Any new act, law or policy usually takes time for people to understand the benefits and setbacks it brings along . However, with RERA the outcomes of the law seems positive. Basic objectives of RERA, is to ensure the accountability of builders towards buyers, protect the buyer’s interest, infuse transparency, ensure a fair play to reduce frauds and delays, with respect to Real Estate Properties.
RERA will not only impact new buyers but also help those who are yet to receive possession of real estate property. The launch of new property by any builder, will not be approved till the builders get the Registration Number for the project.
If you are a potential home buyer, here’s all you need to know about the new realty law:
1. It is a mandate for all builders, developing a real estate project where the land exceeds 500 square metre, to register with RERA before launching or advertising their project. Not doing so, will invite a fine of up to 10% of the total project cost or imprisonment of 3 years.
2. Builders will be required to deposit 70 percent, of the money they collect from prospective home buyers, into an escrow account; that shall only be used for construction purposes. They must also disclose exact details of when the property will be completed, how much money they have already collected, project layout plan, cost and sales agreement that prospective buyers will have to sign. Only developers who fulfil this disclosure clause would be permitted to advertise their project to prospective buyers. Any new advertising of unsold property for ongoing
projects or any major structural changes will need approval from two-thirds of existing occupants or homeowners.
3. In the case of completed projects, where the builders have received the completion and occupancy certificates (CC/OC), the selling may continue through an advertisement for units which had remained unsold. In case of all ongoing projects, for which the completion certificate has not been issued as on the date of commencement of this Act in the state, the promoter must apply for registering such incomplete projects within a period of 3 months .In addition, builders will also have to enter a registered sales agreement if they collect more than 10 percent of the
home value at the time of booking the project.
4. If builders have delayed a housing project, they will now have to either refund the entire amount, or pay interest on it until the home is delivered to the buyer.
5. Filing a case under RERA committee adjudicates on all disputes.It has transparency and chances of prompt disposal of complaints; with no ambiguity in area measurements.
RERA will not only bring back confidence among end-users, but will also provide better clarity, to make informed decisions to buy homes that you desire.
Decision of buying a apartment that is RERA compliant at Advaitha Aksha can prove to be a thoughtful one;