Real estate experts underline the need for further strengthening the RERA, whose purpose is to protect the interests of property buyers on the lines of the Maha RERA and introduce the standard allotment document in RERA Act. Then only, the buyers would feel more secured. Therefore, they want the Telugu states to take a decision in this regard. They opine that the RERA should have wider power. Builders should sell units in their projects only after registering their project with the RERA. However, some developers have been commencing the sale of units in their projects pending securing necessary approvals from civic body and registration of their projects with the RERA. Some others have been entering into contracts with the site owner and collecting advance from customers promising them to build sky-rise buildings.
In fact, the builder should register their every project with the RERA. However, some builders having registered their project with it are accused of not following the RERA guidelines. There is also criticism that the RERA is not bother to pay attention to the disputes between builders and consumers. Therefore, the Maha RERA introduced a rule pertaining to the standard allotment document, which is highly useful to resolve the disputes between builders and property buyers. The document is also useful to improve transparency in sale of units and to decrease the disputes between builders and buyers. The builder is required to give details of date of possession of the flat, independent house or villa and also the allotment of the parking facility and the amount to be paid to the builder in case cancellation of the allotment.
In the absence of the document, the builders have been entering into agreements of sale with buyers to suit their purposes. While cancelling the booking of the property, the buyers are suffering losses in taking back the amount paid towards the advance. That is why the MahaRERA has introduced the standard allotment document. Whoever is the builder, he or she should include the document while registering their project with the RERA. Non-inclusion of the document could lead to rejection of the application to register the property and impose a fine of 5% of the cost. The real estate experts are appealing to the RERAs in Telugu states to introduce the document on the lines of the Maharashtra government so that the rights of the property buyers are fully protected.
