How RERA help to People in Real Estate sector

 

 

1)   According to RERA act, The builder will have to pay interest to the Buyer now  if delaying the              possession of the flats.

2) For the developers its compulsory to keep disclose all details prior starting the project. Even it be       Residential Project or commercial project. Details are like cost of particular land at which building is  going to stand, total construction cost or the project, capital to completed the project in targeted time,   Investment plan and name of investors, construction plan, Plat details, approval certificates, RERA certificate number etc. All mentioned details will always be available for the Real Estate Property Buyer.

3)  The promoter of a real estate development firm has to maintain a separate escrow account for each of    their projects. A minimum 70 per cent of the money from investors and buyers will have to be  deposited.     This money can only be used for the construction of the project and the cost borne towards the land.

4) RERA talks about the quality of construction in projects. Over the last few years, buyers have protested about poor of flats. The regulator will ensure protection to buyers in this matter for five years from the date of possession. If any issue is highlighted by buyers in front of the regulator in this period including in quality of construction and the provision of services, the developer will have to rectify the same in a matter of 30 days.

5)Developers can’t invite, advertise, sell, offer, market or book any plot, apartment, house, building, investment in projects, without first registering it with the regulatory authority. Furthermore, after registration, all the advertisement inviting investment will have to bear the unique RERA registration number. The registration no. will be provided project-wise.

6)    After registering the project, developers will have to furnish details of their financial statements, legal title deed and supporting documents.

7)    If the promoter defaults on delivery within the agreed deadline, they will be required to return the entire money invested by the buyers along with the pre agreed interest rate mentioned in the contract based on the model contract given by RERA

8)    If the buyer chooses not to take the money back, the builder will have to pay monthly interest on each delay month to the buyer till they get delivery.

9)    After developers register with the regulator, a page will be created for the builder on the regulatory authority’s website. The developer will be given login credentials using which it will upload all the information regarding the registered projects on the regulator’s website. The number, type of apartments, plots and projects and their completion status will be updated at a maximum quarterly basis.

10) To add further security to buyers, RERA mandates that developers can’t ask more than 10 per cent of the property’s cost as an advanced payment booking amount before actually signing a registered sale agreement.

11) The regulator will have the power to fine and imprison errant builders based on a case by case basis. The imprisonment can go up to a period of three years for a project.