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How is RERA helpful to common man?
The main aim of Indian Real Estate (Regulation and Development) Act, 2016 (RERA) is to enhance transparency in the real estate related transactions by creating a systematic and a uniform regulatory environment, thereby protecting consumers’ interest and making real estate developers liable for timely completion of projects along with committed specifications, amenities and facilities.
How RERA will help the buyers?
The rules as made under RERA are to give buyers certain rights that will help in protecting their interests and enhance their trust in the real sector in India. Some of the important rules are as follows:
Disclosure and transparency
All the buyers have the right to get all the details relating to that of the project such as sanctioned plans, cost of construction, covered parking lots, phase-wise plans of development, cost of land, development agreement, open spaces, project completion time etc. These details must be made available to the public on state’s respective RERA website. The buyers are also entitled to get the information relating to the sale of units and covered parking lots.
Registration of all projects
The developers need to register their projects with the respective state’s RERA within three months of the implementation of the RERA rules in their state. Till the time the project is registered, the developer is not entitled to advertise, book, market, invite persons to purchase in any manner any plot , apartment or building , or sale or offer for sale. Those failing to register their properties in accordance with the act will be liable to a penalty which may extend up to 10 per cent of the estimated cost of the project. The act also states that on subsequent violation, the developer/promoter of the said project shall be punishable with imprisonment for a term which may extend up to three years, or with a fine which may extend up to 10 per cent of the estimated cost of the project, or both.
Also, the promoters are required to provide the updates on the status of the project to the authority quarterly.
Benefits for buyers
Developers liable for any structural defect
If a buyer finds any structural or workmanship defect within five years from date of being handed over the flat, then the developer will have to rectify it without any further charge. If he fails to do so then the buyer has the right to complaint against the developer to the RERA authority.
Developers are prohibited to make any changes in the sanctioned plan
A buyer can also file a complaint against the developer if he make any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities etc. without the previous consent of at least two-thirds of the allottees, other than the promoter, who have agreed to take apartments in a building.
Anti-Discriminatory Clause to prevent consumer discrimination
The developer is not to restrict sale on the basis of caste or community. If he does so, the buyer has the right to file a cased against him to the RERA authority.
Penalty for project delays
If a project gets delayed then the developer will be liable to pay the monthly interest on bank loans taken for under-construction flats.
Buyers can claim possessions
The buyer can claim possession of the unit and the association of buyers can collectively claim possession of the common areas as declared by the real estate developer.
Disclaimer: The article contains data collected from various sources & the use of same is at readers discretion.