The Real Estate Regulatory Authority Act (RERA) is believed to be one of the watermarkin the constitutional amendments which have been passed by the Indian Parliament till date. The acts directs to touch base on the problems of buyers in the process of buying a new house and to bring clarity and accountability in the real estate sector of the country.
The act is being considered as a milestone in the Indian Legislation as it promises to bring in more investment in the real estate sector. The government has bought RERA into effect starting from May of the year 2017.
Here are twelve of the very important facts that every potential homeowner must know about RERA Act.
1. 70 percent of the amount must be deposited in the bank by the builder
The key highlight about the bill is that the builders will have to deposit 70 per cent of the buying amount in the bank so that the same is used for the construction of the project.
2. Booking amount taken from the consumers:
Develops used to ask for 10 per cent of the total cost of the property as an advance, but with the implementation of RERA they cannot ask for 10 per cent without a sales agreement.
3. The builder would be liable for penalties
If the builder is found to be promoting a project that is not registered then heavy penalty would be levied on the builder for the same.
4. Compensation for not on time delivery
The penalty can be levied on the developer if there is a delay in handover of possession as per the conditions are given in the sale agreement.
5. The Act applies to residential and commercial projects
The law applies to both commercial and residential projects. The monetary transactions are tracked if the person wants to buy a commercial property.
6. Addressing the complaints of both the buyers and developers.
The government will be giving authority to the Real Estate Regulatory Authority to redress the complaints of both buyers and sellers within 60 days.
7. Delivery of Project on time
The builders now could not invest the money they have got from the buyers in another project. This would ensure the timely delivery of the project.
8. Details of the ongoing project
The developers would have to share the original sanctioned plans and changes they intend to make in a project to ensure timely delivery.
9. Projects need to be registered
To avoid fraudulent activities, the government has made sure through the RERA Act that the project that is registered are only sold.
10. Enforcement to maintain transparency in dealings
It is now mandatory that the builder has to release all the minor details related to the construction of the building in an effort to maintain transparency.
11. The project has to be done at the will of the customers
Once the project is on the roll, the changes can only be made by the will of the customers and with their complete knowledge of the same.
12. Selling price would be determined on the carpet area
According to RERA, the sale would be based on the carpet area of the project and not on the super area.