RERA Telangana and it’s impact on Hyderabad Real Estate

Introduction to RERA:

The Real Estate (Regulation and Development) Act 2016, commonly referred to as RERA, is a comprehensive legislation introduced by the Indian government to address the long-standing issues of the real estate industry in the country. The Act came into force on 1 May 2016 with 61 of 92 sections notified. The remaining provisions came into force on 1 May 2017, and has since then been responsible for bringing transparency and accountability to the real estate sector in every state. Will talk particularly about RERA Telangana in this blog.

The primary aim of RERA is to protect the interests of home-buyers and create a more efficient and streamlined process for property transactions. The law mandates the registration of all real estate projects with the Real Estate Regulatory Authority (RERA) in each state, ensuring that the developers are accountable for delivering the projects on time and as per the promised specifications.

Overall, RERA has brought about a significant positive impact on the Indian real estate industry, both for buyers and developers. The law has ensured that the real estate sector operates with greater transparency, accountability, and efficiency, making it easier for home-buyers to invest in properties.

Benefits of RERA for homebuyers:

The Real Estate (Regulation and Development) Act, 2016 (RERA) has brought significant benefits to homebuyers in India. One of the most notable advantages is that RERA provides transparency in real estate transactions, as developers are now required to register all their projects with the regulatory authority and disclose all necessary information. This helps homebuyers make informed decisions and reduces the risk of fraud and misrepresentation.

RERA also mandates that developers deposit a certain percentage of the project cost in an escrow account, which ensures that the funds are used only for the specific project, and thus, eliminates the possibility of diversion of funds.

In addition to setting up a regulatory authority, RERA also establishes a dispute resolution mechanism to handle disputes between buyers and developers. The Act provides for a fast-track mechanism for dispute resolution, which helps in reducing the time and cost involved in resolving disputes. All these factors have increased the confidence of homebuyers in the real estate market and have made home buying a more secure and hassle-free experience.

RERA Telangana:

The Telangana Real Estate (Regulation and Development) Act, 2016 (Telangana RERA) was enacted to regulate and promote transparency in the real estate sector in the state of Telangana. The key provisions of the Telangana RERA Act include mandatory registration of all real estate projects with the Telangana RERA authority, disclosure of all project-related information including the status of approvals, layout plans, and completion schedule, and the deposit of 70% of the project funds in a separate escrow account.

Under the Telangana RERA Act, developers are also required to obtain all necessary clearances and approvals before commencing any construction activity, failing which they may face legal action. Additionally, the Act mandates the formation of a separate association of allottees for each project, which gives them the right to collectively represent their grievances and seek legal redressal.

The Telangana RERA authority is responsible for implementing and enforcing the provisions of the Act. It has the power to revoke a developer’s registration in case of non-compliance, impose penalties, and resolve disputes between developers and homebuyers.

The Telangana RERA Act has brought significant benefits to homebuyers in the state. It has increased transparency, reduced the risk of fraud, and provided a platform for homebuyers to seek legal redressal in case of disputes. The Act has also improved the credibility of the real estate sector in Telangana and has contributed to the overall growth of the industry.

Impact of RERA Telangana on real estate in Hyderabad:

The implementation of Telangana RERA has had a significant impact on the real estate sector in Hyderabad. The Act has brought in transparency, accountability, and credibility to the real estate market in the city, resulting in increased buyer confidence.

One of the most significant changes that the Telangana RERA has brought in is the regulation of project timelines. Developers are now required to adhere to the completion schedule provided at the time of registration, failing which they may face penalties or even have their registration revoked. This has resulted in a reduction of project delays, which was a common issue in the past.

The Telangana RERA has also had an impact on the pricing of properties in Hyderabad. Developers are now required to disclose all project-related information, including the status of approvals and the estimated cost of construction. This has led to greater transparency in pricing, which has benefitted homebuyers by enabling them to make more informed decisions.

Another significant impact of Telangana RERA has been on the buyer confidence. The mandatory registration of all projects with the regulatory authority and the deposit of funds in an escrow account has instilled a sense of trust in the minds of homebuyers. The availability of a grievance redressal mechanism through the Telangana RERA authority has also boosted buyer confidence.

In conclusion, Telangana RERA has had a positive impact on the real estate sector in Hyderabad. It has brought in greater transparency, accountability, and credibility to the real estate market, resulting in increased buyer confidence. The regulation of project timelines and pricing has benefitted both developers and homebuyers, making the real estate market in Hyderabad more efficient and reliable.

RERA Telangana and delay in possession:

The implementation of Telangana RERA has had a significant impact on the issue of delay in possession of properties in Hyderabad. One of the primary reasons for delays in possession was the lack of accountability and transparency in the real estate sector. However, with the introduction of Telangana RERA, developers are now required to adhere to strict timelines and complete their projects on time.

Under the Telangana RERA Act, developers are required to register their projects with the regulatory authority and provide a completion schedule at the time of registration. They are also required to update the status of the project on a regular basis and obtain all necessary approvals before starting construction. The Act mandates that at least 70% of the funds received from homebuyers for a particular project must be deposited in a separate escrow account, which can only be used for the construction of that particular project.

These measures have helped to ensure that developers complete their projects on time and deliver possession of the property as per the agreed schedule. In case of any delays, the Act provides for penalties and even the revocation of the developer’s registration. This has helped protect the rights of homebuyers and given them the confidence that their investment is safe.

Furthermore, the Act also provides for the formation of a separate association of allottees for each project. This association has the power to represent the grievances of the homebuyers and seek legal redressal in case of any disputes with the developer. This has given homebuyers a voice and a platform to address their concerns, thereby protecting their rights.

In conclusion, Telangana RERA has had a significant impact on the issue of delay in possession in Hyderabad. The Act has introduced transparency, accountability, and credibility to the real estate market, ensuring that developers complete their projects on time and deliver possession of the property as per the agreed schedule. The Act has also provided homebuyers with a platform to address their grievances and seek legal redressal, thereby protecting their rights.

RERA Telangana and project financing:

The implementation of Telangana RERA has had a significant impact on project financing in the real estate sector in Hyderabad. One of the key issues in the sector was the practice of developers diverting funds meant for one project to another, resulting in delays and even abandonment of projects. Telangana RERA has introduced measures to prevent such practices and ensure that the funds collected from homebuyers are used only for the intended project.

Under Telangana RERA, developers are required to deposit at least 70% of the funds collected from homebuyers for a particular project in a separate escrow account. This account can only be used for the construction of that particular project and must be maintained by a scheduled bank. The funds can only be withdrawn by the developer in proportion to the completion of the project, as certified by an engineer, an architect, and a chartered accountant.

These measures have helped prevent developers from diverting funds meant for one project to another. It has also ensured that the funds collected from homebuyers are used for the intended project, thereby providing greater transparency and accountability in project financing.

Furthermore, Telangana RERA also mandates that developers provide all project-related information, including the estimated cost of construction, the status of approvals, and the timelines for completion. This has brought in greater transparency in project financing, making it easier for homebuyers to make informed decisions.

Telangana RERA and dispute resolution:

The implementation of Telangana RERA has had a significant impact on dispute resolution in the real estate sector in Hyderabad. The Act provides for the formation of a separate association of allottees for each project. This association has the power to represent the grievances of the homebuyers and seek legal redressal in case of any disputes with the developer. The regulatory authority can also act as a mediator between the homebuyers and the developer to resolve any disputes that may arise.

Furthermore, Telangana RERA mandates that developers provide a defect liability period of five years from the date of possession of the property. This means that developers are responsible for addressing any defects or issues in the property during this period, providing homebuyers with an added layer of protection and helping to resolve disputes related to the quality of the construction.

In conclusion, Telangana RERA has had a significant impact on dispute resolution in the real estate sector in Hyderabad. The Act has introduced greater transparency and accountability in the sector, making it easier for homebuyers to make informed decisions and avoid disputes with developers. The Act has also provided homebuyers with a platform to address their grievances and seek legal redressal, thereby protecting their rights and interests.

Future of real estate in Hyderabad with Telangana RERA:

One of the key benefits of Telangana RERA is that it has helped improve the credibility of the real estate sector. The Act has introduced greater transparency and accountability in project financing, making it easier for homebuyers to make informed decisions. This, in turn, is expected to increase buyer confidence and stimulate demand for real estate in Hyderabad.

The Act has also made it mandatory for developers to obtain all necessary approvals before starting construction, reducing the likelihood of project delays. The escrow account mechanism introduced under the Act has helped prevent developers from diverting funds meant for one project to another, ensuring timely completion of projects.

In conclusion, the future of the real estate sector in Hyderabad with Telangana RERA looks promising. The Act has introduced significant changes to the sector, addressing several issues faced by homebuyers and improving the credibility of the sector. These changes are expected to increase buyer confidence and stimulate demand for real estate in Hyderabad in the years to come. With greater transparency, accountability, and protection for homebuyers, the real estate sector in Hyderabad is poised for growth and development.

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Every real estate project which has land area more than 500 sqmts or has more than 8 apartments needs to be registered.

For new user registration at TSRERA as a promoter

1. Visit TSRERA login page at Telangana RERA website
2. Click on New Registration
3. Select the user type (promoter) and enter required details.
4. Enter the captcha and click “create user” icon once done
5. Click the activation link on the verification mail received