A developer may be a person or a limited company that deals in the construction and sale of buildings and plots of land.
They are the foundation stone of the real estate sector. Also known as builders, they are the bridge between the investor and the final project. They cover the critical infrastructural aspects that range across segments, such as housing, retail, office space and entertainment.
Self-regulation among developers
In a bid to self-regulate and bring transparency in the real estate segment, developers are a part of real estate bodies, such as the Confederation of Real Estate Developers’ Associations of India (Credai), the National Real Estate Development Council (Naredco) and the Maharashtra Chamber of Housing Industry (MCHI).
Responsibilities of a developer
A developer adds and ups the value of a real estate project concerning the project’s:
- Location
- Design
- Functionality
- Cost
What are the tasks managed by a developer while constructing a project?
- Buy land for project development
- Plan the project’s design based on the target market
- Arrange finances for the project
- Get all the required approvals and RERA registration
- Plan the marketing of the project
- Construct the project on time, adhering to the blueprint
- Sell the properties in the project
What are the legal responsibilities managed by a developer?
- A developer should have all his projects RERA-registered to safeguard home buyer’s interests
- The title deeds should be clear and transparent
- Before starting a project, a developer should have all the regulatory clearances
- He should arrange the finances and construction materials in advance
- Builders should explain real estate terms, such as carpet area, built-up area, super built-up areas, and RERA carpet area, with the blueprint to the home buyers
- Developers should update the quarterly project reports on the RERA website to keep the home buyers updated on the progress
- He should pay all the money to the investors in case a project gets stalled
- A developer should keep the customers informed on the progress and update them regularly
- Developers should give a proper idea of extra charges that come along with the property, such as VAT, service taxand floor-rise charges
- While marketing the project, the developer should mention the RERA-registered number, company website and QR code on the advertisement
- Developers cannot develop in areas marked as green spaces or fall under the CRZ
FAQs
With whom does a developer work closely?
A builder works with different people during the construction of a project, including agents, contractors, city planners, surveyors, architects, engineers and lawyers.
What is the developer regulatory authority established by the government?
The developers are governed by the Real Estate Regulatory Authority (RERA) Act, 2016.
Is it compulsory for all the developers to be RERA-registered?
Yes, all the developers must develop RERA-registered projects, irrespective of the state.
What is MahaRERA?
MahaRERA or Maharashtra RERA is the Real Estate Regulatory Authority body prevalent in Maharashtra.
What is a developer also known as?
The developer is also known as a builder.
What happens if a developer does not adhere to RERA rules?
If a developer does not adhere to RERA rules, he can lose his project registration number. This will result in the project being sealed and the bank account frozen. This will not be released unless the developer complies with regulatory requirements and a penalty is paid.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
