- Implications of RERA on buyers, builders, agents
- Provisions applicable to both residential and commercial properties
- Expected to bring in transparency and accountability in real estate sector
- Each state to set up Real Estate Regulatory Authority to regulate real estate development
- Standardization of norms to protect interests of buyers and developers
- Aims to minimize rampant project delays and mis-selling
- Real Estate Regulatory Authority:-
RERA is an Act for regulation and promotion of the real estate sector to ensure the sale of apartment, plot or building in an efficient and transparent manner. The Act aims to protect the interest of consumers. It was enacted by the Parliament in May 2016 and the Act has come into force with all its 92 sections from 1st May, 2017 across India. So far, 14 states and union territories such as Uttar Pradesh, Gujarat, Bihar, Madhya Pradesh, Odisha, Andhra Pradesh and Maharashtra have notified their rules with RERA and the others are expected to follow suit.
The implementation of RERA is expected to bring relief to the homebuyers as builders will be accountable for the timely delivery of the projects and to protect buyers from fraud sellers. The developers would also gain from the increased confidence of the consumers in a regulated environment.
It is mandatory for the developers to get all approvals from various government agencies before launching a project and disclose all the information on the website that the respective state RERA regulatory authority will set up.
Real estate agents will be provided a registration number by the regulator which they have to mention in every property sale. This will help in eliminating the possibility of misleading the purchaser. The authority has wide ranging powers to impose penalties and imprisonment of agents in case of violation of law.
- Advantages of RERA for homebuyers
- Builders have to disclose every detail of the project on the website of authority and update these on a regular basis
- The buyer will have to pay only on the basis of carpet area (area within walls). The builder cannot charge them for the super built-up area (lift, balcony, stairs and lobby)
- Timely completion of projects as 70% of the money collected from the customer has to be transferred in a separate bank account and can be used only for the purpose of completing the construction of the project
- Any delay in completion of the project will require the developer to pay an interest rate of 2% above SBI’s Marginal cost of leading rate to the buyer for delayed period
- Any defect in the building will be the responsibility of builder for a period of 5 years
- Any disputes with the buyers need to be resolved within 120 days
FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]
