Registration of Projects:
- Mandatory Registration: Any commercial real estate project that exceeds 500 square meters (or any development with more than 8 units) must be registered with RERA.
- Application: Builders or developers must provide project details, including plans, timelines, and completion dates, before starting construction.
Project Transparency:
- Developers must disclose essential information like project timelines, approvals, and development plans to RERA.
- They are required to provide accurate details about the property, including land title and ownership rights.
Builder’s Accountability:
- Developers are liable for any delay in the completion of the project, and they must compensate buyers for any delay beyond the promised delivery date.
- For commercial property, this ensures that businesses can plan their operations without worrying about prolonged construction delays.
Defects Liability:
- Developers are responsible for any defects in construction for up to five years, ensuring the quality and durability of the commercial property.
- This applies to structural defects and any faulty construction.
Sale of Units:
- Builders cannot take advances or book commercial spaces until the project is registered with RERA.
- Payment schedules and terms must be clearly outlined, and developers cannot demand payments for construction work not yet completed.
Project Completion:
- Developers must complete the project on time, and the timeline should be agreed upon at the time of registration.
- Any changes to the project need to be communicated to RERA and stakeholders.
Title of Land:
- Developers must provide proof of ownership or lawful possession of the land on which the commercial project is being built.
- Ensures the legitimacy of the development and reduces the chances of land disputes.
Environmental Clearances:
- RERA mandates that commercial property developers obtain all the necessary environmental clearances before proceeding with construction, especially for large-scale developments.
Occupancy Certificate:
- A project cannot be occupied or leased out without receiving the necessary occupancy certificate from local authorities. RERA enforces this rule to ensure that all construction complies with safety and legal standards.
Regulation of Agents:
- RERA regulates real estate agents and brokers, ensuring they are registered and adhere to ethical standards, which helps in maintaining transparency during the sale or lease of commercial spaces.
Overall, RERA’s policies have improved transparency, accountability, and professionalism in the construction and sale of commercial properties. However, the specifics can vary slightly based on the state or region, as each state in India has its own RERA authority.
If you're working on or considering investing in a commercial property project, it’s crucial to stay updated on both state and national RERA regulations that may apply to your specific case.
