoters are required to provide regular updates of the project to RERA.
● Registration of agents:
All the real estate agents in Bihar are required to register at Bihar RERA. Unrecorded real estate agents are not allowed to advertise, promote, sell, or offer any property to buyers.
The compulsion of agent registration is introduced to reduce the number of precarious agents from the sector. Such guidelines help RERA in backtracking agents who promote unethical behavior.
A penalty is imposed on all the real estate agents who fail to register themselves on RERA Bihar Patna. The person is fined ten thousand rupees. The amount keeps adding up for each day the insolvency continues. It can reach up to 5% of the property cost.
● Complaints handling:
A person who faces any issues regarding real estate can reach out to Bihar RERA or the adjudicating officer. A complaint can be filed for violation of RERA guidelines or issues concerned with registration, promotion, forgery, etc.
RERA instantly redresses the complaints, and fast-paced proceedings take place. RERA prioritizes the interest of the buyer and resolves the issue accordingly.
Suppose the person is not satisfied with the decision of RERA Bihar. In that case, he or she can file an appeal before the Appellate Tribunal. If the proceedings are still not convincing, the aggrieved person can file an appeal in the High court.
Also Read: Know RERA Penalties across the States
Benefits of RERA Bihar Patna:
Bihar RERA benefits the real estate sector in the following ways:
All the real estate projects in Bihar are registered under RERA. This information is available for the public interest.
The details of all the registered projects include sanctioned plans, layout, proposals, scheduling, etc. Concerned people can track the progress of any real estate project registered with RERA Bihar.
This information is available to ensure the authenticity of the projects and agents in the real estate sector.
Bihar RERA prevents the promoters from having too much power over buyers. Under RERA guidelines, the promoters cannot alter the contract according to their interests.
A promoter is not allowed to take more than 10% of the total project cost in advance. It can only be overruled if both parties agree on the terms mentioned in the contract.
70% of the total construction cost is deposited in a separate bank account. The account cannot be used for mundane expenses.
RERA guidelines prevent any forceful transaction or payment on both ends.
Suppose the buyer applies for a refund within 30 days. In that case, the promoter is liable to return 95% of the amount paid as a registration fee.
If the project is delayed, the promoter is required to pay the interest of every delayed month.
Bihar RERA works closely with the buyers to support them with the best real estate practices. Under the regulation of RERA Bihar, the real estate sector has recorded better engagement. RERA follows the preventive approach to save buyers or investors from facing unnecessary costs in the real estate sector.